Union Commerce Minister Piyush Goyal last week asked multinationals to reduce royalty payments to curb the forex outgo and promote domestic manufacturing and product development.
The Indian units of global auto majors such as Suzuki, Hyundai, Honda, Toyota, Ford, and Nissan together spent more than Rs 8,000 crore on royalties and technical fee, when the numbers for either FY20 or FY19 are considered.
It was equal to nearly 4 per cent of their combined net sales. The numbers for Maruti Suzuki are for FY20 while those for others are for FY19.
The foreign exchange outflow on account of royalty payment has been, however, more than made up by their exports. Last year, these companies exported passenger cars and two-wheelers worth Rs 44,150 crore, nearly five times their expenses on royalties and technical fees.
First Published: Aug 24 2020 | 06:02 AM IST