DEMOGRAPHIC PROFILE OF TAIWAN

Capital The capital of Taiwan is Taipei.

Location Eastern Asia, islands bordering the East China Sea, Philippine Sea,

South China Sea, and Taiwan Strait, north of the Philippines, off the southeastern coast of China.

Area The total area of Taiwan is 35,980 sq km, which includes land of 32,260 sq km and

water of 3,720 sq km. 

Population The population of Taiwan as per July 2011 is 23,071,779

DIFFERENT ECONOMIC SECTORS OF TAIWAN

Correspondingly, the government has identified and appropriated funding for the development of 10 high technology industries that will be the foundation of Taiwan's economy. The following are the ten industries: Communications, Information, Consumer electronics, Semiconductors, Precision machinery and automation, Aerospace, Advanced materials, Specialty chemicals and pharmaceuticals, Medical and health care equipment, and Pollution control and treatment.

ECONOMIC OVERVIEW OF THE COUNTRY

Taiwan ranks 18th in comparison to India ranking 4th while comparing the world chart of purchasing power parity.

GDP (purchasing power parity):$821.8 billion (2010) 

$741.5 billion (2009) $756.1 billion (2008) 

Key Facts GDP (official exchange rate): $430.6 billion (2010) GDP - real growth rate: 10.8% (2010) GDP-composition by sector: Agriculture: 1.4% Industry: 31.1% Services: 67.5% (2010) Labor force: 11.07 million (2010) Unemployment rate: 5.2% (2010)

OVERVIEW OF INDUSTRIES TRADE AND COMMERCE IN TAIWAN

The following are the major industries of Taiwan: Electronics, communications and information technology products,

petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals.

Exports: $274.4 billion (2010)  $203.4 billion (2009)

Imports: $251.4 billion (2010) 

$174.4 billion (2009)

PRESENT TRADE RELATIONS AND BUSINESSVOLUME OF DIFFERENT PRODUCTS WITH INDIA

Year Exports

to

India

Growth compared

to previous year

(%)

Imports

from India

Growth compared

to previous year

(%)

2004 1,070.2 -- 860.5 --

2005 1,567.9 46.51 857.2 - 0.38

2006 1,471.1 - 6.17 1,245.3 45.28

2007 2,342.0 59.2 2,542.4 104.16

2008 3,007.5 28.42 2.338.4 - 8.02

2009 2,531.4 -15.83 1,623.9 -30.56

2010

(Jan-Apr)1,008.7 23.3 1,054.7 242.2

PRODUCTS EXPORTED AND IMPORTED BETWEEN INDIA AND TAIWAN

Exports to India Imports from India

Mineral fuels Cereals

Oils Organic chemicals

Electrical machinery Iron

Organic chemicals Steel

Plastic articles -

Equipment -

Pestle Analysis• Political Analysis• shifted from being strictly communist to

democratic system• Constitution: December 25, 1946; last amended

2005.• Major political parties: Kuomintang (KMT or

Nationalist Party); Democratic Progressive Party (DPP); several small parties

• Central budget proposed (FY 2011): NT $1.789 trillion (U.S. $62.79 billion)

Economic Analysis

• focus shifted from, capital-intensive and technology-intensive toward developing the service sector.

• holding the world's fourth-largest stock of foreign exchange reserves

• Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as 2011.

• Taiwan in June 2010 signed the landmark Economic Cooperation Framework Agreement (ECFA)

• Exports, led by electronics and machinery, generate about 70% of Taiwan's GDP growth

 Socio-Cultural Analysis

• Culture: is distinctive blend of Chinese, Japanese, and Western influences

• Religion: Over 93% of Taiwanese are combination of the polytheistic ancient Chinese religion, Buddhism, Confucianism, and Taoism

• Food: Japanese influence exists in Taiwanese food habits like Pearl milk tea (also known as bubble tea or boba) is a popular tea drink

• Clothing: prefer traditional clothing headdresses, kimonos, tunics, and sashes, and even particular kinds of ceremonial wedding dresses.

Technological Analysis

• Stable technological infrastructure • Superior commercialized technology, especially

within the information electronics category• Technical support from overseas Chinese

researchers3 COMPETITIVE INDUSTRIES • Information and semiconductor industries• Telecommunication• Major manufacturing center for network products

and mobile phones.

Environmental Analysis

• Area: 36,189 sq. km. (13,973 sq. mi.).

• Terrain: Two thirds of the island is largely mountainous with 100 peaks over 3,000 meters

• Natural hazards: earthquakes; typhoons 

• The companies that seek to operate in Taiwan are subjected to the major environmental laws in the region.

Legal Analysis

I. Tariff concessions

II. Non-tariff measures

III. Trade in services

IV. Transparency and Liberalizing Actions in Other Trade Sectors:

Conclusion• The focus of Taiwan's production has shifted away

from labor-intensive products to high-tech products.• great market for India for both imports and exports.• Taiwan in its efforts to attract new foreign investment

would help Indian investors through various trade concessions  

• Taiwan's economic system can be expected to become increasingly stable and predictable, thereby providing foreign companies investing in Taiwan with growing commercial opportunities and a reliable policy environment in which to operate.