Business Environment, 1st Edition by Pearson

This chapter deals with the evolution of the concept of state par-

ticipation in economic development, the justi cation and examples

of government intervention, scope of governmental action, di er-

ent roles of government in the economy, reasons for governments’

participation in development in poor countries, etc, and concludes

with the areas where governmental action is considered important.

After reading this chapter, you will be able to relate to the role of the

Indian state in the economic development of the country.

DEFECTS OF THE FREE-ENTERPRISE SYSTEM

A century ago, there was a general bias against interference by the

state in the ...