Business Environment, 4th Edition by Pearson

India’s Import–Export Policies | 673

averaged 1.3percent. At the same time, Pakistan grew by 5 per cent, Indonesia

by 9 per cent, Thailand by 9 per cent, South Korea by 10 per cent, and Taiwan

by 12 per cent

 Only four or five licences would be given for steel, electrical power, and

communications. Licence owners built up huge powerful empires

 State-owned enterprises made large losses

 Infrastructure investment was poor because of the public sector monopoly

 Licence Raj established the ‘irresponsible, self-perpetuating bureaucracy that

still exists throughout much of the country’ and corruption flourished under

this system

Need of Liberalization: ...