India is collecting industry feedback on licensing, data regulations, visa restrictions and other hurdles faced by Indian service providers seeking greater access to China’s market.
India is reviewing trade barriers faced by its services exporters in China, with the Commerce Department compiling a list of restrictions that could limit Indian companies’ access to the Chinese market. The exercise covers licensing requirements, registration procedures, data regulations and restrictions on the movement of Indian professionals.
The government has sought information from industry representatives on China’s data localisation rules, cybersecurity requirements and regulations governing cross-border data transfers. It is also examining visa and work permit procedures, recognition of professional qualifications, taxation, payments and remittances that affect Indian service providers.
An official familiar with the exercise said India was working to identify trade barriers affecting both goods and services. The review is intended to help Indian businesses explore new opportunities, improve market access and identify areas where discussions with China could address existing obstacles.
India’s services exports to China remain limited
India exported services worth approximately $8.95 billion to China in 2024, according to figures cited in the report. By comparison, China’s total imports of services were estimated at around $300 billion, indicating a substantial gap between the size of the Chinese market and India’s current services exports there.
Information technology, IT-enabled services and digital solutions are among India’s key services offerings. However, industry representatives say many Indian firms work indirectly for Chinese clients through intermediary companies rather than providing services directly.
Restrictions on deploying Indian professionals to China can further complicate business operations, particularly when projects require employees to travel, work on-site or collaborate with local teams.
Data regulations and professional recognition under review
The Commerce Department is also examining requirements for establishing a commercial presence in China, including ownership rules, local partnerships and operational conditions. These issues can affect whether Indian companies provide services remotely, establish local offices or work through Chinese partners.
Trade experts have identified mutual recognition agreements, professional certification and technical standards as areas where negotiations could potentially improve access. They have also highlighted the need to assess compatibility between India’s Digital Personal Data Protection Act and China’s Personal Information Protection Law, particularly for businesses transferring data across borders.
Visa and professional mobility restrictions may require more complex discussions, while regulatory recognition and certification could offer more specific areas for engagement.
India seeks to expand its global services presence
India’s share of global commercial services exports increased from 3% in 2014 to 4.3% in 2024, according to figures cited in the report. The country’s average services export growth rose to 14% between 2022–23 and 2024–25, compared with 7.6% before the COVID-19 pandemic.
The government’s review of China’s trade barriers forms part of broader efforts to identify overseas opportunities for Indian service providers. The findings could help determine which concerns may be addressed through regulatory dialogue, improved business partnerships or future trade negotiations.
No specific agreement or removal of restrictions has been announced as part of the review. Any changes would depend on further consultations and engagement between the two countries.
