DPIIT working on SOP to ease entry for certain Chinese workers in India

Industries that are not covered under the PLI scheme struggle to employ Chinese workers for machinery installation, thereby hindering production expansion in the 'China plus one' approach

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, is in the process of developing a standard operating procedure (SOP) to facilitate the entry of certain Chinese nationals employed by multinational corporations from Europe, the United States, Japan, and other countries outside China into India.

Various sectors, particularly those excluded from the production-linked incentive (PLI) scheme, have faced challenges in engaging Chinese nationals for the installation of machinery, making it tough to broaden their production capacities as part of the ‘China plus one’ strategy, according to a report in The Times of India.

Challenges in engaging Chinese workers

Stakeholders across different industries have often struggled to present convincing arguments for employing Chinese workers on projects in India. According to the news report, delays persist even with PLI visas, prompting efforts to address this issue.

The DPIIT is engaging in discussions with several ministries, including communications, IT, home affairs, external affairs, and industry stakeholders to ensure that investment flows smoothly despite restrictions that arose following heightened tensions due to India-China border row.

The report quoted a source as saying, “There have been instances where certain MNCs are shifting their machinery and R&D from China to India as part of a production and business diversification strategy. Delays in visa approvals for the Chinese personnel, however, hurt such movement, and delay, or even stall, plans.”

Visa hurdles hampering production?

The report said that in various industries, the slow visa approval process has led to production start delays, much to the frustration of companies. There are numerous cases in high-potential sectors such as textiles and leather, where machinery has remained idle for months. Chinese vendors insist that only their personnel can operate the machinery, but obtaining visas has proven challenging.

“In several cases, there is some hesitation in granting visas to Chinese nationals since there have been instances where some of them have been found to be engaging in illegal activities and against their visa conditions. While this certainly cannot be generalised, officials have usually refrained to show leniency. The government may provide some exemptions, but it will be based on a certain SOP,” the report quoted a source as saying.