License Raj System — Predicted 2026
AI-Predicted Question Angles for UPSC 2026
License Raj and its relevance to current industrial policy debates (e.g., PLI schemes, 'Make in India').
HighThe government's renewed focus on boosting domestic manufacturing through schemes like PLI and 'Make in India' invites comparisons with past industrial policies. UPSC is likely to ask how lessons from License Raj can inform current policy design, focusing on avoiding past pitfalls while achieving similar goals of self-reliance and industrial growth. This angle tests both historical knowledge and contemporary policy analysis.
Critical evaluation of the MRTP Act, 1969, and its transformation into the Competition Act, 2002, as a reflection of India's evolving economic philosophy.
Medium to HighThe shift from controlling monopolies (MRTP) to promoting competition (Competition Act) is a fundamental change in economic philosophy. This angle allows UPSC to test understanding of the legal framework of License Raj, its limitations, and the ideological underpinnings of post-liberalization reforms. It's a classic example of policy evolution in response to economic realities.
Impact of License Raj on specific sectors (e.g., automotive, electronics, consumer goods) and how their trajectory changed post-1991.
MediumWhile general impacts are covered, UPSC might ask for a more granular analysis of how License Raj specifically affected certain key industries. This requires aspirants to provide concrete examples of capacity restrictions, technological stagnation, and limited consumer choice in those sectors, and then contrast it with their post-1991 growth and diversification. This tests depth of understanding beyond broad generalizations.
The role of bureaucratic discretion and rent-seeking under License Raj and its implications for governance and 'Ease of Doing Business'.
MediumThe bureaucratic inefficiencies and corruption associated with License Raj are critical lessons for governance. This angle connects the historical system to contemporary concerns about 'Ease of Doing Business' and administrative reforms. UPSC could ask how the legacy of License Raj continues to influence administrative practices or how reforms aim to overcome such issues.