Passport power: Why having visa friends is vital for business

livemint.com:

₹1,959 crore was paid as visa fees for the 1.4 million US visitor and work visas processed across consulates in India in 2023. Additionally, the average waiting time for visitor visa appointments was 250 days. Passport strength is closely connected to the business environment, especially for the high-ranked countries.

Countries with the strongest passports tend to be established business centres and trading hubs, with stable growth and sound enabling institutions. Not surprisingly, there is a heavy overlap between the best places for doing business and the top passport ranks. In other words, reforms that improve the business climate could help to build passport strength.

Passport power measures the share of global GDP to which a passport gives visa-free access. The Henley index ranks the Indian passport at 125 out of 183 in terms of passport power, with access to 7.6% of world GDP. The usefulness of this measure is rather limited.

First of all, access to some countries is more important than others. For example, Indians would definitely value visa-free travel to the US (a key destination for exports, students and job seekers) over, say, all the countries in sub-Saharan Africa. Second, following the UAE example, India could attempt to enhance its passport strength and power through strategic diplomacy.

That may win some brownie points for the government. But visa-free access to key trading partners (US, China)—which would be far more useful—is unlikely to happen. Thus, rather than obsess over passport power, it is in India’s interests to increase its share of global trade via other means such as trade treaties and import agreements.