ICL Plc can retake control of its Indian affiliate and IBM Corp could open for business again in India following a decision by the new government of Narasimha Rao that foreign companies can hold up to 51% of their Indian affiliates – compared with the current 40% – ICL has 40% of International Computers Indian Manufacture Pte Ltd, whose shares are traded on the Bombay Stock Exchange – and high tech companies can have wholly-owned subsidiaries; IBM pulled out of India in 1977 rather than concede local majority control of IBM India and apart from bidding on one or two big contracts from a distance, it has stayed out of the market.
