By Ananya Mukherjee Reed
Primary to the dynamics of India's post-interventionist period has been the functionality of its company region. loads of wish has been put on its skill to bring elevated development charges and degrees of improvement. within the gentle of this view, the writer right here examines severely the character of the Indian company quarter as a selected socio-historical and political-economic formation. specific emphasis is put on the character of company profitability in India, its old roots and its results on improvement.
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Extra info for Perspectives On the Indian Corporate Economy: Exploring the Paradox of Profits (International Political Economy)
1 The property perspective has historically been the most prevalent in the US. Reflected, for example, in the famous Michigan Supreme Court Case between the Dodge Brothers and the Ford Motor Company in 1919, the property perspective argues that the right to govern the corporation should be vested strictly in those who own it. 2 Underlying this corporate concept are two philosophies, first, that power derives from ownership; and second, that owners should be able to exercise their power in line with their investment.
And finally, through its aggressively autarkic trade regime, the Indian state protected Indian capital, especially its largest faction, from external competition. As we shall see there exist serious political limits on the ability of the state to withdraw from these activities. These limits are imposed not only by the immediate electoral interests of the ruling parties, but evolve out of the state-capital relationship that has historically characterised India. 7 Global capital has historically operated in India through multinational corporations (MNCs), which have been subjected to controls more stringent than those on domestic capital.
271±86. emerged as the most potent instrument of corporate control in America in the early twentieth century (Brandeis, 1967). , a series of companies linked via directorships and investments), had become a subject of intense debate since the beginning of the century. In the US, there had emerged fairly early on a social consensus against increasing centralisation (Chandler, 1977). , and in most parts of the world. 6 This phenomenon of corporate groups or conglomerates (as I would refer to them more often) that is examined below.