State and Industrialisation in a Post-Colonial Capitalist Economy-The Experience of India

State and Industrialisation in a Post-Colonial Capitalist Economy The Experience of India Sanjaya Baru This paper discusses the salient features of the relationship between state and industrialisation in a post-colonial economy in the context of the current debate on the nature and prospects of 'state capitalism' in India, IT is commonplace that state intervention is a necessary element of the process of capitalist development both in metropolitan capitalist economies and in post-colonial economies. State intervention has not only influenced the pace of capitalist development but has also shaped the nature of that process. Needless to add, there is no unique relationship between state and industrialisation or state and capital. The experience of different countries would differ not only due to divergences in the overall economic structure of various countries but also due to the fact that process of industrialisation is initiated at different points in time in different countries. Further, one must add, thaf in the process of such 'uneven' capitalist development some nations emerge as the 'advanced' or 'dominant' powers while others are left behind and subordinated or colonised. Hence, the role of state intervention in each of these cases would also differ on account of the historically specific conditions under which capitalist industrialisation takes root.1 In the case of India the process of industrialisation began within specific conditions of subordination and accelerated only after political Independence was granted. Hence any study of state intervention and industrial growth must take cognisance of this fact as well. It is within this perspective that we undertake the ensuing discussion. The paper is divided into five sections, in section I we clarify some conceptual issues while section II takes up a brief discussion of the role of the state in metropolitan economies. The latter is contrasted with the experience of colonial and post-colonial India in the last three sections of the paper which infact constitute its core. This paper does not purport to offer an exhaustive survey of the questions involved. Its purpose being mainly to focus on the salient features of state and industrialisation in a post-colonial economy in the context of the current debate on the nature and prospects of 'state capitalism' in India.