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Discrimination or Social Networks? Industrial Investment in Colonial India


  • Gupta, Bishnupriya

    (University of Warwick)


Industrial investment in Colonial India was segregated by the export oriented industries, such as tea and jute that relied on British firms and the import substituting cotton textile industry that was dominated by Indian firms. The literature emphasizes discrimination against Indian capital. Instead informational factors played an important role. British entrepreneurs knew the export markets and the Indian entrepreneurs were familiar with the local markets. The divergent flows of entrepreneurship can be explained by the comparative advantage enjoyed by social groups in information and the role of social networks in determining entry and creating separate spheres of industrial investment.

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  • Gupta, Bishnupriya, 2013. "Discrimination or Social Networks? Industrial Investment in Colonial India," CAGE Online Working Paper Series 111, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:111

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    Cited by:

    1. Gani Aldashev & Catherine Guirkinger, 2016. "Colonization and Changing Social Structure: Kazakhstan 1896-1910," Working Papers ECARES ECARES 2016-10, ULB -- Universite Libre de Bruxelles.
    2. repec:eee:exehis:v:65:y:2017:i:c:p:36-54 is not listed on IDEAS
    3. repec:eee:deveco:v:127:y:2017:i:c:p:459-469 is not listed on IDEAS
    4. repec:eee:deveco:v:127:y:2017:i:c:p:413-430 is not listed on IDEAS

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