India has seen a significant decrease in the number of visas issued to Chinese nationals after the border conflict between the Indian Army and the People's Liberation Army (PLA) at Galwan four years ago. According to a report by the Hindustan Times, top officials attribute this to the PM Narendra Modi government's increased focus on national economic security, indicating a significant policy shift.
Before the pandemic and the Galwan clash in 2019, India issued around 200,000 visas to Chinese nationals. However, this number dropped dramatically to just 2,000 in 2024 as a result of a thorough evaluation of Chinese investments in India. In the past eight months, only about 1,500 visas have been granted, mainly to support the Indian electronics industry.
Despite these restrictive measures, India has faced a trade deficit of over $38.11 billion in the first five months of the current year. India's exports to China were valued at $8.93 billion from January to May 2024, while imports from Beijing were valued at $47 billion.
The Indian electronics industry has reported job losses due to the visa restrictions on Chinese businessmen and workers. However, official data released on June 14 indicates a more than 9 percent increase in India's merchandise exports in May 2024. Leading this growth were petroleum products, engineering goods, and electronics, with electronic goods exports reaching $29.12 billion in FY 2024, up from $23.55 billion in FY 2023, largely due to the Production Linked Incentive (PLI) scheme.
The post-Galwan scrutiny of Chinese investments revealed regulatory violations by Chinese telecommunications companies in India. Vivo, in particular, faced allegations of tax evasion and illicit fund transfers to China, leading to action by the Enforcement Directorate. Vivo responded by expressing its displeasure and committing to contest the accusations through legal channels.
Although there are demands from Indian industry for more visas for Chinese workers and technicians, national security and economic ministries insist that visa issuance will remain subject to thorough vetting. This cautious stance aligns with India's "Atmanirbhar Bharat" initiative, which aims to promote self-reliance in domestic manufacturing and protect the economy from external vulnerabilities.