Pls ans with simple explanation
Dear Student
Answer is correct option A i.e They led to lobbying and personal benefits for big industrial houses
Explaination:-
Permit License Raj refers to the host of licenses and regulations that were required to set up industries by the private sector as per the Industrial Policy Resolution 1956. As per this, the role of the private sector was kept only complementary to that of public sector and the state directly controlled the private sector. The private sector required licenses for setting up of any new industry. Also, the establishment of new industries or the expansion of existing industries by the private entrepreneurs required permission from the government. Hence, under the Permit License Raj, the state fully controlled the private sector either directly or indirectly.
The big industrial houses would misuse the licence to prevent new entries in the industry. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms. This created private monopolies because only big industrialist get license. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.
Regards
Answer is correct option A i.e They led to lobbying and personal benefits for big industrial houses
Explaination:-
Permit License Raj refers to the host of licenses and regulations that were required to set up industries by the private sector as per the Industrial Policy Resolution 1956. As per this, the role of the private sector was kept only complementary to that of public sector and the state directly controlled the private sector. The private sector required licenses for setting up of any new industry. Also, the establishment of new industries or the expansion of existing industries by the private entrepreneurs required permission from the government. Hence, under the Permit License Raj, the state fully controlled the private sector either directly or indirectly.
The big industrial houses would misuse the licence to prevent new entries in the industry. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms. This created private monopolies because only big industrialist get license. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.
Regards