Licence Raj refers to the elaborate licences, regulations and the accompanying red tape, that were required to set up business in India between 1947-1990. The Licence raj was a result of India's decision to have a planned economy, where all aspects of the economy are controlled by the state and licenses were given to a select few. The term was coined by Indian statesman C. Rajagopalachari, who firmly opposed it for its potential for political corruption and economic stagnation. Red tape is a derisive term for regulations that are considered excessive or for bureaucratic procedures that are considered time- and effort-consuming. ... 1947 was a common year starting on Wednesday (link will take you to calendar). ... For the Temptations album, see 1990 (Temptations album) MCMXC redirects here; for the Enigma album, see MCMXC a. ... A command economy is an economic system in which government decisions are made by central state economic managers who determine what sorts of goods and services to produce and how they are to be priced and allocated, and may include state ownership of the means of production. ... The term statesman is a respectful term used to refer to diplomats, politicians, and other notable figures of state. ... Rajaji Chakravarthi Rajagopalachari (சக்ரவர்தி ராஜகோபாலாச்சாரி) (December 1878 - December 25, 1972), known as or Rajaji or C.R., was an Indian lawyer, writer, statesman and a Hindu spiritualist. ... This article needs a complete rewrite for the reasons listed on the talk page. ...

The license raj, was considered to be dismantled in 1990, when a macroeconomic crisis forced India to usher in economic reforms and dismantle the licensing regulations in order to attract Foreign Direct Investment and private businesses. Despite the ongoing reforms, India still ranks in the bottom quartile of developing nations in terms of the ease of doing business and compared to China, the average time taken to secure the clearances for a startup or to invoke bankruptcy, is much greater. Macroeconomics is the study of the entire economy in terms of the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the general behavior of prices. ... Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. ... A developing country is a country with low average income compared to the world average. ... A startup company is a company recently formed, usually until IPO or acquisition. ... Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, administration - see text) in the UK. Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. ...

History

The architect of the system of license-raj was Jawaharlal Nehru, India's first Prime Minister. Inspired by the economy in Soviet Union, he was determined to implement the model in India. Nehru was also an admirer of Stalin, and initiated steps for converting India into a socialistic pattern of society. This sovereign aspiration of the people of India was also articulated in the Constitution of India, the Preamble of which declares the aspiration of the people of India to solemnly resolve to constitute India into a Sovereign Socialist Secular Democratic Republic. Jawaharlal Nehru (जवाहरलाल नेहरू, Javāharlāl NehrÅ«) (November 14, 1889 – May 27, 1964), also called Pandit (Teacher) Nehru, was one of the most important leaders of the Indian Independence Movement and the Indian National Congress, and became the first Prime Minister of India when India won its independence on August 15... The Prime Minister of India is, in practice, the most powerful person in the government of India. ... Iosif (usually anglicized as Joseph) Vissarionovich Stalin (Russian: Иосиф Виссарионович Сталин), original name Ioseb Jughashvili (Georgian: იოსებ ჯუღაშვილი; see Other names section) (December 21, 1879[1] – March 5, 1953) was a Bolshevik revolutionary and leader of the Soviet Union. ... For information on mainstream political parties using the term Socialist, see Social democracy and Democratic socialism, For the governments of the USSR, the PRC, and others, see: Communist state, Other variants of Socialism include Marxism, Communism, and Libertarian Socialism. ... The Constitution of India is the constitution of the Republic of India. ... Look up Preamble on Wiktionary, the free dictionary The preamble (Med. ...

Origin

The term was coined by Rajaji, the founder of Swatantra Party. It is also known as license-permit raj, license-permit-quota raj or the permit-raj. Rajaji Chakravarthi Rajagopalachari (December 1878 - December 25, 1972), known as or Rajaji or C.R., was an Indian lawyer, writer, statesman and a Hindu spiritualist. ... Swatantra Party (swatantra in Hindi means independence) was a political party in India founded by Chakravarti Rajagopalachari in 1959. ...

Planning

The key characteristic of the license raj is a Planning Commission, that centrally administers the economy of the country. As a command economy, India has five-year plans on the lines of the Five Year Plans in Stalinist Soviet Union. This article needs cleanup. ... A planned economy is an economic system in which economic decisions are made by centralized planners, who determine what sorts of goods and services to produce, and how they are to be priced and allocated. ... Indian Economy is based on the concept of planning. ...

Current status

The economic liberalisation of 1991 has cut down much of the red tape, deregulated and opened up most sectors, even to foreign investors, in most cases. 1991 (MCMXCI) is a common year starting on Tuesday of the Gregorian calendar. ... Red tape is a derisive term for regulations that are considered excessive or for bureaucratic procedures that are considered time- and effort-consuming. ...