Bureaucracy and Liberalisation

Topics: India, Economics, Government-owned companies in India Pages: 2 (770 words) Published: December 4, 2010
Bureaucracy and the Liberalisation
After independence the newly emerged Indian State was characterized by the dominant role in all the spheres of society. It was a welfare state whose objective was to secure political, social and economic justice to all the sections of Indian population. The Westminister model of parliamentary democracy with universal adult franchise was adopted. In social field, various evils in the society were sought to be eradicated by the State. Untouchability was abolished and social reforms were undertaken. In the economic sphere, the state not only regulated the market, it also emerged as the major employer providing employment opportunities to the people. India adopted the policy of mixed economy/a powerful public sector was created. For Nehru, the public sector undertakings were the temples of modern India. Their objective was to assist in the rapid economic growth and industrialisation of the country. Over the years their number and investments have grown in size and quantity. While in 1951, there were five central public sector undertakings (PSUs) with an investment of Rs 29 crores, now there are as many as 243 enterprises with a total investment of Rs 1,78,628 crores. The private sector was also to play an important role in the mixed economy. However it was highly regulated and controlled economy as far as the private sector was concerned. Rightly it was called the licence-quota permit Raj. However the collapse of socialist political and economic system in earstwhile Soviet Union and other socialist states led to the emergence of a global economy which meant introducing competitive markets, liberalising foreign trade and opening up the economy for foreign investment. According to Marina Pinto "Liberalisation is the policy of removal of restrictions, trade barriers and protectionist measures to enable the free flow of capital, technology and services. It is generally seen in the context of globalization and privatization." In...
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