In India, there are three levels of Governments. They are Union Government, State Government and Local Government. They carryout functions for the benefit of people and society.
The role of Government can be studied under the following heads.
(i) Defence: To create and maintain defence forces in the country as an essential security function to protect our country from enemies. (Army, Navy and Air Force)
(ii) Foreign policy: India is committed to world peace. We maintain friendly economic relationship to all the countries of the world.
(iii) Conduct of periodic elections: India is a democratic country. We elect our representatives to parliament and State Assemblies.
(iv) Law and order: To settle disputes, the Union Government consists of strong judicial system with court at the National, State and Lower levels. The State Governments takes responsibility to maintain law and order with responsibility from police department.
(v) Public administration and provision of public goods: The public administration is done by the Government with the help of departments for revenue, health, education, rural development etc. Also, it provides public goods like rural roads, drainage, drinking water etc.
(vi) Redistribution of Income and Abolision of poverty: The Government spends money in such a way that the poorer are given basic necessities of life like food, clothing, shelter, education, health care, etc. Thereby the redistribution of income should eradicate poverty in the country.
(vii) Regulate the Economy: The Central Government with the help of the Reserve Bank of India, controls supply of money in the economy and the Interest rate, inflation and foreign exchange. The various agencies like securities Exchange Board of India and competition commission if India are also a tool for the Government to control the economy.