The Indian government has taken significant steps to expedite visa processing for Chinese technicians crucial to the success of the Production Linked Incentive (PLI) scheme. This move aims to alleviate the delays faced by companies under the scheme, particularly those reliant on Chinese machinery and expertise.
The PLI scheme, launched in 2020 with a massive outlay of Rs 1.97 trillion, is designed to boost domestic manufacturing across 14 key sectors, including textiles, pharmaceuticals, and electronics. While the scheme has attracted substantial investments, its implementation has been hindered by various challenges, including visa delays for foreign technicians.
The border tensions with China in 2020 led to heightened scrutiny of Chinese investments and visa applications. This scrutiny, coupled with the surge in demand for skilled Chinese technicians under the PLI scheme, resulted in significant backlogs and delays.
To address this issue, the Ministry of Home Affairs has proactively streamlined the visa application process, particularly for Chinese technicians working on PLI projects. A dedicated portal has been established to facilitate efficient processing and expedite approvals.
Despite the challenges, the PLI scheme has already yielded substantial results. Companies participating in the scheme have collectively invested approximately Rs 1.5 trillion in plant and machinery, leading to incremental production and sales worth Rs 12.5 trillion. Moreover, these companies have contributed to exports totalling Rs 4 trillion.
While the disbursement of incentives has been slower than anticipated, the government has taken steps to accelerate the process. Quarterly filing of claims has been introduced to streamline the application process. The government aims to disburse Rs 15,000 crore in incentives in the current fiscal year.
As more PLI-supported projects come online and companies submit their audited financial statements, the demand for incentives is expected to grow. The government remains optimistic about the scheme’s potential to boost domestic manufacturing and contribute to India’s economic growth.
