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This is about the ongoing discussions on scrapping Press Note 18.

While one needs to appreciate the concerns that foreign investors — particularly those in joint ventures — have no level playing field with regard to their plans to expand on their own in India, one needs to take care of the interests of the Indian JV partners too.

There are a number of JVs that manufacture hi-tech products with the MNCs as partners.

The products are designed in India, and the MNCs come in as majority partners to buy them for their own consumption or for foreign markets.

These MNCs do not spend time in product development but outsource research and development and buy expertise.

There are no safeguards to prevent the MNCs from hijacking such technology.

Press Note 18, however, will help the Indian partner get his due price for the efforts. If the rights of the Indian partner are not protected, a number of JVs will collapse.

S. Padmanabhan

Chennai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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