• The license-permit-quota raj was an elaborate and complicated system of controls.
  • It controlled entry, expansion of capacity, technology, output mix, location, and import content.
  • It created a nightmare for entrepreneurs.
  • It thwarted competition, entrepreneurship, and growth.
  • It led to endless delays in clearing applications.
  • It discouraged efficient and honest entrants.
  • It rewarded wily, inefficient producers who manipulated the system.
  • This system acquired a vicious stranglehold over the Indian economy.