18 SOCIAL SCIENTIST business to team up with multinationals in joint ventures located in third countries. While the former measure promotes some industrial growth domestically, the latter does not necessarily have the merit of doing so, especially if Indian participation in jointventu-res abroad takes the form of mere financial participation. Nevertheless the two can be looked upon as components of a probable new policy-package and both would provide Indian business with investment outlets for their accumulated money capital, outlets which are currently provided in only a limited way by takeovers and purchases of FERA companies shares. A third idea being discussed is an expansion of the domestic market through public investment, but a check on its inflationary consequences by means of an incomes policy or a wage freeze of some kind. Both the second and the third avenues would call for severe curbs on trade union activity and hence the institution of an authoritarian framework, which would hit at the already precarious living standards of the working class. If efforts to overcome industrial stagnation do not take the direction of altering the existing property distribution in a radical manner, a likely alternative appears to be a move towards authoritarianism. In any case, the current situation in India—characterized by a remarkable mixture of large foodgrain and foreign exchange reserves on the one hand, and a perpetual inflationary threat hanging over even moderate expansions of public investment on the other; excessive liquidity in the economy on the one hand and a shortage of rupee resources for public investment projects on the other; large accruals of profits into the private corporate sectors on the one hand, and a paucity of investment opportunities on the other—certainly is symptomatic of the end of one phase of state capitalism in India. 1 Final Report of the National Income Committee, April 1954. 2 Census ofIndia 1961, Vol I, Monograph 11 on "The Indian Working Force: Its Growth and Changing Composition'', J N Sinha. The data are collected from Chapter V of the monograph. 3 Calculated from the index numbers of industrial production for 1900—01 to 1932—33 provided by D B Meek, "Some Measures of Economic Activity in India\ Journal of the Royal Statistical Society, Part III, 1937. 4 For the impact of protection in 1930's, see A K Bagchi, Private Investment in India 1900-1939, Cambridge 1972. The Bombay Plan (1944) of course did not visualise a large state sector as a permanent fixture of the economy. The state was advised to handover its enterprises after a time to the private sector as far as possible, and even in icsidual state-owned enterprises, private management was suggested as a possibility. 6 See H Venkatasubbiah's discussion on tariff policy in Indian Economy Since Independence. London 1961.