Shirish Agarwal: License Raj 2.0, 2023
About a week back Jio launched a laptop called JioBook that will be manufactured in China
The most interesting thing is that the whole thing will be produced in Hunan, China. Then 3 days later India mandates a licensing requirement for Apple, Dell and other laptop/tablet manufacturers. And all of these in the guise of Make in India . It is similar how India has exempted Adani and the Tatas from buying as much solar cells as are needed and then sell the same in India. Reliance will be basically monopolizing the laptop business. And if people think that projects like Raspberry Pi, Arduino etc. will be exempted they have another think coming.
History of License Raj
After India became free, in the 1980s the Congress wanted to open its markets to the world just like China did. But at that time, the BJP, though small via Jan Sangh made the argument that we are not ready for the world. The indian businessman needs a bit more time. And hence a compromise was made. The compromise was simple. Indian Industry and people who wanted to get anything from the west, needed a license. This was very much in line how the Russian economy was evolving. All the three nations, India, China and Russia were on similar paths. China broke away where it opened up limited markets for competition and gave state support to its firms. Russia and Japan on the other hand, kept their markets relatively closed. The same thing happened in India, what happened in Russia and elsewhere. The businessman got what he wanted, he just corrupted the system. Reliance, the conglomerate today abused the same system as much as it could. Its defence was to be seen as the small guy. I wouldn t go into that as that itself would be a big story in itself. Whatever was sold in India was sold with huge commissions and just like Russia scarcity became the order of the day. Monopolies flourished and competition was nowhere. These remained till 1991 when Prime Minister Mr. Manmohan Singh was forced to liberalize and open up the markets. Even at that time, the RSS through its Swadeshi Jagran Manch was sharing the end of the world prophecies for the Indian businessman.