Answer: Option D
Answer: (d)
In India, there are some regulations and restrictions with regard to establishing industries in certain categories. This is done by making it mandatory to obtain licenses before setting up such an industry.
The Licence Raj continued till 1991 (liberalization was introduced) as a result of India’s decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a select few.
Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production. The Industrial Policy Resolution 1956 aimed at the removal of regional disparities through the development of regions with low industrial bases.
The Indian economy was then guided by the socialistic model of planned development rather than being guided by profit.