Skip to main content
Click here to Visit the RBI’s new website

BBBPLogo

Press Releases

PDF document (1055 kb)
Date : Mar 24, 2015
Survey on Foreign Collaboration in Indian Industry: 2012–2014 – Data Release

The Reserve Bank of India today released, on its website, the data related to the results of the tenth round of the Survey on Foreign Collaboration in Indian Industry covering the years 2012-13 and 2013-14.

This survey captures comprehensive information on various aspects of operations of Indian companies having technical collaboration with foreign companies during the reference period as per the schedule. In the tenth survey round, 866 Indian companies responded, of which, 303 companies reported 528 foreign technical collaboration (FTC) agreements. The highlights of the survey results are presented below:

Highlights:

  • Coverage: Out of the 303 companies which reported agreements during the period 2012-14, 160 were foreign subsidiaries (single foreign investor holding more than 50 per cent of total equity), 94 were foreign associates (foreign investors holding ranging between 10 per cent and 50 per cent of total equity), 9 had pure technical collaboration and the remaining 40 companies had less than 10 per cent foreign equity participation and/or had only outward investment (Table 1).

  • Industry-wise distribution of agreements: The share of manufacturing sector in the total FTC agreements increased substantially while that of services sector decreased in the tenth round. The share of construction sector and agriculture-related activities was higher when compared with the ninth round of the survey (Table 2).

  • Country-wise distribution of agreements: In terms of source of technology transfer, Japan, USA and Germany were the top three countries which together accounted for 51 per cent share in total FTC agreements of responding companies during the survey period (Table 3).

  • Type of assets transferred: Among the FTC agreements reported by companies, the share of agreements providing “Know-how transfer” increased to 66.9 per cent from 45.8 per cent in the ninth round of the survey (Table 4).

  • Modes of Payment: The share of agreements involving (a) royalty and lump-sum technical fees, (b) only royalty and (c) only lump-sum technical fees stood at 30.5 per cent, 48.1 per cent and 21.4 per cent, respectively during the survey period (Table 5).

  • Export restrictive clauses: The proportion of FTC agreements with export restrictive clauses increased marginally in the manufacturing sector, when compared with the previous survey round. An analysis of country-wise agreements shows that the share of agreements with export restrictive clauses increased with USA, United Kingdom, Italy, and Switzerland and decreased with Japan, Germany, Korea and France. (Tables 6 and 7).

  • Provision of exclusive rights: Any provision of exclusive rights to an Indian company in FTC agreement restricts the foreign collaborator from transferring such assets to other parties operating in India. The proportion of agreements providing exclusive rights on assets transferred under the agreements increased significantly in manufacturing sector and services sector vis-à-vis the previous survey round (Table 8).

  • Value of Production: Total value of production of the FTC reporting companies increased from ` 1826.7 billion in 2012-13 to ` 1954.2 billion in 2013-14. The share of manufacturing sector in the total production improved significantly, while the share of services sector shrank when compared with the previous survey round (Tables 9 and 10).

  • Profitability: The average profitability of FTC reporting companies measured by ratio of gross profit to the capital employed increased from 10.0 per cent in 2010-12 to 14.8 per cent in 2012-14 (Table 11).

  • Exports and Imports: Total exports of FTC reporting companies increased from ` 182.8 billion in 2012-13 to ` 203.7 billion in 2013-14 with manufacturing sector constituting the dominant share in exports. Imports of the FTC reporting companies increased marginally from ` 452.5 billion to ` 476.8 billion over this period with manufacturing sector holding the dominant share of import payments made by the FTC companies (Tables 12 and 13).

The previous data release covering the ninth round of the Survey on Foreign Collaboration in Indian Industry for the period 2010-12 was released on the RBI website on April 1, 2014.

Sangeeta Das
Director

Press Release : 2014-2015/2009

Table 1: Company Group-wise Number of Companies having Foreign Technical Collaboration
Company Group Number of Companies Per cent
Subsidiary 160 53.0
Associate 94 31.0
Pure Technical Collaboration 9 3.0
Others* 40 13.0
Total 303 100.0
*: Companies have less than 10 per cent equity participation and / or only outward investment.

Table 2: Industry-Distribution of Agreements of FTC Companies
Industry Ninth Round (2010-11 to 2011-12) Tenth Round (2012-13 to 2013-14)
Number % of total Number % of total
A. Agriculture-related, Plantations & Allied activities 1 0.3 17 3.2
B. Mining and quarrying 0 0.0 1 0.2
C. Manufacturing 234 70.1 409 77.5
1. Food Products 4 1.2 8 1.5
2. Beverages 3 0.9 0 0.0
3. Textiles 0 0.0 3 0.6
4. Wearing Apparel 2 0.6 0 0.0
5. Leather and Related Products 4 1.2 2 0.4
6. Wood and Products Of Wood and Cork, Except Furniture 0 0.0 0 0.0
7. Printing and Reproduction Of Recorded Media 0 0.0 0 0.0
8. Coke and Refined Petroleum Products 4 1.2 0 0.0
9. Chemicals and Chemical Products 19 5.7 30 5.7
10. Pharmaceuticals, Medicinal Chemical & Botanical Products 5 1.5 19 3.6
11. Rubber and Plastics Products 8 2.4 11 2.1
12. Other Non-Metallic Mineral Products 2 0.6 0 0.0
13. Fabricated Metal Products, Except Machinery & Equipment 7 2.1 7 1.3
14. Computer, Electronic and Optical Products 1 0.3 3 0.6
15. Electrical Equipment 10 3.0 14 2.7
16 Machinery and Equipment N.E.C. 40 12.0 58 11.0
17. Motor Vehicles, Trailers and Semi-Trailers 42 12.6 59 11.2
18. Other Transport Equipment 10 3.0 47 8.9
19. Other manufacturing 73 21.9 148 28.0
D. Electricity, gas, steam and air conditioning supply 2 0.6 0 0.0
E. Water supply; sewerage, waste management and remediation activities 2 0.6 1 0.2
F. Construction 5 1.5 10 1.9
G. Services 90 26.9 90 17.0
1. Wholesale and retail trade; repair of motor vehicles & motorcycles 6 1.8 11 2.1
2. Accommodation and Food service activities 8 2.4 6 1.1
3. Information and communication 29 8.7 14 2.7
4. Financial and insurance activities 11 3.3 2 0.4
5. Real estate activities 0 0.0 0 0.0
6. Other service activities 36 10.8 57 10.8
Total 334 100.0 528 100.0
Note: 1.The sum of the constituent items may not add to the total due to rounding off.
2. Footnotes given in this table are also applicable to other tables.

Table 3: Country-wise Distribution of Agreements of FTC Companies
Country Ninth Round (2010-11 to 2011-12) Tenth Round (2012-13 to 2013-14)
Number % of total Number % of total
Japan 75 22.5 133 25.2
United States 66 19.8 69 13.1
Germany 41 12.3 67 12.7
United Kingdom 17 5.1 31 5.9
Singapore 17 5.1 13 2.5
Italy 15 4.5 24 4.5
Mauritius 12 3.6 2 0.4
Korea, Republic of 11 3.3 22 4.2
Switzerland 11 3.3 22 4.2
France 9 2.7 31 5.9
Others 60 18.0 114 21.6
Total 334 100.0 528 100.0

Table 4: Distribution of Agreements According to Type of Assets Transferred of FTC Companies
Asset transferred Ninth Round (2010-11 to 2011-12) Tenth Round (2012-13 to 2013-14)
Number % of total Number % of total
Know-how 153 45.8 353 66.9
Trademark/ Brand Name 30 9.0 51 9.6
Patent 5 1.5 11 2.1
Others 146 43.7 113 21.4
Total 334 100.0 528 100.0

Table 5: Distribution of Agreements According to Mode of Payment of FTC Companies
Mode of Payment Ninth Round (2010-11 to 2011-12) Tenth Round (2012-13 to 2013-14)
Number % of total Number % of total
Royalty 68 30.4 216 48.1
Lump-sum technical fees 61 27.2 96 21.4
Both Royalty and Lump-sum technical fees 95 42.4 137 30.5
Total 224 100.0 449* 100.0
* Of the 528 agreements, 449 agreements reported along with the specific mode of payment in the present survey.

Table 6: Industry-wise Agreements with Exports Restrictive Clauses of FTC Companies
Industry Ninth Round (2010-11 to 2011-12) Tenth Round (2012-13 to 2013-14)
Total no of Agreement Number of Agreements with Export Restrictive Clauses % of Agreements with Export Restrictive Clauses Total no of Agreement Number of Agreements with Export Restrictive Clauses % of Agreements with Export Restrictive Clauses
A. Agriculture-related, Plantations & Allied activities 1 0 0.0 17 1 5.9
B. Mining and quarrying - - - 1 0 0.0
C. Manufacturing 234 84 35.9 409 151 36.9
1. Food Products 4 3 75.0 8 2 25.0
2. Beverages 3 2 66.7 0 0 -
3. Textiles 0 0 - 3 1 33.3
4. Wearing Apparel 2 0 0.0 0 0 -
5. Leather and Related Products 4 2 50.0 2 1 50.0
6. Wood and Products Of Wood and Cork, Except Furniture 0 0 - 0 0 -
7. Printing & Reproduction Of Recorded Media 0 0 - 0 0 -
8. Coke and Refined Petroleum Products 4 0 0.0 0 0 -
9. Chemicals and Chemical Products 19 4 21.1 30 5 16.7
10. Pharmaceuticals, Medicinal Chemical and Botanical Products 5 2 40.0 19 14 73.7
11. Rubber and Plastics Products 8 1 12.5 11 4 36.4
12. Other Non-Metallic Mineral Products 2 0 0.0 0 0 -
13. Fabricated Metal Products, Except Machinery and Equipment 7 2 28.6 7 2 28.6
14. Computer, Electronic & Optical Products 1 0 0.0 3 0 0.0
15. Electrical Equipment 10 6 60.0 14 9 64.3
16 Machinery and Equipment N.E.C. 40 10 25.0 58 27 46.6
17. Motor Vehicles, Trailers & Semi Trailers 42 31 73.8 59 33 55.9
18. Other Transport Equipment 10 4 40.0 47 15 31.9
19. Other manufacturing 73 17 23.3 148 38 25.7
D. Electricity, gas, steam and air conditioning supply 2 0 0.0 0 0 -
E. Water supply; sewerage, waste management & remediation activities 2 0 0.0 1 0 0.0
F. Construction 5 1 20.0 10 0 0.0
G. Services 90 7 7.8 90 8 8.9
1. Wholesale and retail trade; repair of motor vehicles and motorcycles 6 1 16.7 11 2 18.2
2. Accommodation & Food service activities 8 0 0.0 6 0 0.0
3. Information and communication 29 5 17.2 14 2 14.3
4. Financial and insurance activities 11 0 0.0 2 0 0.0
5. Real estate activities 0 0 - 0 0 -
6. Other service activities 36 1 2.8 57 4 7.0
Total 334 92 27.5 528 160 30.3

Table 7: Country-wise Agreements with Export Restrictive Clauses of FTC Companies
Country Ninth Round (2010-11 to 2011-12) Tenth Round (2012-13 to 2013-14)
Total no of agreements No of agreements with export restrictive clauses % of agreements with export restrictive clauses Total no of agreements No of agreements with export restrictive clauses % of agreements with export restrictive clauses
Japan 75 37 49.3 133 64 48.1
Germany 41 13 31.7 67 19 28.4
United States 67 11 16.4 69 16 23.2
Korea, Republic of 11 6 54.5 22 4 18.2
Italy 15 5 33.3 24 11 45.8
United Kingdom 17 5 29.4 31 10 32.3
France 9 3 33.3 31 7 22.6
Austria 6 2 33.3 3 1 33.3
Switzerland 11 2 18.2 22 10 45.5
Others 82 8 9.8 126 18 14.3
Total 334 92 27.5 528 160 30.3

Table 8: Industry-wise Agreements with Provision of Exclusive Rights of FTC Companies
Industry Ninth Round Tenth Round
(2010-11 to 2011-12) (2012-13 to 2013-14)
Number of Agreements with Exclusive Rights % to Total Number of Agreements Number of Agreements with Exclusive Rights % to Total Number of Agreements
A. Agriculture-related, Plantations & Allied activities 1 100.0 12 70.6
B. Mining and quarrying 0 0.0 0 0.0
C. Manufacturing 76 32.5 162 39.6
1. Food Product 0 0.0 4 50.0
2. Beverages 2 66.7 0 -
3. Textiles 0 0.0 2 66.7
4. Wearing Apparel 1 50.0 0 -
5. Leather and Related Products 4 100.0 1 50.0
6. Chemicals and Chemical Products 9 47.4 16 53.3
7. Pharmaceuticals, Medicinal Chemical and Botanical Products 4 80.0 14 73.7
8. Rubber and Plastics Products 1 12.5 6 54.5
9. Other Non-Metallic Mineral Products 1 50.0 0 -
10. Fabricated Metal Products, Except Machinery and Equipment 2 28.6 4 57.1
11. Computer, Electronic and Optical Products 0 0.0 0 0.0
12. Electrical Equipment 4 40.0 5 35.7
13. Machinery and Equipment N.E.C. 13 32.5 22 37.9
14. Motor Vehicles, Trailers and Semi-Trailers 13 31.0 14 23.7
15. Other Transport Equipment 2 20.0 13 27.7
16. Other manufacturing 20 24.7 61 40.7
D. Electricity, gas, steam and air conditioning supply 0 0.0 0 -
E. Water supply; sewerage, waste management and remediation activities 1 50.0 0 0.0
F. Construction 1 20.0 0 0.0
G. Services 13 14.4 29 32.2
1. Information and communication 7 24.1 5 35.7
2. Other service activities 6 9.8 24 31.6
Total 92 27.5 203 38.4

Table 9: Value of Production of FTC Companies
Year Value of Production (` billion)
2012-13 1826.7
2013-14 1954.2

Table 10: Industry-wise Share in Value of Production of FTC Companies
(` billion)
Industry 2012-13 2013-14
Value of Production % of Total Value of Production % of Total
A. Agriculture-related, Plantations & Allied activities 19.8 1.1 27.4 1.4
B. Mining and quarrying 0.1 0.0 0.1 0.0
C. Manufacturing 1725.8 94.5 1834.3 93.9
1. Food Products 20.9 1.1 23.4 1.2
2. Beverages 0.0 0.0 0.0 0.0
3. Wearing Apparel 0.0 0.0 0.0 0.0
4. Leather and Related Products 22.7 1..2 21.0 1.1
5. Chemicals and Chemical Products 78.0 4.3 90.4 4.6
6. Pharmaceuticals, Medicinal Chemical & Botanical Products 14.0 0.8 11.1 0.6
7. Rubber and Plastics Products 14.5 0.8 15.8 0.8
8. Other Non-Metallic Mineral Products 0.0 0.0 0.0 0.0
9. Fabricated Metal Products, Except Machinery and Equipment 13.7 0.7 20.0 1.0
10. Electrical Equipment 23.7 1.3 24.3 1.2
11. Machinery and Equipment N.E.C. 80.1 4.4 79.7 4.1
12. Motor Vehicles, Trailers and Semi-Trailers 633.0 34.7 674.9 34.5
13. Other Transport Equipment 82.6 4.5 89.6 4.6
14. Other manufacturing 742.6 40.7 784.0 40.1
D. Electricity, gas, steam and air conditioning supply 0.0 0.0 0.0 0.0
E. Water supply; sewerage, waste management and remediation activities 0.0 0.0 0.0 0.0
F. Construction 10.5 0.6 11.3 0.6
G. Services 70.5 3.9 81.2 4.2
1. Wholesale and retail trade; repair of motor vehicles and motorcycles 28.1 1.5 29.2 1.5
2. Accommodation and Food service activities 0.7 0.0 2.2 0.1
3. Information and communication 7.7 0.4 10.9 0.6
4. Financial and insurance activities 1.6 0.1 1.8 0.1
5. Other service activities 32.4 1.8 37.1 1.9
Total 1826.7 100.0 1954.2 100.0

Table 11: Profitability Ratio of FTC Companies
Year Profitability Ratio
(gross profit to the capital - per cent)
2012-13 17.0
2013-14 12.6
Average (Ninth Round) (2010-2012) 10.0
Average (Tenth Round) (2012-2014) 14.8

Table 12: Industry-wise Exports of FTC Companies
(` billion)
Industry 2012-13 2013-14
Total Exports % share of Total Exports Total Exports % share of Total Exports
A. Agriculture-related, Plantations & Allied activities 0.3 0.1 0.5 0.2
B. Mining and quarrying 0.0 0.0 0.0 0.0
C. Manufacturing 159.7 87.4 185.5 91.1
1. Food Products 4.0 2.2 4.7 2.3
2. Leather and Related Products 0.1 0.1 0.2 0.1
3. Chemicals and Chemical Products 4.7 2.6 7.8 3.8
4. Rubber and Plastics Products 1.0 0.6 1.3 0.6
5. Other Non-Metallic Mineral Products 0.0 0.0 0.0 0.0
6. Basic Metals 0.0 0.0 0.0 0.0
7. Fabricated Metal Products, Except Machinery and Equipment 0.1 0.0 0.0 0.0
8. Electrical Equipment 15.0 8.2 16.2 7.9
9. Machinery and Equipment N.E.C. 12.3 6.7 20.8 10.2
10. Motor Vehicles, Trailers and Semi-Trailers 61.4 33.6 61.4 30.2
11. Other Transport Equipment 9.2 5.1 11.0 5.4
12. Other manufacturing 51.9 28.4 62.1 30.5
D. Electricity, gas, steam and air conditioning supply 0.0 0.0 0.0 0.0
E. Water supply; sewerage, waste management and remediation activities 0.0 0.0 0.0 0.0
F. Construction 0.5 0.3 0.5 0.3
G. Services 22.3 12.2 17.2 8.4
1. Accommodation and Food service activities 0.4 0.2 0.4 0.2
2. Information and communication 1.1 0.6 1.5 0.7
3. Other service activities 20.7 11.3 15.3 7.5
Total 182.8 100.0 203.7 100.0

Table 13: Industry-wise Imports of FTC Companies
(` billion)
Industry 2012-13 2013-14
Total Imports % share of Total Imports Total Imports % share of Total Imports
A. Agriculture-related, Plantations & Allied activities 1.9 0.4 2.2 0.5
B. Mining and quarrying 0.0 0.0 0.0 0.0
C. Manufacturing 445.5 98.5 467.6 98.0
1. Food Products 2.6 0.6 2.5 0.5
2. Beverages 0.0 0.0 0.0 0.0
3. Wearing Apparel 0.0 0.0 0.0 0.0
4. Leather and Related Products 1.6 0.3 1.6 0.3
5. Coke and Refined Petroleum Products 0.0 0.0 0.0 0.0
6. Chemicals and Chemical Products 9.6 2.1 9.9 2.1
7. Pharmaceuticals, Medicinal Chemical and Botanical Products 2.0 0.4 2.7 0.6
8. Rubber and Plastics Products 3.7 0.8 3.9 0.8
9. Other Non-Metallic Mineral Products 0.0 0.0 0.0 0.0
10. Fabricated Metal Products, Except Machinery and Equipment 13.8 3.1 23.1 4.8
11. Electrical Equipment 10.8 2.4 14.3 3.0
12. Machinery and Equipment N.E.C. 12.1 2.7 22.0 4.6
13. Motor Vehicles, Trailers and Semi-Trailers 69.2 15.3 69.3 14.5
14. Other Transport Equipment 10.1 2.2 9.7 2.0
15. Other manufacturing 310.0 68.5 308.5 64.7
D. Electricity, gas, steam and air conditioning supply 0.0 0.0 0.0 0.0
E. Water supply; sewerage, waste management and remediation activities 0.0 0.0 0.0 0.0
F. Construction 0.6 0.1 0.2 0.0
G. Services 4.4 1.0 6.9 1.5
1. Wholesale and retail trade; repair of motor vehicles and motorcycles 0.0 0.0 0.0 0.0
2. Information and communication 0.0 0.0 0.0 0.0
3. Other service activities 4.4 1.0 6.9 1.5
Total 452.5 100.0 476.8 100.0

2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Archives
Top