Business Environment, 4th Edition by Pearson

594 | Chapter 21

necessary in the national interest. This attitude expressed in the 1948’s industrial

policy resolution, had the foreign capitalists dissatisfied.

This was subsequently simplified by the then Prime Minister Nehru in his

statement to the Parliament on 6 April 1949, which for a very long time remained

as the only major policy statement. He declared that the stress on the need to

regulate, in the national interest, the scope and manner of the foreign capital that

arose from the past association of foreign capital and control with domination of

the economy of the country. However, circumstances having changed, the object of

regulation ...