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Free tech imports, encourage R&D incubators, CII tells Sinha

All restrictions on import of technology should be removed as there is no rationale behind maintenance of such ceilings, especially when raw materials, components and capital goods can be imported without any restrictions, the Confederation of Indian Industry said today.

In its pre-budget proposals, the CII stated that while the 1996-97 Union Budget had increased the payment on technology imports to $2 million without any restrictions, the norms need to be liberalised further to allow free import of technology. This becomes more imperative in the backdrop of removal of quantitative restrictions, the CII added.

In order to give a thrust to technology, there is a need to promote research and development incubators, the chamber said.

According to the CII, an 'incubator' is usually a non-profit entity that provides key advisory, informational, financial and infrastructural support to R&D and its commercialisation. Countries like the US, Taiwan and Israel have been extremely successful in their use of incubators, the CII added.

The chamber said, incubators generally have a long pay-back period. In many countries, these incubators are funded largely with government support. India, the CII pointed out, may not be able to fund such incubators on the required scale due to budget constraints. Therefore, India needs incubators which are funded by the private sector -- be these companies or funds.

Budget 1999-2000

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