In a significant diplomatic development, India has announced the resumption of tourist visas for Chinese nationals, marking the first such move since 2019.
The decision, effective July 24, was confirmed by the Indian Embassy in China on Wednesday and is being widely interpreted as a fresh step towards the normalisation of strained bilateral relations between the two Asian giants.
Why Were Tourist Visas Suspended?
India’s suspension of tourist visas for Chinese citizens was rooted in deep geopolitical and security concerns that came to a head during the violent border standoff in eastern Ladakh’s Galwan Valley in June 2020, which resulted in the deaths of 20 Indian soldiers and an undisclosed number of Chinese troops.
The Galwan clash triggered the worst crisis in India-China relations in decades, leading to widespread public anger in India and a sharp downturn in diplomatic ties.
In its wake, New Delhi adopted a cautious and security-first approach toward any form of cross-border interaction, especially in terms of trade, technology access, foreign investment, and people-to-people movement.
Although formal visa restrictions had already been affected by the COVID-19 pandemic starting in early 2020, the Galwan incident ensured that Chinese tourists were kept out of India even after travel curbs were eased for other countries.
This prolonged visa freeze became a symbol of the diplomatic chill that gripped relations between the two countries, which together make up nearly 40% of the world’s population.
Signs of Diplomatic Thaw and Economic Realignment
The resumption of tourist visas signals not only a softening of India’s diplomatic posture but also reflects an evolving regional dynamic where both countries are cautiously exploring areas of cooperation, even as border issues remain unresolved.
This step comes just days after NITI Aayog, the Indian government’s premier policy think tank, recommended the easing of investment restrictions on Chinese firms—a move aimed at reviving Foreign Direct Investment (FDI) in a slowing Indian economy.
Under the 2020 rules introduced in the wake of the Galwan conflict, all investments from nations sharing a land border with India—chiefly aimed at China—required security clearance from a designated inter-ministerial committee.
This was intended to shield critical infrastructure and industries from potential hostile takeovers, especially as Chinese firms began expanding their stake in Indian startups and technology platforms.
The proposed reforms now under review would allow Chinese companies to acquire up to 24% equity in Indian firms without the mandatory scrutiny, potentially paving the way for the return of large-scale bilateral investments.
However, this proposal has met with mixed reactions within government ministries, and final approval will depend on political consensus at the highest level, including input from the Prime Minister’s Office (PMO) and the Ministries of Finance, External Affairs, and Commerce.
Geopolitical Nuance Amid Global Realignments
This new approach is also unfolding against the backdrop of shifting global equations. The former Trump administration in the U.S., and now its potential resurgence, has taken an increasingly aggressive posture toward India, particularly regarding tariff negotiations and technology access.
Some analysts speculate that New Delhi’s openness to rekindling ties with Beijing could be a subtle message to Washington—signaling that India is not bound to any singular global power and will act in alignment with its strategic autonomy.
India’s FDI inflows have seen a sharp dip, falling to just $353 million in FY2023-24, compared to $43.9 billion in 2020-21. With proposals like a $1 billion electric vehicle joint venture by China’s BYD being stalled under the current regime, the potential for unlocking investments remains high if the political climate stabilises.
High-Level Engagements and Trade Talks Resume
Diplomatic engagement has quietly resumed in parallel. Indian External Affairs Minister S. Jaishankar visited China this week—the first such visit in five years—where he met with his Chinese counterpart to push for an early resolution to the ongoing border tensions.
Jaishankar reiterated the importance of avoiding restrictive trade practices, expressing concerns over China’s export controls on strategic commodities like rare earth magnets, which are essential for India’s green energy and defence sectors.
Meanwhile, discussions are underway to resume direct flights between India and China, further signaling a return to normalized diplomatic and economic exchange.
Tourism and Soft Diplomacy: A New Chapter Begins
With Chinese tourists now allowed to apply for Indian visas, the hope is that people-to-people ties, long considered a buffer against geopolitical tension, can help restore cultural and academic exchange.
Before the pandemic, China accounted for a growing number of tourists and students in India, contributing both to local economies and bilateral goodwill.
While the border issue remains unresolved and mutual distrust persists, the resumption of tourist visas and the push for investment reform indicate a measured, strategic shift by both nations—a move from confrontation to calculated engagement.