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Government to streamline visa process for Chinese techs, others | Business News

The federal government is working on a framework for processing visa applications for Chinese and other foreign technicians needed in sectors not covered by the Manufacturing Incentive Scheme (PLI) to boost production, a senior government official said on Thursday.

DPIIT Secretary Rajesh Kumar Singh told a press conference that the legal framework for techies to enter PLI sectors is already in place and the government is considering extending it to other non-PLI beneficiaries operating in the same strategic sectors.

“We felt that if someone gets a grant and a visa, the other one doesn’t… at least they should also get a streamlined process. The final decision hasn’t been made yet, but we are moving in that direction and we hope that it will happen,” the Secretary said.

Singh said the final decision would rest with the Ministry of Home Affairs and the Ministry of External Affairs.

The Indian Express reported last month that visa delays were hurting manufacturing, including the leather sector, which is increasingly shifting towards sports footwear.

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After importing and installing Chinese machinery, the domestic industry has been unable to start up plants due to visa hurdles, a problem that first arose after the Galwan clash in 2020. Since then, alternatives such as sending Indian specialists to China have not worked out very well, as Chinese authorities tend to grant visas to importers quickly but delay applications from Indian manufacturers and government officials.

The demand for Chinese craftsmen is driven by the fact that they offer cost advantages over technicians from other countries, such as Taiwan, Vietnam and other Western countries. Exporters say the dependence on Chinese craftsmen stems from the heavy dependence on China for key parts in most electrical and electronics segments.

Official data shows that of the nearly $100 billion worth of imports from China, nearly 60 per cent were engineering and electronics products, which play a key role in meeting India’s export orders.

Given the tense geopolitical relations with China, India has imposed strict quality norms to curb imports of consumer goods and semi-finished products from China, while promoting manufacturing in strategic areas through the Production Linked Incentive Scheme (PLI).

The border standoff following the 2020 Galwan clash saw the government announce several measures to curb Chinese influence on the Indian economy. The most visible was the amendment made to the FDI policy under Press Note 3 (PN3). The modification in PN3 ensured that investments in India from countries bordering the mainland were made through the government’s route.