The role of state is integral to proper functioning of the market. A state, with its prescribed set of rules and an organization is much needed for the economy to function in a proper way. From the poorest to the most advanced welfare economies of the world today recognize the pervasive influence of the state as an institution and as a social actor. One of the interventionist arenas of state intervention has been industrialization. A primary concern for all the states has been that of promoting industrial growth and build up assets that would strengthen the national economy. But the role of state in the process of industrial transformation needs to be understood under the broader rubric of its relation and bargaining with the private entrepreneurs who are equally important players in the economy.