Taiwan has sought assistance of prowess of the skilled Indian software professionals to take on the might of China.

Taiwan is one of the most cost competitive producers of computer hardware but it lacks skills in software development.

"India is well known for its supremacy in software while Taiwan is a global giant in hardware and in electronics item. If these two are combined, it could create a win-win situation for both countries," a Taiwanese official said.

Technology related products contributed 50 per cent of Taiwan's manufacturing output. It is a sourcing base for many international giants with competitive edge in products like LCD monitor, notebook PC, PC camera among others.

Attending a seminar on doing business with Taiwan, Thomas Chang, director of liaison office in India, Taipei World Trade Centre, said Indian companies should consider partnering Taiwan in development.

"While everybody looks at China for similar tie-up, Taiwan should be considered as well," he said at the seminar hosted by Indian Chamber of Commerce.

India's Prime minister Vajpayee had called for marrying Indian prowess in software with the Chinese capability in hardware in his recent visit to China.

Earlier, M J Z Mowla, ICC committee member, said Nasscom had identified the emerging areas of chip design, embedded software, multimedia and telecom software, for co-operation between India and Taiwan.

"Companies from both countries could work together in these areas by forging relationship through joint ventures strategic alliances and joint product development and marketing," Mowla pointed out.

Apart from software, Taiwan was also looking at outsourcing textile products, cotton items and chemicals from India.

Since the market within the country itself is relatively small, Taiwanese companies are looking at the re-exporting opportunity after value additions.

The bilateral trade between India and Taiwan has seen healthy growth of late. The trade has grown from $400 million in 1991 to $1.123 billion in 2002.