The Role of State vs. Private Sector in India's Development

Indian economist Kaushik Basu (L) discusses the role of the Indian government vs. private sector in development in Mumbai on May 24, 2011. (Asia Society India Centre)

MUMBAI, May 24, 2011 — While appreciating the hand of the free market, Chief Economic Advisor to the Government of India, Kaushik Basu, discussed the need for state intervention in land acquisition.

Basu discussed a range of topics, from prominent influences in his life to the global economic crisis, at the launch of his new book, An Economist’s Miscellany, with Rajiv Lall, CEO and Managing Director of The Infrastructure Development Finance Company. The programme was co-presented with EXIM Bank and Oxford University Press.

Basu also voiced the need for labour law reform in India. He explained that the antiquated laws in force today harm the workers they seek to protect. For instance, firms with over 100 workers require government permission to fire employees, preventing employers from adding more people to their workforce.

Watch Basu discuss the role of the Indian government in development in the video below.