India Reduces Visa Issuance for Chinese Nationals by 90%, with an Eye on Economic Protection

India drastically reduces visas for Chinese nationals, prioritizing economic security over business interests following the 2020 Galwan clash. The move aims to reduce dependency on China and boost domestic manufacturing, despite some industry concerns about potential job losses.

After the Galwan Valley incident in 2020, India has slashed the issuance of visas to Chinese citizens as it gave more importance to national economic security over commercial relations. As per current data and declarations from high-ranking officials, it is an outcome of PM NarendraModi government’s strategy to minimize the reliance on China and promote production within the country.

Key points:

1. New visas granted to the Chinese were reduced from 200000 in 2019 to only 2000 in 2024.

2. In the last eight months, the government has granted 1,500 visas to Chinese people and most of these 1,000 were for meeting the demands of India’s electronics industry.

3. Even though there are limitations in the number of visas issued, the India’s merchandise exports in May 2024 presence growth by 9% yoy, Electronics and other sectors.

4. That is why trade deficit with China is still high reaching $38. 11 billion US dollars in the first five months of the year 2024.

5. Violations were found in structural screening of Chinese investments after Galwan including the alleged money laundering by some of the Chinese companies.

6. The Indian government has assured its people that visas for Chinese workers and businessmen are only going to be approved after the necessary scrutiny.

This change in visa policy has occurred in the backdrop of the continuing frosty relations between India and China over the issues of border dispute in East Ladakh and China’s buildup of military in the Indian Ocean Region. An anonymous cabinet minister said, “Economic security of the nation cannot be jeopardized for a few pieces of silver. ”

Although various sectors of the Indian industry have been demanding more visas for Chinese workers fearing job cuts, the government has retained its focus on the ‘Atmanirbhar Bharat’ or ‘Self-Reliant India’ policy. It is in line with India’s efforts to decrease its reliance on China for goods and services as well as promote self-sufficiency in production.

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While the bilateral relations are tense, with China continuing to erect obstructions to the Indian Army patrols along the LoAC, the Indian Prime Minister Narendra Modi’s government’s approach to the visa policies of the PRC is unlikely to change soon.