Today East Asia is undoubtedly the most dynamic region of the world in terms of economic growth and development. The 1980s economic boom in East Asia drew the world's attention towards it. The ‘Four East Asian Tigers’ (South Korea, Singapore, Hong Kong and Taiwan), as they were called, ceased to appear like developing areas as they achieved phenomenal success in their growth-oriented strategies and effectively advanced the standard of living of their people. In India, Taiwan began to be noticed and its outstanding economic performance appreciated, both among the government and non-government circles.

Soon after independence, India's international overtures indicated that it wished to have close ties with the entire Asian and African region. In the post-cold war period this has been revived in some form. India's diplomatic relations with the People's Republic of China (PRC) rules out any possibilities of political ties with Taiwan. However, in the mid 1990s the Indian establishment's ‘Look East Policy’ widened the arena for a multidimensional relationship with the various entities in the East Asian region. In 1995, both India and Taiwan set up ‘Economic and Cultural Centres’ in Taipei and New Delhi. Economic relations had been growing much before this but with the setting up of these centres, people-to-people contacts have been increasing with each passing year. In the sphere of economic ties there is great scope for expansion particularly in the Information Technology (IT) sector.