Hyderabad: The 'Inspector Raj' introduced by the then prime minister Indira Gandhi still exists in the system even though it started fading away after India embarked on the path of economic reforms in 1990s, Union Minister M Venkaiah Naidu said on Saturday.


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"Soon after Independence, our first Prime Minister Jawaharlal Nehru, in his wisdom, had envisioned primacy for public sector to drive development in a nascent country. For her own reasons, Indira Gandhi amended the Constitution making socialistic development as our path of development resulting in the infamous 'Inspector Raj'," he said.


"Times then compelled us to take to the path of economic reforms in 1990s and our inexorable journey in this direction continues. All through, the welfare function of the state continued to be a guiding principle.


"The 'Inspector Raj' has begun to fade away, but it has not totally vanished," Naidu, who holds portfolios like Urban Development, Housing, Urban Poverty Alleviation and Parliamentary Affairs, said.


Inspector Raj refers to over regulation/supervision by Government of factories and industrial units, a practise which was rampant in 1970s and 1980s.


In an apparent reference to the ongoing debate on "rising intolerance", the senior BJP leader said certain incidents which have happened recently should be condemned. However, such incidents are happening since ages and one should not magnify them.


"The global watchers of India seem to be more excited about India than most of our fellow citizens. May be its time we leave behind our cynicism borne out of day to day experiences and work for India of its true potential," he said.


He said India's greatest asset as well challenge is its human resource.


"For India to achieve its potential, we need to remove all hurdles that come in the way. Infrastructure development is the key in this regard. It is because infrastructure is the linchpin of economic growth as it can help in addressing other key issues, including employment, competitiveness and trade," he explained.


Addressing the 'Leadership Summit' organised by the


Indian School of Business, Naidu said four new missions have been launched by the NDA Government to address urban challenges in an integrated manner.


Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Smart City, Housing for All by 2022 and Swachh Bharat Mission have been designed to meet various challenges of urban development, the minister said.


Ensuring basic infrastructure in 500 urban centres, improving governance in 100 selected cities, building two crore affordable houses and ending open defecation in cities are the main goals of these missions, Naidu said.


He maintained the Centre is committed to provide Rs 4 lakh crore worth of financial assistance to states and local bodies in implementing the new urban initiatives.


Naidu said this amount is much more than Rs 38,000 crore provided during the 10 years of JNNURM (Jawaharlal Nehru National Urban Renewal Mission), a mega city-modernisation scheme launched by Congress-led UPA Government.