India : In a significant move to accelerate investments and foster technological advancements in the Production Linked Incentive (PLI) sectors, India has implemented new visa rules tailored to ease the entry of Chinese nationals. This development addresses the long-standing issue of visa delays that hindered progress in various sectors.
India – China Growth :
The Ministry of Home Affairs and the Ministry of External Affairs have collaboratively crafted a Standard Operating Procedure (SOP) to facilitate visa approvals, particularly for Chinese professionals.
A government source revealed, “The Ministry of Home Affairs and Ministry of External Affairs have worked on this. A new SOP has been circulated for those working in the PLI sector. This will help streamline visa approvals, and yes, this is for Chinese nationals.”
The decision comes against the backdrop of strained relations between India and China, with Chinese President Xi Jinping notably absent from India’s recent G20 leadership meeting. It underscores India’s commitment to maintaining a conducive environment for foreign investments, transcending geopolitical tensions.
During a comprehensive review of India’s cornerstone industry incentive, the Production Linked Scheme (PLI), industry executives highlighted the necessity of expediting visas for Chinese professionals. Delays in visa processing were found to be impeding investments and hindering collaborations where Chinese expertise was indispensable.
The PLI scheme, introduced in 2020, currently spans 14 sectors, encompassing steel, textiles, electronics, IT hardware, medical devices, pharmaceutical products, telecom, drones, and more.
However, only eight of these sectors are performing optimally. The remaining six sectors, including steel, textiles, advanced chemistry cell (ACC) batteries, automobiles, high-efficiency solar PV modules, and white goods, are yet to realize their full potential.
Out of the total allocated budget of Rs 1.97 lakh crore under the PLI scheme, a mere Rs 2,900 crore has been disbursed. The significance of disbursing the entire allocated sum cannot be overstated.
As Rajesh Singh, DPIIT secretary, explained, “Achieving disbursement of 1.97 lakh crore will be crucial. While eight sectors are already receiving disbursement, the remaining six are yet to begin to receive any. There is a lag, but we are not worried. It will happen well with time.”
The eight sectors already benefiting from the PLI scheme encompass Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom and networking Products, Food Processing, and Drones and drone Components.