2.4. Role of the State

Given the nature of problems in India at the time of Independence, development became the core of the state's agenda. Development was comprehensively defined to encompass not only an industrial economy, but also simultaneously a programme of social transformation and political democratization. The state tried to achieve economic development as well as an egalitarian social order within the confines of democracy. The Constitution in 1950, having universal adult franchise and an extensive list of Fundamental Rights, officially declared India a democracy. The Directive Principles of the Constitution with the goals of social justice and preventing concentration of wealth shaped the scope and nature of state intervention.

For the attainment of economic as well as social transformation in the society, the Indian state took up the role of a developmental state. It became the central instrument in the development course through the process of planning, which involved state control over the production, distribution and exchange of goods and services. The state itself entered the fields of production and distribution to meet the developmental objectives. The Nehru-Mahalanobis strategy found the state as the most suitable agency to achieve its objectives. The state was required to intervene in the economy, promote public sector in heavy industries and guide the growth of the economy. The state launched big dams, large industrial and mining projects and institutions of higher learning as 'temples of modern India' for infrastructure development. To improve village life, the state undertook institutional reforms or land reforms. It took the primary responsibility for providing elementary education, basic healthcare, safe drinking water and employment programmes. Such a large expansion of the economic and social responsibilities of the state was consistent with the objective of the socialist pattern of society. However, this did not mean complete elimination of private enterprise. In fact, the state was pledged to maintain a mixed economy in the society based on its commitment to democracy and socialism.