Role of the state in the socio economic structure of India c.2

The book deals with causes, nature and limits of state participation in the Indian economy as manifested in development of state (public) sector and regulation of private sector. Pursuing structural approach in his study, the author finds that this participation is largely determined by imperatives of capitalist transformation of colonial socio-economic structure. The anatomy of the latter, as of outcome of distortions brought in by colonial type of evolution, reveals its peculiar deficiences and obstacles to development which need extensive state intervention to overcome them. The study shows also socio political and administrative factors which contain the economic activity of the state within capitalist way of development.

The study shows that internal dynamics within the system and its interaction with pre-capitalist structures slow down growth of the state sector and gradually reduce its role to infrastructural and servicing one, though the sphere of its service remains mostly confined to the private capitalist structure. The author holds that acceleration of further socio-economic progress calls for much greater role of the state in the economy and wider extension of the sphere of its servicing to rural and urban poor. The modalities of vach a change are discussed in the concluding part of the book.