Taipei has pinned its hopes on India being the next hot destination for Taiwanese investment in a bid to reduce growing reliance on the vast mainland market, which policymakers fear could hurt the island in the long run.
'Taiwan is too small to put all its eggs in one basket,' said Shih Yen-shiang, vice-minister of economics. 'And being a member of the global economy, India's market can never be ignored.'
Taiwanese investment and trade with the mainland, the island's biggest market since 2001, has grown rapidly.
Last year, Taiwan enjoyed a trade surplus of US$62.5 billion over the mainland, with exports of US$89.1 billion accounting for 39.8 per cent of the island's total.
Taiwanese investors have pumped at least US$150 billion into the mainland via third areas amid a ban on direct economic links, according to the island's Mainland Affairs Council.
Dr Shih said the fact that 70 per cent of Taiwan's outward investments were bound for the mainland posed a great risk to the island, and the government had a responsibility to remind businessmen not to focus only on the mainland market.