Once the firm has decided on the foremost issues of which product it wants to produce and the location of the industry, the next important step is to select appropriate technology and equipment to produce the same. In addition to this, the source of raw material has to be decided upon. The requirements of all these can either be met through domestic sources or can be imported subject to the regulatory requirements of the Government. The regulatory requirements pertaining to the import procedures vary depending on the item of import. In case of raw materials, the Export Import Policy of the Government regulates imports. However, in the case of technology, the Foreign Direct Investment (FDI) Policy and the Foreign Technology Transfer Agreements govern the imports.
The firm should do a careful cost and benefit analysis before going ahead with the process of placing the orders to minimize the production costs and hence increasing the profit margins. Various sources of Capital should be explored and the cost of capital should be analysed cautiously.
Process Selection
Once the choice of the product is made, selection of the right process technology becomes important. The process technology required may be :-
Indigenously developed:- In India, technologies are being developed at CSIR and Defence Research Labs. There are some intermediaries like APCTT (Asian and Pacific Centre for Transfer of Technology), TBSE( Technology Bureau for Small Enterprises) which can help you to locate the relevant technologies. Besides there are some In-house R & D centres of companies which develop technologies and sell them to interested parties. Indigenously developed process know-how has intrinsic benefits like appropriateness, relative inexpensiveness and possibility to work with technology developer.
Imported :- For some complex products, process know-how has to be imported. In such cases agreements for technology transfer should be made with due care in order to safeguard nation's interest. Government of India facilitates foreign technology induction both through FDI and through foreign technology collaboration agreements. FDI and Foreign technology collaboration agreements can be approved either through the automatic route under the powers delegated to the Reserve Bank of India or otherwise by the Government.
The firm should do a careful cost and benefit analysis before going ahead with the process of placing the orders to minimize the production costs and hence increasing the profit margins. Various sources of Capital should be explored and the cost of capital should be analysed cautiously.
Process Selection
Once the choice of the product is made, selection of the right process technology becomes important. The process technology required may be :-
Indigenously developed:- In India, technologies are being developed at CSIR and Defence Research Labs. There are some intermediaries like APCTT (Asian and Pacific Centre for Transfer of Technology), TBSE( Technology Bureau for Small Enterprises) which can help you to locate the relevant technologies. Besides there are some In-house R & D centres of companies which develop technologies and sell them to interested parties. Indigenously developed process know-how has intrinsic benefits like appropriateness, relative inexpensiveness and possibility to work with technology developer.
Imported :- For some complex products, process know-how has to be imported. In such cases agreements for technology transfer should be made with due care in order to safeguard nation's interest. Government of India facilitates foreign technology induction both through FDI and through foreign technology collaboration agreements. FDI and Foreign technology collaboration agreements can be approved either through the automatic route under the powers delegated to the Reserve Bank of India or otherwise by the Government.
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