India frees up visas for Chinese professionals in key step to boost ties
As Prime Minister Narendra Modi cautiously revives ties with Beijing in the face of punitive U.S. tariffs, officials say New Delhi has removed a layer of bureaucratic scrutiny and shortened visa approval times to less than a month.
Reuters was the first to report the development.
India blocked almost all visits from China and expanded business visa scrutiny beyond its home and foreign ministries after its nuclear-armed neighbors clashed on the Himalayan border in mid-2020.
One of the officials with knowledge of the matter, who spoke on condition of anonymity, said problems with securing visas were now completely resolved.
“We have removed the administrative review layer and are processing business visas within four weeks,” the official added.
India’s foreign, home and commerce ministries, as well as the prime minister’s office and the top policy think tank, did not respond to email requests for comment. The Observer Research Foundation think tank estimates that tougher scrutiny has led to $15 billion in production losses over four years for Indian electronics manufacturers, which import crucial machinery from China to produce mobile phones.
Major Chinese electronics companies such as Xiaomi were having difficulty obtaining visas, Reuters reported last year.
Industry executives said such restrictions had a negative impact on growth plans in India, while the solar industry was also affected by the lack of skilled labour.
The removal of red tape comes after Modi visited China this year for the first time in seven years, met Chinese President Xi Jinping and discussed ways to improve relations.
Both countries later resumed direct flights for the first time since 2020.
The easing of restrictions was prompted by a high-level committee chaired by former cabinet secretary Rajiv Gauba; This committee also aims to ease investment restrictions on China that undermine the confidence of foreign investors.
“We welcome the government’s decision to expedite skilled visa approvals for professionals from land border countries,” said Pankaj Mohindroo, president of industry body India Cellular and Electronics Association.
“This reflects a collaborative approach and the government’s acceptance of our recommendations.”
He added that the changes come at a crucial time for India as it ramps up production in categories from finished products to components and sub-assemblies.
WARMING CHINESE TIES FOLLOW US TARIFFS
India’s warmer ties with China come after US President Donald Trump imposed a surprise 50% tariff on Indian goods, including a 25% penalty duty on purchases of Russian oil.
This has led India to reshape its diplomatic calculus, realigning ties with China and strengthening ties with Russia, while continuing to negotiate a trade agreement with Washington.
As part of this effort, Modi has doubled down on measures to boost growth by improving the foreign investment environment, including doing business with China.
India also recently lowered consumption tax and eased labor laws to attract foreign investors.
“We are cautiously relaxing some of the rules regarding restrictions on China and hope this will improve the overall business environment,” the second official said. he said.
