NEW PORTAL EASES VISA PROCESS FOR CHINESE TECHNICIANS

Why in the news?

A new portal simplifies short-term business visa approvals for Chinese technicians, crucial for operationalizing production units under India’s PLI scheme, addressing delays caused by the 2020 Galwan clash.

NEW PORTAL EASES VISA PROCESS FOR CHINESE TECHNICIANS - UPSCsource:wordpress

About New Portal for Chinese Technicians:

  • Portal Launch: A new portal has been launched to streamline the approval process for short-term business visas for Chinese technicians.
  • Purpose: The portal aims to enhance operational efficiency in sectors under India’s Production Linked Incentive (PLI) scheme.
  • Training: The Ministry of Home Affairs (MHA) is training departments on using the portal.

Industry Impact and Visa Delays:

  • Visa Issues: Companies importing Chinese machinery faced delays due to visa hold-ups, worsened after the 2020 Galwan clash.
  • Dependence: Indian industry relies heavily on Chinese professionals and parts for electronics and engineering.
  • Cost: Chinese technicians are preferred for their affordability compared to Western and Southeast Asian counterparts.

Government Policy and Economic Strategy:

  • Policy Changes: Post-Galwan, India amended FDI policies, affecting Chinese investments under Press Note 3.
  • FDI Data: China’s FDI share in India remains low, with only 0.43% of total equity inflows.
  • Economic Survey: Advocates attracting Chinese investments to boost exports and integrate into global supply chains.
Key Features about New Portal Established:

  • New Portal Established: An online portal has been launched to expedite visa approvals for technicians, including Chinese vendors, under India’s production-linked incentive (PLI) scheme.
  • Purpose: The portal aims to address delays and reduce application backlogs by speeding up visa approvals.
  • Operational Status: The portal has been operational for about a week.
  • Government Actions: A recent stakeholder meeting was held to explain the portal’s functions, managed by the Ministry of Home Affairs.
  • Expected Outcomes: Faster visa approvals anticipated with the new system.

About The Production Linked Incentive (PLI) Scheme :

  • Purpose: The Production Linked Incentive (PLI) Scheme boosts manufacturing and reduces imports by incentivizing companies for increased domestic sales.
  • Objective: Aims to enhance production, employment, and economic growth over the next five years.
  • 2021 Announcement: Rs 1.97 lakh crore (US$ 28 billion) allocated for 13 key sectors, including Auto components, Electronics, Pharmaceuticals, and more.
  • Implementation: Schemes are at various stages by different Ministries/Departments.
  • Impact: Expected to benefit the Micro Small & Medium Enterprises  (MSME) ecosystem.

Associated Article:

https://universalinstitutions.com/production-linked-incentive-pli-scheme/