License raj refers to India's planned economy where all aspects of the economy are controlled by the state and licenses were given to a select few. 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, and may include state ownership of the means of production. ...

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 called for converting India into a socialistic pattern of society. Jawaharlal Nehru (जवाहरलाल नेहरू, Javāharlāl Nehrū) (November 14, 1889 – May 27, 1964), also called Pandit (Teacher) Nehru, was the leader of the socialist wing of the Indian National Congress during and after Indias struggle for independence from the British Empire. ... 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. ...

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, deregularised and opened up most sectors, even to foreign investors, in most cases. 1991 is a common year starting on Tuesday of the Gregorian calendar. ... Red tape is a derisive term for regulations that are considered excessive or bureaucratic procedures that are considered excessively time- and effort-consuming. ...