Indian Journey of Economic Development and Corporate Legislations: Post Independence

Abstract

Following India's independence in 1947, it chose a different road to economic development. The administration opted for a mixed economy with strong emphasis on state involvement, rejecting total reliance upon free markets. In this paradigm, which was extremely influenced by the Nehru-Mahalanobis model, it is up to the state to conduct or supervise economic activities. India's first years of independence were marked by an emphasis on industrial growth. The government founded large public sector companies (PSEs) in important industries such as coal, steel and heavy machinery. These PESs were considered essential to building up self-reliance and a strong industrial foundation. State interference didn't stop with the creation of PSEs. In addition, the government set up various laws and regulations to regulate private industry. These regulations included industrial licensing, which specified that the government had to approve any new branches of industry. controls over foreign exchange when the movement of foreign exchange was closely regulated. price controls, in which the government fixed the prices of basic necessities. Comprehensive labour regulations were established to protect the rights of workers.