Licence Raj

(redirected from Permit raj)

Licence Raj

A term used to describe the regulation of the private sector in India between 1947 and the early 1990s. In India at that time, one needed the approval of numerous agencies in order to set up a business legally. Manufacturing in particular was heavily regulated. The Licence Raj was the result of a mixed economy that used a government planning commission established after India's independence. The Licence Raj was largely successful in the 1950s and after, but eventually led to low rates of growth and investment. India began to liberalize its economy in the 1980s, ending the Licence Raj.
References in periodicals archive ?
Jaitley announced an outlay of ` 97,000 crore for the road sector even as he reiterated the government's commitment to doing away with the permit raj to end roadblocks facing the sector.
Dismantling the permit raj is the first and primary imperative, which has the potential to unleash a growth momentum in agriculture analogous to the de-licensing reforms in industry and trade during the early 1990s.
Banish the old permit raj altogether and devise a new system for these four wheelers.
First, they left untouched a number of areas such as higher education, where the License Permit Raj continued and significant rent-seeking persisted.
The licence permit raj has shrunk in area, but become far more profitable.
Some made merry in the Licence Permit Raj and then found the going tough when India opened up its economy to foreign competition; others found themselves squeezed by the regulation and red tape of the Licence Raj itself, what with licences doled out only to a select few (in the quest for a 'planned' economy post-Independence).
While regulations on foreign currency transfers and movement of capital are nowhere near as restrictive as they were in the days of the Permit Raj, it is still best to take expert advice well before taking the plunge.
The decision will permit Raj and Shahana Hashmi of Leeds, England, to create a donor sibling for their 6-year-old son, Zain, who suffers from a potentially fatal blood disorder.
Remember, the licence permit raj persisted precisely because some industries were favoured over others in the so- called national interest," he observed.
It is at that stage that the World Bank came to India's rescue imposing conditions that were meant to say "good bye" to the licence permit raj and open up India economy.
We have now got rid of the licence permit raj, we have opened up foreign investment.
The coming to an end of the Licence Permit Raj and its impact on the Members of Parliament created an atmosphere conducive to the introduction of the scheme in 1990.