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By Amar K. J. R. Nayak (auth.)

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2 Evolution of FDI, 1900s–2000 This chapter describes the evolution of FDI in India during the twentieth century. e. 1900s–1918, 1919–42, 1943–61, 1962– 77, 1978–90, 1991–2000 and (b) major characteristics of FDI in India and the periodization of FDI history in India. By providing a review of the evolution of FDI, this chapter bridges the gap that exists in the current literature on FDI in India. A critical understanding of the history and characteristics of FDI in India also provides a sound background to understanding the context of globalization in India in which the main argument of the book has been placed.

Glaxo Industries Joseph Nathan & Co ICI VST GKN Lever Brothers United Traders Lever Brothers Metal Box Turner Newall Eveready Industries BOC J&P Coats Philips Dunlop ICI Tinplate Co. (India) Burner Mond & Co. J. Foster & Co. Glaxo (I) Ltd Joseph Nathan & Co. ICI (India) VST Industries Guest, Keen, Williams Hindustan Vanaspati Mfg Co United Traders Lever Brothers India Ltd Metal Box (India) Asbestos Cement Eveready Industries India Ltd Indian Oxygen Acme Thread Co. Ltd Godfrey Philips (India) Dunlop (India) Alkali & Chemicals Corporation 1947 1948 1948 1948 1949 1951 1953 1956 1958 1961 1961 Greeves British Leyland Cadbury Rallis Ltd TI Reckitt & Coleman ICI Unilever Horlicks Ltd ICI Lucas Crompton Greeves Ltd Ashok Leyland Cadbury India Ltd Rallis India Ltd Tube Investment (India) Reckitt & Coleman of India Ltd Indian Explosives Hindustan Lever Ltd Hindustan Milk Food Manufacturers Chemicals & Fibres Lucas-TVS 1963 1974 B P L (Instruments) J&P Coats BPL India Madura Coats 1984 1985 Beecham SBG International Eskaylab BSL India (SBG India Ltd) Source: The author has compiled these from Bagchi (1972), Tomlinson (1989), Hines and Jones (1989), and individual company history.

India ranked third among the favourable hosts to FDI in 1929 (Wilkins 1994). In 1935, under local and international pressure, the British Government in India passed the Government of India Act, which allowed the Indian legislators to have a say in the legislation of the country. With this new power, the Indian legislators lobbied in favour of Indian businesses. 75 – 19 2 16 13 17 24 30 28 29 47 24 41 34 51 57 38 38 46 38 28 45 28 21 12 – Source: The author has compiled these from the All Japan Cotton Spinners Association (1949) and Cotton Statistics of Japan, 1903–49.

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