NEW ECONOMIC POLICY: INDIAN STATE AND BUREAUCRACY 45 relative autonomy of the Indian state while dealing with other nation-states. The proclaimed goal of Narasimha Rao's model is global integration of India with advanced industrial countries. This new globalisation of the Indian economy is a decisive break with the Nehru-Indira Gandhi phase of political leadership of the Indian state. What are the explanations for such a new turn in the political economy of India? A few salient features of post-1990s changes in the global correlation of social forces may be mentioned to understand the context in which the new economic policies of India have to operate. First, the collapse of East European socialist systems has qualitatively changed the global power equations because the non-aligned countries of Asia, Africa and Latin America received great political, military and economic support from the erstwhile socialist countries and on this basis, they could bargain with the advanced Western industrial countries. India maintained its relative autonomy in world affairs and effectively bargained in every global institution because of its special friendship with the erstwhile Soviet Russia and other East European socialist countries. The Movement of Non-Alingned Countries suffered a serious setback because of the collapse the Eat European socialist countries. Second, the Transnational corporations (TNCs) have emerged very powerful global players and they are looking for markets, cheap labour and cheap raw material in every developing country of the world. The United Nations Conference on Trade and Development (UNCTAD) in its World Investment Report 1994 : Transnational Corporations, Employment and the Workplace (WIR 94) has mentioned a few important features of the operations of the TNCs in global economy, (i) The global sales of the TNCS exceeded US $ 4.8 trillion, and this contributed to the 'growing internationalisation of the production of goods and services', (ii) The TNCs have 37,000 parent firms and more than two lakh foreign affiliates, (iii) The TNCs employ some 73 million persons at home and abroad, (iv) The-world's largest 100 TNCs, held US $ 3.4 trillion in global assets in 1992. Forty per cent of these assets were located outside their home countries. The UNCTAD Report observes: Transnationalisation influences employment, human resources development and industrial relations.. . . Today, the policy response to unemployment must take place against the background of a vastly more integrated world economy in which TNCs are playing an increasingly more important role'.1 The direct consequence of this globalisation of capital is that the advanced industrial countries are demanding every facility from the developing countries for Foreign Direct Investment.2 Third, the post-World War II institutions like the International Bank for Reconstruction and Development (IBRD or World Bank) and the International Monetary Fund have also changed their role during