Reassessing FERA: examining British firms’ strategic responses to ‘Indianisation’

Michael Aldous and Tirthankar Roy

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The Foreign Exchange Regulation Act, introduced in India in 1973, was the culmination of efforts to ‘Socialise’ economic policies and ‘Indianise’ corporate ownership. It resulted in a flight of foreign capital as Multinational Enterprises exited India to avoid these risks, finally driving out long-established British commercial interests. This article uses new sources to reassess how British businesses perceived the threats of Indianisation and analyses how they strategically responded to them. It shows that British-owned firms used a diverse range of strategies, some drawing on their extensive experience, knowledge and networks, built through long tenures in India, to adapt successfully.

Keywords: British multinationals; foreign direct investment; strategy; India; post-colonial (search for similar items in EconPapers)
JEL-codes: J50 N0 (search for similar items in EconPapers)
Date: 2018-07-12
New Economics Papers: this item is included in nep-cse, nep-his and nep-ore
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Published in Business History, 12, July, 2018. ISSN: 0007-6791

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