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nd 1980s, they were consistently altered by different parties in control of the government over these years. For instance, in 1985 Rajiv Ghandi's trade and finance department decided to reduce licensing restrictions and liberalise a vast number domestic industries, in an effort to help kick start industrial growth. The outcomes of such policy changes led to many of the sectors of the economy becoming privatised; hence there was flow of foreign resources and capital into local markets.

Furthermore, it can be argued that these new modifications made to the trade policies, provided the opportunity for local firms to become more modernised and efficient. Another main benefit of the new policy changes was that, local manufacturing firms were given the choice of producing a variety of products rather than manufacturing homogenous products. This enabled domestic firms to broaden their sources of production, and hence engage in more R&D and achieve greater productivity. Moreover, in an effort to improve trade even further and increase the pace of industrial growth, the trade policies protecting industry were yet again revised by the new government during the period of 1988. The Dal administration decided to de-license many more industries, which subsequently increased the liberalisation of importing inputs by a further 15 percent. In addition, other incentives given to local firms also included deductions in tax rates for domestic industries, which helped firms to increase profits and also encourage the start up of new businesses by new entrepreneurs. Furthermore, the new trade policy also placed huge emphasis on helping the rural and agricultural sectors of the economy, which were experiencing huge losses as a consequence of trade liberalisation.

Criticism of Industrial Licensing era

Since its introduction in early 1950s the 'License Raj' had been subject to many modifications over the four decades that it had been in operation. Moreover, during this period its overall success on the economy had been subject to extensive criticism, with only a very few who seemed to have appreciated and acknowledged the policy. Hence, this section will explore some of the arguments made for and mainly against the licensing policy.

One of the first arguments that stems out against industrial licensing, was the fact that not all geographical sectors of the economy were provided with equal provision. As a consequence, this led to many industrial sectors being dominated by big firms who easily gained monopoly power. In addition, the high restrictions on import policies at the time prevented local firms from importing the technology required for achieving successful modernisation and growth within industry. Moreover, the licensing policies had also led to increase in the level of bureaucratic red tape and corruption within the authorities dealing with applications. This was seen as a major disadvantage to growth and performance of local firms, since it discouraged the start up of new firms and the corrupt system meant that the relatively big firms would be able to buy out industrial licenses at the expense of the majority of small manufacturing firms. Thus, there was a widening gap in equality amongst domestic industries, as it became 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。