A Compilation of Foreign Collaboration Approvals (Prepared under the National Register of Foreign Collaborations) 2001
An Overview
1. General
Foreign collaborations, approved by the Government during the year 2001 are presented in this volume. These include approvals accorded by the Secretariat for Industrial Assistance of Ministry of Commerce and Industry and also the Reserve Bank of India under the automatic route. These have been grouped sector wise, country wise and others to facilitate easy reference.
In the Tables that follow, sector wise and country wise analysis of number of foreign collaborations, foreign investments and technology payments approved during the year 2001, as well as, for the twenty one year period 1981-2001 is given. Pictorial presentation is also given. Particulars relating to the different collaborations are arranged sector wise in the main body of this compilation. In Annexure-I, the index of applicant wise
collaborations have been given, arranged alphabetically and in Annexure-II these are arranged country wise.
A total of 2270 collaborations were approved during 2001 (including 540 amendment of previous approvals) as compared to 2144 during 2000.
Year wise account of foreign collaboration approvals during the period 1948-2001 is given in table 1; while figure-1 gives pictorially, their growth for the period 1961-2001.
As per the Policy, collaborations in certain specified industries and within specified payment terms are approved by the Reserve Bank of India. The number of such collaborations during the year 2001 was 1132.
2. Nature and Sector wise & Country wise Distribution
The nature of foreign collaborations and their sector wise & country wise distribution is given in tables II to
VIII. From these tables sector wise and country wise distribution of foreign collaborations, is summed up as under:
(I) Total Collaborations (Nos.)
| Sector | Country | Total (Nos.) |
||||||
|---|---|---|---|---|---|---|---|---|
| USA | Mauritius | UK | Germany | Japan< | Singapore | Others | ||
| Consultancy & Other Services | 393 | 140 | 84 | 32 | 19 | 70 | 303> | 1041 |
| Electrical & Electronics | 64 | 50 | 16 | 18 | 10 | 7 | 86 | 251 |
| Chemical | 32 | 8 | 20 | 15 | 9 | 5 | 85 | 174 |
|
Mechanical Engineering |
20 | 1 | 13 | 24 | 15 | 2 | 40 | 115 |
| Transportation | 16 | 1 | 5 | 8 | 39 | 1 | 33 | 103 |
| Others | 126 | 42 | 53 | 65 | 19 | 25 | 256 | 586* |
| Total | 651 | 242 | 191 | 162 | 111 | 110 | 803** | 2270 |
* Other sectors include Industrial Machinery (66),Metallurgy (39), Textile (31), Machine Tools (14), Alternate Energy Source (7) and Miscellaneous (429).
** Other countries include Netherlands (106), Italy (61), France(60), Switzerland (45), South Korea (34), Sweden (26), etc.
From the above, it will be seen that USA has the largest share of collaborations, followed by Mauritius, UK, Germany, Japan and Singapore. The maximum number of collaborations are in Consultancy and other services followed by electrical & electronics, chemical, mechanical engineering and transport sectors.
(II) Technical Collaborations (Nos.)
| Sector | Country | Total (Nos) |
||||
|---|---|---|---|---|---|---|
| USA | Japan | Germany | UK | Others | ||
| Consultancy & other services | 20 | - | 1 | 3 | 15 | 39 |
| Chemical | 7 | 6 | 1 | 4 | 14 | 32 |
| Electrical & Electronics | 5 | 6 | 7 | 5 | 17 | 40 |
| Mechanical Engineering | 6 | 9 | 12 | 6 | 15 | 48 |
| Industrial machinery | 7 | 9 | 9 | 1 | 9 | 28 |
| Others | 22 | 2 | 6 | 11 | 55 | 112* |
| Total | 67 | 18 | 36 | 30 | 125** | 299 |
* Other sectors include Transport (35), Metallurgy (13),Textile (11), Alternate Energy Source (3), Machine Tools (1) and Miscellaneous (49).
** Other countries include Italy (22), South Korea (13), France (8), Switzerland (8), Sweden (6) etc.
(III) Financial Collaborations (Nos.)
| Sector | Country | Total (Nos) |
|||||
|---|---|---|---|---|---|---|---|
| USA | Mauritius | UK | Germany | Japan | Others | ||
| Consultancy & other services | 373 | 140 | 81 | 31 | 19 | 358 | 1002 |
| Electrical & Electronics | 59 | 49 | 11 | 11 | 4 | 77 | 211 |
| Chemical | 25 | 8 | 16 | 14 | 3 | 76 | 142 |
| Mechanical Engineering | 14 | 1 | 7 | 12 | 6 | 27 | 67 |
| Industrial Machinery | 9 | 1 | 3 | 9 | 3 | 13 | 38 |
| Others | 104 | 42 | 44 | 49 | 35 | 237 | 511* |
| Total | 584 | 241 | 162 | 126 | 70 | 788** | 1971 |
* Other Sectors include Transport (68), Metallurgy (26), Textile (20), Machine Tools (13), Alternate Energy Source (4) and Miscellaneous (380).
** Other countries include Singapore (107), Netherlands (96), France (52), Italy (39), Switzerland (37), Australia (27), South Korea (21), Canada (21), Malaysia (16), Belgium (13), Denmark (10) etc.
3. NRIs Collaborations
NRIs have participated in 99 collaborations, all of which are financial in nature. The break up of NRI collaborations is as below
| Nos | |
|---|---|
| NRI non-repatriable equity participation only | 33 |
| NRI repatriable equity participation only | 43 |
| NRI both repatriable and non-repatriable equity participation | 4 |
| Both NRI & Foreign equity participation | 1 |
| NRI non-repatriable equity participation & Foreign equity | 13 |
| NRI repatriable equity participation & Foreign equity | 5 |
| 99 |
4. Sector wise Country wise Distribution (1981-2001)
The sector wise distribution of foreign collaborations is given in table II as well as in figure-2 and country wise distribution in figure-3. The distribution country wise and sector wise over the 20 year period 1981-2001, is as below.
| % of Total Nos. of collaborations | |
|---|---|
| USA | 21.6 % |
| Germany | 12.9 % |
| UK | 11.0 % |
| Japan | 7.4 % |
| Italy | 4.7 % |
| France | 3.9 % |
| Netherlands | 4.0 % |
| Switzerland | 3.7 % |
| Mauritius | 3.7 % |
| Swedan | 1.5 % |
| Canada | 1.3 % |
| Others | 24.3 % |
| Total | 100.0 % |
| % of Total Nos. of collaborations | |
|---|---|
| Consultancy & other Services | 20.8 % |
| Electrical & Electronics | 16.2 % |
| Chemical | 11.7 % |
| Mechanical Engineering | 9.1 % |
| Industrial Machinery | 8.3 % |
| Metallurgical | 3.7 % |
| Machine Tools | 1.3 % |
| Alternate Sources of Energy | 0.5 % |
| Transportation | 5.4 % |
| Textile | 1.9 % |
| Others | 21.1 % |
5. Foreign Investment
Total foreign investment approved during the year 2001 has been Rs. 26653 crores, representing an decrease of 28.3% over corresponding figure for the year 2000. NRIs have contributed Rs 567 crores or about 14.3% of this investment. About 9% of the NRI investment is on non-repatriable basis and the balance 85.7% on
repatriable basis. In 2000 the corresponding proportion of non-repatriable and repatriable basis was 4.5% and 91% respectively. The sector wise and country wise break-up of the foreign investment is given in table X, which is summarized below.
| Country | Sectors | Total | |||||
|---|---|---|---|---|---|---|---|
| Chem. | Elec. | Mech. | Ind. M/c | Met. | Others | ||
| USA | 357.82 | 2045.12 | 84.55 | 171.51 | 800.67 | 1450.81 | 4910.48 |
| Mauritius | 20.87 | 1480.21 | 2.50 | 19.60 | - | 1493.76 | 3016.94 |
| Japan | 1.13 | 46.30 | - | 2.58 | - | 691.68 | 741.69 |
| Germany | 22.34 | 12.79 | 24.99 | 108.25 | 82.22 | 258.48 | 509.07 |
| UK | 932.62 | 3451.83 | 15.80 | 0.33 | 10.00 | 587.10 | 4997.68 |
| Netherlands | 22.37 | 3455.12 | 23.35 | - | 22.50 | 142.14 | 3665.48 |
| Italy | 102.19 | 0.04 | 15.12 | 10.00 | - | 44.14 | 171.49 |
| Singapore | 0.29 | 86.14 | 0.05 | - | - | 187.13 | 273.61 |
| France | 495.82 | 92.69 | 1.14 | - | 0.10 | 97.11 | 686.86 |
| Others | 5154.95 | 245.53 | 16.96 | 24.43 | 55.26 | 1616.20 | 7113.33* |
| Total | 7110.40 | 10915.77 | 184.46 | 336.70 | 970.75 | 6568.55** | 26086.63 |
* Other sectors include Consultancy and other services, Transport, Alternate Energy Source, Textile, Machine Tools and Miscellaneous sectors, the figures for which are 4625.00, 669.24, 40.28, 10.19, 10.60 and 1213.24 respectively.
** Other countries include Switzerland, Malaysia, South Africa, Austria, Canada, Australia, Denmark, South Korea and Sweden whose figures are 107.50, 105.80, 66.80, 64.45, 53.73, 24.93, 7.68, 6.89 and 236.54 respectively.
6. Country wise Foreign Investment (1981-2001)
For the period (1981-2001) the country wise break-up of foreign investment approved is given in figure-4 from which it will be seen that in foreign investment, the share of various countries is as below:
|
Including NRI Investment |
|
|---|---|
| USA |
21.5 % |
| Mauritius |
11.4 % |
| UK | 9.6 % |
| Japan | 4.0 % |
| Germany | 3.3 % |
| France | 2.4 % |
| Netherlands | 3.2 % |
| Italy | 1.7 % |
| Switzerland | 1.1 % |
| Canada | 1.0 % |
| Swedan | 0.8 % |
| Others | 40.2 % |
| Total | 100.0 % |
Sector wise and country wise distribution of financial collaborations,in various equity ranges, is given in table VIII.
7. Export Obligation
In all 41 proposals with export obligation were approved during the year 2001 out of which 31 were with 100% export obligation. Break-up of 41 proposals comprises of 19 in Consultancy and other services sector, 10 in miscellaneous sector, 6 in chemicals sector, 2 in textile sector, 4 in electrical and electronics sector. The break-up of 100% export cases comprises of 10 miscellaneous, 10 in consultancy and other services, 5 in chemical, 4 in electrical and electronics, 2 in textiles.
8. Royalty
126 collaborations have been approved with separate rates of royalty for indigenous sales and exports and there are 50 cases where the royalty rates are more than 5% in the year 2001.
