Commerce department maps China’s barriers to Indian services exporters: data, licences, visas
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The news
New Delhi. The Commerce Department has asked industry for details of the hurdles Indian services firms face in China, The Economic Times reports: data localisation (rules forcing data to be stored inside China), cybersecurity and cross-border data-transfer rules, licensing, registration, visas, work permits and recognition of professional qualifications. It also seeks details on commercial presence: establishment, ownership and local partners. India’s services exports to China were $8.95 billion in 2024; an industry representative puts China’s total services imports at about $300 billion. A trade expert asked how compatible India’s Digital Personal Data Protection Act is with China’s Personal Information Protection Law. India’s share of world commercial services exports rose to 4.3% in 2024 from 3% in 2014.
Prelims nuggets
- Under the WTO’s General Agreement on Trade in Services (GATS, 1995), services trade has four modes: cross-border supply, consumption abroad, commercial presence and movement of natural persons.
- Visas and work permits for professionals fall under Mode 4 of GATS; opening a branch abroad is Mode 3.
- India’s Digital Personal Data Protection Act, 2023 allows personal data to go abroad except to countries the Centre restricts by notification.