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With thaw in ties, India may ease visas for Chinese experts
Some manufacturing plants and power projects needs immediate attention of specific technicians and the domestic industry has been asking for visa norms for skilled Chinese nationals to be eased.
The thaw in India and China ties could immediately see New Delhi easing visa for Chinese technicians to Indian power and infrastructure projects running on Chinese plants and technology on merit, two officials aware of the development said, and added that investments from across the border may, however, require specific government clearances on case-to-case basis.
Although review of Press Note 3 (PN3) that restricted foreign direct investments (FDI) through automatic route from countries bordering India, including China, is expected, the process may take time. “Meanwhile, government may expedite project-specific approvals to Chinese FDI proposals,” one of the officials said, asking not to be named.
Quoting a senior official, HT on July 25 reported that the “government may review restrictions on FDI from China” as the Economic Survey released that month envisaged China-specific strategy for India’s growth, welcoming Chinese investments instead of imports of Chinese merchandise.
The restrictions were introduced following attempts by some Chinese entities to explore “opportunistic” acquisitions of Indian companies amid the financial strain caused by the Covid-19 pandemic. Later, Chinese aggression and military standoff on the Line of Actual Control (LAC) worsen the situation and deteriorated economic relations between the two countries.
The second official who spoke to HT on these matters said on demand of industry and investor community, discussions on FDI restrictions are on, but no final call has been taken on it yet. The two officials belonged to different economic ministries with direct knowledge of the matter.
Some manufacturing plants and power projects needs immediate attention of specific technicians and the domestic industry has been asking for visa norms for such skilled Chinese nationals to be eased.
Industry representatives and members have approached the Department for Promotion of Industry and Internal Trade (DPIIT) on this matter. The improved diplomatic ties at the top would now help them in getting quicker approvals for such visas on case-to-case basis, while keeping national security aspects in the mind, the official said.
The Economic Survey, prepared by chief economic adviser V. Anantha Nageswaran, in July proposed a China-specific strategy for accelerating India’s growth by welcoming Chinese investments instead of importing Chinese merchandise, which was contrary to New Delhi’s tough stance against Beijing since 2020.
Addressing a press conference after presenting the Budget, finance minister Nirmala Sitharaman distanced herself from the recommendations, which conventionally represents the views of the CEA. “But that doesn’t mean I’m disowning the solution,” she had said while replying to a question.
Through the PN3, DPIIT had closed the door on automatic approval of Chinese investment in India and mandated prior government approval, which also involved security clearances. “A non-resident entity can invest in India, subject to the FDI policy except in those sectors/activities that are prohibited. However, entity of a country, which shares land borders with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route,” the PN3 notification issued on April 17, 2020 stated.
The move followed a major clash between the Indian and Chinese armies along the Line of Actual Control in the Galwan Valley in 2020, in which 20 Indian soldiers were killed.
