In India liberalization policy has not been evolved indigenously. It is mainly adopted as a part of stabilization and structural adjustment programs. This paper aims to capture the emerging contours of governance in India in response to liberalization policy. Governance has responded very slowly to economic liberalization. Most of the reformatory initiatives have covered mainly those services and areas which cater to the elite. The areas of social concern such as poverty. Unemployment, regional disparities, and sectoral imbalances have not been made focus of these initiatives. This combination of attention and neglect, if continued would on one hand help the elite to consolidate its advantaged position and on the other hand would alienate further the disadvantaged groups, sectors and regions from the institutions of governance. This trend may hamper the process of liberalization itself. Vested Interests of those in power are likely to be stumbling blocks in the way of reform initiatives. For making reforms feasible and sustainable both political and bureaucratic institutions should be reformed simultaneously. This is all the more necessary because liberalization policy has not been formulated indigenously. However, strong political backing is a prerequisite. The NGOs, intelligentia, seasoned and honest bureaucrats, professional associations, political parties and people’s organizations can play the role of catalysts. Reforms in political and administrative institutions would provide an environment for constituents of the civil society to playa constructive role in the reform process of governance.