Payments eased for foreign technology collaborations

The Indian government has recognized the need to promote the technological capability and competitiveness of Indian industries through foreign technology induction in the country.

In order to encourage the development of an industrial environment, which prioritizes the acquisition of technological capability in the country, Indian corporates have been entering into foreign technology collaboration agreements with non-resident technology providers.

Liberalized payment policy

Under the Indian government’s policy framework, induction of know-how through such foreign technology collaborations and the permission to use trademarks and brand names through trademark licences may be possible either under the automatic route, or after obtaining prior approval from the government.

Shardul Thacker is a partner with Mulla & Mulla & Craigie Blunt & Caroe in Mumbai.