NEW DELHI: The government should consider providing low cost funds to corporates for investments in hi-tech industries to boost export competitiveness of the sector besides encouraging them to focus on R&D activities, EXIM Bank has said in a report.
The government and the RBI could consider setting up a credit facility “exclusively” for investments in hi-tech industries, the report of Export-Import Bank of India (EXIM) said.
“Such mechanism, if considered for implementation, should provide low cost funds, cheaper than the cost of External Commercial Borrowing financing.”
This would “pave the way for India to either move into hi-tech products which are currently not being manufactured or enhance their competitiveness in such products where it is competing with other global players,” it said.
It added that Brazil has implemented such a programme for the sector and the Indian government can look at that model.
It also said that there is a need to encourage private players to increase investments in research and development (R&D) activities.
SOURCE : http://economictimes.indiatimes.com/