For sustained economic growth, an efficient legal system with an informed judiciary and effective enforcement of the law is imperative.

Keeping India¹s recent growth performance in mind, the essays in this volume contend that it is one of the few large developing countries where the law in action plays a crucial and increasingly important role, despite certain shortcomings. This is because of the fundamental role the Supreme Court plays in deciding the trend of the country¹s economy, polity, and society in addition to law.

Well-known contributors from different fields of law and economics analyse and provide solutions to a wide range of issues of topical relevance like the double-trust dilemma; importance of regulation; regulatory gaps; social cost minimization; negligence rule; low compliance trap; and new patents regime. They focus on financial institutions; accident laws and environmental problems; trade agreements and intellectual property rights protection; corruption and its effects; role of the judiciary in fostering efficient enforcement of law; and impact of non-legal institutions on economic development.

The essays will be of interest to advanced students and researchers of economics, business management, and lawyers dealing with contract and commercial and tort law. They can be appreciated by academicians and professionals from other disciplines as well.

‘Law and Economics has been emerging as a dominant paradigm for the analysis of law. Although for three decades it prospered mainly in the USA, recently it has rapidly proliferated elsewhere. This book is an excellent example. It also demonstrates one of the advantages of Law and Economics—the easier way in which ideas can cross geographical borders and generate global discussion. [It] represents [a] variety of ideologies as well as broader methodological tools, as Law and Economics in the twenty-fi rst century should be performed.’— Eli Salzberger, President, The European Association of Law and Economics

‘India is one of the great nations of the world, and has a distinguished legal tradition that, like the United States, derives ultimately from the common law of England. This book makes a major contribution to the study and improvement of Indian law by analysing law from an economic standpoint. Economics shows how law can be better understood and better directed to the aim of promoting prosperity and justice.’— Richard A. Posner, Judge, United States Seventh Circuit Court of Appeals