The debate regarding neoliberal reforms has, in the main, focused on the changes in economic policy initiated of late. The reforms of the state, and of governance, which have also been undertaken, have been viewed as providing the necessary back up for economic reforms. But, the restructuring of the state has an independent significance. It represents an attempt to incorporate market rationality in the organisation and functioning of the state. Further, the implications of political reforms for democracy in India need to be explored. Since not only democratic institutions but also the humanist ideals which had inspired the social democratic state are now being reinterpreted in line with the neoliberal political agenda, a critical examination of the process becomes important.