China’s visa crackdown worsens India’s manufacturing dependence amid thaw for Chinese professionals

India faces increasing challenges in maintaining manufacturing ties with China as Beijing tightens business visa scrutiny for Indian professionals, exposing persistent reliance on Chinese components and expertise amid efforts to localise production.

China’s tightening of business visa scrutiny for Indian professionals is adding a fresh strain to manufacturing links that India has spent years trying to preserve even as it talks up self-reliance. According to News18, companies in electronics and auto contract manufacturing are reporting sharp falls in approval rates, with some saying only a fraction of applications are now getting through, a shift that could delay factory visits, quality checks and technical meetings tied directly to production.

The problem goes beyond travel paperwork. India’s factories still rely heavily on Chinese components, machinery and specialist know-how, which means engineers and managers often need to be physically present in China to inspect supplier facilities, resolve defects or oversee equipment installation. China Briefing said India streamlined its own business visa process for Chinese professionals in December 2025 to cut delays and help manufacturers that depend on foreign technicians, underlining how intertwined the two sides remain.

That dependence is still substantial. The Global Trade Research Initiative has said India’s industrial supply chains are deeply exposed to China, while The Economic Times reported that China accounts for more than 30% of India’s industrial goods imports. Financial Express also reported that India’s trade deficit with China reached a record $112.16 billion in 2025-26, driven by a 16% rise in imports, a sign that the push to localise manufacturing has not yet removed the need for Chinese inputs.

The visa squeeze also sits awkwardly alongside recent efforts to ease business ties. Reuters reported last year that India relaxed rules for Chinese specialists involved in installation, commissioning, maintenance and production-related work. The Economic Times later said Chinese executives from companies including Oppo, Xiaomi, Hisense, Haier and Midea had begun travelling back to India more freely. Taken together, the trend suggests a lopsided thaw: it is becoming easier for Chinese professionals to enter India, even as Indian firms may find it harder to send teams to China, exposing how much of India’s manufacturing ambition still depends on a relationship it cannot yet afford to sever.

Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.