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 ?
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.
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 the 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.
In such circumstances, Singh decided to reject the licence raj and introduced reforms, which have consequently, transformed the lives of millions of Indian citizens.
Frustrated with the licence raj regime and the constraints of raising capital in India, Agarwal had earlier moved to London, where the world's largest mining and metals companies were headquartered.
Drawing attention to the view that environmental clearances have become a new form of Licence Raj and a source of corruption, he said that this is a matter that needs to be addressed head-on.
Licence raj has been dismantled and the next level of competence should be process and governance reforms.