DR.

RAM MANOHAR LOHIYA

NATIONAL LAW UNIVERSITY, LUCKNOW

ACADEMIC YEAR: 2023-24

LAW AND ECONOMICS

PATENTING IN BIOLOGICAL INVENTION IN INDIA

SUBMISSION TO – SUBMISSION BY –

Prof. Dr. Priya Anuragini Jyoti Gautam

Assistant Professor (Law) B.A. LL.B. (Hons.) Sem 9th

Dr. RMLNLU, Lucknow Enrollment no. 190101074

The economic implications of laws in India cover a vast and complex terrain, influenced by a
myriad of factors ranging from the nature of the law itself to the sector it impacts, the broader
economic environment, and the socio-political context. Here's a broad overview that
segments these implications into various aspects:

1. Foreign Direct Investment (FDI) Policies

Liberalization and Ease of Doing Business: Laws that simplify processes, reduce bureaucratic
hurdles, and liberalize sectors for foreign investment can significantly boost FDI flows into
the country. For instance, reforms in FDI policies in retail, aviation, and defense sectors have
attempted to make India a more attractive destination for foreign investors.

Protectionism: Conversely, laws perceived as protectionist, such as those imposing high

tariffs or stringent local sourcing norms, can deter foreign investors, affecting the inflow of
foreign capital.

2. Labor Laws

Flexibility vs. Protection: India's labor laws have historically been criticized for being too
rigid, impacting the ease of hiring and firing employees and, consequently, affecting the
competitiveness of Indian businesses. Reforms aimed at making labor laws more flexible can
enhance job creation and attract investments but must balance workers' rights and protections
to avoid exploitation.

Informal Sector: A significant portion of India's workforce is employed in the informal

sector. Laws that aim to bring more workers under the formal sector can improve worker
protections and contribute to better economic outcomes for this demographic.

3. Taxation

Goods and Services Tax (GST): The implementation of GST was a landmark reform intended
to create a unified market by replacing a myriad of state and central taxes with a single tax.
While it aims to increase tax compliance and simplify the tax structure, its implementation
has faced challenges, affecting businesses, especially SMEs (Small and Medium Enterprises).

Corporate Tax Cuts: Reductions in corporate tax rates are aimed at boosting investments and
increasing competitiveness of Indian companies on a global scale.
4. Agricultural Laws

Farm Bills Controversy: The introduction (and subsequent repeal) of new farm laws aimed to
overhaul agricultural marketing stirred significant controversy. Proponents argued these laws
would provide farmers with more selling options beyond traditional mandis, potentially
leading to better pricing. Critics, however, feared it would undermine the MSP (Minimum
Support Price) system and leave small farmers vulnerable to exploitation by large
corporations.

5. Environmental Regulations

Sustainable Development: Environmental regulations play a crucial role in ensuring

sustainable economic development. Laws aimed at protecting the environment, though
sometimes seen as hindrances to industrial projects, are critical for long-term ecological
sustainability, which, in turn, underpins the economy.

6. Bankruptcy and Insolvency

Insolvency and Bankruptcy Code (IBC): The IBC was a significant reform aimed at resolving
insolvencies in a timely manner, thereby improving the business climate and recuperating
loans for banks and financial institutions. It has implications for improving credit markets and
reducing non-performing assets (NPAs).

The economic implications of laws in India are deeply intertwined with the country's aim to
achieve balanced growth, social equity, and sustainable development. Each law and reform
carries its set of challenges and benefits, influencing the broader economic landscape in
myriad ways.
INTRODUCTION

Law and economics are two fields which are quite inextricably linked with each other.
Concepts such as custom, futurity, sovereignty, and scarcity are associated with both law and
economics, similar to principles around property or contracts (Commons, 1924). Black's Law
Dictionary (Garner, 2004) defines law as a body of rules of action or conduct having a
binding legal force, and prescribed by a controlling authority; and legal systems are the
institutions upon which laws are built. Legal systems might mean a set of principles
governing the authority of law, or they might be a systemized manifestation of the governing
bodies. Economic growth and development can have several meanings, but it broadly means
to improve the economic well-being by making the country more prosperous. While
economic growth is restricted to the quantifiable results such as the increase in the Gross
Domestic Product, economic development would also include factors contributing to the
welfare of the economy, such as development of infrastructural facilities. Economic growth is
a process of economic development.

In this paper, I seek to understand how do the laws and legal systems of countries affect their
economic development, explain the general relation between laws and legal systems and
economic development, analyse the role of laws and legal systems in the economic
development of India.