Indian Journal of Economics April 1950

So the 1931 figures arc first adjusted for the alterations made in the boundaries of the province consequent on the creatioo of the Orissa province in 1935 and they are taken together with the 1941 census figures to correspond apo the beginning of the respective calendar years as census enumerations in both years took place in the month of February. [...] An examination of the nature of the limitations on the growth of investment imposed by the peculiarities in the working of the economic system in backward coutries will enable us to suggest the manner in which the impediments can be overcame. [...] In view of the absence of an or' ganised credit mechanism in the rest of the country the supply of a prpondAnt portion of investment finance is restricted to the aggregate savings in the community. [...] The extent of the inflow of direct and equity investment would dpend on the estimation by the foreign investor of the relative risks in the capital-importing and the capital-exporting countries. [...] The fear of expropriation uncertainty regarding the extent and manner of compensation in the event of nationalisation high rates of direct taxation and restrictions on the transfer of profits would all tend to increase the risk which the foreigners would have to undergo and thus to reduce the inducement to invest.