Balancing Economic liberalization with legal Safeguards: the indian experience

Abstract

India’s economic liberalization since 1991 has transformed the nation into one of the fastest-growing economies in the world. However, this rapid growth has raised critical questions regarding the balance between economic reforms and the legal safeguards necessary to ensure equity, stability, and sustainability. This paper explores how the Indian legal system has responded to challenges arising from liberalization, including foreign direct investment (FDI) regulations, corporate governance, labor laws, and consumer protection. It examines the dynamic tension between market-driven policies aimed at fostering competitiveness and the legal frameworks designed to safeguard social justice and economic fairness. The study highlights how judicial interventions, statutory reforms, and regulatory institutions have played a pivotal role in reconciling economic aspirations with constitutional mandates. By critically analyzing case laws, legislative reforms, and policy frameworks, this paper underscores the importance of a balanced approach where economic liberalization coexists with legal safeguards to promote inclusive growth. The Indian experience offers significant insights into how developing economies can integrate growth-oriented policies with the principles of justice and accountability.