Economics · Indian Economic History
The regulatory framework adopted by India between 1947 and 1990, often referred to as the 'License Raj,' aimed to direct economic activity. What was a significant unintended negative consequence associated with this system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A significant reduction in corruption and bureaucratic delays in economic activities
- 2The creation of high barriers to entry, which stifled innovation and led to inefficiencies✓
- 3The fostering of a highly competitive market environment with numerous domestic players
- 4A rapid increase in the global competitiveness of Indian-made goods
Correct answer
The creation of high barriers to entry, which stifled innovation and led to inefficiencies
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Indian Economic History MCQs →Want more practice questions on Indian Economic History?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Indian Economic History