The Licence Raj or Permit Raj (rāj, meaning "rule" in Hindi) is a pejorative for the system of strict government control and regulation of the Indian economy that was in place from the 1950s to the early 1990s. Under this system, businesses in India were required to obtain licenses from the government in order to operate, and these licenses were often difficult to obtain. The License Raj was intended to protect Indian industry and promote self-reliance and ensure regional equality. Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production. The term "Licence Raj" is a play on the "British Raj" which refers to the period of British rule in India. It was coined by Indian independence activist and statesman Chakravarti Rajagopalachari, who was strongly opposed to the system of strict government control and regulation of the economy that it represented. Rajagopalachari believed that the Licence Raj had the potential for political corruption and economic stagnation, and founded the Swatantra Party to oppose these practices. Reforms started in 1991 have significantly reduced regulation, However, Indian labor laws continue to protect workers in the formal sector from being laid off by employers and place significant restrictions on the ability of businesses to reduce their workforce without incurring significant costs and burdens.This is viewed by some as a barrier to economic growth and development as it may create a disincentive for businesses to hire workers and can make it difficult for them to respond to changing market conditions or economic challenges. History Following the Russian Revolution, socialist thinkers in India began drawing parallels between the pre-revolution Russian proletariat and the Indian masses under colonial rule, seeing socialism as a way to empower poor Indian farmers. Following Indian independence these socialist factions, most importantly Jawaharlal Nehru's conception of democratic socialism, influenced the policies of the License Raj. Nehru studied at Trinity College, Cambridge and was exposed to socialist ideas during his time there. He also visited the Soviet Union in 1927, and this experience may have further influenced his views on socialism. However, Nehru's own political views and the policies he implemented as Prime Minister were often more pragmatic and centrist than strictly socialist. He believed in the need for a strong, centralized government and a planned economy, but he also recognized the importance of private enterprise and the market