Lopsided business partnerships: An ex-post study of Danida's Private Sector Development Programme in India

The study examines the implementation and outcome of the second phase of the Private Sector programme in India 1996-2003. The programme funded partnerships between Danish and Indian firms with a total grant of 74 million DKK (in phase II). The study investigates the results of PS support to 23 partnerships between Danish and Indian firms, constituting 65 pct. of all supported partnerships. Nine of the Danish firms were small or medium-sized, while 14 were large, often among the largest firms in their sector in Denmark (Danisco, Danfoss, Novo Nordisk, Mærsk Data, Rambøll, Kampsax/COWI, Egmont, LMGlasfiber, Pedershaab etc.). The PS programme granted up to 3 million DKK to each partnership for training, technical assistance and equipment. Half of the partnerships also received investment capital from the Industrialisation Fund for Developing Countries (IFU). The study is based on in-depth interviews with managers of Indian partner firms and joint ventures as well as Danida's administrators and other key informants. The main objective of the PS programme in India was to provide technology transfer and relevant training to Indian companies as part of a long-term collaboration, which is sustainable on a commercial basis after the PS programme support is withdrawn.