Foreign and Technical Collaborations

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Collect data on foreign technical and financial collaborations for the last ten years and write a detailed note on the annual trends of these collaborations.

Foreign collaborations Into the Indian Market has been on the rise since past few years, especially with the boom in the IT sector. Manufacturing, banking, healthcare and textiles are among the other important sectors where foreign ventures have taken place in the Indian market. The period 1991-2000 saw total number of collaborations in the decade surpassing the total number of all the collaborations in the 4 decades preceding it. Indeed, the total number collaborations in the 9 years of post- liberalization (1992-2000) period is observed to be 17810,

while in the 41 years of pre- liberalization
(1951-91), there were only 15105 foreign collaborations.

India is thus banking on expert
technological support for goods and services at an accelerated pace than in the preliberation era. The rise in number is substantial in the post liberalization era, 10- fold compared to the decade of 1950s, 5- fold compared to the decades of 1960s and 1970s and 2-fold compared to the decade of 1980s

IN THE 2001—2010 PERIOD,
there were only 25000 foreign collaborations
The data thus, indicates that in the post-liberalisation era, the country is entering into foreign collaborations for a variety of reasons rather than for importing technology to build industrial base or to bridge the technology gaps, most important among them being to increase variety for meeting the customers’ choice of products and services, which is a major shift in pattern of collaborations in the post- liberalization period. In term of level of collaborations in the post liberalization era (1992-2010) by number, USA tops the list followed by Germany, the Great Britain and Japan. This is followed by Netherlands, Mauritius (!), Italy, France and Switzerland. The next few places have been occupied by the south- east Asian countries, nearly. Singapore, Korea(s), Australia and Hong Kong, which did not have any collaborations in the preliberalization era, They have pushed other leading European countries namely Denmark, Austria,. Sweden & Belgium to the next lower position East European technology providers of pre- liberalization era, the giant like USSR, Hungry, Poland, Romania etc., are pushed down to positions lower than even the countries like Luxembourg, indicating a major shift in both, the geo-political considerations as well as the main purpose of foreign collaboration (bridging the technology gaps). Two more striking observations may be worth noting. Firstly, unlike the popular perception in the west, the foreign collaborations with east- European countries (U.S.S.R, Poland, Hungary, Romania, etc) have been far lower (10%total) than the western developed countries, which constituted the balance 90%. Secondly, the giants of Europe, namely Germany and the Great Britain have badly lost out to USA in terms of number of collaborations with India in the post liberalization era. Indeed, the entire west European block has now lost its business closeness with India to the USA and to some extent even to the south- east Asian countries as discussed later. Foreign Collaboration by Trade Blocks

Total Total
NAFTA 26%
EC 6876 23%
ASEAN 8%
Total 57%
Others 43%
Grand Total 100%
there is a major change in
the proportion of technological & financial collaborations in the post- liberalization period, the proportion of financial collaboration, which was only 45% in 1992, has jumped to 69% by 2000, a dramatic rise, indeed a paradigm shift. THEN IN 2010 TO 72% IN FINANCE.

YEAR-----------TECH COLL……….FIN COLL

1992……………….55%.................45%
2000……………….35%..................65%
2010……………….28%..................72%

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The shift in the nature of foreign collaboration points towards increasing interest of foreign partners in playing an active role in the...
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