No, the above statement is not absolutely correct because state’s intervention was mandatory to regulate country’s economy after independence immediately. Instead, India adopted the model of mixed economy to be criticised from the right and the left. The Private sector lacked enough space and stimulus to grow. Licensing and permits for investment in private sector created hurdles for private capital accumulation. The state control beyond the limits led to inefficiency and corruption. State control was emphasised. State helped the private sector to make profits by intervening only in those areas where the private sector was not prepared to go. Instead of helping the poor, the states’ intervention ended up creating a new class that enjoyed the privileges of higher salaries without much accountability.
