Parul
According to the current biannual survey released by the RBI on Tuesday, companies with foreign technical collaboration (FTC) agreements for the motor vehicle sectors had the greatest share of overall production of FTC companies in the country.”The motor vehicles sector recorded 28.4 per cent production growth during 2022-23 as against 24.3 per cent growth registered by all FTC companies,” according to the RBI survey.
Japan, the US, and Germany remained the top three source countries for technology transfer, as per the survey respondents.
Out of the 709 Indian entities that participated in the latest survey round, 674 foreign technical collaboration (FTC) agreements were reported by 356 entities of which, 221 had also responded in the previous survey round.
Other highlights were that foreign direct investment (FDI) companies accounted for an overwhelming majority of the FTCs, over two-third of the FTC agreements involved technology know-how transfer or use of trademarks/brand names by foreign collaborators, and royalty payments was payment mode for over 70 per cent of the FTCs, with some having additional clauses for lump-sum technical fees.
Also, of the 674 reported FTC agreements, 198 had export restriction clauses and 217 had provision for exclusive rights on assets transferred under the pacts.
In terms of partner countries, technical collaborations with Japan continued to have the maximum export restriction clauses built into them, followed by the US and Germany among the source countries for technology transfer.
Exports and imports of FTC reporting companies grew by 19.8 per cent and 26.5 per cent, respectively, in 2022-23 – they had 13.6 per cent and 24.0 per cent shares, respectively, in the total value of production.
Average profitability of FTC reporting companies, measured by the ratio of gross profit to capital employed, stood at 10.5 per cent in the current survey round.
