The issuance of visas to Chinese nationals by India has experienced a significant decline in the aftermath of the border conflict between the Indian Army and the People's Liberation Army (PLA) at Galwan four years ago.

Citing the Narendra Modi government's heightened emphasis on national economic security, top officials data indicates a noteworthy shift in policy, the Hindustan Times reported.

Senior officials within the national security establishment and economic ministries revealed that in 2019, prior to the pandemic and the Galwan clash, approximately 2,00,000 visas were granted to Chinese nationals. However, this figure dramatically plummeted to just 2,000 in 2024 following a comprehensive assessment of Chinese investments in India.

Over the past eight months, around 1,500 visas have been issued, with a majority geared towards meeting the demands of the Indian electronics industry.

Despite these measures, India has encountered a trade deficit surpassing $38.11 billion in the initial five months of the current year. The imbalance persists as India's exports to China totalled $8.93 billion between January and May 2024, contrasted with imports valued at $47 billion from Beijing.

While the Indian electronic industry highlights job losses resulting from the restriction on visas for Chinese businessmen and workers, official data released on June 14 demonstrates an over 9 per cent surge in India's merchandise exports in May 2024.

Petroleum products, engineering goods, and electronics led the charge, with electronic goods exports reaching $29.12 billion in FY 2024, a substantial increase from $23.55 billion in FY 2023, primarily attributed to the PLI scheme.

The scrutiny of Chinese investments post-Galwan led to revelations of violations by Chinese telecommunication companies within India's regulatory framework. Notably, Vivo faced allegations of tax evasion and illicit fund transfers back to China, prompting action by the Enforcement Directorate. Reacting to these developments, Vivo expressed displeasure, asserting its commitment to employing legal channels to contest the accusations.

While there are calls from Indian industry for greater access to visas for Chinese workers and technicians, the national security establishment and economic ministries maintain that visa issuance will be contingent upon vigorous vetting. This cautious approach aligns with India's "Atmanirbhar Bharat" plan, aiming to foster self-reliance in domestic manufacturing and insulate the economy from external vulnerabilities.

(With Agency Inputs)