VISAS TO CHINESE TECHNICIANS

A website that makes it easier for Chinese technicians to get short-term business visas has just started to operate. In industries covered by the government's flagship Production Linked Incentive (PLI) program, it is crucial for operationalizing production units and increasing output.

Did You Know?

• Navigating the visa process for Chinese technicians requires staying updated on policies, much like preparing for IAS exams requires keeping up with current affairs. Maluka IAS Academy’s current affairs resources can help you excel in your exams.
• Just as visas need proper documentation, cracking the IAS/PCS exams requires a solid foundation. Maluka IAS Academy’s GS Foundation Advance Batch 2025 provides the coaching you need for success.
• Visa applicants and IAS aspirants both need preparation strategies. For exams, practice is key. Explore Maluka IAS Academy’s Prelims and Mains test series to refine your skills.
• Staying informed on visa changes is crucial—just like keeping up with IAS exam patterns. Join Maluka IAS Academy Batches for comprehensive exam prep.
• While technicians face visa challenges, IAS/PCS aspirants face exam hurdles. Maluka IAS Academy’s Punjab PCS Online Coaching can help you overcome them.

PRODUCTION LINKED INCENTIVE SCHEME (PLI)

• The PLI program was designed to increase employment and import substitution while also increasing indigenous industrial capacity. Initially aimed at three industries.
  • Medical Devices,
  • Electrical Component Manufacturing, and
  • Mobile and Allied Component Manufacturing the initiative was introduced in March 2020.
• It was later expanded to fourteen sectors. Based on a portion of their income over a maximum of five years, domestic and foreign businesses are rewarded financially for manufacturing in India under the PLI plan.
• The targeted sectors comprise the following 14 industries: mobile manufacturing, medical device manufacturing, automotive manufacturing, pharmaceutical manufacturing, drug manufacturing, specialty steel, telecom and networking products, electronic products, white goods (LEDs and ACs), food products, textile products, solar PV module manufacturing, advanced chemistry cell (ACC) battery manufacturing, and drone manufacturing.
• Rewards within the Plan: The incentives are determined by taking into account the incremental sales.
• Certain industries, like advanced chemical cell batteries, textile products, and drones, will determine the incentive to be awarded based on sales, performance, and local value addition over a five-year period.

CHALLENGES RELATED TO THE INDIAN INDUSTRIAL WORKERS

• Low Productivity: "Highly productive" Chinese professionals are Leaders in the Indian sector claim that Chinese can assist in producing 150 goods using the same resources that Indians use to make 100.

• Skill disparity: Chinese and Indian factory workers and supervisors have "a significant skill gap."

• Indian companies have purchased machinery from China, but because the local labor force lacks the requisite expertise, they find it difficult to operate these machines efficiently without the help of Chinese professionals.

• Inadequate Industrial Training Programs: Companies in the industrial sector neglect to offer their employees on-the-job training that would enable them to satisfy the present need for industrial skills.

• Curriculum Irrelevant: There is frequently a disconnect between what students learn and what companies need since educational and skill programs do not keep up with the demands of the modern industry.

• Prosperity with plenty of jobs will remain a sad fantasy unless domestic education is drastically improved.

INDIA'S NEED FOR CHINESE TECHNICIANS

• Delay in Operationalization of Machines: Domestic manufacturing firms have been raising concerns about delays in obtaining visas for Chinese technicians essential for tasks such as machine installation, repair and training of Indian workers.

• Chinese technicians are sought after by Indian manufacturers as they are more affordable than technicians from other Western or even Southeast Asian countries.

• Delay in Fulfilling Global Orders: Escalating tensions with China have reportedly cost Indian electronics manufacturers USD 15 billion in production losses and 100,000 jobs since 2020.

• The electronics manufacturing industry highlighted that India has also missed out on a USD 10 billion export opportunity and suffered a USD 2 billion loss in value addition.

• Achievement of Atmanirbhar Bharat: Ensuring the availability of necessary expertise will help domestic manufacturing units enhance production capabilities, reduce dependence on imports, and maintain competitiveness in the global market.

• Delay in Commencement of Production: The slow visa approval process has led to delays in the start of production across multiple industries.

• In sectors like textiles and leather, where there is significant potential, machinery has remained unused for months because Chinese vendors demand that only their personnel activate it.

INDIA'S RELUCTANCE TO ISSUE VISAS TO CHINESE TECHNICIANS

LEVERAGING CHINA’S EXPERTISE FOR INDIA’S BENEFIT

• Increase Chinese FDI Inflow: The Economic Survey 2023-24 advocated attracting investments from Chinese companies to boost exports.

• Currently, China stands at the 20th position with only a 0.43% share or USD 2.45 billion in total FDI equity inflow reported in India from April 2000 to December 2021.

• China Plus One Strategy: The Economic Survey 2023-24 noted that countries such as Mexico, Vietnam, Taiwan, and South Korea are benefiting from the China-plus-one strategy pursued by Western firms.

• India can greatly benefit from the China Plus One strategy due to its large domestic market, competitive labour costs and supportive government policies.

• Integration with Global Market: China is the world’s second-largest economy, a manufacturing giant and a significant scientific and technological player.

• To boost Indian manufacturing, it is essential for India to integrate itself into the global supply chain, like China.

ENHANCING SKILL DEVELOPMENT IN INDIA'S INDUSTRIAL SECTOR

• Foreign Knowledge as a Catalyst: East Asian development story shows that foreign knowledge is crucial for economic growth. In the 1980s, Korean businesses bought foreign machines to dismantle and reverse engineer them.

• Continuous Training: Providing continuous training within an organisation gives current employees an opportunity to develop their skills and abilities. It helps in adoption of new technologies and methods more streamlined.

• Partner with Colleges: Reaching out to college students by opportunities for internships and apprenticeships give them an idea of relevant skills in demand.

• Industrial Visit: It allows workers to understand the procedures, processes, work environment, and management practices in other industries, as well as to learn about the latest technologies.

• Educational Foundation: China began its explosive growth in the early 1980s. The quality of primary education in China established during the Communist era prepared the country for rapid development.

• Under National Education Policy, 2020, India should provide a robust educational foundation to its children.

• World Class Levels of Learning: Since 2018, Chinese school students have bettered the world’s best in the Program for International Student Assessment (PISA) conducted by the Organization for Economic Co-operation and Development (OECD).

• India should upgrade its education system to ensure children achieve world-class learning standards.

CONCLUSION

Despite the forecast of India becoming a global economic superpower, its prospects are dimmed by its failing education system and inability to provide dignified jobs. While it is important to address national security concerns, a balanced approach that encourages foreign expertise and simultaneously enhances domestic education and technical skills is essential. To compete in the intensifying global economy, India must urgently address its human capital deficiencies and realistic economic strategies to avoid worsening unemployment and underdevelopment.