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What was the impact of the licensing system on India's regulatory state?
  • a)
    It streamlined industrial investments
  • b)
    It encouraged fair competition
  • c)
    It promoted foreign investments
  • d)
    It led to policy patronage and privileged access
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
What was the impact of the licensing system on India's regulatory stat...
The licensing system, although intended for rational regulation, became a source of policy patronage and privileged access for different groups. This system led to the establishment of distributive coalitions and favored groups receiving benefits and concessions in return for political support.
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