chapter  3
20 Pages

Measuring state–business relations in Indian states


Introduction The aim of this chapter is to assess systematically the quality of state-business relations (SBRs) across major Indian states over the post-independence period, by constructing time varying, annual composite indices for each state. While earlier studies were cross country in nature, this study is the first to compare states in the same country. This exercise is relevant in the context of India, considering that the federal nature of the legislature ensures that the states have control over various aspects of the legislative activity that have impact on SBRs. For example, these have competence over the regulation of mines and mineral development, industries, and the production, supply and distribution of goods. Also, both central and state governments are empowered to introduce legislation on matters concerning trade unions and industrial and labour disputes. Such legislation has seen considerable activity over the years with the federal government passing the Industrial Disputes Act of 1947 and state governments extensively amending this Act thereafter.