The government is planning to further ease visa restrictions for Chinese technicians, particularly for manufacturing units installing Chinese machinery. These relaxations will be similar to those for firms setting up new capacities under the Production Linked Incentive (PLI) schemes, according to a senior official.
“Most PLI visas have been addressed. For general manufacturing enterprises, we aim to create a more streamlined standard operating procedure (SOP) and hope to implement it after inter-ministerial consultations,” the official, who requested anonymity, said.
The new SOPs will grant six-month visas, sufficient for machinery installation and worker training. The procedures for granting these visas will be slightly relaxed. “The SOP is in its final stages,” the source added.
Currently, a faster visa clearance process for Chinese technicians is in place for companies establishing new manufacturing facilities under the PLI scheme. These companies must route visa applications through the relevant ministry administering their sector’s scheme.
The PLI visa relaxation was implemented due to delays impacting the operationalization of plants. The Ministry of Home Affairs (MHA) is currently reviewing the SOPs for visas for other manufacturing companies. Other relevant ministries have shown a positive response following “sensitization,” the official noted.
Since the 2020 border stand-off, business ties with China have been downgraded, with increased scrutiny on investments and imports. Visa clearances for technicians and business persons have also faced delays. Press Note 3 requires all investments from China to receive government approval. Due to this scrutiny, Chinese companies have partnered with Indian firms to expand operations or bring in new investments.
While some visa restrictions might be eased, the government does not plan to relax other conditions on Chinese presence in the Indian economy, including investments, the official said.
Media reports citing electronics industry executives indicate that 4,000-5,000 Chinese technician visa applications are awaiting government clearance, hampering expansion plans. These reports also estimate a $15 billion production loss over the past four years due to these restrictions.
The industry relies on Chinese technicians due to their expertise and the predominance of Chinese machinery and components. Even Taiwan, a leader in electronics, depends on Chinese experts. Taiwanese electronics manufacturers in India are also seeking visas for Chinese experts.