Post-liberalisation, what should be scope of industry definition, asks SC, Pg9

Key Highlights:

• The Supreme Court is revisiting the definition of "industry" under the Industrial Disputes Act-1947, as defined in the 1978 Bangalore Water Supply case.
• The court is examining the relevance of the definition post the 1991 economic reforms of liberalisation, privatisation, and globalisation (LPG).
• Justice B V Nagarathna questioned whether the definition of "industry" should remain expansive or be restricted given the increased role of the private sector.
• Attorney General R Venkataramani cautioned against an over-expansive application of the "triple test" to identify what constitutes an "industry".

Detailed Insights:

• The 1978 Bangalore Water Supply case defined "industry" broadly, a definition that the court now considers in light of economic changes.
• The core question is whether functions previously performed by the state and now by the private sector should fall under the same definition of "industry".
• The "triple test" is used to determine if an activity qualifies as an "industry", but its indiscriminate application is now being questioned.
• Modern governance includes welfare activities, which may not align with traditional elements of trade or commerce, impacting the "industry" definition.
• The government's perception of what constitutes "industrial space" has evolved since the 1960s and 70s due to nationalisation and subsequent economic shifts.

Key Concepts Involved:

• Industry: A sector of the economy involved in the production of goods or services.
• Liberalisation: The removal or reduction of restrictions on economic activities.
• Privatisation: The transfer of ownership from the public sector to the private sector.
• Globalisation: The increasing interconnectedness and interdependence of countries.