Current Affairs · Indian Economic History
The regulatory framework in India between 1947 and 1990, commonly referred to as the 'License Raj', aimed to direct economic development. What was a major unintended negative outcome associated with this system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A total elimination of corruption and nepotism in corporate regulatory approvals.
- 2The creation of high entry barriers and bureaucratic red tape, leading to market inefficiencies and stifled innovation.✓
- 3The promotion of highly competitive market spaces with low barrier entries for startups.
- 4An exponential increase in global competitiveness and product quality across domestic companies.
Correct answer
The creation of high entry barriers and bureaucratic red tape, leading to market inefficiencies and stifled innovation.
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