INTRODUCTION

Taipei, the capital city of Taiwan, is a towering example of national pride and an impressive example of Information Technology (IT). Built in an earthquake prone region, the world's tallest building, Taipei 101 is a remarkable proof of architectural brilliance and resilience. Home to some of the finest universities, world-class research centres, sciences parks and computer-related products, India, which is 92 times bigger than Taiwan, can forge strong links and partnerships particularly in the field of IT.

The statistics are impressive and speak for themselves. Taiwan is ranked first in Asia and fourth in the world in growth competitiveness. It will be only appropriate to describe Taiwan's current economic situation and outlook for 2007. Economic growth, foreign trade, domestic investment, industrial production and employment are some of the key parameters that have been taken into account to do the forecasting.

TAIWAN'S FORECAST

Like weather, country forecasts could most of the times go wrong. The Economist says the political scene will remain unstable during 2007–08 in Taiwan quoting internecine squabbles between the ruling Democratic Progressive party (DPP) and the opposition, Kuomintang (KMT). But the economic development this year will be one of ‘stable adjustment’, says Academia Sinica, Taiwan's leading research institute. According to their report, ‘Overall Outlook for Taiwan's Economy 2007’, revived domestic demand will help Taiwan's real Gross Domestic Product (GDP) grow by 4.21 per cent this year.