Corporate governance: Should govt be market-friendly or business-friendly

Political acceptability comes more readily to a govt visibly involved in supporting non-corporate private sector, reducing income inequalities and regional disparities, and addressing caste concerns

The economy of independent India has gone through at least two major episodes of policy transformation. The first, not widely mentioned in public discussions these days, was the beginning of planned development in April 1951 when the First Five-Year Plan was launched. The second, more widely discussed transformation was the liberalisation that took place in July 1991. Both of these led to an acceleration of the growth process, but they differed substantially in the role envisaged for the government. The impact of these two transformations is evident in the changes in the growth, investment and trade pattern