Business Environment, 1st Edition by Pearson

| 234 | Part III: The Economics of Development

(iii) The Policy Resolution had also emphasized the need for secur-

ing the participation of foreign capital and enterprise particu-

larly as regards the industrial technique and knowledge so as to

foster the pace of industrialization of the Indian economy. But,

the participation of foreign capital was to be carefully regu-

lated in the national interest. The Resolution, however, made it

amply clear that as a rule the major interest in ownership, and

effective control would always be in the Indian hands.

In all cases, however, the training of suitable Indian personnel

for the purpose of eventually replacing foreign experts had been

insisted upon. Thus while recognizing the need for foreign capital ...