In General Theory of Employment, Interest and Money, J.M.Keynes made the observation-" …the ideas of economists and political philosophers, both wen they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." The approach of the present policy regime in India fails to see that a free market economy is sustainable only in the presence of minimum necessary institutions. This paper brings out a few issues in this respect.