International Transfer of Technology to India : Problems, Prospects and Policy Issues

Transborder movement of technology is being increasingly felt in international business. A large proportion of worldwide international transfer of technology (ITT) occurs between industrially advanced countries. But for developing countries ITT is considered critical as it is seen to be an important route for acquiring technological capabilities necessary for industrial development and economic growth. India has had a fairly long history of acquiring technology from abroad. Since the adoption of the New Economic Policy in mid 1991 the government has placed considerable emphasis on ITT with the expectation that it would enhance the international competitiveness of the country’s industries through technological upgradation of the country’s industries. The policies of the government have undergone changes over the past four decades in response to the overall philosophy of development as well as industry’s needs and conditions characterizing the supply of technology. This paper analyses the trends in international technology transfer to the country, discusses the government’s policies on technology import in an evolutionary framework and evaluates the technological capabilities of Indian industries. It also presents a picture of the prospects of ITT to India and discusses the major problems and policy issues that need to be addressed by policy makers.