ABSTRACT
The prevalent dominant paradigm of liberalism is composed of a fourfold political economy: maximum play of market forces by privatisation, representative democracy, free trade, and welfare state. The New Economic Policy (NEP) has also been a movement in the direction of the paradigm. The foregoing discussion in some ways establishes a connection between the political economy and the judicial review of legislative and executive actions. A socialist economy, founded on unification and concentration of ultimate power of the people in one organ of the state, or, ultimately in one person, does not align itself with the idea of independent judges reviewing the judgments of that organ or person. Even though the Constitution of India creates federal arrangements between the Centre and the States with distribution of powers and resources and an independent government machinery for the performance of their respective functions, the federal arrangements are quite flexible, ensuring cooperation between the Centre and the States.
