Computing value of tech transfer into India

The recent liberalization of India’s technology transfer and collaboration regulations was carried out with the objective of making Indian industries competitive in the global market. It has been effective in attracting the latest technology from around the world.

According to the current liberalized policy, a foreign technical collaborator can freely provide technology and technical know-how to an Indian partner. As such, there is no cap on royalty under technical collaboration or transfer agreements and no approval is required for remitting royalty payments to foreign parties.

Although the new policy saves time and costs (as no governmental approval is required), there are still several issues with regard to the import of equipment, technical know-how, payment of royalties and withholding taxes.

Rishabh G Mastaram is a senior associate and deals with FEMA, corporate and commercial transactions. Dhanashree Deoskar is a senior associate and deals with IPR and media and entertainment laws. The firm was founded by Ameet Naik. It is a full-service law firm with specific focus on entertainment, real estate, retail and technology and has a pan-India presence.