Could liberalisation have come earlier than it did?
The liberalisation, which really started in 1991, should have started during the 1970s, which was a difficult period in the history of industrial development in India. Misguided socialism and licence permit raj were at their height. In the automotive industry, for example, no new joint ventures or technology agreements were approved during the second half of 1970s. For many industries it was a lost decade. Most nations that started industrialisation late — Japan, South Korea have protected and developed their industry. Foreigners were not allowed to invest in the auto sector in Japan and were neither allowed to export vehicles to Japan. Import duties and non-tariff barriers were extensive. Hence, our policy during the 1950s and 1960s was correct. Otherwise, we would have risked becoming an economy which had companies with screwdriver operations. Such companies exist even today in some countries like Egypt and Pakistan. As was the objective, many companies benefited as a result of this
