India Reviews China's Services Trade Barriers
New Delhi seeks industry feedback on licensing, data rules and visa restrictions as it examines opportunities to expand Indian services exports to China.
India is reviewing the trade barriers faced by its services exporters in China, as the government seeks to identify regulatory hurdles and improve access to one of the world's largest services markets. The Commerce Department is collecting information from industry representatives on restrictions affecting Indian companies and professionals operating across the border.
The review covers strict licensing requirements, complex registration procedures and local regulations. The government has also sought details on China's data-localisation, cybersecurity and cross-border data-transfer rules, along with visa and work-permit restrictions and the recognition of professional qualifications.
India's services exports to China totalled $8.95 billion in 2024, according to the report. An industry representative cited in the report noted that China's total services imports are around $300 billion, highlighting the potential for Indian companies to expand their presence if market-access challenges can be addressed.
Information technology, IT-enabled services and digital solutions are among India's key services exports to China. However, Indian firms often work indirectly through other entities representing end clients rather than exporting services directly, limiting their visibility and direct access to commercial opportunities.
The government is also examining barriers linked to commercial presence, including company establishment, ownership requirements, local partnerships and operational conditions. Feedback is being sought on both digitally delivered services and services that require professionals to travel to China.
Trade experts say restrictions on visas and the movement of professionals involve broader political considerations, while issues such as mutual recognition agreements, certification and standards may offer more practical avenues for discussion. Differences between India's Digital Personal Data Protection Act and China's Personal Information Protection Law are also relevant to cross-border data operations.
The review comes as India seeks to strengthen its position in global services trade. India's share of global commercial services exports rose to 4.3% in 2024 from 3% in 2014, while China's share increased to 5.1% from 4.2% over the same period.
The exercise is intended to document the difficulties faced by Indian exporters and help the government assess possible responses. The report does not indicate that formal negotiations with China have begun or that any restrictions have already been changed.