Administration of Independent India

Administration of independent India drewn many transformations to get away from British colonial administration that propagates the colonial need such as maintenance of law and order, collection of revenue, tactics to hold the administrative power in British civil servants. During the time of independence, India drenched in political disproportion due to partition. Refugees crisis, who came in from Pakistan; incursion of millions of refugees, there were communal disturbances, which posed a serious challenge to our administration. Famines in the forties leading to a shortage in supply of food grain coupled with price rise brought in an undue pressure on the administration to manage the crisis. Rationing was introduced to regulate supply and distribution of food grains. Subsequently, the introduction of rationing necessitated imperative and large scale employment to several positions of public personnel. This was a major unstable period for administration as configurations were depleted, and as a consequence, a large number of European civil retainers and Muslims were relinquishing or leaving. The proportion of Indian service was 1064 in 1945 and 932 in early 1947. British India was divided into what were called the British Indian Boondocks and the Princely States. The British Indian provinces were directly under the control of the British government; Princely States covered one- third of the land area of the British Indian Empire, and one out of four Indians lived under kingly rule. This preordained that all these states, as abundant in 565, would become fairly independent. The British government took the view that all these countries were free to join either India or Pakistan or remain independent if they so wished. This decision did not involve the people’s will but depended on the kingly autocrats of these States. 

This was a veritably thoughtful delinquent and could hang the very reality of a united India. The trial was to influence the interior borders of the Indian States. The boundaries had to be drawn in such a way that the verbal and artistic plurality of the country could be reflected without affecting the unity of the nation. During social rule, the state boundaries were drawn either for executive convenience or to coincide with homes adjoined by the British government or those ruled by the kingly powers. India appeared as an autonomous state on August 15, 1947, and on January 26, 1950, it advertised a new constitution. (1) espoused administrative Republic, civil structure with the Union and State situations District administration, Other administration such as Financial administration, and Public services these are the points of British administration that were cited in the Government of India Act 1935 because of the imbalance between political script and public administration, which had to move with the same British executive system; still, its objects and nature were relatively different from those prevailing under British rule. 

Public Service Commissions were set up at the union and state levels for the selection of meritorious campaigners. Directive Principles of State Policy and the Fundamental Rights and Fundamental Duties for the citizens were laid down. These and similar other vittles increased the liabilities of public administration in the country, and from then on, India was establishing a strong executive and institutional frame. (2) Beforehand, in 1946, after examining the insecurity in the country and the strong need for critical executive fulfillment, the country took the decision to continue with two all-India services, the Indian Administrative Services and the Indian Police Service. The Constitution approved them to go further and, with it, also start the procedure for the creation of new services. The officers of the ICS and other All India Services were selected by the Secretary of State for India before Independence. After independence, under the India Independence Act, 1947, the ICS and other officers in All India Services, who continued in office, came into the service of the Government of India. A new Constitution was adopted on January 26, 1950, and its objects and nature were relatively different from those prevailing under British rule. 

The new Constitution established an administrative republic in the country. Civil governance with the Union and state governments was established. Public Service Commissions were set up at the union and state levels for the selection of meritorious campaigners. Directive Principles of State Policy and the abecedarian rights and abecedarian duties for the citizens were laid down. These and similar other liabilities increased the liabilities of the public administration in the country. When India came free from social rule, the Constitution of India was written for the recently independent country. It started with a Preamble. The Preamble seeks to secure to all citizens social, profitable, and political justice; liberty of study, expression, belief, faith, and deification; equivalency of status and occasion; and promote among them all fraternity, assuring the quality of the individual and the sovereignty and integrity of the nation. 

Part IV of the Constitution, which deals with Directive Principles of State Policy, provides for principles to give guidance to the government in making programs.  The State is to strive to minimize inequalities in income and exclude inequalities in status, installations, and openings for its citizens. Both men and women will have equal rights to an acceptable means of livelihood. The moral, internal, physical, and cerebral health of children and youth are to be defended. Equal justice and free legal aid, the right to work, education, and public backing in old age, severance, etc. are secured by these principles as guiding points in state programs. 

Institutional Building Phase

The Constitution of India, espoused on 26th January 1950, is the supreme law of the country and lays down the frame that defines the political principles, establishes the structure, procedures, powers, and duties of the government institutions, and sets out the fundamental rights, directive principles, and arrears of citizens. While the Constitution contains numerous features, some of its features, or bolstering principles, include:

Sovereignty: The Constitution establishes India as independent nation, meaning that it is independent and free from external control. It affirms the supremacy of the Indian people and their right to determine their political, social, and profitable fortune. The Doctrine of sovereignty of congress is associated with the British Parliament, while the principle of judicial supremacy with that of the American constitution denotation India is a temporal country, as elevated in the Constitution.

Secularism: The state does not rotund or promotes any particular religion and treats all persuasions equally. The Constitution guarantees freedom of religion to all citizens and prohibits discrimination on religious grounds. The term ‘temporal’ was added to the Preamble of the Indian Constitution by the 42nd indigenous amendments Act of 1976.

Federalism: The Indian Constitution establishes a civil system of government, where powers are divided between the central government and the state governments. It outlines the distribution of powers and arrears between the Union and the countries to ensure cooperation and collaboration. Indian Constitution contains a large number of unitary civil features, viz., a strong Centre, single constitution, single citizenship, and strictness of Constitution, integrated bar, appointment of State Governor by the Centre, all India Services, and emergency provision and so on.

Fundamental Rights: The Constitution guarantees Fundamental Rights to all citizens, which include the Right to Equality, Freedom of Speech and Expression, Freedom of Religion, Right to Life and particular Liberty, and various other protections. These rights are enforceable by the courts and form the bedrock of individual freedoms in India. Part III of the Indian Constitution guarantees six Fundamental Rights.  

•Rights to Equality (Articles 14- 19)

• Rights to Freedom (Article 19 – 22) 

• Rights against Exploitation (Article 23 – 24) 

• Rights against Exploitation (Article 25 – 28) 

• Cultural and Educational Rights (Articles 25 – 28) 

• Rights to Constitutional Remedies (Article 29 – 30) 

Directive Principles of State Policy: The Constitution includes Directive Principles, which are guidelines and principles that the government is anticipated to follow in making laws and programs. They cover a wide range of social, profitable, welfare of State and political matters and aim to establish a just and indifferent society. According to Dr.B. R Ambedkar, the Directive Principles of State Policy is a ‘new point ‘of the Indian Constitution. They are enumerated in Part IV of the Constitution.

Social Justice and Equality:  The Constitution emphasizes social justice and equality by forbidding discrimination predicated on various grounds, including estate, religion, race, commerce, or place of birth. It seeks to address nonfictional shafts and promote equality of occasion for all citizens. 

Independent Institutions:  The Constitution establishes independent institutions analogous as the Election Commission, Comptroller and Auditor General, and the bar to ensure checks and balances on the Executive Branch of the Government. These institutions play a vital part in upholding democracy and glazing transparency and responsibility.

Preamble

The Indian Constitution, which consists of 470 pages separated into 25 sections and a Preamble, is one of the world's longest written constitutions. It embodies republican, illiberal, religious, and social justice values. The Indian Constitution's Preamble characterizes the country as an autonomous, socialist, temporal, and popular democracy dedicated to justice, liberty, equality, and brotherhood. The Preamble of the Indian Constitution is a beginning paragraph that describes the goals and guiding principles of the Indian Constitution. It acts as a prelude to the native text and offers insight into the intentions and goals of the framers.  

We, the People of India, having solemnly decided to create a socialist, popular, temporary, democracy dedicated to justice, liberty, equality, and brotherhood. The Political, societal, economically advantageous; the freedom of thought, expression, religion, and deification; Equality of circumstance and status; additionally, to encourage them all Fraternity insuring the integrity and concord of the country, as well as the quality of the person; India is referred to as an autonomous nation in the Preamble, underscoring its independence. Additionally, it characterizes India as a socialist country dedicated to attaining social and economic justice. The term "temporal" refers to the fact that India guarantees religious freedom to all of its population and does not promote any certain religion as the state religion.

Integration of Princely States

At the time of its independence, India was divided into two groups of political entities: princely states, which were ruled by indigenous princes but were still subject to the supremacy of the British Crown, and British provinces, which were directly governed by the British government. The Indian Independence Act of 1947 established India and Pakistan as two autonomous and distinct dominions and gave the princely states the choice of joining either India or Pakistan or remaining independent. Of the 552 princely kingdoms that were geographically part of India, 549 joined, and the remaining 3 (Kashmir, Hyderabad, and Junagarh) chose not to. Additionally, they were incorporated into India: Kashmir by the Instrument of Accession, Junagarh by a vote and Hyderabad by police action.

The Indian Union's states and territories were grouped into four distinct groups under 1950's constitution: Part A, Part B, Part C States, and Part D Territories. They total 29, with nine erstwhile British India governor's provinces constituting up Part A states. Nine once princely states with legislatures formed Part B. British India's chief commissioner's provinces and a few of the princely states comprised Part C, States. Central governance was utilized for Part C states, whereas Andaman & Nicobar Islands remained separate Part D territories.

Table 1 Territory of India in 1950 

Directive Principles act as guidance for the government's policy- and decision-making, whereas Fundamental Rights are justiciable and subject to enforcement by the judiciary. 

Federal System of India

The Parliamentary Democracy in India has provided origin to a framework for figurative administration, accountability, and peaceful power change. To sustain democratic values and safeguard the rights and interests of the populace, it permits participation by the public, contemplation, and checks and balances. In British India, the Act of 1919 established a "diarchy," which can be seen as an initial move towards federalism. Furthermore, the Government of India Act, 1935, which was passed, made special provision for province autonomy.   A federal system of administration for India was agreed upon at the 1946 meeting of the Constituent Assembly. Many of the 1935 Act's features were included into the Indian Constitution, but the name "federalism" was never utilized in the original text.

Parliamentary Democracy

The notion of a parliamentary executive that is jointly accountable to the House of Commons was accepted by the Constituent Assembly. When introducing the Draft Constitution and recommending the parliamentary system in the Constituent Assembly on November 4, 1948, B.R. Ambedkar, the Chairman of the Drafting Committee, said, "The Draft Constitution in recommending the parliamentary system of executive has preferred more consequences of the parliamentary democracy that the Indian Constitution upholds are directly related to the country's public administration's accountability.  In a Parliamentary Democracy like India, the Cabinet acts as the pinnacle of the administrative system. It creates government policy, ensures collaboration and coordination between several ministries, and exerts general supervision over the whole executive branch. The cabinet is in charge of making final decisions about policies as well as overall direction, coordination, and oversight of the operations of the government and its administrative structure, according to the Administrative Reform Commission (1966–1970). Under the direction of N. Gopalaswami Ayyangar, cabinet committees were formed to relieve the pressure on the cabinet. In their 1949 report, Reorganization of the Government Machinery, they recommended the creation of Standing Committees of the Cabinet in particular fields, alongside the strengthening of their secretariats and other organs. 

A D Gorwala Committee Report (1951)

The Committee on Plan Projects, popularly known as the A. D. Gorwala Committee, was established in India in 1951. The committee was formed to assess the status of plan projects in India and offer suggestions for their successful execution. India was then beginning to put its first Five-Year Plan, which intended to encourage economic growth and development in the nation, into effect. Reports on Public Administration and Report on the Efficient Conduct of State Enterprises were the two reports he submitted. Among his crucial recommendations, the following stand out: (a) establishing a government O&M unit with a two-member board. Designed to give management the inspiration and guidance it needs. (b) Training must not only encourage the civil servant to view his work in the broadest context and to continue with his own educational development, but also to encourage precision and certainty in the conduct of business and to boost staff morale. Gorwala's recommendations to establish an O&M branch within the government were accepted by the Indian government. The committee offered suggestions for enhancing the execution of plan projects in light of its findings. It highlighted the necessity of resource exploitation that is efficient, the significance of regional development that is balanced, and the fusion of social and economic goals. The committee's suggestions aimed to improve India's planning procedure and development activities' overall effectiveness. 

Paul H Appleby’s Reports

Two papers written in 1953 and 1956 by American Public Administration expert Paul H. Appleby marked a turning point in the history of administrative reforms. His group advocated the creation of an O&M division as one of the twelve recommendations he presented, which would enhance the nation's administrative practices. The Indian Government only accepted two. The first involved creating an O&M (entity and Methods) entity within the national government, and the second involved creating a training facility, specifically the India Institute of Public Administration, which was created for promoting research in public administration. For the purpose of advancing administrative knowledge, the Indian Institute of Public Administration for India shall act as the hub of a professional journal, the extension of studies, and the creation of literature. 

The first report, Public Administration in India: Report of Survey 1953 confirms the Indian administrative system's high ranking among global administrative systems but is highly critical of its organizational design, personnel policies, financial and administrative practices, and capacity for completing development tasks rapidly. A special reference to the management of the government's industrial and commercial businesses was made in the second report, Re-Examination of India's Administration System 1956. It was addressing issues related to optimizing organizational structure, operational processes, hiring, and training in these businesses.

Planning Commission

The most prominent planning institution in India is the Planning Commission. Two characteristics were noted during this organization's establishment. In order to prevent it from becoming stagnant, it was first placed outside of the conventional Ministries and Departments. Secondly, a commission-type organization was purposefully chosen to provide the necessary flexibility for developing an appropriate internal structure in response to emerging needs. The commission's original objective was to increase the standard of life for common Indians by effectively utilizing the nation's human and material resources, boosting productivity. It was in charge of conducting yearly assessments of the nation's resources; creating five-year plans and the implementation methods for them; and keeping checks on how the plans are being carried out, as well as suggesting policy changes when the results call for them. In 1951, the first five-year plan for the nation was introduced. The commission, which was founded on March 15th, 1950, was headed by the Prime Minister of India and had a Deputy Chairman as well as several full-time members. Education, health, infrastructure, science, financial resources, business, social welfare, rural development, and water resources are among the divisions. It was established by a Central Government Resolution that listed the following as its duties: 

1. Develop five-year plans for the most efficient and equitable use of the nation's resources. 

2. Identifying measures to improve national resources and conducting an assessment of them.

3. Selecting the optimum equipment to guarantee the plan's successful execution.

4. Setting the Plan's priorities.

5. Periodic assessment of the plan's development with a view to suggesting modifications, if necessary.

India's Planning Commission was a government organization tasked with creating five-year plans for the economic and social advancement of the nation. It was founded in 1950 and operated as an extra-constitutional body until 2014, when the National Institution for Transforming India, or NITI Aayog, took its place. 

Administrative Reform Commission 1966

The Government of India formed the Administrative Reforms Commission (ARC) in 1966 with the goal of researching the nation's public administration system and making recommendations for changes to increase its effectiveness and efficiency. Morarji Desai, who was serving as the Deputy Prime Minister and Minister of Finance at the time, served as the Commission's Chairman. The Indian Government commissioned the Administrative Reforms Commission (ARC) in 1966 to research and make recommendations for the nation's administrative reform. It was the Indian government's first significant attempt to address problems with the way the administrative system and bureaucracy functioned.  The Commission included ten members, including lawmakers, government officials, and subject matter experts. The ARC's primary goal was to analyze the composition, administration, and effectiveness of the political system and make recommendations for improvements. 

The main areas of attention for the ARC 1966 were as follows:

Organizational Structure: The Commission examined the federal, state, and municipal administrative structures in order to make recommendations for their rationalization and simplification to improve efficiency and coordination. Recruitment, training, promotion, and career development of civil officials were among the many facets of personnel administration that the panel looked into. It recommended actions to guarantee an effective and merit-based civil service.

Financial Management: The panel looked at how government agencies handled their finances and made reform recommendations to improve responsibility, openness, and effectiveness.

Administrative Procedures: The ARC 1966 examined bureaucratic practices and made recommendations for streamlining and standardizing administrative procedures to cut down on red tape, corruption, and delays. 

Decentralization and Local Governance: The Commission stressed the value of decentralization and made recommendations for ways to strengthen local governments' capacity for decision-making and service provision. 

There were 537 significant recommendations in the 20 publications listed below. A report summarizing the implementation strategy based on these contributions from several administrative Ministries was sent to the Parliament in November 1977.

1.Problems of Redress of Citizens Grievances (Interim)

2.Machinery for Planning

3.Public Sector Undertakings

4.Finance, Accounts & Audit

5.Machinery for Planning (Final)

6.Economic Administration

7.The Machinery of GOI and its procedures of work

8.Life Insurance Administration

9.Central Direct Taxes Administration

10.Administration of UTs & NEFA

11.Personnel Administration

12.Delegation of Financial & Administrative Powers

13.Centre-State Relationships

14.State Administration

15.Small Scale Sector

16.Railways

17.Treasuries

18.Reserve Bank of India

19.Posts and Telegraphs

20.Scientific Departments

The following were the main factors that the first ARC report involved:

• Problems with the redress of citizens' complaints; 

• The machinery of the Government of India and its processes or activities; 

• The machinery for planning at all levels; Centre – State Relations

• Financial administration; 

• Personnel administration; 

• Economic administration; 

• Administration at the State level; 

• District administration; 

• Agricultural administration. 

Building Centre - State Relations

"The Indian Constitution is a federal Constitution in as much as it established what may be called a dual polity which will consist of the Union at the Centre and the States at the periphery each endowed with sovereign powers to be exercised in the field assigned to them respectively by the Constitution."

- B.R. Ambedkar

Commission on Centre-State Relations, reflect through the Sarkaria Commission was a 1983-established government-appointed agency in India. The panel was established to look into and provide recommendations on ways to strengthen the relationship and power dynamics between the federal system of India's central government and its state governments. The commission was named after Justice R.S. Sarkaria, a former Supreme Court of India judge who served as its head. Shri B.Sivaraman and Justice M.M. Punchhi were also in the commission. It was between 1983 to 1988, the Sarkaria Commission was in operation, and in 1988 it delivered its final report to the government. The Sarkaria Commission's main goal was to address concerns regarding the allocation of authority, responsibility, resources   and tasks between the federal government and the state governments. It sought to offer principles and suggestions to strengthen India's cooperative federalism. The unity and integrity of the nation were of utmost importance to those who drafted the Indian Constitution. 

Inter-State Council

India is a federation of states where the center plays a significant role but is also reliant on the states for the execution of policies. The Constitution has provisions to encourage inter-governmental collaboration and efficient state-federal discussions, guaranteeing that all significant national policies are developed through consultation, debate, and agreement. One such strategy is the creation of the Inter-State Council. The President is given the authority to define the nature of the Council's duties under Article 263 of the Constitution. 

Emergence of Local Government

In India, the term "local self-government" refers to a system of government that gives local bodies the authority to run and control their particular domains. It is a crucial part of India's democratic system and strives to distribute authority and decision-making to the populace at large.  Local self-government is acknowledged as a basic component of the Indian government system in the constitution.

Institutions of the Panchayati Raj (PRIs): Local self-government organizations known as panchayati raj institutions work at the village, block, and district levels. They are essential in rural areas. Municipalities and Panchayati Raj Institutions both have certain roles and responsibilities. These consist of local development project planning and execution, the provision of essential utilities like water supply, provision of healthcare and sanitary services, the collecting of local taxes, the upkeep of local facilities, and the promotion of social and economic wellbeing in their particular regions. 

Committees Related to Panchayati Raj 

A committee was established by the Indian government in January 1957 to review the performance of the National Extension Service (1953) and Community Development Programme (1952) and make recommendations for improvements. In November 1957, the committee published its findings and proposed the implementation of the "democratic decentralization" plan, subsequently known as Panchayati Raj. Balwant Rai Mehta served as this committee's chairman. 

Balwant Rai Mehta Committee

Gram Panchayats at the village level, Panchayat Samitis at the block level, and Zila Parishads at the district level make up the three tiers of the Panchayati Raj system that the committee advocated. Decentralized governance and effective representation were goals of this arrangement. It suggested giving these organizations control over specific duties, resources, and employees currently performed by the state government so they can make decisions and carry out local development initiatives. Transfer of authority and accountability to these democratic entities is necessary. 

Ashok Mehta Committee

A Committee on the Panchayati Raj Institutions was established by the Janata Government in December 1977, with Ashok Mehta serving as its head. It presented suggestions to strengthen and resuscitate the nation's ailing Panchayati Raj System when it published its report in August 1978. 

G.V.K Rao Committee

Under the leadership of G.V.K. Rao, the Committee to Review the Existing Administrative Arrangement for Rural Development and Poverty Alleviation Programs was established in 1985 by the Planning Commission. The Committees came to the conclusion that the Panchayati Raj had been steadily replaced by bureaucracy in the developmental process. The Panchayati Raj Institutions were undermined as a result of the practice of bureaucratizing development management in opposition to democratization, creating "grass without roots." 

L M Singhvi Committee

The L.M. Singhvi-led committee was established by the Rajiv Gandhi administration to draft a concept paper on "Revitalizing Panchayati Raj Institutions for Democracy and Development." 

73rd Amendment Act granted the constitutional provision that the state shall take steps to organize village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of Self Government a concrete form. The Directive Principles of State Policy include this article. The Indian Constitution now includes a new Part-IX as a result of this act. The provisions in this section, named the Panchayats, range in length from Articles 243 to 243O. A new Eleventh Schedule has also been added to the constitution as a result of the act. There are 29 operational Panchayat items included in this schedule. The subject is Article 243G, statute grants the Panchayati Raj Institutions a constitutional status. 

74th Amendment Act the Indian Constitution now has a new part IX A mentioned in the 74th Amendment Act. The Municipalities is the name of this section. This includes clauses found in paragraphs 243 P through 243 ZG. The Act also amended the constitution to include a new twelfth schedule. There are 18 useful elements for municipalities in this schedule. It addresses Article 243-W. The statute grants municipalities’ constitutional status. In other words, in order to comply with the provisions, state governments must embrace the new system of municipalities. The act seeks to revitalize and fortify urban governments so they can successfully serve as components of local governments. 

Liberalization Phase in 1991

Prior to the liberalization in 1991, the Indian economy used a mixed economy model with substantial centralized planning, regulation, and protectionism on the part of the government. As a result, individuals were negatively impacted by the peak of inflation and the skyrocketing prices of basic goods. Before 1991, the Indian economy had the following main characteristics:

1. License Raj: A system known as the "License Raj," which involved an intricate network of industry licensing and permits, governed the Indian economy. Nearly every industry needed government licenses and permissions, which created bureaucratic red tape and corruption.

2. Limited Foreign Investment: Foreign investment in India was strictly controlled, and FDI was only allowed in certain areas.

3. State-led Planning: Through a number of Five-Year Plans, the government had a significant role in economic planning. These plans had three main objectives: resource distribution, production goal setting, and sector development priority setting. The government owned and ran many businesses and utilities, giving the public sector a considerable role.

4. Protectionism and Trade Barriers: The Indian economy was hampered by high import tariffs and onerous trade regulations. To shield native sectors from international competition, the government set import restrictions and licenses. 

5. Import Substitution Industrialization (ISI): By restricting imports with high tariffs and quotas, the government pursued an import substitution policy with the goal of developing domestic industries. This strategy was designed to improve self-sufficiency and lessen reliance on imports.

Prior to 1991, the Indian economy was characterized by a highly controlled and protected economic environment with little involvement from the private sector and from foreign countries. The emphasis was on independence and import substitution, but these strategies produced a number of inefficiencies, administrative roadblocks, and a sluggish rate of economic expansion. In order to overcome these obstacles and expose the Indian economy to market forces and global integration, liberalization reforms were implemented in 1991. India had to take out a sizeable loan from the IBRD (International Bank for Reconstruction and Development) for $7 billion USD. It serves as the lending branch for both the World Bank and the IMF. A condition of receiving this financing was that India must liberalize its economic policy and allow for international trade. 

After Liberalization

The phrase "after the liberalization of 1991" refers to the government of India's 1991 economic opening and liberalization measures. Economic liberalization in India is often referred to as Neo -liberalism and the opening up of the Indian economy. India had a system of centralized planning and a highly controlled economy prior to 1991. This economy was characterized by strong government control and protectionism. The Indian government implemented a number of initiatives to solve the crisis and revive the economy in 1991, when it was confronted with a serious balance of payments problem and a deteriorating economic condition. The Indian economy was significantly impacted by these policies. They caused the market for Indian goods to become more competitive, more productive, and integrated with the rest of the world. In order to make India's economy more open and market-oriented, attract foreign investment, and promote economic growth in the years that followed, liberalization policies were important. 

The following were the main components of the liberalization policies:

1. Removing the License Raj: The Government eliminated many administrative barriers and encouraged entrepreneurship by reducing the number of enterprises that needed industrial licenses. Capital goods imports and a reasonable governmental investment rate. With the exception of a few sectors like those producing alcohol, illegal narcotics, tobacco, hazardous chemicals, industrial explosives, aircraft, electronics, and medicines, the industrial licensing system was abolished.

2. Deregulation and market-oriented Reforms: The government introduced efforts to deregulate a number of industries, including lowering limits on foreign investment (FDI), reducing government oversight of international trade and investment, and streamlining industrial and trade regulations. India permitted FII investment.

3. International Investment: limitations were loosened, and the government urged international businesses to make investments in India. As a result, the nation experienced an injection of international cash and technology.

4. Financial Sector Reforms: Significant changes were made to the banking and financial sectors, including the construction of new private sector banks, the adoption of a more market-oriented interest rate structure, and the easing of foreign exchange controls.

5. Budget Reforms: By reducing public spending, streamlining subsidies, and enhancing tax administration, the government intended to lower the budget deficit.

6. Privatization: To increase efficiency and lessen the burden on the public, the government began the privatization of state-owned firms. 

Impact of Liberalization

The Indian economy and society were significantly impacted by the liberalization of 1991. It's crucial to remember that while liberalization sparked beneficial developments and economic progress, it also brought about a number of difficulties, including a rise in income disparity, environmental issues, and regional differences. These challenges remain crucial areas of emphasis for Indian policymakers. Few important outcomes of the reforms for liberalization are:

Economic Growth: The acceleration of India's economic growth was one of the most significant effects of liberalization. In the post-liberalization era, the average yearly GDP growth rate rose from an average of 3-4percent in the pre-liberalization era to 6-7 percent on average. The reforms created new opportunities for investment, entrepreneurship, and competition, which boosted output and fuelled economic growth.

Technology Inflow and Foreign Direct Investment (FDI): Liberalization measures drew foreign investment to India. International corporations were attracted to invest in India by the relaxation of FDI limits and the opening up of numerous sectors to foreign participation. New technologies, managerial know-how, and access to international markets were all made possible by this infusion of foreign finance.

Global Integration: Liberalization encouraged a greater degree of economic integration between India and the rest of the world. Import-export rules were loosened and trade obstacles were reduced. India's participation in international trade significantly increased, as did its economic ties to the rest of the world.

Industrial and Sectoral Transformation: Indian industry were restructured and modernized as a result of liberalization. The Permit Raj system was abolished, and the abolition of industrial licensing facilitated private sector participation and entrepreneurship. Many industries, including information technology, telecommunications, and services, grew quickly and entered the global marketplace.

Technological Development: India had a significant increase in the information technology (IT) and IT-enabled services sectors as a result of the entry of foreign businesses and the liberalization of the telecoms sector. The expansion of the IT sector was essential in making India a center for software development and IT services on a worldwide scale.  

New Economic Policy 1991

India experienced a severe financial crisis in 1991. A critical Balance of Payments issue started the crisis. The crisis was used as a wonderful chance to overhaul the economy of the nation, its structure, and to implement significant reforms in economic policy. Stabilization measures and structural changes were implemented by the administration. While the former sought to reduce rigidities in the various Indian economic sectors, the latter sought to address deficiencies that had surfaced in fiscal and Balance of Payments advances. P V Narasimha Rao was India's Prime Minister at the time the New Economic Policy (NEP) was unveiled.

New Economic Policy's Objective 

• Engage in 'globalization' and shift the economy toward a market-based system.

• Decrease inflation and correct payment imbalances. Boost the economy's growth rate and accumulate enough foreign exchange reserves.

• By removing unneeded regulations, stabilize the economy and turn it into a market economy.

• Remove unnecessary barriers to the free flow of commodities, capital, services, technology, human resources, etc. on a global scale.

• Increase the involvement of private parties in all areas of the economy. 

The new economic strategy has three levels: liberalization, privatization, and globalization. During liberalization, there were several significant changes: 

1) Commercial banks were given the authority to set interest rates. Previously, this was decided by the Reserve Bank of India. 

2) The small-scale industry investment cap was increased to Rs. 1 crore. 

3) The ability to import capital goods, such as machinery and raw materials, from other nations was granted to Indian enterprises.

4) The government already set the maximum production capacity for each industry. The industries now have the ability to diversify their production capacities and lower production costs. Industries are now free to make this decision depending on the needs of the market.

Major alterations took place during privatization

To the general public and financial institutions, sell PSU shares. For instance, Maruti Udyog Ltd. shares were sold to private individuals. 

1) A reduction in PSU investment 2) By doing so, PSUs must be sold to the private sector. 3) From 17 to just 3 industries were designated as public sector-only, down from 17. Transportation and railroads, nuclear energy, and mining of atomic minerals are these. 

Globalization brought about significant Alterations

1) A steady reduction in import and export taxes and customs duties helped India become more appealing to foreign investment. 

2) Long-term commercial policy has longer periods of time saw the use of trade policy. The major aspects of the trade strategy are the removal of restrictions on international trade, a liberal policy, and encouragement of free competition. 

3) Prior to 1991, a positive list of permissible imports governed imports into India. A condensed negative list took the place of the list starting in 1992. Nearly all capital and intermediate items were removed from the list of goods subject to import limitations.

4) The Indian rupee was given some degree of convertible status.

5) The foreign capital investment equity cap was increased from 40% to 100%. The harsh Foreign Exchange Regulation Act (FERA) was repealed and replaced with the Foreign Exchange Management Act (FEMA). 

Capacity Building Phase

Expansion of Power in State by Accountability 

Administrative responsibility makes sure that the resources are used as efficiently as possible while still achieving organizational goals. Because it aims to assess an organization's performance in relation to its objectives, administrative accountability is a necessary organizational requirement. The objective is broken down into specific tasks and responsibilities, and it is up to each administrator to explain how they are carrying out their duties. Any organization must have a system for fostering and enforcing accountability. Examples include hierarchy, span of authority, unity of command, supervision, etc. Two aspects of accountability exist; they are somewhat distinct but linked. The first is primarily political, and in a parliamentary form of government, the administration is required to account to Parliament for its performance. The executive, in turn, holds the administrators in departments and other public agencies accountable for how they discharge their duties in the second aspect, which is essentially administrative. Together, these two strengthen one another and form the basis of an accountable government. 

The Parliament has complete and unconstrained accountability to the Executives, and there are numerous means and occasions for it to do so. The executive must address complaints from the public. In fact, the provision of supply is preceded by the redressing of people's grievances through taxation. In addition; the effectiveness of the executive's programs must be confirmed before Parliament approves funding for them.  Parliament makes sure that the funds are used for the intended reasons for which they were provided. A complicated structure of organizational and procedural tools ensures accountability and clarifies it. The accountability facilitating tools span of control, unity of command, inspection, supervision, etc. are widely known. Accountability requires decentralization, delegation, devolution, and de-concentration. However, in a responsible system of government, public servants are not allowed to alter the established procedures because accountability is performance-based and result-oriented. To prevent administrators from wasting time, rules and procedures must be drastically simplified.

Accountability Ecosystem of Institutions

Right of Information

Article 19 (1) of the Indian Constitution declares the Right to Information to be a basic right. The Supreme Court declared in the 1976 case of Raj Narain v. the State of Uttar Pradesh that the right to information be given article 19 treat as a basic right. According to the Supreme Court, in an Indian democracy, the people are in charge and have a right to know how their government is run. As a result, in 2005, the government passed the Right to Information Act, which establishes a framework for the exercise of this basic right. One of the most significant laws that give common people the ability to challenge the government and how it operates is this one. The Right to Information Act’s main objectives are to empower citizens, support their transparency and accountability in government operations, fight corruption, and ensure that our democracy truly serves the needs of the people. 

The Act covers all constitutional authorities, agencies, entities owned and controlled by the government, as well as entities that receive a significant amount of funding from it. The legislation also requires state and federal governmental agencies to respond promptly to requests for information from the general public. If the authorities don’t respond to the citizen within the allotted time, the act also imposes fines. The RTI Act’s goals include empowering citizens to challenge the government and fostering accountability and openness in how it is run.

• The Act also aids in better serving the needs of the populace and reducing corruption in government.

• The Act aims to create more knowledgeable individuals who will maintain the essential vigilance regarding how the political system functions. 

Citizen Charter

A document called the Citizen Charter shows a methodical effort to concentrate on the organization commitment. On the level of services provided, information provided the ability to choose and consult with the government, non-discrimination, and accessibility, complaint resolution, courtesy, and value for the money. By guaranteeing that governmental services are responsive to the persons they serve, the Citizen Charter emphasized the need of treating residents as customers. It includes the organization vision and mission statements, which outline the desired results and a general plan of action to get there. In order to provide more responsive and citizen-friendly governance, the Department of Administrative Reforms and Public Grievances (DARPG) of the Ministry of Personnel, Public Grievances, and Pensions, Government of India, coordinates the efforts to develop and operationalize Citizens Charters. The Citizens Right to Time-bound Goods and Services Delivery and Grievance Redress Bill, In order to provide a system for timely delivery of products and services to citizens, the Citizens Charter of 2011 was introduced.  The idea of a Citizen Charter formalizes the relationship of trust between service providers and their customers. The Citizens Charter movement initial six guiding principles were:

Quality - raising the level of service quality

Choice - Wherever possible, users should have specifying expectations for a specific period through guidelines

Value - For taxpayer money

Accountability - of the service provider (both personally and corporately)

Transparency - Require policies, practices, plans, and grievance procedures Redressal

Participatory - Involve and consult