Report by Tanya Singh:
India has been slow to issue visas to Chinese engineers, who are needed to help Taiwanese companies set up factories in the South Asian nation, people with knowledge of the matter said. India is also nudging companies to opt for the more difficult to obtain employment permits, they added, asking not to be identified discussing a private matter.
With the flow of maximum foreign direct investment in the computer hardware and software sector, Prime Minister Narendra Modi’s plans to reduce India’s manufacturing capacity and foreign investors, who plan to invest $ 30 billion in six months to September, could delay Huh. Companies are looking towards India to diversify their supply chains. PM Modi has banned hundreds of Chinese apps and slowed down approvals for Chinese investment after 20 Indians and an unknown Chinese soldier were killed at a disputed border between two neighbors.
Visas are an important resource to help expand domestic manufacturing and the “government has to balance its existing policies with the genuine and short-term requirements of technical manpower for setting up new factories,” said Pankaj Mohindroo, chairman of the India Cellular and Electronics Association. “We are hopeful that this issue will be addressed soon to everyone’s satisfaction soon.”
Apart from the delays in granting visas the Indian government has indicated a preference for issuing employment visas instead of business visas for people required to set up the production lines that are being imported by companies, the people said. Employment visas typically require more paperwork and background checks from India’s home ministry, and could therefore be the reason for India’s insistence. Business visas are also shorter duration.
Companies have balked at the employment permits because it increases costs. It will also lead to double taxation for engineers and technicians since they will continue to be employed by their respective companies in China. Skilled professionals and experts are also needed for training and guidance on machines that are being installed for the first time in the country along with specialists to monitor the entire process.
India and China have begun pulling back their troops from a part of their disputed border after several rounds of military and diplomatic talks. However, disengagement of troops from other contentious areas along the unmarked border is yet to happen.
