Upgradation of technology is essential if one has to do business and survive in a competitive world. The relationship between the supplier and the user of technology has to be a continuing one. This is possible only when Government interference is minimum or absent. Therefore, Government approval will be automatic for high technology import in priority industries. Similar facility will be available to other industries if the agreement on technology does not require the release of foreign exchange from the country's reserves.
Indian companies can negotiate the terms according to their own judgement.
There will be no need to get clearance before hiring foreign technician or for testing abroad indigenously developed technology. The old system of obtaining industrial approvals held back Indian entrepreneurs from growing and exploiting opportunities within and outside the country. The Government has decided to abolish industrial licensing requirement for all, irrespective of the level of investment. Only 18 industries have not been covered by this step because of certain strategic, environmental and social reasons. But even here, small and medium entrepreneurs will not be unnecessarily troubled by the licensing system.