There is no 'invisible hand' channeling self-interest into some social optimum. In this context, the State has an integral role to play in making available essential public goods and services, despite the increasing pace of privatization. Do you agree? Justify with examples from India.

Invisible hand is the concept where social growth automatically happens with economic growth. This was put forward by capitalists.

However this is not always true.

[eg] Green revolution → prosperity to punjab, haryana

↓

Neglected eastern states → overall prosperity but inequality increases.

This makes state intervention essential!

(1) To provide bare necessities to everyone [eg] private sector neglect this prospect

(2) Reduce inequalities - private sector tends to promote them due to profit motive

(3) Maintain social harmony - in the society and bring peace

(4) Enhance social capital - Trust building and overall prosperity.

private sector per say is not bad. It should be utilised in a effective manner to gain the best out of it

[eg]

India's concept of welfare state is based on this balance between private and public sector.