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India considers Chinese visa reforms after businesses hit by delays
India’s government is finalizing rules to cut down visa delays for Chinese technicians, responding to complaints from businesses who say the restrictions are hurting the country’s ability to become a manufacturing hub.
With an aim to cut down visa processing time to 30 days from five months, the Indian government is working with the Home and External Affairs ministries to finalise rules for reducing visa delays for Chinese technicians. This came after business complaints that the restrictions hurt the country’s ability to become a manufacturing hub.
The Department of Promotion of Industry and Internal Trade is creating a framework to fast-track visas for engineers and technicians needed to install Chinese-made machines in Indian factories, people familiar with the matter told Bloomberg, on the condition of anonymity.
Prime Minister Narendra Modi's administration implemented stringent measures against China after a deadly border clash in 2020 severely strained relations between the two nations.
These measures included banning hundreds of Chinese apps, slowing approvals for Chinese investments and visas, and reducing direct flights between the countries.
According to local media reports, India issued approximately 2,000 visas to Chinese nationals in 2024, a sharp decline from about 200,000 visas issued in 2019 before the pandemic.
They stated that discussions are underway to address the border crisis, yet diplomatic relations remain tense, with New Delhi asserting that normalization depends on resolving the dispute.
The government is reportedly considering reforms to simplify the visa process, allowing all companies in specified sectors receiving government subsidies to apply for business visas for Chinese workers.
Also Read | Chinese firms are expanding in South-East Asia
Currently, only manufacturing firms approved under incentive programs can apply for such visas, while others must navigate more complex employment permit procedures involving extensive paperwork.
India remains heavily reliant on imports from China, especially machinery needed in manufacturing. Chinese engineers are typically needed to install the equipment, conduct repair work, and train Indian workers on its use.
Businesses say the government’s hard line on Beijing appears to be undermining India’s manufacturing push and the billions of dollars in subsidies paid to electronics, cars and pharmaceutical makers.
PM Modi has sought to make India an alternative manufacturing hub to China, especially in electronics. In recent years, companies like Apple Inc. have set up production facilities in the country.
(With Bloomberg inputs)
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First Published:17 Jul 2024, 10:53 AM IST
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