ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

WEST BENGAL-Behind the Facade

limit). Further, whereas subsidiaries should get the benefit of technology and know-how from their parent companies without formal agreements and without payment of technical fees, 25 out of 47 subsidiaries had entered into formal technical collaboration agreements with the parent companies. Again, about 71.2 per cent (671) of the collaboration agreements had 1,145 restrictive clauses. The most common restrictions related to exports; such clauses accounted for 87.3 per cent of all restrictive clauses. Of these, 83.4 per cent prohibited exports to the collaborator's country or to countries in which the collaborator operated through branches/ subsidiaries/affiliates or was having similar collaboration agreement and even to certain other specified countries. Finally, aggregate exports of the foreign collaboration companies fell short of aggregate imports in each of the years and the cumulative shortfall during the survey period was Rs 1,691 crore. While imports grew by 103 per cent from Rs 927 crore in 1981-82 to Rs 1,881 crore in 1985-86, exports grew by 16.1 per cent from Rs 745 crore to Rs 865 crore. Total imports to value of production rose from 6.5 per cent in the fourth survey to 8.3 percent in the fifth survey, while the proportion of exports to value of production slipped from 5.9 percent to 5.6 per cent While the foreign collaborations may have contributed to some degree of import substitution, the overwhelming focus of the foreign collaborators on the domestic market is clear. The growing import-dependence of the collaborating companies could also reflect another form of restrictive practice by the technology suppliers to siphon off funds through transfer-pricing.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Back to Top