China on Tuesday called for favorable conditions for labor service cooperation with India, saying the cooperation benefits both countries.

"We have insisted that China and India should develop trade relationship, promote investment cooperation, and create favorable conditions for labor service cooperation," said Qin Gang at a regular news briefing.

"This complies with the interests of both countries," Qin said.

Indian media reports quoted a power ministry official as saying on Monday that more than 3,000 Chinese engineers and semi-skilled professionals working on business visas at various power project sites "have been sent back."

"This has affected the construction and commissioning activities (of the power projects)," the reports said.

A new visa policy, issued in mid-July by Indian authority, has affected expatriates working in India on a business visa, which previously had been allowed for a wider range of occupations and employees.

Approximately 25,000 Chinese workers in such sectors as power generation, communication and petroleum in India will be affected by the new policy, according to reports.