Prologue continues....

Firm state control of economic activities was the most important feature

of the economic policy followed by the Government. Licenses were required

both to set up an industry and expand the capacity of an existing industry in the private sector. A number of laws governing industrial relations were enacted by Parliament, like the Industrial Disputes Act, the Trade Unions Act, etc., which effectively controlled the power of the management to dismiss workers at will as well as provided statutory recognition to the organizations of workers and their right to collective bargaining. These measures were in consonance with the overall policy of the Government in regard to managing the industrial sector.

However, there was a feeling in industrial circles that the system of licensing and permits was a bit too restrictive and that it bred too much of bureaucratic control and corruption.

Whatever the merits of this view, the whole policy of industrialization of India was based on the Industrial Policy Resolution. Protection of the basic interest of labour was a part of the policy of the Government. There has always been a section in the Congress which held leftist views. They at times exercised considerable amount of influence on the Government, including in managing labour policy, foreign policy, etc. In the Government headed by the late Indira Gandhi, there were a number of leftist leaders whose influence in policymaking was clearly visible.

Although the people of India, generally speaking, are not guided or

influenced much by any ideology, they always welcomed the progressive measures taken by the Government. The progressive measures do have an ideological content and in that sense it can perhaps be said that the people were influenced by progressive thinking.

Because of the presence of Nehru,who believed in the rebuilding of the economy along socialist lines, and later the stewardship of Indira Gandhi, who gave space to the leftists in her party and Government, though as a strategy, a general progressive and leftist thinking prevailed in the country.

To be continued...