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India’s Porous State

This chapter presents evidence and a theory to understand the current topography of the business-politics relationship in India. Such a theory helps us understand a dual movement: the emergence of a new developmental state as well as the movement of business inside democratic institutions even as India’s political actors engage in numerous business activities. The state has become more porous as business has moved into diverse institutions. Both corrupt and legitimate development activities take place in the shadow of this porous state. The chapter maps the presence of business actors within legislative bodies, parties, independent agencies, and other public agencies to document this trend. Joint-decision arenas such as public private partnerships are key to this business-state compact. Brokers and agents such as key personalities and business associations mediate and move between blurred boundaries of state and regulatory institutions. Politicians have become businessmen and create both laws and invest in business enterprises.