At the time of independence, Indian industrialists did not have the capital to undertake investment in industrial ventures required for the development of our economy, nor was the market big enough to encourage industrialists to undertake major projects even if they had the capital to do so.
It is principally for these reasons that the state had to play an extensive role in promoting the industrial sector. In addition, the decision to develop the Indian economy on socialist lines led to the policy of the state controlling the commanding heights of the economy.
