It forced most foreign-owned firms, except in a few sectors, to dilute foreign equity to 40 per cent or less. The law famously led to the exit of Coca Cola from India in 1977.At the peak of Indira Gandhi 's 'socialist' phase in the early 1970s, the top income tax rate was 98.75 per cent. This meant that beyond that level of income you could only keep 1.25 for every 100 earned. But by 1993, the rupee was let free to be dictated by the currents of demand and supply.In sharp contrast to the FERA mindset, the post-1991 era government almost enticed foreign investment to India. The Foreign Investment Promotion Board was set up to attract FDI and portfolio investors allowed to enter Indian stock markets in 1992.

Source: Times of India July 01, 2017 04:05 UTC