(a) the status of investment of foreign funds in joint labs to develop new products;
(b) the potential of capital investments in the country;
(c) the share of India in world capital investments in the areas of new product development;
(d) whether the Government proposes a policy to attract investments in various fields to get bigger share of the world capital investment market; and
(e) if so, the details thereof?
THE MINISTER OF COMMERCE & INDUSTRY (SHRI KAMAL NATH)
(a) & (b): Foreign Direct investment (FDI) received in the Research & Development (R&D) sector during the last three years is US$ 26.05 million. FDI Approvals have been issued for R&D for proposed investment of US$ 27.23 million during the above period.
(c): As per the UNCTAD Survey 2004 contained in the UNCTAD’s World Investment Report, 2005, India has a share of 25% of R&D locations among the developing countries. The Survey ranks India as the sixth global destination for R&D off-shoring.
(d)&(e): The extant policy permits FDI up to 100% on the automatic route in R&D Services. In addition, Income tax concessions are available under the Income Tax Act for earnings from R&D activities.