Govt devising SoP for Chinese nationals to work for manufacturing companies in India

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The difficulty in allowing Chinese nationals to enter India to work is creating problems for non-China MNCs to enter and operate from India with the ultimate outcome that companies that are not part of the PLI (production-linked-incentive) scheme are finding it difficult to diversify production as part of the “China plus 1” strategy. Since the country stands to benefit hugely from “China plus 1” strategy of different manufacturing companies worldwide, the department for promotion of industry and internal trade (DPIIT) has begun putting together a standard operating procedure (SOP) to allow select Chinese nationals working non-China MNCs to enter India with relative ease.

Repeated concerns expressed by different companies have promoted DPIIT to formulate this SoP, The Times of India said.

The Chinese nationals are mostly needed for installation of machinery in manufacturing units being set up in this country.

Often companies have struggled to spell out the urgent reasons to get Chinese workers to deliver projects in India. Delays involving Chinese nationals have been reported even for companies executing projects under PLI schemes.

“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,” officials told the newspaper.

To draw up the SoP, which will be crucial to the cause of attracting foreign direct investment into the country, the DPIIT is holding discussions with the IT ministry, communications ministry, home and external affairs ministry and companies. The moot point – investment should be shielded from the impact of the curbs that surfaced after the border tension in Ladakh recently.

A final decision for the new would be taken at the political level.

Several Indian companies have also pleaded with the government for help in easing this roadblock. Delays in granting of visa to Chinese nationals have caused delays in production which have cost the company time and money.

“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. Govt may provide some exemptions, but it will be based on a certain SOP,” an official told the newspaper on conditions of anonymity.

Executives mention machinery in textiles and leather lying idle for months. The reason: while Chinese vendors insist that only their personnel would install and switch them on, these personnel would continue to wait for visas.