COPRA Presentation

Introduction :

The concept of Capitalization and Socialization are two anti-pods with distinct
differences.

However, the change in global scenario as thrown up by the increasingly

interdependent industrial world has forced to make the economy more outward
orientated thereby, ushering in the era of LPG through relaxation of government
interference.

This has in turn boosted the concept of commercialization which is slowly

eclipsing the socialist values of the state thereby reducing its value of welfare
motive.

Hence to maintain a change in economic scenario the state must try to maintain
its values of protection of the rights and responsibilities of the consumers as
well as its distinction of being a mixed economy where there is co-existence of
public and private ownership.

Commercialisation in India :

India, which is a middle income developing socialist democratic republic with a

mixed economy (i.e., the joint existence of public and private ownership),
commercialization is rapidly occurring in every aspect.

Encouraged by the liberalisation, there has been surge in the FDI and the
portfolio investment flows which has contributed to the increase in GDP which
in turn has increased the income levels generally shifts the demand pattern of
the people and this in turn contributes to economic growth through
commercialization which is a capitalist concept.

The concept of Socialist State revolves around the common ownership of the
market, establishment and ownership of industries by the Government or State
but India being a mixed economy where both the socialist and capitalist
economy coexists, the extent of state participation varies widely.

However, the strategic and other nationally very important industries are fully
owned or dominated by the State. For instance, defence, telecom industry etc.
The New Industrial Policy (NIP), 1991 announced by the Government of India
(GOI) ushered in the era of Liberalisation, Privatisation and Globalisation by
reducing the interference of Government and ushering in an era which saw the
advent of many multinationals who had arrived to set up their businesses which
in turn led to the increase in commercialisation.

It is also seen that this led to the privatisation of strategic and other nationally
very important public industries in a socialist state so that they can further in the
profits in their self -interest.

Also, concept of commercialization which is a product of capitalism whose

main objective is to earn profit led to the eclipsing the socialist values of the
state.

But, with the introduction of the new economic policies in Indian economy, the
role of the state is raised to protect the rights and responsibilities of the
consumers and to maintain a check against the exploitation of the rules by the
capitalist class in respect of the relaxation provided by the Government under
LPG.

So, the Govt. took some measures and established by some rules and laws to
protect the rights and responsibilities of the consumers and to protect them from
the exploitation by the capitalist class.

The Govt. of India enacted the Indian Companies Act, 1956 – amended in 1988
and later replaced by the Companies Act, 2013 – which is considered to be one
of the largest socio-commercial enactments ever passed by the Indian
Parliament to regulate the functioning of the corporate form of organisations in
the broader public interest in India.

Also, with the advent of the L’PG i.e, post 1986 the consumers started resisting
tous attitude of the business community who had started exploiting the
consumers and due to which the government started enacting some laws to safe
guard the interests of the consumers. In order to elevate the public image of the
business, this made the business community or the private sector to set up their
own codes and ethics for self-regulation. This also led the business community
to practice fair trade norms. Also, they were willing to resolve consumer’s
problem before they turned into grievances or before the consumer sought relief
through an external agency.
Certain industrialist from Bombay got together to form the Fair Trade Practices
Association (FTPA) which later came to be known as the Council for Fair
Business Practices (CFBP) which claims to have been a pioneer in the area of
consumer protection.

It represented the coming together of a section of honest and like-minded

businessmen who felt the need to safeguard consumer interests in the
institutional manner, thereby elevating public image of business. Even, today,
this organisation still remains

With the liberalisation and the globalisation of the Indian Economy, it has
become possible for anyone to get into the production or services. Now, the
firms are free to get into any production in different sectors. In this scenario, the
unscrupulous may misused the brand image and reputation of an established
firm by producing counterfeit goods and deceptively similar packages. This
problem of trade mark violation led to the enactment of the Trade Marks Act of
1999..