The indian economy and the licence raj

Music composers like A. But we have seen that colonialism is a more complex tale.

Economy of India under the British Raj

This explains why Indian politicians do not bother about education because results take a long time to come. The East India Company and later the colonial government encouraged new railway companies backed by private investors under a scheme that would provide land and guarantee an annual return of up to five percent during the initial years of operation.

The more damaging impact of colonialism may well have been to Indian minds—it created an inferiority complex from which they have only recently recovered. Conspicuously absent are disciplined party organizations, which help leaders in other democracies to mobilize support for specific programs.

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In all, the amount of irrigated land multiplied by a factor of eight. Industrial Policy Resolution, However, at the end of colonial rule, India inherited an economy that was one of the poorest in the developing world, [] with industrial development stalled, agriculture unable to feed a rapidly growing population, a largely illiterate and unskilled labour force, and extremely inadequate infrastructure.

Irfan Habib put the drain in as 4 percent of national income. When a politician promises rice for two rupees a kilo when it costs five rupees in the market, he wins the election. This was done in order to decrease the concentration of private economic power, and to place restraints on business practices considered contrary to public interest.

The rulers also adopted a Fabian socialist economic path, and Indians did not turn to capitalism untilalthough there was modest liberalization of the economy in the s. But Da Gama told King Manuel of Portugal of large cities, large buildings and rivers, and great populations. English lost its colonial stigma, oddly enough, around the time that the Hindu nationalists came to power.

The key characteristic of the Licence Raj is a Planning Commission that centrally administers the economy of the country. 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.

Consequently, the economy produced a large financial surplus, which was used to support the growing Mughal Empire and finance spectacular monuments like the Taj Mahal. Jawaharlal Nehru and his planners did not trust private entrepreneurs; so they made the state the entrepreneur, and not surprisingly, they failed to create an industrial revolution.

Its investment rate also rose from 6 percent to well over 20 per cent, and yet it did not engender a take-off. Hence, there is an excessive reliance on the personal appeal of individual leaders to win elections. The British East India Company, following their conquest of Bengal inhad forced open the large Indian market to British goods, which could be sold in India without tariffs or dutiescompared to local Indian producers who were heavily taxedwhile in Britain protectionist policies such as bans and high tariffs were implemented to restrict Indian textiles from being sold there, whereas raw cotton was imported from India without tariffs to British factories which manufactured textiles from Indian cotton and sold them back to the Indian market.

Thus, India embraced democracy before capitalism, which makes its journey to modernity unique and explains a good deal. At the root is a fear of the loss of the Indian way of life.

According to Irfan Habib, its population was closer to million. This bureaucracy often led to absurd restrictions: The Constitution protected basic personal freedoms of movement, assembly, conscience and expression.

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Economic liberalisation in India The Licence Raj system was in place for four decades. 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.

Is there something wrong with the development strategy in place? Or what is South Africa’s License Raj? The South African economy grew at per cent a year on average from to License Raj InIndia was a new country racked by pains of the Partition and the dire poverty of her people.

Nonetheless, the Indian Constitution bestowed the right to vote to every adult, making her the first democracy to guarantee universal adult franchise at birth. 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.

The Licence Raj was the result of Indian Planned Economy where each and every aspect is controlled by States and Central Government. To start an any new business, one has to take approximately 80 licences, that are resultant into disinterested new initiatives and not only that after getting licences businesses are controlled and governed by the.

The key characteristic of the Licence Raj is a Planning Commission, that centrally administers the economy of the country. Like a command economy, India has five-year plans on the lines of the Five Year Plans in the former Soviet Union.

The indian economy and the licence raj
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