The Hindu Business Line : FDI policy must focus on tech transfer: FICCI

New Delhi, Jan. 1 Concerned over the low share of foreign direct investment in some of India’s strategic sectors like industrial machinery, agriculture machinery and ship building, FICCI has called upon for a comprehensive action plan to attract more investments.

The industry body has suggested an FDI policy with a focus on value addition.

“The major benefits of FDI that include technology transfer and absorption have not taken place in key manufacturing sectors.

“While there are a few Indian manufacturing firms whose technological capabilities are world class, many segments especially in the small and medium enterprises have limited capabilities,” said the chamber.

FICCI has also suggested giving incentives for technology transfer, which is similar to the ‘swap technology for market’ policy followed by China.

It also wants rationalising of complex regulatory procedures and reducing delays in project approvals.

According to the Department of Industrial Policy and Promotion, FDI inflows between January 2000 and September 2008 stood at $59.15 million in ship building, $283.77 million in industrial machinery, $148.37 million in agriculture machinery and $99.7 million in computer hardware.

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