Salvage operation which was initiated, achieved far reaching success. The country was partitioned in two nations, India and Pakistan, amidst intense communal hatred. Kashmir issue became the permanent point of difference between India and Pakistan which has since then remained a play ground for diplomatic manoeuvres by the world imperialism. The colonial administrative system was skillfully thrust upon independent India and the Indian constitution emerged as facsimile of Government of India Act of 1935 in its core aspects. The compradore character of the state got firmly implanted. Foreign aid (grants and loans) became the kingpin of India's process of development. Income growth, accumulation and import of technology were accorded priority in this process while employment growth was relinquished to a back seat and the question of poverty eradication remained in the realm of rhetoric. The forces making for erosion of democratic and civil rights were maintained. The practice of detention without trial, custodial death and fake encounters were kept intact.

The state’s slogan of ‘self reliance’ proved to be ostentatious in no time. In spite of rigorous exercise of control over imports and release of foreign exchange, the imports, particularly from the nations of imperialism, grew at an ever increasing rate. This was caused mainly on account of arms race and ever increasing import of petrol and petroleum products, machinery, equipments, spare parts and other intermediate capital goods12. Since these could not be paid by exports13, the country faced the problem of ever increasing foreign debt. As on March ending 1948, Britain owed India Rs 16120 million. But by March 31, 1991, India owed the foreign countries (or India's foreign debt stood at) Rs 1630010 million. Foreign trade deficit14 and foreign debts servicing in 1990-91 amounted to Rs 106450 million and Rs 143370 million respectively. India's foreign currency reserve was equivalent to Rs 114160 million which was highly inadequate to meet the foreign currency obligations arising out of foreign trade deficit and foreign debt servicing, India was unable to obtain loan from international money market on account of its low credit rating. India, thus, was forced to negotiate loans from International Monetary Fund and World Bank in 1991 on very harsh conditions Whereby foreign exchange control and import restrictions were progressively done away with. The basic approach was to allow the global markets in capital and commodities but not in

labour to be eventually made free from restrictions. This was the beginning of the phase of globalisation or the phase of Liberalisation or the phase of New Economic Policy in India. Dynamics of this dependence paradigm forced India to sign a treaty with World Trade Organisation whereby Indian markets were also opened to Intellectual Property and Services. India, thus, becomes subservient to imperialism in matters of its core economic policies. This is what Globalisation is all about. The cirsis in Indian economy continued to aggravate unabated. The forces making for the dependence paradigm gathered additional momentum. The foreign trade deficit had gone up to Rs 607510 million by 1997-98 and foreign indebtdness increased to Rs 3735110 million by March 31, 1998. There is evidence of inflow of foreign investment in India. But it is not much. Moreover, it has declined after Globalisation. On the other hand outflow of factor income (in the form of mainly interests and profits) has been increasing at a faster rate than inflow of foreign investment particularly after Globalisation. In the phase of Globalisation both, the outflows and inflows, are almost equal. Though foreign investment has not been much, its association with domestic capital has disastrous impact on employment in the organised sector, more so, during the phase of Globalisation. It is worth noting that during the past five decades, the annual average rate of growth of labour force has been about 2.5 percent. Of late, India has entered into a phase of trade and industrial depression resulting in widespread retrenchment of working men and women. Thus, the ever increasing unemployment and concomitant poverty has been promoting, at an increasing rate, depraved activities and violence. The victims involved in detention without trial, custodial deaths and in fake encounters has been on an increase, because the present Indian administration treats such depraved activities and violence merely as a 'law and order' problem.

India can opt out of this anarchic situation provided a mass based democratic struggle is launched demanding that the civil administration is completely transferred to the ward and village