How much control could the government exert in private sector entities?

How much control could the government exert in private sector entities?

How are India corporate companies exerting control over the government?

India is a country with a large and diverse economy, where both public and private sectors play important roles in various industries and sectors. However, there are also concerns about the influence and power of corporate companies over the government and its policies. In this article, we will explore some of the ways that India corporate companies are exerting control over the government, and the implications for the democracy and development of the country.

Public corporations

One of the ways that corporate companies can influence the government is through public corporations, which are state-owned enterprises that are created by special statutes and operate autonomously from the government. According to The Lawyers & Jurists, public corporations in India are subject to various forms of control by the government, such as parliamentary control, government control, judicial control, and central agency control. However, these controls may not be effective or sufficient to prevent corruption, mismanagement, or undue interference by corporate interests.

For example, public corporations may be influenced by corporate lobbying, political donations, or personal connections with government officials or politicians. Moreover, public corporations may also have conflicts of interest with private corporations, especially in sectors where they compete or collaborate with each other. For instance, public corporations may favor certain private corporations over others in terms of contracts, subsidies, licenses, or regulations.

Private corporations

Another way that corporate companies can exert control over the government is through private corporations, which are limited liability companies that are owned by shareholders and operate independently from the government. According to Lexology, shareholders of private corporations in India have certain rights and powers to appoint or remove directors or require the board to pursue a particular course of action. However, these rights and powers may also be used or abused by corporate companies to influence the government and its policies.

For example, private corporations may use their financial resources, market dominance, or media influence to sway public opinion, lobby policymakers, or pressure regulators. Moreover, private corporations may also have ties or alliances with political parties, groups, or individuals that share their interests or agendas. For instance, private corporations may fund or support certain candidates or campaigns in elections, or form coalitions or associations with other corporate entities or civil society organizations.


The control of corporate companies over the government may have various implications for the democracy and development of India. On one hand, some may argue that corporate companies can contribute to the economic growth, innovation, and competitiveness of the country by providing goods and services, creating jobs and wealth, and investing in research and development. Moreover, some may contend that corporate companies can also cooperate with the government and society to address social and environmental issues, such as poverty alleviation, education improvement, health care access, or climate change mitigation.

On the other hand, some may criticize that corporate companies can undermine the democratic principles, values, and institutions of the country by compromising the accountability, transparency, and responsiveness of the government and its policies. Moreover, some may claim that corporate companies can also exacerbate the social and environmental problems of the country by exploiting natural resources, violating human rights,
or generating pollution or waste.


In conclusion, India corporate companies are exerting control over the government in various ways through public and private corporations. This may have positive or negative impacts on the democracy and development of the country depending on how they use their influence and power. Therefore,
it is important for the government and society to monitor and regulate the activities and behaviors of corporate companies to ensure that they serve the public interest and welfare rather than their own.


(1) Discuss various controls over the working of Public corporations in India.
(2) Shareholder rights and powers in India - Lexology.
(3) Government Control Over Business in India - Your Article Library.


How does the government control the activities of the private companies?

The regulatory role of the government involves formulating and implementing various direct and indirect measures to monitor and regulate the economic activities of the private sector.

Who controls the business in India?

The Imports and Experts (Control) Act, 1947 amended from time to time empowers the government to prohibit or control imports and exports in the public interest.

Who controls private companies in India?

The Ministry of Corporate Affairs is the governing body which regulates all Private Limited Companies in India.

Who is government company controlled by?

A public enterprise incorporated under the Indian Companies Act, 1956 is called a government company. These companies are owned and managed by the central or the state government. These companies are registered as private limited companies though their management and their control vest with the government.

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