India to Ease Visa Rules for Foreign Professionals, Including from China
The Indian government is set to simplify visa regulations for foreign professionals, including those from China, working in non-Production Linked Incentive (PLI) sectors. This initiative aims to foster international trade and economic cooperation.
Announcement by DPIIT Secretary
Rajesh Kumar Singh, Secretary of the Department of Promotion of Industry and Internal Trade (DPIIT), revealed the plans. He stated, “Plans are underway to extend streamlining of visas to non-PLI beneficiaries from foreign countries, including China, who are operating in the same centres as beneficiaries.”
Current Focus and Future Plans
Currently, the focus is on easing visa regulations for Chinese professionals in PLI sectors. However, the government plans to extend these streamlined visa procedures to include foreign professionals in non-PLI sectors as well. This decision is expected to benefit foreign nationals working alongside PLI beneficiaries in key industrial hubs.
Additional Reforms
In addition to visa reforms, the government is committed to addressing tariff barriers that hinder the import of essential electronic components. A case-by-case approach will be adopted to remove these barriers, which are critical for the competitiveness of India’s electronics industry. Singh also emphasized the need to phase out duty inversion, where finished products attract lower taxes compared to raw materials.
Tesla’s Entry and E-commerce Policy
Regarding Tesla’s entry into the Indian market, Singh disclosed that while the company had shown interest earlier, it has yet to make a fresh inquiry following the cancellation of Elon Musk’s planned visit earlier this year. The Ministry of Heavy Industries is evaluating requests from multiple stakeholders, including Tesla, as it works on finalizing guidelines for the sector. On the much-anticipated e-commerce policy, Singh noted that while the policy is in the pipeline, there is no definitive timeline for its release.
Foreign Direct Investment (FDI) and WPI Changes
The government is exploring the liberalization of the Foreign Direct Investment (FDI) regime across several sectors to attract more foreign investment and drive economic growth. Singh pointed out that FDI from countries sharing land borders with India constitutes less than 1 per cent of the total FDI inflow, highlighting the need for broader reforms. The government is also contemplating a change in the base year for the Wholesale Price Index (WPI) to better reflect current economic realities. The proposed changes to the WPI are part of a broader initiative to update the Producer Price Index (PPI) model, which has already been reviewed by the Ministry of Statistics and Programme Implementation (MoSPI) and presented to the International Monetary Fund (IMF). The final decision rests with the National Statistical Commission (NSC).
