India Inc seek faster visas for Chinese to push projects, exports

To push the cause of manufacturing and exports sector of India, the Union government might take up the cause of expeditious issue of visas to Chinese engineers and technical personnel. Nudged by a large section of the exporters who are in a hurry with their projects, the commerce and industry ministry would lobby with the external affairs ministry for faster grant of visas to experts from China, often considered as an arch-rival of India in many sectors from geo-political to economic.

According to a report in The Economic Times, there is an urgent demand of Chinese experts who can help set up factories and install machineries in India. Delay in the arrival of these technicians can push back the deadlines of manufacturing units that prolong the gestation periods, eventually impacting profitability and efficiency.

The development comes against the backdrop of global ratings major Moody’s Investor Service mentioning in a recent report that despite extensive reforms, red tape remains an Achilles heel of the Indian economy, affecting its competitiveness in the global context.

Boost for manufacturing
Quoting a commerce ministry official who did not wish to be identified, ET mentioned, “Some sectors require technicians to come to set up plants here and that’s a good idea as it will benefit our manufacturing and exports. We will raise it with the external affairs ministry.”

Examples of sectors where delay in granting visas is adversely impacting companies in India include non-leather footwear and sports shoes.

Industry representatives remarked that the delay in visas is eventually leading to delay in investments, and it all is playing out at a time when some companies are exploring the possibility to relocate from China to India.

Exporters deamand
Commerce ministry has also decided to closely examine the demand of exporters demand to allow small units to pay their liabilities in lieu of defaults under export support schemes in instalments.

ET quoted officials who said the proposal could be considered from the perspectives of exemptions given to micro, small and medium enterprises under the Vivad Se Vishwas scheme.

The current rules enjoin exporters availing the amnesty scheme for two export programmes to make one-time payment by September 30.

The Vivad Se Vishwas scheme is designed for quick settlement of disputes in tax, fees and penalty as stated in assessment or reassessment orders on payment of 100% of the disputed tax and 25% of the disputed penalty or interest or fee.