Visa issues for Chinese tech drive Indian manufacturing delays

India will fastrack visas for Chinese technicians.

India's manufacturing sector is facing setbacks due to visa restrictions for Chinese technicians, causing delays in high-tech production units and affecting billions in investments. The delays have raised concerns among manufacturers who rely heavily on Chinese expertise to operate and maintain advanced machinery.

Ravi Krishnaswamy, Senior Vice President of Energy, Sustainability, and Industrial Practice at Frost & Sullivan, said that the challenges in the Indian manufacturing industry are compounded by various factors, including supply chain disruptions and logistical bottlenecks. 

However, a critical issue is the delay in the approval of visas for Chinese technicians, who are essential for the functioning of high-tech machinery in industries like electronics, steel, solar panels, and white goods.

"India's manufacturing sector heavily depends on Chinese machinery in certain high-tech sectors like electronics, steel, solar panels, white goods, etc. And these require Chinese technicians, both for operations and maintenance," Krishnaswamy said. "Since 2020, both because of Covid and also some border skirmishes, we have seen the Indian government delay visas… the production losses have amounted to about $15 billion US dollars."

The absence of these skilled technicians has led to significant disruptions in production schedules, affecting the revenue of major manufacturers and delaying India’s ambitions to become a global manufacturing hub.

Economic dependence and strategic implications

Naina Bhardwaj, International Business Advisor at Dezan Shira and Associates, said, "Despite the many restrictions that the Indian government has been trying to impose to reduce its economic dependence, it's still heavily reliant on Chinese imports, especially when it comes to capital, good equipment, and high precision machinery," Bhardwaj noted. 

"In order to call these Chinese technicians to come to India, install the necessary machinery, or maybe undertake repairs and train the local workforce; we are required to streamline the process so that the visas are fast-tracked,” she added.

Balancing economic needs

As India navigates these manufacturing delays, it faces a delicate balance between reducing economic dependence on China and addressing immediate manufacturing needs. "India definitely wants to elevate its position to be probably a global supply chain, a middleweight partner of choice," Krishnaswamy explained. "While the current deficit is in favour of China or against India, I think India will do all it takes to kind of at least move towards the middle ground very soon."

Bhardwaj also pointed out the dual-edged nature of the situation, where granting visas could both ease tensions and expose India’s reliance on China. "Granting approvals to the Chinese nationals will definitely open a channel for communication... but at the same time, I believe this will also expose India's dependence to the Chinese," she said.