India has significantly reduced the issuance of visas to Chinese nationals in the aftermath of the border conflict with the People’s Liberation Army (PLA) at Galwan four years ago.
According to a report by the Hindustan Times, the Narendra Modi government has intensified its focus on national economic security, resulting in a notable policy shift. Before the pandemic and the Galwan clash in 2019, approximately 200,000 visas were granted to Chinese nationals. However, this number plummeted to just 2,000 in 2024 following a comprehensive review of Chinese investments in India.
In the past eight months, around 1,500 visas have been issued, primarily to meet the needs of India’s electronics industry.
Despite these measures, India continues to face a trade deficit, surpassing $38.11 billion in the first five months of the current year. India exported goods worth $8.93 billion to China from January to May 2024, while imports from Beijing totaled $47 billion.
India’s merchandise exports in May 2024 saw a significant increase of over 9%, driven by sectors such as petroleum products, engineering goods, and electronics. Electronic goods exports alone reached $29.12 billion in the fiscal year 2024, up from $23.55 billion in fiscal year 2023, largely attributed to the Production Linked Incentive (PLI) scheme.
Following scrutiny of Chinese investments post-Galwan, violations by Chinese telecommunications companies in India’s regulatory framework were uncovered. Vivo, in particular, faced allegations of tax evasion and illegal fund transfers to China, prompting action by the Enforcement Directorate. Vivo responded by expressing dissatisfaction and asserting its commitment to contesting the accusations through legal channels.
The restrictions on visas for Chinese businessmen and workers have raised concerns within India’s electronic industry regarding potential job losses. Nevertheless, official data released on June 14 underscores the positive trend in India’s merchandise exports, reflecting broader economic resilience amidst geopolitical tensions.