India’s manufacturing sector continues to dominate foreign technical partnerships, accounting for 78.4% of all Foreign Technical Collaborations (FTCs) reported between FY23 and FY25, according to new data released by the Reserve Bank of India (RBI). The insights come from the 15th round of the RBI’s biennial survey on foreign collaborations, covering 255 Indian entities and 601 active agreements.
Manufacturing Remains the Core Engine of FTC Activity
Within the manufacturing sector, machinery and motor vehicles together made up 30.6% of all reported collaborations, signalling persistent demand for advanced production technologies, design expertise and global-quality standards.
Japan, the United States and Germany remain India’s most prominent technology partners, supplying transfer-of-know-how, proprietary systems and technology licensing across a broad range of industrial applications.
The survey also revealed that 61% of FTCs involved technology know-how transfer, while 8% were primarily for the use of trademarks or brand names. For nearly two-thirds of the collaborations, payments were structured as royalties or lump-sum technical fees.
Export Growth Outpaces Imports for FTC-Linked Companies
Companies reporting foreign technical collaborations showed strong export performance:
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Exports grew 20.3%, significantly higher than the 4.6% growth in imports for FY24–25.
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These firms contributed 17.7% of India’s total exports and 18.6% of total imports, underscoring the strategic importance of globally integrated manufacturing.
The motor vehicles industry led in production value among FTC-linked entities, reflecting strong adoption of advanced automotive technologies and India’s rising role in the global auto supply chain.
Key Contract Trends: Restrictions and Exclusive Rights
A notable portion of the agreements included restrictive clauses:
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187 agreements had export restrictions,
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188 contained exclusive rights on transferred assets, limiting replication or broader commercial use.
These contractual structures highlight the guarded approach foreign companies take when sharing proprietary technologies in fast-growing markets like India.
RBI Survey Shows Expanding Scope and Participation
Of the 601 FTC agreements, 255 Indian companies participated, including 163 returning respondents from the previous survey round. The survey captures detailed financial and operational information on how foreign partnerships shape industrial capabilities.
The findings reaffirm how central foreign technology remains to India’s manufacturing competitiveness, especially as the country pushes toward higher-value production, deeper localisation, and global supply chain integration.