Business Government Interface in a Global Environment

There has traditionally been a strong nexus between business and government in India. Taking the cue from the colonial administration before independence India developed a strong ethos for government control over business operation from the early days after independence. The justification was the need for government supervision so that private sector could develop according to the overall needs of planning and coordination. This continued till 1991 or so when under the leadership of Prime Minister Narasimha Rao (1991-96). India said goodbye to the proverbial licensing permit Raj. The work reviews the various aspects of government control and government supervision. It deals with both the regulatory and promotional rules of the government as also the government’s role as entrepreneur (the public sector enterprises). It always keeps its eyes on the overwhelming phenomenon of globalization of the world economy which has changed the scenario fundamentally. This study has added a new dimension to government business interface. The recent crises in the western economy starting with the Wall Street Crash in 2007 have also added a further new dimension.