“China Factor,” has always been a crucial element that shapes India’s attitude towards Taiwan. According to number of China experts, the journey of India- Taiwan relations have happened under the shadow of China only. Taiwan never featured prominently within India’s Act East Policy as always been overshadowed by much bigger Sino-Indian ties. In the last few years, the concept of Indo-Pacific region has received immense political, economic and strategic attention. Undoubtedly, India is among the politically and strategically major players in the region along with China, Japan, Australia, South Korea, the United States and countries of Southeast Asia. Taiwan constitutes a vital component of Indo-Pacific due to its crucial geographical position in the region. To a significant extent, it is also due to the island nation’s critical position in relation to Sino-US relations. Taiwan’s strategic location links the Indian Ocean to the South China Sea and the Sea of Japan. Most importantly, they are used as critical sea routes for exporting and importing of goods worth $ 5.5 trillion annually, according to Center for Strategic and International Studies (CSIS). These routes are extremely important for the import of energy resources to three East Asian countries – China, Japan and South Korea. Since the Indo-Pacific has turned into the center of global dynamism and trade agreements, undisruptive sea lines of communication are crucial for region’s growth and prosperity. However, China’s assertive policies and actions make Taiwan restless and worried. India looks at the Indo-Pacific as an open, libertarian and democratic zone. In the face of assertive China, assessing India’s reaction is crucial as it advocates rules -based, open, balanced liberal order and stable trading environment in the Indo-Pacific region. Being the largest democracy and among the fastest growing economies of the world, it is important for India to acknowledge Taiwan’s democratic position and economic capability. In fact, power dynamics in the Indo-Pacific have recently altered, and it’s the appropriate time for New Delhi to engage more politically and economically with Taiwan.