what is permit licence raj

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. Moreover, the government decided the limits of production by private entrepreneurs. 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. 

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