Gujarat: Taiwan Eyeing Investment In IT Sector

Gujarat could be home to an industrial cluster for manufacturing electronics. A high-level delegation of trade representatives from Taiwan, which is expected to arrive in Gujarat as part of the Vibrant Gujarat Global Summit (VGGS) 2019 next week, is looking at making large investments in the information technology (IT) sector. If top sources in the state government are to be believed, a memorandum of understanding (MoU) between the GESIA IT association and the Taiwan External Trade Development Council is in the pipeline.

“Taiwan External Trade Development Council is looking at a collaboration with GESIA (Gujarat Electronics and Software Industries’ Association) to set up a manufacturing cluster for electronics and electronic components,” a top source in the state government confirmed. “Some four MoUs are in the pipeline, with two large ones in the IT and IT-enabled services (ITES) sectors.”

The Taiwan Computer Association (TCA) is also exploring collaboration with the Federation of IT Associations of Gujarat (FITAG). “FITAG and TCA are exploring collaboration with the government of Gujarat. Discussions are underway for the setting up of yet another industrial cluster,” said the source.

The magnitude of Taiwanese investments through both these likely collaborations is not yet known. However, if they materialize, it will be a boost for the IT and ITES sectors in Gujarat, especially after it was awarded industry status

Government officials believe that if these investments come through, they will help Gujarat move toward the higher end of the manufacturing value chain. “Taiwan has grown because of small and medium companies. It is the world leader in electronics and hardware. If they come into Gujarat, the state’s manufacturing industry will move higher up the value chain and will benefit in terms of technology,” said D Thara, vice chairman and managing director of GIDC.

The delegation from Taiwan is also looking at investments in the chemicals and fertilizers sector, government sources said. Only recently the Taiwan-based China Synthetic Rubber Corporation (CSRC) also committed to an investment of Rs 1000 crore in Gujarat.― Times of India

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