Answer

The Taiwan Strait crisis is a key geopolitical flashpoint with global economic and security implications. Taiwan’s strategic location and dominance in semiconductor production make any conflict highly disruptive. For India, the crisis poses risks to national security, trade routes, and economic stability in the Indo-Pacific.

Taiwan as a Regional Flashpoint

• Historical Tensions: The Taiwan Strait has been a volatile zone since the 1950s, identified as a “danger point” due to its strategic location between the U.S. and China.
• Military Escalations: Since 2022, China’s PLA has increased drills and incursions into Taiwan’s Air Defence Identification Zone(ADIZ), viewed by the U.S. as potential invasion rehearsals.
• Political Tensions: Taiwan’s policies under President Lai are seen by Beijing as pro-independence, heightening mutual distrust.
• Davidson Window (2021): A U.S. Admiral warned of potential Chinese action by 2027, intensifying Indo-Pacific focus.
• U.S.-China Rivalry: Taiwan is central to the escalating power struggle and ideological clash between the two nations.

How Taiwan Poses a Global Economic and Security Challenge

Implications for India’s National Security and Economic Interests

Way Forward 

• Diversify Semiconductor Supply Chain: Accelerate the Semiconductor Mission and encourage strategic partnerships with countries like Japan, U.S., and Taiwan to reduce dependency.
• Strengthen Maritime Security: Build naval presence and strategic bases in the Andaman & Nicobar region and enhance collaboration with Quad partners to ensure trade security.
• Strategic Balancing: Maintain non-alignment with active engagement—assert support for international law while avoiding entanglement in direct conflict.
• Enhance Cyber Defence: Invest in cybersecurity infrastructure and increase public-private collaboration to harden critical sectors against potential Chinese-origin attacks.
• Economic Contingency Planning: Develop alternate trade corridors , and stockpile critical tech components.
• National Security Doctrine Update: Integrate Taiwan Strait and Indo-Pacific dynamics into India’s national security and foreign policy planning.

The Taiwan Strait crisis is not just a bilateral issue, it has direct and indirect consequences for India’s economic resilience, maritime security, and strategic standing in Asia. A balanced, proactive, and resilient approach is essential for India to safeguard its national interests amid a shifting global order.

DOWNLOAD PDF