Economic liberalisation in India The Licence Raj system was in place for four decades. Instead, India experienced an agricultural revolution in the early s. Gold, silver and copper coins were issued by the royal mints which functioned on the basis of free coinage. Tomlinsonop cit, p.
Mahalanobis, made two wrong assumptions. Subsequently, the policy of discriminating protection where certain important industries were given financial protection by the statecoupled with the Second World War, saw the development and dispersal of industries, encouraging rural—urban migration, and in particular the large port cities of BombayCalcutta and Madras grew rapidly.
It also explains why India performed below the world average between Encouraged by the government guarantees, investment flowed in and a series of new rail companies were established, leading to rapid expansion of the rail system in India. Before the process of reforms began inthe government attempted to close the Indian economy to the outside world.
Ever since the British Raj material beliefs have been changing in India unlike our cosmological beliefs. For economic arrangements, the Constitutional Assembly considered the idea of declaring India a socialist nation. It needs leaders to come out say that 1 some people will not fare as well in the competitive market place; 2 the winners will far outnumber the losers; 2 capitalist democracy is the best arrangement we have found; 4 globalization is not only a good thing, it is a great leap forward in history.
He concludes that making the railways a creature of the state hindered success because railway expenses had to go through the same time-consuming and political budgeting process as did all other state expenses.
The Mughal economy functioned on an elaborate system of coined currency, land revenue and trade. The indigenous banking system, which financed these exports, was also destroyed. But in the s this carping seemed to die, and quietly, without ceremony English became one of the Indian languages.
The Indian currency, the rupee, was inconvertible and high tariffs and import licensing prevented foreign goods reaching the market.
The key characteristic of the Licence Raj is a Planning Commission that centrally administers the economy of the country.
Tataon the Indian regulatory system,  Sincethe use of high-yielding varieties of seedsincreased fertilisers and improved irrigation facilities collectively contributed to the Green Revolution in Indiawhich improved the condition of agriculture by increasing crop productivity, improving crop patterns and strengthening forward and backward linkages between agriculture and industry.
Industrial Policy Resolution, India also operated a system of central planning for the economy, in which firms required licences to invest and develop. Evidence of well-planned streets, a drainage system and water supply reveals their knowledge of urban planningwhich included the first-known urban sanitation systems and the existence of a form of municipal government.
By the s the peasantry in the districts irrigated by the Ganges Canal were visibly better fed, housed and dressed than before; by the end of the century the new network of canals in the Punjab at producing even more prosperous peasantry there. The new entrepreneurs did not inherit wealth; they have risen on the back of their talent, hard work, and professional skills.
But the two-year voyage was not a commercial success and the Indians were not interested in European clothes and goods for they made far ones in India.
Muslin trade in Bengal and Economy of the Kingdom of Mysore The Indian economy was large and prosperous under the Mughal Empireup until the 18th century. Historians Tapan Raychaudhuri and Irfan Habib claim this state patronage for overseas trade came to an end by the thirteenth century AD, when it was largely taken over by the local Parsi, Jewish, Syrian Christian and Muslim communities, initially on the Malabar and subsequently on the Coromandel coast.
In those twenty years it not only outperformed the world economy significantly but it was amongst the fastest in the world.
And Rajput Thakurs, who never worked for a living, will shed their feudal ways for the sake of a commercial opportunity. The inscription shown, is a Sanskrit invocation of Lord Shiva. Tharisapalli plates granted to Saint Thomas Christians by South Indian Chera ruler Sthanu Ravi Varma testify that merchant guilds and trade corporations played a very significant role in the economy and social life during the Kulasekhara period of Kerala, India.
He assumed that there were no opportunities for rapid export expansion in the s, and this turned out to be wrong. In fact, the first opening can be traced to the last years of Indira Gandhi, when she began to loosen some controls.
George Allen and Unwin, p.
It thus had an important pre-condition for the industrial revolution—an agricultural surplus—but the industrial take-off eluded it.
Businesses had to have government approval for laying off workers and for shutting down Virtually shut off imports with high tariffs, low import quotas and outright banning of import of certain products. It built railways, canals, and harbors. The government of India initiated a liberalisation policy under P.
One of the intriguing questions of history is why India failed to create an industrial revolution. India became the only country in the world where the production of sorely needed goods sorely was punishable by law.
In other words, it is possible to modernize without westernizing. But this is not the whole story, and we must turn to institutions and attitudes to understand the incentive structure of the Indian society.What was the Licence Raj all about?
Why, exactly, was privatization introduced into our economy? Update Cancel. The Indian economy started on a path of economic liberalization by adopting privatization, which has eventually impacted each and every sector of the country, and the life of every Indian citizen. Users can access online services to apply for the driving licence provided by the Ministry of Road Transport and Highways.
Downloadable forms to avail services to obtain driving licence, learner licence and learner licence for mock test are also available. The Licence Raj or Permit Raj (rāj, meaning "rule" in Hindi) is the elaborate system of licences, regulations and accompanying red tape that were required to set up and run businesses in India between and The Licence Raj was a result of the Nehru government's decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a.
The Licence Raj or Permit Raj, a result of the decision to have a planned economy, was the elaborate system of licences, regulations and accompanying red tape that were required to set up and run. Raj means rule in Hindi. So License Raj literally means rule of License This refers to the period between (independence of India) and when the economy was centrally planned.
While this was not as strict as the erstwhile Soviet states, fi. 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 licences are given to a select few. Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production.Download