A. India

The Government of India has introduced a new E-Business visa subclass specifically for foreign nationals involved in projects under the Production Linked Incentive (PLI) program.
The newly introduced PLI/SPECS/EMC 2.0 subclass, falling under the broader E-Business visa category, now allows Chinese nationals to apply. Previously, Chinese nationals faced significant challenges in obtaining business visas for India, as they were required to apply for regular paper visas. This process was often lengthy, subjected to higher scrutiny, and carried a greater risk of denial. The new E-Business visa subclass aims to streamline the process for those participating in PLI-related projects, reducing barriers for Chinese nationals and other eligible applicants.

This new E-Business visa provision is a notable change, as it simplifies the process for Chinese professionals, enabling their participation in key sectors such as Chemicals and Fertilisers, Commerce and Industry, Telecom, Electronics and Information Technology (not operational for this sector), Food Processing Industries, Heavy Industries, New and Renewable Energy, Steel, and Textiles.

Furthermore, it is important to note that this is currently the only e-visa category available to Chinese nationals, as other e-visas remain suspended. This development is expected to enhance collaboration in India’s strategic industries, driving growth and innovation.

B. Germany

Germany, currently facing a critical labour shortage with over 570,000 job vacancies, has introduced measures to expedite visa processing for skilled workers, particularly from India. The German government’s recent announcement under the "Visa Acceleration Action Plan" significantly reduces the waiting time for visa appointments to just two weeks¹, a major improvement aimed at addressing the urgent need for skilled labour.
This expedited process by the Federal Agency for Foreign Affairs is designed to facilitate quicker entry of Indian professionals into Germany, allowing businesses to swiftly fill critical roles that are essential for maintaining and boosting productivity in various sectors. This change is expected to have a positive impact on German businesses, enabling them to address labour gaps more efficiently and supporting the country’s overall economic recovery.

C. Canada

As part of its ongoing efforts to manage the temporary resident population in Canada, Employment and Social Development Canada (ESDC) has announced several significant changes to the Low-Wage stream of the Temporary Foreign Worker Program (TFWP). These changes are aimed at addressing the evolving needs of the Canadian labour market and ensuring that the TFWP is utilised in circumstances where no suitable Canadian workers are available.
Effective September 26, 2024², several key restrictions will come into force:

1. Labour Market Impact Assessment (LMIA) applications for low-wage occupations in Census Metropolitan Areas with an unemployment rate of 6% or higher will be automatically refused. This policy, which was paused during the COVID-19 pandemic, is being reinstated as the labour market conditions have stabilised. Exceptions will apply to specific sectors such as primary agriculture, food and fish processing, construction, and healthcare.

2. The allowable cap for hiring through the TFWP Low-Wage Stream will be reduced from 20% to 10% of an employer’s total workforce. This reduction follows previous adjustments made earlier in 2024 and is intended to prioritise Canadian workers in the job market. Certain sectors with demonstrated labour shortages, including agriculture, food processing, construction, and healthcare, will be exempt from this cap reduction.

3. A reduction in the maximum employment duration for workers hired under the Low-Wage Stream from two years to one year.

These changes reflect the Canadian government’s commitment to prioritising domestic workers and addressing the challenges posed by the increasing temporary resident population. Employers in sectors heavily reliant on low-wage foreign workers will need to adjust their hiring strategies to comply with these new regulations, potentially increasing their reliance on Canadian citizens, permanent residents, or individuals already in Canada with open work permits.

BDO in India continues to track these developments and will provide further updates as new information becomes available.