RBI Releases Survey Results on Foreign Collaboration in Indian Industry for 2023–2025
The Reserve Bank of India has released results of its 2023–2025 survey on foreign collaboration in Indian industry, covering 601 agreements across 255 companies and highlighting trends in manufacturing, FDI, technology transfer, and profitability.
The Reserve Bank of India (RBI) has released the findings of the fifteenth round of its biennial Survey on Foreign Collaboration in Indian Industry (FCS), covering the financial years 2023–24 and 2024–25. The survey examines the financial operations, technology partnerships, and overall performance of Indian companies that have active foreign technical collaborations during the reference period.
According to the latest round, 601 foreign technical collaboration (FTC) agreements were reported by 255 Indian entities, of which 163 had also participated in the previous survey cycle.
Key Highlights of the Survey
• Majority of FTCs linked to FDI-backed companies
Most of the reported collaborations were from foreign direct investment (FDI) companies. Foreign subsidiaries accounted for 68% of all collaborations, while foreign associate companies contributed 21%.
• Manufacturing sector dominates FTC activity
The manufacturing sector represented 78.4% of all FTC agreements. Machinery and motor vehicle industries jointly made up 30.6% of this share. The services sector comprised 16.6% of the collaborations.
• Japan, USA, and Germany remain top collaborators
These three countries continued as the leading sources of technology partnerships with Indian entities.
• Know-how transfer continues to be the primary form of collaboration
About 61% of all FTCs involved technology know-how transfer, while 8% were focused on trademark or brand usage rights.
• Royalty payments dominate payment structures
Nearly two-thirds of the collaborations involved royalty-based payments, including both recurring royalties and lump-sum technical fees.
• Contracts often include restrictions and exclusive rights
Out of the 601 agreements, 187 included export restriction clauses, while 188 granted foreign collaborators exclusive rights over transferred assets.
• Manufacturing sector leads in output contribution
Manufacturing-based FTC companies generated the highest share of production value. Within manufacturing, the motor vehicle segment was the highest contributor.
• Exports grow faster than imports for FTC companies
Entities reporting collaborations recorded a 20.3% rise in exports and a 4.6% increase in imports during 2024–25. Their exports and imports accounted for 17.7% and 18.6% respectively of their total production value.
• Profitability remains strong
The average profitability of FTC-reporting companies, measured by gross profit to capital employed, stood at 14.4% in the latest survey round.
The RBI noted that this edition continues its assessment of foreign collaboration trends following the previous survey released in October 2023.