New Delhi, Dec. 28 -- For 2025, Taiwan's GDP growth of more than 7% is the fastest in more than a decade, powered by a boom in semiconductors, AI servers and electronics exports. Yet, private consumption stagnated as consumer confidence is fragile. So, Taipei announced a one-off universal cash transfer.

But why would a high-income, high growth, fiscally-prudent economy, running record trade and current-account surpluses, resort to cash handouts? The answer lies in a disjunction between measured growth and experienced prosperity, one that should resonate uncomfortably in India.

Taiwan's growth has been spectacular. AI-driven demand has sent chip and server exports soaring by more than 30%. But this boom is concentrated in a small part of...