Foreign collaboration is an alliance incorporated to carry on the agreed task collectively with the participation (role) of resident and non-resident entities. Foreign collaboration agreement entered into two or more companies, any of them being a foreign company for their mutual benefits and thereby starting their business in another country with or without forming a separate company.

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Foreign collaboration may take place mainly in three forms:

1. Collaboration between Indian and foreign private companies;
2. Collaboration between Indian government companies and foreign private companies; and
3. Collaboration between Indian Government and foreign government.

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