Taiwan plans to hire 1 lakh Indian workers While China Tensions Brew
NEW DELHI (BLOOMBERG) – India is forging closer economic ties with Taiwan with a plan to send tens of thousands of workers to the island as early as next month, according to senior officials familiar with the matter, potentially angering neighbor China.
Taiwan is looking to hire as many as 1 lakh Indian workers to fill labor shortages in factories, farms, and hospitals. The two sides are expected to sign an employment mobility agreement by as early as December, Bloomberg reported.
The move comes as Taiwan faces a shrinking workforce due to its low birth rate and aging population. The government is hoping that the influx of Indian workers will help to boost the economy and meet the needs of key industries. Taiwan is shown to become a ‘super aged’ society by 2025 as the elderly people comprise over a fifth of the population.
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The employment agreement, however, is expected to exacerbate geopolitical tensions with China, which opposes any official exchange with Taiwan, a self-governed island that Beijing claims as its own. China shares a Himalayan border with India and is separated from Taiwan by a thin body of water. For the past two decades, it has also been India’s primary source of imports.
Arindam Bagchi, a spokesperson for India’s Ministry of External Affairs said on Thursday that the pact between India and Taiwan is currently in the final stages of negotiation.
In Taiwan, the unemployment rate has slumped to the lowest levels since 2000 and the recent decision has been taken in order to achieve and maintain the target of a $790 billion economy.
This comes as India is signing the employment pacts with developed countries facing aging workforces.
The employment mobility agreement will reportedly allow Indian workers to stay in Taiwan for up to three years and to bring their families with them. The workers will also be entitled to the same benefits as Taiwanese workers, such as minimum wage, social security, and paid leave.
According to the report, the Indian government has signed agreements with 13 countries, including Japan, France and the UK, and is in the process of making similar arrangements with the Netherlands, Greece, Denmark and Switzerland.
Report By Bloomberg and Busines today
