By Sam Dzever, Jacques Jaussaud
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Additional info for China and India: Economic Performance and Business Strategies of Firms in the Mid 1990s
In recent years, German firms, such as the car manufacturer Mercedes-Benz, have been the most dynamic EU investors in India. i. ,! 4 FDI flows in India, relative share of each EU country in the EU total, 1991-1995, cumulated E-220 was produced as a result of a milestone agreement between two corporate giants in India and Germany. The deepening economic relationship between India and Germany is reflected by the rising number of German banks operating in India. Apart from Deutsche Bank - Germany's largest bank, which has increased its branches in India to five from three - the Dresdner Bank and the Commerzbank are also increasing their presence in India.
The electronics and software industry is subject to special provisions. In short, India welcomes direct foreign investment in virtually every sector of the economy (after having restricted it), except those of strategic concern such as defence and atomic energy. Promotion of exports through export-orientated units (EOU) and free trade zone units Additional advantages and facilities are available for EOU and for units of production located in designated Export Processing Zones (EPZ). The objective of an EPZ is to promote the exports of labour-intensive goods in the light manufacturing, garments, and electrical industries.
Whenever possible, a particular emphasis will be placed on technologyembodied FDI, or technology transfer. FDI AND TECHNOLOGY TRANSFER TRENDS IN ClllNA AND INDIA - CONTRASTS AND SIMILARITIES FDI is distinct from portfolio investment and refers in this chapter to a foreign firm's equity participation in an Indian or in a Chinese company. Technology transfer refers to the spatial diffusion of technology. It encompasses licensing agreements, patents, knowhow, design, trade marks, models, and different services (such as technical studies, technical assistance), and R&D.