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6) For gaining real acquisition of technology, a purposive policy intervention is required through regulatory supervision of costs and conditions negotiated in technology collaboration agreements. Discuss. (250 words)

Topic-  Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

6) For gaining real acquisition of technology, a purposive policy intervention is required through regulatory supervision of costs and conditions negotiated in technology collaboration agreements. Discuss. (250 words)

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Why this question

Technology transfer has been one of the top priorities for foreign collaboration and for attracting foreign investment in the country. However, it has not been realized to the desired levels on account of various reasons, which need to be studied and discussed upon.

Key demand of the question.

The question wants us to write in detail about the problems in technology transfer as faced by India under its industrial policies. It also wants us to bring out how regulatory supervision of costs and conditions negotiated in technology collaboration agreements can help India in enhancing technology transfer.

Directive word

Discuss- This s an all-encompassing directive which mandates us to write in detail about the key demand of the question. We also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.

Structure of the answer

Introduction– mention the key aims of India’s industrial policy- attracting foreign investment; job creation; promotion of foreign technology transfer etc. Write in 1-2 lines that with regard to the technology transfer process via the FDI route, t the benefits of retaining investments and accessing technology have not been harnessed to the extent possible.

Body-

  • Discuss why true technology acquisition/ transfer has not been realized up to the required extent. E.g slow technology adoption capacities of the Indian economy and the absence of an appropriate model of technology transfer; the terms settled for technology imports are sometimes excessive or unfair and the pricing onerous due to unequal bargaining power existing between the two contracting parties- foreign vs domestic player; the supplier  ensures a continued control over technology by including restrictive conditions designed particularly to this effect in the contract; clauses related to “non-transferability,” “non-exclusivity,” “strict confidentiality,” and “stringent termination” requirements; excessively high cost of technology, old technology being transferred etc.
  • Discuss why a a purposive policy intervention is required through regulatory supervision of costs and conditions negotiated in technology collaboration agreements. E.g need for for a skilled negotiation policy before the entry of foreign investment. A structured policy for obtaining utmost gains from its ensuing operations in later years is required from the technology transfer perspective; Suggest some points on your own.

Conclusion– Based on your discussion, form a fair and a balanced conclusion on the given issue.

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