Taiwan and India have reached an agreement to introduce Indian migrant workers to Taiwan, a move aimed at addressing labor shortages on the island, officials announced on February 16. The pact, signed between the de facto embassies of the two territories in Taipei and Delhi, marks a significant step for Taiwan as it looks to diversify its foreign labor sources beyond Southeast Asia.
The island, known for its leading role in the semiconductor industry, is facing demographic challenges with an aging population. Currently, Taiwan is home to approximately 700,000 migrant workers, predominantly from Vietnam, Indonesia, the Philippines, and Thailand, engaged in manufacturing and caregiving roles.
According to Taiwan's Ministry of Labour, the memorandum of understanding represents a broad agreement, with further details on implementation yet to be finalized. The ministry highlighted the growing need for workers across various sectors, including manufacturing, construction, and agriculture, which the domestic workforce cannot sufficiently meet. The inclusion of Indian workers, praised for their stability and work ethic, is seen as part of the solution to this challenge.
Initially, a pilot program will be launched to assess the integration of Indian workers into Taiwan's labor market, with the scope for expansion based on the program's success. The exact number of workers to be permitted entry under this agreement remains undecided, with the ministry stating that future numbers will be determined by Taiwan itself. This statement comes amidst previous denials of reports suggesting that up to 100,000 Indian workers could be admitted.
The relationship between India and Taiwan, while unofficial due to India's non-recognition of Taiwan as a separate entity from China, has been characterized by growing business engagements. India is keen on attracting more investments and manufacturing expertise from Taiwanese tech companies, an ambition that this new labor agreement could further facilitate.
This development underscores the evolving dynamics of international labor migration and economic cooperation, even among countries with complex diplomatic relationships.
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