India's ambitious plans to become a global hub for battery manufacturing are facing a significant hurdle: visa delays for Chinese technical staff. These delays threaten to derail the country's efforts to establish a robust domestic battery industry, a critical component of its renewable energy goals and electric vehicle (EV) revolution.
India, the world's third-largest energy consumer, is aggressively pursuing clean energy ambitions, aiming for 500 GW of renewable energy capacity by 2030. Battery storage is essential to integrate intermittent renewable sources like solar and wind into the grid, ensuring a stable and reliable power supply. The government is actively promoting battery manufacturing through various initiatives, including the Make in India initiative and Production Linked Incentive (PLI) scheme, with a substantial budget allocation of ₹18,100 crore. These schemes aim to reduce import dependence, foster innovation, and enhance market competitiveness.
However, setting up advanced battery manufacturing plants requires specialized expertise, particularly in installing and maintaining sophisticated equipment. Chinese engineers and technicians possess considerable experience in this field, making them highly sought after by Indian companies. Firms like Ola and Reliance, who are investing heavily in lithium-ion battery production, rely on these experts to establish and run their factories.
The problem lies in the stringent visa approval process for Chinese nationals. While the Indian government has taken steps to streamline the process, aiming to reduce processing times to 30 days, delays persist. Currently, Chinese workers typically receive visas with only six-month validity, after which they must return home and wait several months before being eligible to reapply. This disrupts project timelines, increases costs, and creates uncertainty for manufacturers.
The impact of these visa delays extends beyond individual companies. They threaten India's broader manufacturing push and the billions of dollars in subsidies allocated to the electronics, automotive, and pharmaceutical sectors. Industry executives have voiced concerns that these restrictions undermine India's aspirations to become a global manufacturing hub and an alternative to China, especially in electronics.
The Central Electricity Authority (CEA) has recommended incentives to boost domestic manufacturing of critical battery components like anodes, cathodes, and electrolyte salts to reduce import dependency. A recent CEA workshop highlighted that India still relies heavily on imports for key components, increasing project costs and raising supply chain risks. Participants emphasized the need to promote local manufacturing of battery components and create a domestic ecosystem for long-term sustainability.
To address these challenges, the Indian government is considering further reforms to simplify the visa process, potentially allowing all companies in specified sectors receiving government subsidies to apply for business visas for Chinese workers. This would replace the current system where only manufacturing firms approved under incentive programs can apply for such visas, while others face more complex employment permit procedures.
India's renewable energy targets and the growing need for grid stability necessitate a rapid expansion of battery storage capacity. The government estimates that 41 GW/236 GWh of Battery Energy Storage Systems (BESS) capacity will be required by 2031-32. Streamlining the visa process for Chinese technicians is crucial to ensure that India's grand battery plans remain on track and contribute to its clean energy future. Overcoming this hurdle will not only benefit individual companies but also strengthen India's position as a global leader in renewable energy and sustainable development.
