Manufacturing sector accounts for 78 per cent of foreign technical collaborations: RBI

India's Foreign Technical Collaboration Sector Sees Significant Growth

The Reserve Bank of India (RBI) has released data highlighting the growth of foreign technical collaborations (FTCs) in India's manufacturing and services sectors.

Manufacturing Sector Dominates FTCs

• 78.4% of total FTCs involved entities in the manufacturing sector.
• Machinery and motor vehicles accounted for 30.6% of FTCs.

Top Collaborating Countries

• Japan
• US
• Germany

Key Findings

• 61% of FTCs involved technology know-how transfer.
• 8% of FTCs were for trademark or brand name usage.
• 66.7% of FTCs used royalty payments.
• 187 FTC agreements had export restriction clauses.
• 188 FTC agreements had exclusive rights on assets transferred.

Sector-wise Performance

• The manufacturing sector had the highest share of production value.
• The motor vehicles sector had the largest share within manufacturing.

Export and Import Trend

• The FTC reporting entities exported at a faster pace (20.3% growth) compared to imports (4.6% growth) in 2024-25.
• The exports and imports accounted for 17.7% and 18.6% of the total value of production, respectively.

About the Survey

The data is based on the fifteenth round of the biennial survey on foreign collaboration in Indian industry (FCS) covering financial years 2023-24 and 2024-25.

Key Statistics

• 601 FTC agreements reported by 255 Indian entities.
• 163 entities participated in the previous survey round.