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The paper clearly discusses about the interaction between industry and institutions of India in regard to the engineering education with the present technologically reforming world. As today India plays a major role in the rapid change of technology, the developments at various fields of technologies are due to the contribution of both industry and academia of the country. The industry and institution are interdependent on each other for new inventions and discoveries to meet the demands of the present problems of the society. In this paper, the various types of interactions between an industry and institute maintained in India are clearly discussed for the present scenario. At each and every category, the increasing demand for the relationship has been clearly mentioned. The various types of interactions of academic institute from industry and also at the same time the requirements from industry from academic institution are discussed in detail. It is a fact that when industry and institution go by hand to hand and cooperate with each other more innovations can happen. This creates healthy environment in the country by which there will be an all round development. This would be an important factor in making the economy of the country more strong. Both industry and institution play a vital role in the development of the nation.
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