- Overregulation: Created an elaborate and complicated system of controls.
- License Raj: Controlled entry, expansion, technology, output, location, imports.
- Inefficiency: Suppressed growth by subduing innovative energies.
- Lack of Social Justice: Did not deliver social justice and welfare effectively.
- Bureaucracy-Politician Nexus: Created powerful vested interests.
- Resource Misallocation: Subsidies often went to the better off.
- Inward-looking Policy: Failed to participate in world trade and prosperity.
- Inefficient Public Sector: Massive, inefficient, monopolistic public sector.
- Discouraged Foreign Capital: Denied benefits of technology and competition.
- Crippled Private Industry: Through acts like MRTP.