The Government in the Southern Indian State of Tamil Nadu has announced that it will be setting up a dedicated manufacturing space to cater for Taiwanese firms. Dubbed the Taiwanese Industrial Park, the facility is to be situated near the capital city of Chennai.

Advertisment

"Taiwanese investments constitute a significant share of the FDI into the State, particularly in sectors like electronics and footwear. The Taiwanese Industrial Park will target to attract investments of Rs.10,000cr ($1.17bn) from Taiwanese firms in sectors such as electronic components, technical textiles, and footwear components, creating employment potential for 20,000 jobs," said the Industries, Investment Promotion and Commerce Dept of the Tamil Nadu Government. 

Also read: Is China again conspiring against Taiwan? Beijing's secret nuclear submarines spotted near Taiwan on Google maps

Taiwan’s economic interaction with India has gained momentum in recent years with several bilateral agreements on agriculture, investments, industrial and customs cooperation, among others.

Advertisment

Of more than 250 Taiwanese firms invested in India, more than 60 per cent are based in the Southern part of the country, and most of these firms are based in Tamil Nadu, according to the data from the Taiwanese Government. Among these firms are leading contract manufacturers of mobile phones and electronic gadgets and makers of non-leather footwear.

Watch: Potential war in Taiwan can cost up to 10% of global GDP: Report

Notably, Chennai is also home to the Taipei Economic and Cultural Center in Chennai, which works with governments in work with counterparts of the state and city governments in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Kerala to further strengthen economic and cultural exchanges between India and Taiwan, and to facilitate the investment of Taiwanese companies in the region.

Advertisment

Tamil Nadu is the second-largest economy in India and a leading state in manufacturing and exports. In the economic report for the year 2024-25, Tamil Nadu has topped India with a growth rate of 9.69 %. This is the highest growth achieved by Tamil Nadu in the last decade. The Tamil Nadu Government is taking various initiatives to grow the state economy to $1 trillion by 2030 and to attract the necessary investments.

In the year 2024-25, Tamil Nadu hit a historic high of $14.65 billion in electronics exports, this amounts to 41.23% of India's electronics exports. In the year 2023-24, Tamil Nadu's electronics exports stood at $9.56 billion and have risen 53% to reach the present $14.65 billion. With $ 7.85 billion in electronics exports, Karnataka stands second in the list of India's top electronics exporting states, while Uttar Pradesh stands third with $5.26bn.

On Friday, 25th April, Tamil Nadu's Industries Minister TRB Rajaa announced that South Korean electronics major Samsung would be making an additional investment of Rs.1000cr ($117mn) at their existing facility in Sriperumbudur, near Chennai, creating 100 more jobs. Samsung's factory here makes home appliances including televisions, refrigerators, and washing machines.

The facility here that employs over 2,000 people is a crucial one for the South Korean firm, which is the leading seller of home appliances in India. Samsung's plant has also faced labour unrest in recent times, but this announcement of investment appears to allay concerns. However, a specific window by which the investment would materialize has not been revealed.