This book deals with the history of private investment in India and its determinants during the period 1900-1939. It develops a simple theoretical framework in its first part and tries to isolate the influence on private investment in India of factor supplies, as against demand conditions. In the second part, all the major manufacturing industries of the period are studied in detail. Most of the analytical apparatus used is developed from orthodox economic theory, but a heavy emphasis is placed on Keynesian ideas. Finally, the author presents a case study in the economic relations between an imperial power (Britain) and a dependent colony (India). He also examines the social relations between the ruling race and the Indians, and provides one of the few detailed accounts of the mechanics of imperialism.