Correct option is A
The correct answer is: (a) ₹1 crore
Explanation:
Under India's New Industrial Policy of 1991, automatic approval is granted for foreign technology collaboration agreements in high-priority industries with lump sum payments up to ₹1 crore.
Royalty payments are capped at 5% for domestic sales and 8% for exports, subject to a total payment of 8% on sales over a 10-year period. Agreements exceeding these limits require specific government approval.
Royalty payments are capped at 5% for domestic sales and 8% for exports, subject to a total payment of 8% on sales over a 10-year period. Agreements exceeding these limits require specific government approval.
Information Booster:
High-Priority Industries: These include sectors like telecommunications, electronics, renewable energy, and pharmaceuticals, identified by the government as crucial for economic development.
Automatic Approval Route: This streamlined process allows companies to enter into foreign technology agreements without prior government approval, provided they adhere to specified financial and sectoral guidelines.
Additional Knowledge:
- Policy Evolution: Over time, India's foreign technology collaboration policies have evolved to encourage technological advancement and foreign investment, balancing ease of business with the protection of domestic interests.
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