ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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From 50 Years Ago: How to Get the US Investor

Weekly Notes from Vol XIII, No 24, June 17, 1961.

How to get the American private investor inter-ested in India? …American private investments have not flowed in the past into thickly popu-lated underdeveloped countries except in some selected fields. Even so, the attempt to get the foreign investor interested in India has not been inconsiderable and it goes on. Transfer of profits and of capital, including appreciation in the value of such capital investment after July 1, 1950 in projects approved by the Government of India are guaranteed, and so is the converti-bility into foreign currency. There is also a guarantee against expropriation. Taxation…has been modified by stages so as to remove or lessen the handicaps for the foreign investor… That the investment climate in India is generally favourable and that the attitude of the Government of India to private foreign investments, especially American investments, is sympathetic, has…been made known to the prospective investors fairly widely by the US Department of Commerce through its publications... The next move has obviously to come from the executives of the US corporations, who have hitherto shown a distinct and stereotyped pre-ference… And this matters a lot, for all American private investment in India is direct, and not portfolio investment, for which the preference and attitude of the ordinary investors would be the determining factor. Many authoritative studies have shown that the top executives of the big American corporations are just not inter-ested, except in a few select lines of investment, such as petroleum, extractive industries and large-scale manufacture of certain types…

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