Economic Policy And State Owned Enterprises: Evolution Towards Privatisation In India

State intervenes in the economic development of an economy in a variety of ways within the contours of socio-economic and political circumstances. A government may intervene in the process of economic development mainly in two different ways. It controls and regulates the private sector while abstaining from undertaking direct production through enacting suitable economic policies. Alternatively, it prefers to undertake production but refrains from imposing controls on the private sector. The former is referred to as controlling state while the latter as producing state.