POLITICAL

ENVIRONMENT
By: Sayad Rashid

By: Sayad Rashid 1

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 Political Structure in India
 The country attained freedom on 15 August
1947. The Constitution of the Republic came
into effect on 26 January 1950.
 Free India's first Prime Minister, Pandit
Jawaharlal Nehru .
 The Constitution was made flexible enough to
adjust to the demands of social and economic
changes within a democratic framework.
Adopting the path of democracy, the country
held its first general elections in 1952.
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 Parallel state structure
Formal political structure of the
states parallels that of the national
government
National state
• President Governor
• Prime Minister Chief Minister
• Parliament Assembly
• Supreme Court
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High Court 3
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Political system and business

The political system prevailing in a

country decides, promotes, fosters,
encourages, shelters, directs and
controls the business activities of
that country.

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 Basic Political philosophies
 Two basic political philosophies
exist all over the world:
 Democracy (refers to a political
system in which the supreme power is in
the hands of the people. )
Totalitarianism (also called
authoritarianism, refers to a political
system in which individual freedom is
completely subordinated to the authority
of the state.) By: Sayad Rashid
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 Basic Political philosophies
Cont…
 Democracy comprises two types:
o Pure Democracy (Requires every
citizen to take part in
governance.)
o Republican (exists when leaders,
elected by people, do the ruling.)

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 Basic Political philosophies
(Cont…)
 Totalitarianism, in itself, is of four
types:
o Theocratic (When the religious leaders
of a country also act as political leaders.)
o Secular (When political leaders are guided
by military and bureaucratic power)
o Right-wing (private ownership is
endorsed by government, market forces are
also allowed a free play, but political
freedoms are rarely granted)
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when a political party that
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THREE INSTITUTIONS
The political system under
democratic dispensation comprises
three vital institutions:
 Legislature
Executive or Government
Judiciary

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 THREE INSTITUTIONS (Continue)
 Legislature is the most powerful
institution vested with such powers like
policy making, law-making, budget
approving, executive control and acting
as a mirror of public opinion.
 It decide such vital aspects as the type
of business activities the country should
have, who should have, who should own
them, what should be their size of
operations, what should happen to their
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earnings and other related factors.
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 THREE INSTITUTIONS (Continue)

Parliamentary system of
government
– the executive authority is responsible
to the Parliament.

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 THREE INSTITUTIONS (Continue)

Executive or Government the centre

of political authority having the power
to govern those it serves.
 The founder of our constitution provided for
a federal set-up ,with powers being divided
between the national and the state
governments. The power of central and
state governments is described in this
constitution.
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 THREE INSTITUTIONS (Continue)

 Business Responsibilities to
Government:
a) Tax Payment
b) Voluntary Programmes
c) Providing Information
d) Government Contracts
e) Government Services
f)
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Political Activity
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 THREE INSTITUTIONS (Continue)
 Government Responsibilities to
Business:
a) Establishment and Enforcement of Laws
b) Maintenance of Order
c) Money and Credit
d) Orderly Growth
e) Infrastructure
f) Information
g) Assistance to small industries
h) Transfer of Technology
i) Government Competition
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j)
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 THREE INSTITUTIONS (Continue)

 Judiciary determines the manner in

which the work of the executive has
been fulfilled. It sees to it that the
exercise of executive authority
conforms to the general rules laid down
by the legislature.
 It also settles the relationship between
private citizens, on the one hand, and
between citizens and government on
the other.
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 System of Laws
 There are four basic legal systems
prevailing around the world:
• Islamic law (derived from the interpretation of the holy
Quran and is found in the countries where Muslims are in
majority.)
• Socialist law (Comes from the Marxist socialist
systems and continues to influence regulations in former
and present communist countries.)
• Common law (derived from English law and found in
countries which are under British influence.)
• Civil or Code lawBy: (is
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that make up a code.)
 Judicial Powers
 The judiciary in a country is influenced
by the political system. The government
of a country defines the legal
framework within which firms do
business and often the laws that
regulate business reflect the rulers’
political ideology.
 The power of the judiciary are of the
dual type:
iii.The authority of the
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By: Sayad Rashid to settle legal 16
disputes; and
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 Judicial Activism
 In a real sense, judicial activism refers
to the review power vested with the
courts and its scope varies with the
width of power conferred on courts. The
scope is wider where the power of
judicial review extends not only over
executive action, as in the UK, but also
other legislative action.

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 CONSTITUTION

judiciary Executive legislature

Central Concurrent State List

List List
Central State Govt. Local Govt.
Govt.

Development/promotional
Policies
Direct Organization Regulatory
Guidelines
Budget involvement
Codes
(e.g.: development banks Organizations
in business Exports (SEBI, TRAI)
laws
Development authorities)

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 THE CONSTITUTION OF INDIA
 The constitution of India is the most significant
document which is fundamental to the
governance of the state. It is the product not
of political revolution but of the research and
deliberations of a body of eminent
representatives of people who sought to
improve upon the then existing system.
 The historic Objectives Resolution which was
moved by Pandit Jawaharlal Nehru on 9
December 1946 and which was subsequently
adopted by the Constitution
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Assembly on 22 19
January 1947, inspired the shaping of the
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 Parts of Constitution
The Indian Constitution has three
parts, viz:
The Preamble
The Fundamental Rights and
Fundamental Duties
The Directive Principles of the
State Policy.

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 THE PREAMBLE
 The Preamble is an introduction to the
Constitution and contains its basic philosophy.
The Preamble to the Indian Constitution states
that
“We the people of India having solemnly
resolved to constitute ourselves into a
Sovereign, Socialist, Secular, Democratic,
Republic and to secure to all citizens: justice,
social, economic and political; Liberty of
thought, expression, belief, faith, and worship;
Equality of status and opportunity; and to
promote among them all fraternity assuring
the dignity of the individual
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and the unity and 21
the integrity of the Nation.
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 THE PREAMBLE (Key Words)
o Sovereign (With the writing of the constitution,
India became ‘Sovereign Republic’ like USA or the Swiss
Republic.)
o Socialist (Added to the Preamble by the 42nd
Amendment of the Constitution in 1976. Socialism
implies State ownership of tools of production with the
benefits to inure to the public. It also advocates
agrarian reforms, a strong public sector, control over
private investment and wealth and national self-
reliance.)
o Secular (Was inserted in the Preamble by the 42nd
Amendment of the Constitution in 1976. The real spirit
of secularism is to make religion purely a private affair
and
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religious influence.)
 THE PREAMBLE (Key Words)

o Republic (Implies an elected head of State. Under

the republican form of Govt., on the other hand, the
head of State is always elected for a fixed term. Ours is
a Republican form of Govt. and for every 5 year period,
we elect our President who is head of State.)
o Liberty (Signifies the absence of any arbitrary
restraint on the freedom of individual action and the
creation of conditions conducive to the fullest
development of the personality of the individual.)
o Fraternity (Demands the spirit of brotherhood. This
spirit is essential in our society known for its diversity.)

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 THE FUNDAMENTAL RIGHTS

 The Fundamental rights are defined as

the basic human rights of all citizens.
These rights, defined in Part III of the
Constitution, apply irrespective of race,
place of birth, religion , caste , creed or
gender. They are enforceable by the
courts, subject to specific restrictions.

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 THE FUNDAMENTAL RIGHTS

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 THE FUNDAMENTAL DUTIES
According to the 42nd Amendment passed in 1976 a
set of Ten Fundamental Duties of citizens was included
in the Constitution of India. They are :
2. To abide by the Constitution and respect the ideals and
Institutions.
3. To respect National Flag and National Anthem.
4. To realise and follow the essential ideals of Non-
violence, Democracy and Secularism.
5. It is the duty of every citizen to preserve the rich
heritage of our Culture.
6. To protect the Sovereignty, Unity and Integrity of our
Nation.
7. To safeguard public property.
8. To defend our Country even at the cost of our life.
9. To protect Natural Resources.
10.To avoid Dowry, Gambling
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and other Social evils. 26
By: Sayad Rashid
11.To strive towards excellence in their respective
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 DIRECTIVE PRINCIPLES OF STATE POLICY

 The Directive Principles of State Policy

(sometimes called national objectives),
embodied in Part IV of the constitution, are a
unique feature of our Constitution. The
Directive Principles are the directives to the
various governments and govt. agencies and
are fundamental in the governance of the
country.
 There are 17 Directive Principles and they may
be classified, for convenience, under four
heads viz;
• Provisions dealing with Welfare (Art. 38, 42, 45,
47).
• Provisions dealing with Social Justice (Art. 39, 41,
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43, 46).
DIRECTIVE PRINCIPLES OF STATE POLICY
• Article 38(1) lays down that the State shall promote the
welfare of the people by securing a social order in which
justice- social, economic and political- shall inform all the
institutions of national life.
• Article 38(2) lays down that the State shall strive to
minimise the inequalities in income, and eliminate
inequalities in status, facilities and opportunities, not only
among individuals but also among groups of people.
• Article 39 emphasizes that the State shall direct its policy
towards securing: (a) adequate means of livelihood to all
citizens; (b) a proper distribution of the material resources
of the community to the common good; (c) the prevention
of concentration of wealth to the common detriment; (d)
equal pay for equal work for both men and women; (e) the
protection of strength and health of workers and avoiding
circumstances
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unsuited to their age or strength; and (f) the protection of
• Article 41 lays down that the State shall, within the limits of
its economic capacity and development, make provisions for
securing the right to work, to education and to public
assistance in cases of unemployment, old age, sickness and
disablement.
• Article 42 states that the State shall make provision for
securing just and humane conditions of work and for
maternity relief.
• Article 43 emphasis the necessity of an adequate or living
wage in all sectors of economic activity. The Article enjoins
that healthy conditions of work should be provided and a
decent standard of living should be provided.
• Article 43(A) states that the State shall take steps to secure
the participation of workers in the management of
undertakings, establishments or other organisations
engaged in any industry.
• Article 46, The state shall promote with special care the
educational and economic interests of the weaker sections of
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people, and, in particular, of the scheduled castes and
 Distinction between Fundamental Rights
and Directive Principles
Fundamental Rights Directive Principles

• Even the Government cannot take • These are mere instructions

away or abridge these rights.
• These rights are negative i.e.,
contain “don’ts”.
• These are enforceable in law
courts.
• The Government cannot take
policy decisions on these rights.
• These rights strengthen political
democracy.
• These are natural rights.
to the Government.
• These are positive and
contain “dos”.
• These are not enforceable in
any court.
• The Government has powers
to make policy decisions on
these principles
• The implementation of these
principles ensures social and
economic democracy.
• These lead to protect human
rights.

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• These right are justifiable. •
By: Sayad Rashid These rights are not 30
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 Separation of power
 The separation of powers contemplates the idea that
the governmental functions must be based on a
tripartite division of legislature, executive and
judiciary.

 Each organ should be separate, distinct and

sovereign in its own allocated sphere and it should
not exercise the functions assigned to another.

 They should function with in the spheres allotted to

them. No authority created under the Constitution is
supreme; the Constitution is supreme and all the
authorities function under the supreme law of the
land.
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 Division of power
Indian’s Constitution distributes the items
for legislation among 3 lists: -
• Union List (Union has exclusive power to
make laws on all matters in the Union list.)
• State List (state has exclusive powers to
make laws in the State List. Except for the
Union Territories, the centre cannot normally
legislate on any matter included in the State
List.)
• Concurrent List (both the Union and the
State can legislate on matters in the
concurrent List.)
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Thank U…………

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