Indian joint ventures with foreign companies face major stumbling blocks in areas such as financing, contractual disagreements and technology sharing, a Federation of Indian Chambers of Commerce and Industry study has said.
The study covers more than 500 joint ventures in various sectors such as chemicals, electronics, engineering, pharmaceuticals, passenger cars and two-wheelers, and includes large, medium and small companies with turnover ranging from of Rs 10 crore to Rs 900 crore.
The study said the other problems faced by the joint ventures include government policy matters and the difference in the size and the cultural background of the partners. However, most of the companies primarily agreed that JVs were formed as a strategic tool and not to meet government regulations.
"Some of the JVs broke up due to macro-level global strategies of partners and some broke up due to new strategic directions,
