India to speed up Chinese visa issuance after companies hit by delays

The Indian government is finalizing rules to cut visa processing times for Chinese technicians, responding to complaints from companies that the restrictions are hurting the country's ability to become a manufacturing hub.

The Ministry for Promotion of Industry and Internal Trade is working with the home and external affairs ministries to set up a framework that will expedite the issuance of visas to engineers and technicians needed to install Chinese-made machinery in Indian factories, people familiar with the matter said. The aim is to reduce the visa processing time to 30 days from the current four to five months, said the people, who asked not to be identified as the discussions are private.

Prime Minister Narendra Modi’s government imposed strict rules on China following a deadly border clash between the two nations in 2020 that sent relations into a downward spiral. Hundreds of Chinese apps were banned, Chinese investment and visa approvals slowed and direct flights between the two countries were scrapped. Local media estimated that India had issued only 2,000 visas to Chinese nationals in 2024, compared with about 200,000 before the pandemic in 2019.

Negotiations are underway to resolve the border crisis, but relations remain tense, with New Delhi insisting that relations cannot return to normal until the dispute is resolved.

The government plans to simplify the visa process by allowing all companies in targeted sectors that receive government subsidies to apply for business visas for Chinese workers, people familiar with the matter said. Under current rules, only manufacturing companies that have been approved under the incentive program can apply for business visas for Chinese workers, with others forced to apply for cumbersome work permits that require extensive paperwork.

India's Home Ministry and Department for Promotion of Industry and Internal Trade did not immediately respond to requests for comment.

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India remains heavily dependent on imports from China, especially for machinery needed for manufacturing. Chinese engineers are typically needed to install equipment, carry out repair work and train Indian workers to use it.

Businesses say the government’s hard line on Beijing appears to be undermining India’s growing manufacturing industry and the billions of dollars in subsidies it provides to electronics, auto and pharmaceutical makers. Modi has sought to position India as an alternative manufacturing hub to China, particularly in electronics, with companies like Apple setting up production facilities in the country in recent years.

Although the government has simplified the visa process for businesses under incentive programs, executives say there are still significant challenges.

A senior executive at an electronics manufacturing company based in Noida, near the capital New Delhi, said visa restrictions were driving up costs, stalling investments and losing credibility for Indian companies as reliable suppliers. The source asked not to be identified so he could speak freely on the matter.

The Cellular Electronics and Communications Association of India estimates that the border conflict with China has led to a decline in the sector's output of about $15 billion between 2020 and 2023 and a loss of 100,000 jobs. The association counts Apple and its suppliers as well as Chinese smartphone makers such as Oppo and Vivo as its members.

The industry is very conscious of the security requirements of the nations but at the same time, skill transfer, investments, technology transfer, technology absorption etc. are essential to achieve India's economic goals, said Pankaj Mohindroo, president of the association.

Mohindroo said the government's crackdown on Chinese companies has also impacted the sector as few Chinese nationals are willing to travel to India to explore business opportunities. The Modi government has widened its investigations against companies like Xiaomi and Vivo for alleged tax evasion and money laundering since the border conflict.

“We are cautiously optimistic that this matter will be resolved in the best interest of the industry and the nation in a timely manner,” Mohindroo said.