The Indian government is implementing a system to expedite visas for Chinese nationals who are primarily required for installation, expansion, and maintenance work in the electronics manufacturing sector, particularly for companies approved under the production-linked scheme (PLI).
This is in response to the fact that the electronics manufacturing industry has expressed difficulties obtaining visas for Chinese nationals. Installation, expansion, and repair work are impacted the most, according to industry executives, because they require competent Chinese nationals to complete the work.
Some Indian smartphone contract manufacturers who have made investments under production-linked incentive (PLI) programmes are awaiting orders from Chinese brands, whose executives are unable to travel to India due to visa issues.
However, a system is now in place to grant visas to Chinese nationals, according to industry executives.
"An approval process is being implemented, specifically for PLI-beneficiary companies, in which the applicant must fill out a comprehensive form from China, in addition to the details that must be submitted by their partner PLI-granted companies in India. After these are submitted, the administrative ministry must send a recommendation before a visa can be issued, according to an unnamed industry executive.
The executive added that the procedure began this month, but visas have not yet been issued.
"Immediate issuance of business and employment visas is essential for establishing and expanding manufacturing capacities. Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA), told ET: "We are confident that this process will be streamlined and normalised as soon as possible." The Chinese government has begun streamlining visa procedures for Indian nationals.
Wang Xiaojian, a spokesperson for the Chinese embassy in India, tweeted last week, "In the first half of 2023, the Chinese Embassy & Consulates General issued more than 71,600 visas to Indians travelling to China for business, study, tourism, employment, family reunion, etc."
The visa issue is a result of Indo-Chinese border tensions, which resulted in the Press Note 3 of 2000, which stated that a company headquartered in a country that shares a land border with India (such as China) may only invest in India after receiving government approval.
While the Ministry of Electronics and Information Technology (MeitY) assists electronics companies in obtaining visas, there is no overarching policy for Chinese visas, and thus problems persist.
"While the government has pushed Chinese handset brands to partner with Indian manufacturers to increase local production, company officials have stated that they will need to send personnel from their headquarters to conduct the necessary audits, but none of them are being granted visas," said a second industry executive on condition of anonymity.
How can they have the confidence to transfer a portion of their production to India if even the smallest issues, such as visas, are not resolved? He provided the example of a manufacturer of electronic components who requires only three Chinese executives to travel to India in order to fine-tune the apparatus they have purchased in order to increase their productivity. However, for the past six months, they have attempted to enter India without success.
Due to the lack of trust between India and China, obtaining visas for Chinese nationals is a difficult and time-consuming process, according to officials. Multiple ministries, including the ministries of home and foreign affairs, are involved in conducting the inspections.
Under the condition of anonymity, a government official stated, "Visas are granted to Chinese nationals, and we do assist when necessary."
Another executive stated that for products that are not presently manufactured in India, Chinese engineers with the required manufacturing expertise must visit the Indian facilities and train the floor staff. They are required to instruct individuals on how to operate specific machinery, carry out complex procedures, and configure the software for each machine, the majority of which were manufactured in China.
Currently, the issues are being resolved via video conferencing and by sending Indian engineers to China to acquire the necessary knowledge, who then return to train the rest of the staff, said the executive.
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