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Although the economic policies pursued by his government, proved to be counterproductive in the end, the early years ofhis government were crucial in both extending and enhancing state capability as weil as firmly embedding the principles of democracy in India. Indeed, one of ehe most remarkable things about India is that democracy has taken firm root, even ehough so me of the preconditions for the establishment of a democratic state in Western Europe and the United States such as the preexistence of a nation-state, high literacy rate, a vibrant middle dass, high levels of industrialization were absent in 1950.

Although Edward Dwyer had established Dwyer Breweries (later to be called Dwyer Meakin) in Solan in 1855 and Lever Brothers had set up a basic import and sales operation for their "Sunlighe" brand of soap as early as 1888 in Calcutta, ehe first real industrial corporate to be set up was that of GEC for electrical machinery and fans at their unit in Calcutta in 1911. In 1911, a British company called Brunner Mond set up sales operations in Calcutta for dyes and alkalis. This company was one of the four that were to later, in 1926, merge to form the Imperial Chemical Industries.

The nudear tests conducted by the BJP in 1998 were a dramatic illustration of recreating India's past glory and making its mark as a major power. The BJP was quick to capitalize on the weaknesses of the previous governments, and in conjunction with a moribund economy, extended its electoral base from the trading community to the middle and the upper middle dass. In 1996 the BJP emerged as the single largest party although it was not able to retain power for any significant period oE time. Although BJP has undoubtedly, oflate, been a major player in the Indian politics, its ability to fully realize its nationalistic aspirations are constrained by its necessity to rely on coalition partners who do not necessarily subscribe to its "Hindutva" plank.

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Harvard Business Review (November 2005) by Harvard Business Review Writers

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