Licence Raj


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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 ?
India's autarkic model and licence raj created a sluggish system.
Ever since the end of India's Licence Raj era in 1991, foreign investors have pinpointed India's growth performance as accidental and not structural.
A passionate recollection of how licence raj used to harm genuine manufacturing interests and growth prospects could be of historical interest, but the perils of inverse duty structures - where import of finished goods are cheaper than local manufacturing - still hold important lessons for the NDA government and its 'Make In India' slogan.
When we talk about ease of business, there is a dire need to finish Licence Raj," he said.
Our manifesto is aimed to turn the tide on all such ills, to bring growth, development of the infrastructure, end licence raj and usher in prosperity in the North-East," Naqvi said.
The Board expressed its deep gratitude to Keshub Mahindra for the outstanding services rendered by him not only to the Mahindra Group, but also to industry and to the nation, over a period that spanned the early post-independence era, the Licence Raj and the two decades of liberalization and globalization.
So too did the dismantling of the licence raj in the early 1990s, which unleashed a powerful wave of creativity and entrepreneurial spirit," he told a gathering at the Federation of Indian Chambers of Commerce and Industry (FICCI).
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).
It is carnival time, with its own permissive licence raj.
Currently it's a kind of licence raj where inefficient batsmen flourish because the rules forbid proper competition," writes Kesavan, reminding how bowlers face so many restrictions on the field today.
In such circumstances, Singh decided to reject the licence raj and introduced reforms, which have consequently, transformed the lives of millions of Indian citizens.
According to sources, the thinking in the government is that the Commission is essentially a creature of the old Licence Raj and serves no useful purpose in the current liberalised economic scene.