India-Taiwan: Employment Agreement's Geopolitical Impact

  Nov 14, 2023

India-Taiwan Economic Relations: Employment Mobility Agreement


India is moving towards strengthening economic ties with Taiwan by sending a significant number of Indian workers to the island, potentially straining relations with China.

Key Details:

1. Workforce Exchange Plan: Taiwan plans to hire up to one lakh Indian workers for various sectors including factories, farms, and hospitals.

2. Upcoming Agreement: Both countries are expected to sign an employment mobility agreement as early as December.

3. Taiwan’s Demographic Challenge: Taiwan, becoming a “super aged” society, requires more workers to support its ageing population.

4. India’s Employment Needs: The agreement aligns with India’s need to create job opportunities for its large young population.

5. Geopolitical Implications: The deal may escalate tensions with China, which opposes official exchanges with Taiwan.

6. India’s Diplomatic Stance: While India adheres to the “One China Policy”, it has not publicly reiterated this position recently, focusing instead on unofficial relations with Taiwan.

7. Final Negotiation Stages: India’s Ministry of External Affairs confirmed that the jobs pact is in its final stages.

8. Benefits for Indian Workers: Taiwan offers pay parity with local workers and insurance policies, which is unique compared to other countries with similar agreements.

9. India’s Broader Strategy: This pact is part of India’s initiative to establish employment agreements with countries facing workforce shortages due to ageing populations.


India’s plan to send workers to Taiwan marks a significant step in economic collaboration, balancing employment needs with diplomatic sensitivities involving China.



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