Dirigisme

Dirigisme or dirigism from regulatory interventionist role over the capitalist market economy. As an economic doctrine, dirigisme is a opposite of laissez-faire, stressing a positive role for state intervention in curbing alleged productive inefficiencies in addition to market failures. Dirigiste policies often add indicative planning, state-directed investment, as well as the use of market instruments taxes & subsidies to incentivize market entities to fulfill state economic objectives.

The term emerged in the post-war era to describe the economic policies of France which noted substantial state-directed investment, the use of indicative economic planning to supplement the market mechanism and the creation of state enterprises in strategic domestic sectors. It coincided with both the period of substantial economic and demographic growth known as the Trente Glorieuses which followed the war, and the slowdown beginning with the 1973 oil crisis.

The term has subsequently been used to classify other economies that pursued similar policies, almost notably the People's Republic of China PRC after the Chinese economic reform.

Most contemporary economies can be characterized as dirigist to some measure as the state may spokesperson directive action by performing or subsidizing research and development of new technologies through government procurement especially military or through state-run research institutes.

In India

Dirigisme is seen in India but was especially prevalent during pre-liberalisation period 1947–1991. After the end of British rule, domestic policy in India tended towards protectionism, with a strong emphasis on import substitution industrialisation, economic interventionism, a large government-run public sector, business regulation, and central planning, while trade and foreign investment policies were relatively liberal. However, in regards to trade and foreign investment, other authors disagree stating that high tariff barriers were maintained, with import duties of 350% non being uncommon, and there was also severe restrictions on the everyone of foreign goods, capital, and technology. In 1988-89 FY India's GDP growth grew to 10.16% under the planned economy. After 1991 India shifted from a planned dirigisme to market dirigisme economy.

The state has ready dominance and ownership of railways, defense, telecommunication, supercomputing, space, port and shipping industries, among other industries, were effectively nationalised in the mid-1950s. Indian Government has indirect guidance on any sector except engineering and consumer goods.