NEW DELHI: Two days after the Economic Survey made a strong pitch for Chinese participation in India’s manufacturing growth, top sources on Wednesday told this paper that the government is considering easing restrictions on investments from China. The government’s move to soften its anti-China stance comes amid strong calls from industry, especially manufacturers, to ease the visa curbs on Chinese technicians.
A highly placed government source confirmed that discussions are on for reviewing restrictions on investment and imports from China, adding that no final call has been taken in this regard.
India issued Press Note 3 restricting investments from China amid border tension in Galwan river valley in Ladakh in 2020. The government also restricted visas to Chinese nationals arriving in the country and levied high duties on Chinese imports.
The source mentioned above said industry leaders have been raising the issue of their inability to procure equipment as well as Chinese technicians due to these restrictions. “For the past 3-4 years, we have been trying to build our own capacity.
But feedback from industry suggests that large projects, especially high-tech projects, are facing challenges in completion due to these restrictions,” the source said, adding that the government is now weighing options for easing investment rules for some companies.
The softening of the government’s stand on China was evident in the Economic Survey tabled in Parliament on Monday. “To boost Indian manufacturing and plug India into the global supply chain, it is inevitable that India plugs itself into China’s supply chain. Whether we do so by relying solely on imports or partially through Chinese investments is a choice that India has to make,” the report said, hinting that the anti-China policy has been detrimental to India’s manufacturing sector.
Officials said the government has eased the visa rules for Chinese technicians already working in firms availing the production-linked incentive (PLI) scheme, and is working to streamline the visa process for Chinese workers for non-PLI companies too.
In FY24, China became India’s top trading partner with $118 billion in total trade.
Chinese incentive
Chinese technicians are in high demand in 14 sectors where production-linked incentive schemes are applicable. These sectors, which include solar, drones, and cell battery, face huge talent shortage
Skill shortage
Most high-tech manufacturing units in India use Chinese-made machinery but don’t have skilled technicians. Industry believes visa relaxations could help