Abstract: Corporate governance in India can be evident from the Koutaliya’s Arthshastra, which maintain that for good governance all administrators including king were considered as servants of the subjects. Good governance and stability goes hand in hand. The primary objective of this paper is to study the corporate governance policies, practices and system in India. Goodness of corporate governance is checked on the basis of five basic parameters i.e. transparency, ownership structure, board procedure, investor rights and governance strategies. During the study it was observed that, in India the legislative and regulatory framework for the corporate governance is sound but the implementation part is poor. There is a huge gap between what is de-jure and de-facto. The state is still lagging behind when it comes to particularly private sector small and medium size industries. Major part of industrial set up is just their production units. The government has also set up various committees, passed various regulations for the development of the industries in the country. There is a further need to strengthen the existing governance policies.