Abstract
In the era of stiff competition, India is trying to develop relations and increase trade with East Asian countries with Taiwan as a priority. In recent years, trade between the two countries has grown. The research focuses on the potential to develop a relationship that is mutually beneficial that addresses the growth and development of both countries. The study focuses on the economic condition of the country and how the policies are shaped to facilitate investment and trade. The study also focuses on the relationship between India and Taiwan and how Taiwan has taken steps to develop trade, investment and cultural relations. The research focuses on the investment climate in India and it focuses on selected states and sectors. To promote increased cooperation the process is already underway, as both the governments has signed various agreements to facilitate trade. The governments of both the countries are negotiating a Free Trade Agreement. The study also discusses some barriers to investment in India and how the government is taking steps to eradicate them. The study opens opportunities for Taiwanese business to understand the potential of Indian market for investment, which is beneficial for India and Taiwan in the long term.