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Q. Discuss the potential implications of a crisis in the Taiwan Strait for India’s geopolitical and economic security. Suggest appropriate measures India should take to mitigate potential impacts ? (250 words, 15 Marks)

ताइवान जलसंधि में संकट के संभावित परिणामों पर चर्चा करें, जो भारत की भू-राजनीतिक और आर्थिक सुरक्षा के लिए हो सकते हैं। बताएं कि भारत को आगामी प्रभावों को कम करने के लिए कौन-कौन से उपाय करने चाहिए।

Answer:

 Approach:

Introduction: Introduce by defining the geopolitical relevance of the Taiwan Strait and the potential of a crisis erupting there.

Body:

⮚ Discuss the potential effects on the strategic balance in the Asia-Pacific region, impact on Sino-Indian relations, and influence on US-India relations.

⮚ Analyze the potential disruption to trade and commerce and the impact on investment flows.

⮚ Suggest the steps that India could take to mitigate the potential impacts.

Conclusion: Conclude with a summary that emphasizes India’s need to navigate the scenario tactfully, maintain strategic autonomy, and protect its interests.

Introduction:

The Taiwan Strait Crisis is escalating tension between China and Taiwan. Post China’s civil war, two separate governments formed: China’s Communist Party on the mainland and the Kuomintang on Taiwan. As Taiwan pushes for independence, it conflicts with China’s claim that Taiwan is part of its territory, causing potential conflict. The fight is about national identity, sovereignty, and differing political ideologies. This tension between China and Taiwan can potentially have significant implications for India, both in terms of geopolitical and economic security.

Body:

Geopolitical Implications

  • Strategic Balance in Asia-Pacific:
    • A crisis in the Taiwan Strait could disrupt the strategic balance in the Asia-Pacific region.
    • If China establishes control over Taiwan, it might embolden Beijing to assert itself more aggressively in territorial disputes such as the South China Sea and Sino-Indian border conflicts.
  • Impact on Sino-Indian Relations:
    • Such a crisis could strain India’s already complex relationship with China.
    • India’s stance on Taiwan is typically viewed as a barometer of its relationship with Beijing.
    • A more pronounced dispute could force India into a diplomatic tightrope walk.
  • US-India Relations:
    • Considering the United States’ strong interest in Taiwan’s status and its efforts to curtail China’s rising influence, a Taiwan Strait crisis could potentially draw India closer to the US or put India under US pressure to choose sides, thereby influencing India’s foreign policy dynamics.

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Economic Implications

  • Trade and Commerce Disruptions:
    • A crisis in the Taiwan Strait can severely disrupt East Asian supply chains.
    • Taiwan is a major player in the global supply chain, particularly in the semiconductor industry where it accounts for 63% of the world’s semiconductor foundry production as of 2021.
    • This means that a significant proportion of the world’s electronics rely on components manufactured in Taiwan.
    • As per the data from 2020, India imported around $2.3 billion worth of electronic components, including semiconductors, from Taiwan, indicating a heavy reliance of India’s IT sector on Taiwan.
    • A crisis in the Taiwan Strait can, therefore, cause severe disruptions in India’s IT industry.
  • Impact on Investment:
    • Increased tensions can impact the flow of investments.
    • Foreign Direct Investment (FDI) is often sensitive to geopolitical risk, with investors likely to pull out or withhold investments in regions associated with instability.
    • Taiwanese firms have been gradually enhancing their investments in India, particularly in the areas of electronics, petrochemicals, and renewable energy.
    • Between April 2000 and June 2020, India received around $360 million FDI from Taiwan.
    • A crisis in the Taiwan Strait might discourage Taiwanese firms from further investments in India, hampering growth in these sectors.

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Suggested Measures for India

  • Strategic Autonomy: India should maintain strategic autonomy, balancing its relationships with major powers, and ensuring it doesn’t get drawn into unwanted regional conflicts.
  • Strengthening Defence: Given the possibility of an altered geopolitical landscape, India should continue strengthening its defence capabilities, particularly its naval presence in the Indian Ocean.
  • Diversification of Supply Chains: To mitigate economic risks, India should work on diversifying its supply chains, reducing reliance on single sources for critical components like semiconductors.
  • Multilateral Cooperation: India must seek to foster stronger ties with other Asia-Pacific democracies like Japan, South Korea, and Australia, forming a democratic bulwark against aggressive moves.

Conclusion:

While a potential crisis in the Taiwan Strait could have significant geopolitical and economic implications for India, it is crucial for India to navigate this complex scenario tactfully, maintaining strategic autonomy and safeguarding its interests. The focus should be on multilateral diplomacy, defence preparedness, and economic resilience to mitigate the potential impacts of such a crisis.

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Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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