India and China Reopen Doors to Business Cooperation as Visa Rules Ease

India is now approving Chinese business visas within four weeks, reversing delays imposed after the 2020 border clash. The move follows high‑level recommendations and Modi’s recent visit to China. Eased rules aim to boost investment, restore industry confidence, and support sectors reliant on Chinese expertise, signaling a positive shift toward renewed India‑China economic cooperation.

India has begun fast‑tracking business visas for Chinese professionals, marking a significant shift toward smoother economic engagement after several years of delays and diplomatic strain. According to a Reuters report citing government officials, approvals that once took months due to heightened scrutiny are now being completed in under four weeks.

The change reverses measures introduced after the 2020 border incident in the Himalayas, which led India to restrict nearly all Chinese travel. For years, Chinese executives—from major electronics firms such as Xiaomi, Vivo, Oppo, BYD, Hisense, and Haier—faced prolonged vetting processes that forced many to manage Indian operations remotely. The bottleneck affected multiple industries and complicated expansion plans for companies dependent on Chinese technical expertise.

Officials say the additional review layer has now been removed, streamlining the system and restoring predictability for businesses. The decision follows recommendations from a committee led by former cabinet secretary Rajiv Gauba, which also advised easing other investment‑related restrictions to restore investor confidence.

This adjustment comes at a time of renewed diplomatic outreach. Prime Minister Narendra Modi’s visit to China earlier this year—his first in seven years—included discussions with President Xi Jinping on enhancing bilateral cooperation. Direct flights between the two nations, suspended since 2020, have also resumed, reinforcing the broader effort to rebuild ties.

Industry groups have long highlighted the economic costs of the stricter visa regime. A study by the Observer Research Foundation estimated that Indian electronics producers lost an estimated $15 billion in output over four years due to delayed access to Chinese equipment and specialists. The solar sector and other manufacturing segments similarly struggled with shortages of skilled personnel.

India’s recalibration also intersects with its evolving global economic relationships. With U.S. tariffs placing pressure on Indian exports—particularly the additional penalty tied to Russian oil purchases—New Delhi is seeking to keep its business environment favorable to all major investors. Easing China‑related restrictions is seen as a practical step toward maintaining competitiveness and attracting fresh capital.

Despite geopolitical complexities, China remains India’s largest supplier of electronic and automotive components, providing well over half of the inputs used by domestic manufacturers. Many Indian factories rely on Chinese technology, machinery, and professional expertise as they scale production.

By streamlining business travel and signaling openness to deeper collaboration, India is positioning itself to strengthen commercial ties with China while supporting its own industrial growth. The latest policy adjustments suggest both countries are moving cautiously but optimistically toward renewed economic partnership.