Reassessing FERA: Examining British firms’ strategic responses to ‘Indianization’.

The Foreign Exchange Regulation Act (FERA), introduced in India in 1973, was the culmination of efforts to ‘Socialize’ economic policies and ‘Indianize’ corporate ownership. It resulted in a flight of foreign capital as Multinational Enterprises exited India to avoid these risks, finally driving out long-established British interests. This paper uses new sources to reassess how British businesses perceived the threats of Indianization and analyse how they strategically responded to them. It shows that British owned firms used a diverse range of strategies, some drawing on their extensive experience, knowledge and networks, built through long tenures in India, to successfully adapt.