**New Delhi:** Since the border clash between Indian and Chinese troops at Galwan four years ago, the number of visas issued to Chinese nationals by India has sharply declined. This reduction aligns with the Modi government’s focus on national economic security, as revealed by top officials and data accessed by Hindustan Times.
During the Galwan clash, 20 Indian soldiers, including Colonel Santosh Babu, lost their lives while repelling the People’s Liberation Army’s attempt to encroach on Indian territory in East Ladakh. Several Chinese soldiers also perished in the skirmish.
Senior officials from the national security establishment and economic ministries reported that around 200,000 visas were issued to Chinese nationals in 2019 before the pandemic and the June 15, 2020 clash. This number plummeted to just 2,000 in 2024 following a stringent screening of Chinese investments in India. In the past eight months, about 1,500 visas were issued, primarily to meet the demands of the Indian electronics industry, with another 1,000 visas in the pipeline.
Despite the visa restrictions, India’s trade deficit with China has exceeded $38.11 billion in the first five months of 2024. India exported $8.93 billion worth of goods to China between January and May 2024, while imports from China totaled $47 billion. This is despite government efforts to boost domestic production through corporate tax reductions and a ₹2 lakh crore production-linked incentive (PLI) scheme across multiple sectors. India’s merchandise exports in May 2024 saw a 9% annual increase, driven by petroleum products, engineering goods, and electronics, thanks to the PLI scheme.
Post-Galwan, the screening of Chinese investments revealed legal violations by Chinese telecommunication companies like Vivo. The Enforcement Directorate (ED) charged Vivo with laundering funds to China to evade Indian taxes, accusing it of siphoning about $13 billion back to China and violating visa conditions. Vivo expressed alarm at the authorities’ actions, claiming harassment and vowing to challenge the accusations legally.
While the Indian industry pushes for more visas for Chinese workers and technicians, the national security establishment remains firm that visas will only be issued after thorough vetting to support the “Atmanirbhar Bharat” initiative and protect domestic manufacturing.
India-China relations have been strained since the PLA’s transgressions in May 2020. Despite multiple military and diplomatic talks, the PLA remains in full deployment in East Ladakh, with continued Chinese surveillance in the Indian Ocean Region. A Cabinet minister emphasized that with the Xi Jinping regime maintaining pressure on India, the Modi government must ensure economic independence from China. “India’s national economic security cannot be compromised for a few pieces of silver,” the minister stated, stressing the need for rigorous screening of Chinese visa applicants to prevent travel condition violations.