Market-State interactions are quite interesting these days in dual preference economies like India, in which both the public and private sectors are equally active. The Market expects minimal interference from the State but the question is: does the market require assistance from the State or should the State leave the market alone? In this connection India is an interesting economy to observe new trends in the interrelationship between Market and State, where both are uncomfortable in decisionmaking, especially in the field of privatization. Another equally important question is: in which capacity does the State have its role? Does the responsibility of the State end or start after privatization? These questions are essential to answer because the Constitution of India places a very high degree of welfare responsibility on the State. This paper traces the unique and innovative responsibility of the state and the market to govern privatization properly.