The Indian government is nearing completion of a streamlined visa process for Chinese experts needed by vendors in the PLI (Profit-Linked Investment) scheme, and plans to extend this to other manufacturing sectors. Delays in visa approvals for Chinese technicians, vital for machine installation, repairs, and training, have reportedly been raised by local manufacturers.
According to a report in Economic Times, quoting an official, “After formulating a standard operating procedure (SOP) for streamlining visa approvals for Chinese professionals whose expertise is required by vendors under the PLI scheme, the government is in the final stages to put in place similar processes for other manufacturing units.”
“Most of the PLI (production-linked incentive scheme) visas have been taken care of. For general manufacturing also, we are trying to create a better streamlined SOP… that is with the Ministry of Home Affairs. It’s at the final stages. We are hoping to sort it out. We have done a lot of sensitisation,” the official added.
The rollout of SOPs does not require any approval from the Union cabinet as it is an internal process to relax norms “a bit” for facilitating visa applications of Chinese professionals or technicians whose expertise is required by domestic manufacturing units, the official reportedly added.
Industry representatives welcome the initiative, noting the affordability and necessity of Chinese expertise. The PLI scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore. So far, Rs 9,700 crore has been disbursed to PLI beneficiaries. In 2023-24, the figure was Rs 6,800 crore, the official said.
Restrictions on investment from China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan
Under Press Note 3, issued by the ministry of commerce and industry, in the year 2020, the government has made prior approval mandatory for foreign investments from countries that share a land border with India. These countries are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.