India and Taiwan signed an MoU on the Facilitation of Employment of Indian Workers this February, which is all set to bring in a preliminary batch of 1,000 Indian workers to Taiwan under a 2024 agreement on migration and mobility with New Delhi. It will facilitate the deployment of Indian migrant workers in Taiwan with the manufacturing industry likely being the first to recruit Indian workers. Additionally, suggestions were made to allow Taiwanese businesses with factories or operational sites in India to be the first in the manufacturing industry to recruit Indian workers. Other sectors where Indian workers are expected to be deployed include construction, agriculture, and caregiving for the elderly.
Taiwan (AFP)
Another important milestone is the launch of two new visa programs aimed at attracting skilled Indian workers to fill roles in key sectors like technology, engineering, and others. The Taiwanese government’s initiative seeks to meet the increasing demand for skilled professionals and strengthen its workforce to support economic growth. At present, Taiwan is home to approximately 700,000 migrant workers. This article explores the potential collaboration between India and Taiwan in the skills sector and the growing influence of Indian Soft Power diplomacy in Taiwan.
Taiwan is planning to increase quotas for migrant workers in the manufacturing, construction, agriculture, and long-term care sectors. This change affects several industries, including seafood processing, tofu production, and shipbuilding, that will be allowed to hire up to 20% migrant workers of their total workforce. Grade A, B, and C construction companies can hire up to 30% of their workforce from migrant workers if they meet specific criteria. Additionally, private construction companies that previously could not hire migrant workers will now be able to hire up to 8,000 migrant workers, which can be raised to 15,000 if certain conditions are met. The blue-collar jobs may see a surge in migrants from India.
Simultaneously, the demand for skilled and professional services is also escalating. To this end, the first programme, the Employment Seeking Visa, allows Indian nationals to enter Taiwan and seek employment opportunities in their area of expertise. This visa provides an opportunity to explore the local job market before committing to a long-term position. It is an attractive option for those who wish to evaluate the employment landscape in Taiwan while considering potential career moves.
The second programme, the Taiwan Employment Gold Card, offers a more comprehensive package for highly skilled professionals. Combining a visa, work permit, and residence permit, the Gold Card is designed to facilitate the lives and work of top talent, entrepreneurs, and specialists in Taiwan. It offers long-term flexibility with a validity of up to three years. It is renewable for those who wish to extend their stay, being particularly appealing to individuals seeking to settle in Taiwan. Both visa programs are part of Taiwan’s efforts to strengthen its workforce by attracting international talent. The country is focusing on industries with a strong need for skilled workers, such as engineering, information technology, and research and development.
Taiwan faces labor shortages due to an aging population and one of the lowest birth rates in the world. High living costs, delayed marriage, and career ambitions contribute to fewer births, shrinking the workforce, and increasing the gap between available jobs and those qualified or able to fill them. Another major factor in Taiwan’s labour shortage is emigration, especially among young, skilled professionals seeking better opportunities abroad. This brain drain reduces talent in key industries, as many pursue higher-paying careers in tech and finance overseas. Traditional sectors like manufacturing and agriculture are most affected. Meanwhile, Taiwan’s strict immigration policies limit the ability to attract foreign workers. Although some rules have been eased in sectors like caregiving and manufacturing, overall immigration remains tightly controlled. This cautious approach makes it difficult to fill labour gaps with international workers, further worsening the workforce shortage and hindering growth in critical but less popular industries.
Taiwan’s education system has shifted its focus toward higher education, with an increasing number of people earning university degrees. However, this shift has created an educational mismatch, where many graduates’ skills don't match the needs of the labor market. This gap contributes to labor shortages in specific sectors, where there is a lack of skilled workers despite an oversupply of university graduates.
To address its labour shortage, Taiwan plans to welcome migrant workers from India, joining Vietnam, Indonesia, the Philippines, and Thailand. About 5,000 Indians are currently in Taiwan, mostly in white-collar jobs. India is a key part of Taiwan’s 2016 New Southbound Policy, which aims to strengthen ties and cooperation with South and Southeast Asia.India and Taiwan’s economic ties have grown steadily, with bilateral trade reaching $8.224 billion in 2023. Taiwan is India’s third-largest Asian trading partner, while India ranks 16th for Taiwan. Taiwan’s exports to India rose 13% to $6.013 billion, and imports from India totaled $2.211 billion.
Taiwan has become a major investor in India, especially in the information technology, electronics, and hardware manufacturing sectors. Large Taiwanese companies, like Foxconn, have set up manufacturing plants in India, helping to create jobs and transfer technology. India’s demographic dividend, with its large youth population and workforce, presents a valuable opportunity. Taiwan’s opening to Indian workers complements this. By 2030, India is expected to have a surplus of 1 million skilled tech professionals, and it has 37 million graduates, including 11 million in STEM fields. Known for their strong work ethic and stability, Indian workers can help fill Taiwan’s talent shortage. Equal pay and health care access in Taiwan make it an attractive destination. The Indian workforce matches Taiwan’s labor needs well, offering a mutually beneficial solution to bridge the talent gap while supporting Taiwan’s economic and industrial growth.
Operational challenges persist in implementing Taiwan’s recruitment of Indian workers. Taiwan will hire based on specific needs, as Indian worker skills differ across regions. The Northeastern Indian states are particularly considered due to cultural similarities. India has limited experience with direct overseas recruitment, so both countries will create dedicated units to manage this process. India will train workers to meet Taiwan’s standards, ensuring compliance with both nations’ laws. However, coordinating medical testing and migration databases may pose difficulties, testing the readiness and cooperation of both governments as the recruitment plan progresses. Although India and Taiwan lack formal diplomatic ties, this labour agreement marks a significant step in bilateral cooperation, promoting mutual benefits and closer collaboration. Skill matching enhances soft power diplomacy between the two nations.
This article is authored by Varuna Shankar, associate fellow, India's World Magazine.
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