Advanced 20-Mark Series – Answer 5
Developmental State vs Regulatory State
Question
📝 Advanced 20-Mark Model Answer
The developmental state emphasizes active state intervention in economic planning, public sector expansion, and socio-economic transformation. Post-independence India adopted this model through centralized planning, Five-Year Plans, and state-led industrialization.
The bureaucracy played a central role in resource allocation, poverty alleviation, and infrastructure development. Development administration was oriented toward nation-building and welfare expansion.
However, economic liberalization in the 1990s marked a shift toward a regulatory state. Instead of direct production and control, the state increasingly functions through independent regulatory bodies such as SEBI, TRAI, and competition authorities.
The regulatory state focuses on oversight, market regulation, consumer protection, and ensuring fair competition rather than direct economic management.
While the developmental model prioritized equity and state leadership, it faced inefficiencies and fiscal burdens. The regulatory model enhances market efficiency but may widen inequalities if oversight is weak.
In reality, India today reflects a hybrid model. Welfare programs and social schemes coexist with regulatory governance structures.
Thus, the transition from developmental to regulatory state represents not a replacement but an evolution toward mixed governance balancing growth, regulation, and welfare.
Prepared by Shaktimatha Learning
Planning Era + Liberalization + Hybrid Governance = High Analytical Value
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