Taiwan Eyes Free Trade Pact with India to Deepen Investment and Trade Ties
The Chairman of the Taiwan External Trade Development Council (TAITRA), James Chih-Fang Huang, expressed optimism about the possibility of a Free Trade Agreement (FTA) between India and Taiwan, calling it a potential catalyst for stronger business partnerships and increased Taiwanese investments in India. Speaking at the Taiwan Expo 2025 held at Bharat Mandapam, New Delhi, Huang described India as a key market in Taiwan’s export strategy, noting that India has become one of Taiwan’s most important export destinations. He added that bilateral trade is expected to double in the next five to six years, and an FTA would further accelerate Taiwanese participation in India’s manufacturing and technology sectors.
Echoing the sentiment, Benjamin Lin, President of Delta Electronics India, announced plans to expand operations with a new manufacturing site in Tamil Nadu, while Yu-Chi Chen, Executive Director of the Economic Division at the Taipei Economic and Cultural Centre, highlighted that bilateral trade touched a record USD 10.6 billion in 2024 and is poised to break that mark in 2025. The growing trade and potential FTA underscore India’s rising importance as a global manufacturing and investment hub — a signal for non-Indian companies to explore India as a strategic base for supply chains and regional partnerships amid shifting global trade dynamics.
Editor’s Note: Taiwan is optimistic about a Free Trade Agreement with India, viewing it as a catalyst for deeper business ties and increased investment, especially in manufacturing and technology. With bilateral trade hitting USD 10.6 billion in 2024 and expected to grow further, companies like Delta Electronics are expanding operations, signaling India’s emergence as a strategic global hub.
Government to Launch ₹1 Lakh Crore RDI Fund to Boost Private Sector Innovation
The government is in the final stages of launching the ₹1 lakh crore Research Development and Innovation (RDI) fund — the first public funding initiative aimed at supporting private sector R&D in India. Announced in the Union Budget and approved by the Cabinet in July, the fund is expected to roll out by November this year. Abhay Karandikar, Secretary of the Department of Science and Technology (DST), told The Economic Times that the move marks a major shift in India’s innovation policy, enabling public funds to directly stimulate private research and product development.
Karandikar explained that the RDI fund will function through a two-tier structure, with the DST channeling investments via professional fund managers rather than making direct allocations. The model will leverage venture capital and alternative investment funds, along with key institutions such as IITs and the Technology Development Board, to identify and support high-potential technologies and startups. The initiative could open new collaboration avenues for foreign technology firms, global investors, and innovation-driven enterprises seeking to engage with India’s expanding research ecosystem.
Editor’s Note: The government is set to launch a ₹1 lakh crore Research Development and Innovation (RDI) fund by November to boost private sector R&D, marking a major shift in India’s innovation policy. Managed through professional fund managers and supported by institutions like IITs and the Technology Development Board, the fund aims to attract global investors and foster high-potential technologies and startups.
Global Semiconductor Industry Faces Mounting Skills Shortage; Firms Turn to Cross-Border Training and Talent Rotation
The global semiconductor industry is confronting a deepening skills crisis, with over one million additional skilled workers expected to be needed by 2030. Rapid advances in AI, 5G, and quantum computing have outpaced the availability of qualified talent, creating a widening gap between demand and workforce readiness. Industry reports, including one from KPMG, highlight talent risk as a top concern for semiconductor leaders in 2025. The shortage is particularly acute in specialized roles such as VLSI design, process engineering, and materials science — leading to project delays, productivity losses, and billions in unrealized value. In India alone, the semiconductor sector requires an estimated 320,000–350,000 professionals, underscoring the urgency for global intervention.
To counter the shortage, chipmakers are increasingly adopting global training programs and talent rotation strategies that allow engineers to gain hands-on experience in advanced facilities abroad and transfer that expertise back home. Companies are also partnering with institutions in semiconductor hubs like Taiwan and Singapore to create tailored learning pathways and in-house centers of excellence. For non-Indian companies, this trend signals an opportunity to collaborate on workforce development, establish regional training partnerships, and tap into emerging markets such as India to build sustainable, skilled talent pipelines essential for the next era of semiconductor innovation.
Editor’s Note: The global semiconductor industry faces a severe talent shortage, with over one million skilled workers needed by 2030, especially in specialized roles like VLSI design and process engineering — prompting urgent global action, including in India where demand exceeds 320,000 professionals. To address this, firms are adopting cross-border training, talent rotation, and partnerships with institutions in hubs like Taiwan and Singapore to build sustainable, skilled pipelines and tap into emerging markets.
Germany Courts Indian Tech Talent Amid U.S. Visa Crackdown
Germany is positioning itself as a top destination for skilled Indian professionals at a time when the United States has tightened its H-1B visa rules and introduced a hefty $100,000 application fee, restricting access for many applicants. German Ambassador to India Philipp Ackermann, in a post on X, urged highly skilled Indians to consider Germany, highlighting its “reliable, modern, and predictable” migration policy. He emphasized that Indian professionals are among the top earners in Germany, contributing significantly to the country’s economy and welfare. Comparing Germany’s migration framework to its precision-engineered cars, Ackermann underscored its stability and transparency — a clear contrast to the growing uncertainty surrounding the U.S. immigration system.
With the U.S. pipeline for Indian tech workers likely to shrink, Germany’s proactive outreach could reshape global talent flows in technology, science, and management. For non-Indian companies, this shift signals a potential redistribution of high-skilled labor, opening opportunities for collaboration, recruitment, and investment in Germany’s growing innovation ecosystem. The move also reflects Europe’s broader strategy to fill critical skill gaps and strengthen competitiveness in advanced industries amid intensifying global competition for talent.
Editor’s Note: As the U.S. tightens H-1B visa rules with steep fees, Germany is actively courting Indian tech talent, promoting its stable and transparent migration policy as a top alternative. This shift could redirect global talent flows, offering non-Indian companies new opportunities for collaboration and investment in Germany’s expanding innovation ecosystem.
Tata Electronics in Talks with Global Vendors for India’s Semiconductor Projects
Tata Electronics is engaging with several international suppliers to support its upcoming semiconductor fabrication plant in Dholera, Gujarat, and an outsourced assembly and test (OSAT) facility in Assam, according to industry sources. The company has reportedly held discussions with major equipment providers, including Dutch photolithography giant ASML and South Korea’s JT Corp, a specialist in semiconductor testing systems. These talks mark a significant step in Tata’s efforts to establish a full-fledged semiconductor manufacturing ecosystem in India under the government’s broader push for self-reliance in advanced electronics.
The initiative highlights India’s growing ambition to emerge as a global semiconductor hub and offers new partnership opportunities for non-Indian firms across the chip value chain. International equipment makers, materials suppliers, and technology partners could benefit from early collaborations as Tata Electronics builds domestic capacity. For global players, India’s expanding semiconductor landscape represents not only a new market but also a strategic diversification opportunity amid evolving global supply chain realignments.
Editor’s Note: Tata Electronics is in talks with global suppliers like ASML and JT Corp to support its semiconductor fab in Gujarat and OSAT facility in Assam, advancing India’s push for self-reliance in advanced electronics. The initiative opens strategic opportunities for international partners across the chip value chain as India positions itself as a global semiconductor hub.
PhonePe Files for $1.5 Billion IPO, Poised to Be One of India’s Biggest Fintech Listings
Walmart-backed digital payments firm PhonePe Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking the first step toward a highly anticipated initial public offering (IPO) that could raise about $1.5 billion (₹12,000 crore) at a valuation of nearly $15 billion. The IPO is expected to comprise a mix of fresh share issuance and an offer for sale by existing investors, with Kotak Mahindra Capital, JPMorgan, Citigroup, and Morgan Stanley serving as lead managers. Filed under SEBI’s confidential route, the draft allows for regulatory feedback and flexible timing. In FY25, PhonePe reported a 40% rise in revenue to over ₹7,100 crore, a narrowing loss of ₹1,727 crore, and positive free cash flow exceeding ₹1,200 crore, underscoring improved financial performance ahead of the listing.
With over 600 million registered users and 40 million merchants, PhonePe has cemented its position as India’s largest UPI-based payments platform while expanding into lending, insurance, and wealth management. For non-Indian companies and global investors, the IPO represents a key entry point into India’s fast-growing digital finance ecosystem — one of the largest consumer fintech markets outside China. The listing could also set a benchmark for global fintech valuations and signal increasing investor confidence in India’s regulated, rapidly maturing digital payments sector.
https://www.newindianexpress.com/business/2025/Sep/24/phonepe-files-draft-papers-for-15-billion-ipo
Editor’s Note: PhonePe has filed for a $1.5 billion IPO at a $15 billion valuation, showcasing strong financials and marking one of India’s largest fintech listings. With 600 million users and expansion into lending and insurance, the move offers global investors a gateway into India’s booming digital finance ecosystem.