FOREIGN CAPITAL IN INDIA 19 the economic surplus at its disposal. What is more: the increment of the economic surplus appeared immediately in a concentrated form and came largely into the the hands of capitalists who could use it for investment purposes. The intensity of the boost to western Europe's development resulting from this 'exogenous' contribution to its capital accumulation can hardly be exaggerated." (pp 142-3). The obverse side of it, namely, the size and critical impact of the drain on the colonial or neocolonial countries, can easily be visualized. 8 Cf. A K Bagchi, Private Investment in India, 1900-39, Cambridge 1973, on how economic development in India during the first half of this century was blocked by the omissions and commissions of the British Indian government. 9 C Bettelheim, Ulnde Independanie, Paris 1962, pp 90-6, for the year 1953. 10 M Kidron, Foreign Investments in India, London 1965, p 18, for the year 1961. 11 KM Kurian, Impact of Foreign Capital on the Indian Economy, New Delhi 1966, p 249. 12 N K Chandra, "Western Imperialism and India Today", Economic and Political Weekly (EPW) Annual Number 1973 and 17 February 1973. l-t During 1964-70 gross profits as a percentage of assets averaged 15.9 for subsidiaries, 9.0 for minority companies and 10.5 for Indian companies with no foreign equity at all. See table VIII in the study mentioned in "Survey of Foreign Financial and Technical Collaboration in Indian Industry 1964-70—Main Findings" RBI Bulletin, June 1974. 14 Financial Statistics of Joint-stock Companies in India, 1950-51 to 1962-63, Bombay 1967 contains all the Reserve Bank data for the years upto 1962-63. In the case of government companies the first series between 1957-58 and 1959-60 was rather erratic. Thus the assets, according to this series, stood at Rs 8847 million in the final year, whereas the second series indicated assets ofRs 2158 million only for the same years. Further, the first series contained no information on sales or gross profits. The second series also seemed to be in harmony with data for the later years. i-- Ibid. 1^ Privately obtained from Dr K S Krishnaswamy of the Reserve Bank of India. He also informed that comparable data from 1965-66 are yet to be finalized. 17 Ibid. The sample data for the years upto 1970-71 are in Financial Statistics of Joint-stock Companies, 1960-61 to 1970-71, Bombay 1975, and for later years in various issues of the RBI Bulletin. 18 In the quinquennial series (1965-66 to 1970-71) for the PULCs as well as PRLCs, information on the coverages of the two samples are given for the initial year only: the next two series for the three years 1970-71 to 1972-73 contain no such information. Now let X^, Y^ and Z^ be the paid-up capital of all non-banking non-insurance non-financial PULCs, the sample PULCs and all PULCs respectively, all in the t-th year, and t == 1, ... , 8, corresponding to the years 1965-66 to 1972-73. Further, let a^ == Yt/^-t ^t :== ^t/^t anc^ ct == ^/Z^. By assumption c^ = c\ == constant. Hence it follows that X^ = c\ Y^/b^. The adjustment procedure would be invalid if c^ varies significantly over the period in question. 19 M Hollander and D A Wolfe, Nonparametric Statistical Methods, New York 1973, pp 185-92. The probability values for Kendall's K statistic are given in appendix table A 21. 20 B Dutta and S Lal, "Branches and Subsidiaries of Foreign Companies Operating in India", Company News <£? Notes August 1970. See also "Foreign Companies: Data Gaps", £'PH/24June 1972. Since only assets figures are available in this case, the comparison will be confined to this one variable alone. 21 Report of the Committee on Drugs and Pharmaceutical Industry, Ministry of Petroleum and Chemicals, Government of India, 1975, p 177-79. 22 Ibid., table on pp 108-9. ^ Ibid., p 90.