Taiwan plans $2bln investments in 3yrs; wants tax sops

New Delhi, Oct 6 (UNI) Information, communication and technology (ICT) companies from Taiwan plan to invest two billion dollars in their Indian operations in next three years, if suitable infrastructure is created and adequate tax incentives are provided to them.

''Taiwanese companies are interested to triple their investments in the Indian ICT sector, provided tax incentives are made available to them alongwith the creation of proper infrastructure by India,'' Mr Andrew J Kao, Representative, Taipei Economic and Cultural Centre in New Delhi, told reporters today at IT/Communication Brand Event here.

Taiwan has given a representation to the Government of India seeking to sign the Double Taxation Avoidance Agreement with the country, which, after Parliament's amendment to section 90 (a) of the Income Tax Act, can now be signed, he added.

''First phase of discussions on the represention with government representatives is complete and the second round will be held at the end of December this year,'' Mr Kao told UNI.

As of now, Taiwan has made a total investment of about one billion dollars in India as compared to over 100 billion dollars in China.

''This is mainly for the absence of information on business environment in India, lack of proper infrastructre and negligible incentives for investments. There needs to be more official dialogue and representations between the two countries,'' he observed.

''India has a big market and expertise in desiging products for ICT industry in addition to having cheap Engish speaking labour force. This makes it a suitable manufacturing hub, but for the want of infrastructure facilities of roads, power and water, they are heading towards China which provides all these amenities,'' Mr Vinnie Mehta, Executive Director, Manufacture's Association for Information Technology (MAIT), said.

Many ICT companies from Taiwan are operating in India through their subsidiaries and business partners. D-Link India, a part of D-Link Corp; Acer India, a subsidiary of Acer Inc; Micro Star International (MSI) India, a subsidiary of MSI Co; and Gigabyte Technology India, a joint venture between D-Link India and Gigabyte Technology Taiwan are some of them.

Manufacturer and trader of mobile handsets Foxconn International Holdings has recently started construction of industrial park in Chennai to produce electronic connectors and components. The project, with an investment of 120 million dollars is the largest ever by a Taiwanese company in India.

If a conducive environment is provided, about 100 more companies will start operations in the country. This may include establishing manufacturing units,'' Mr Thomas Chang, Director, Taipei World Trade Centre, Mumbai, said.

Taiwan has already made two proposals to the Indian government for setting up non-IT special economic zones here.

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