At the time of independence, the attitude towards external capital was one of fear and suspicion. This was natural on fib of the previous exploitative role played by it in draining away resources from this country.
The suspicion and hostility found reflexion in the Industrial Policy of 1948 which, though recognizing the role of buck private orthogonal investment in the country, emphasized that its regulation was demand in the national interest. Because of this attitude expressed in the 1948 resolution, alien capitalists got dissatisfied and as a result, the flow of imports of ca[ital goods got obstructed. As a result, the prime minister had to give following assurances to the foreign capitalists in 1949:
1. No discrimination between foreign and Indian capital. The organization o India will not differentiate between the foreign and Indian capital. The implication was that the government would not place some(prenominal) restrictions or impose any conditions on foreign opening move which were not applicable to similar Indian enterprises.
2. Full opportunities to gather simoleons. The foreign interests operating in India would be permitted to earn profits without subjecting them to undue controls. Only such restrictions would be imposed which in like manner apply to the Indian enterprises.
3.
Gurantee of remuneration. If and when foreign enterprises are compulsorily acquired, compensation will be paid on a bazar and equitable basis as already announced in governments statement of policy.
Though the Prime parson stated that the major interest in ownership and in effect(p) control of an undertaking should be in Indian hands, he gave assurance that there would be no hard and immediate rule in this matter.
By a declaration issued on June 2, 1950, the government assured the foreign capitalists that they can remit the he foreign investments made by them in the country by and by January 1, 1950. in addition, they were also allowed to remit whatever investment of...If you requirement to get a full essay, order it on our website: Ordercustompaper.com
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