India is actively strengthening economic connections with Taiwan, as per senior officials acquainted with the situation. There are plans to dispatch tens of thousands of workers to the island as soon as next month, a move that has the potential to provoke concern from neighbouring China.

Taiwan is considering the recruitment of up to 100,000 Indian workers for roles in factories, farms, and hospitals, according to insiders who requested anonymity due to the confidential nature of the discussions. It is anticipated that the two parties will formalize an employment mobility agreement as early as December.

Taiwan requires additional workers due to its aging population, while India faces challenges in generating enough jobs for its annually entering young workforce. Taiwan is anticipated to transform into a "super-aged" society by 2025, with the elderly comprising over a fifth of the population.

Despite the economic rationale, the employment agreement is likely to heighten geopolitical tensions with China. China strongly opposes official exchanges with Taiwan, a self-governed island claimed by Beijing. The proximity of China to Taiwan, separated by a narrow body of water, and their shared Himalayan border with India, a significant source of imports for the past two decades, adds complexity to the situation.

Entering into a pact with Taiwan doesn't imply India is abandoning the "One China Policy," recognizing the island as part of China. However, this stance hasn't been reiterated in public documents by New Delhi, which has fostered an active unofficial relationship with Taiwan.

Arindam Bagchi, a spokesperson for India's Ministry of External Affairs, informed reporters on Thursday that the India-Taiwan jobs pact is in the final stages of negotiation. While Taiwan's Ministry of Labour didn't specifically address the India deal to Bloomberg News, it expressed openness to collaborating with countries capable of supplying workers. Those familiar with the discussions mentioned that efforts are still underway to develop a mechanism for certifying the health of Indian workers willing to relocate to Taiwan.

Taiwan, experiencing its lowest unemployment since 2000, seeks Indian workers to sustain its $790 billion economy. Taiwan offers pay parity and insurance benefits to Indian workers, distinguishing it from other agreements made by New Delhi. India, now the world's most populous country, is prioritizing employment pacts with developed nations facing aging workforces.

India's government has inked agreements with 13 countries, including Japan, France, and the UK. Discussions are underway for similar arrangements with the Netherlands, Greece, Denmark, and Switzerland, according to sources.

Tensions between India and China escalated after a 2020 border clash, the worst in four decades. Thousands of soldiers, artillery guns, and tanks have been deployed by both nations in the Himalayan region since then. Diplomatic talks have shown little progress, with China releasing a new map in August claiming territories controlled by India.

Three former Indian military chiefs, who retired last year, attended a security conference in Taiwan this year, sparking objections from Beijing. Additionally, Taiwan and India signed an investment promotion pact in 2018.

Image source: Hindustan Times