an Indian Industry Minister realized that coke was more readily available to the people of India than clean drinking water. (www.corpwatch.org p.1) He found this appalling and took action to exile the company from India. He presented coke with an ultimatum; to either fold up and go or to have an Indian partner and tell him what their technology was. Coke would not share the great secret of their technology, their only option left was to get out and that is exactly what they did, but not with out a fight. They tried their best to influence the government at various levels. Cabinet ministers were approached as were the media. Finally, nothing worked and the order asking them to get out of the country was signed. (www.corpwatch.org p. 4) Another reasons for the social tensions between Coca-Cola and India was the amount of capital being taken out of the country. The foreign Exchange Regulations Act at the time of Coca-Colas exile from India, stipulated that any foreign enterprise operating in India in non-priority sectors should not have more than 40% equity.(www.corpwatch.org p. 3) Coke did not comply with this act and had 100% equity in India. The company had invested less than twenty thousand dollars in the country and had taken about 8 million dollars out of the country as profits in the twenty years they had been in the country. (www.corpwatch.org p. 3) India was left with less capital to invest in their local economy and contribute to technological growth efforts such as research and development (which the country was already lacking funds for). When Multinational corporations, like Coca-Cola, enter into foreign countries they drive out small-scale local industries out of business and generate unemployment as a result. Indian companies in industry and the service sector are getting killed, says George Fernandes. Small-scale beverage producers are forced to close down shop as a result of Cokes presence. There is no hope...
