India new visa norms aims to curb tax-dodging expats, unskilled workers
www.chinaview.cn 2009-11-05 22:18:00   Print

    NEW DELHI, Nov. 5 (Xinhua) -- India for the first time in decades has clamped down heavily on foreign workers employed in the country on business visas, instead of a full job permit, by introducing a new stricter visa regime.

    The Indian government even went to the extent of asking foreigners employed on business visa to leave the country by Oct.31, a move which has affected thousands of Chinese workers and 1,000 Russians, Americans, Germans and Britons.

    Indian Home Secretary G.K. Pillai made it clear recently in the national capital by saying: "If a foreign national is employed in India, he must have the right kind of visa."

    Political analysts have claimed that the new visa policy by Indian authorities is aimed at swooping down on tax-dodging expatriates as well as keeping foreigners out of semi-skilled jobs.

    "Business visas were earlier issued to foreigners for a wider range of occupations for a period of six months without paying taxes. Many companies took advantage of the norms to bring in workers and send them back within six months. As a result the government wasn't getting anything," said political analyst Professor Ajay Singh.

    Under the new rules, business visas will be reserved for a smaller pool of senior executives, trade consultants and other specialists.

    Moreover, foreign clerical, secretarial and unskilled workers will not be issued work visas in India where there the unemployment rate is quite high.

    "Given the economy is still recession-hit and there is no dearth of unskilled workers in the country, why will Indian authorities allow foreigners to grab those jobs for which a large number of Indians are available?" political analyst Professor S.K. Gupta said.

    According to highly placed government sources, the fallout of the misuse of business visas may hamper some crucial defense and nuclear projects by Russian companies in India.

    "The Indian Home Ministry and Indian External Affairs Ministry are now trying to find a way out to ensure that the crucial projects do not come to a halt. Though the new laws will not be amended, some solution would soon be reached. Apart from Russian workers, some 25,000 Chinese were said to be employed in power, communication and petroleum sector projects. Something would soon be worked out," the sources said.

    Not only the Russians have taken up the matter with the Indian government, but also the Chinese government has voiced its concerns over the new visa regime and has urged India to ease visa red tape.

    "We hope India will be considerate of the circumstances of Chinese firms there and provide more convenience for Chinese labourers and firms," a Chinese Foreign Ministry spokesman said earlier this week.

    No matter how, it is most important to keep the trade relations between India and those countries affected on good track in the near future, and the Indian government knows how to handle this, said political analysts.

Editor: Yan
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