Indian 'Liberalisation': Perestroika or Salaami Tactics?

It is undoubtedly true that the Indian economy needs liberalisation from the vice-like grip of parasitic, 'rent' seeking politicians and bureaucrats. This paper takes a retrospective look at the development of economic policy, in particular, industrial licensing and monopolies legislation, and practise over the last two decades. This approach lays bare the superficial character of the liberalisation process so far, which is being implemented in small doses. At most this may lead to a minor redistribution of power and incomes between the politicians/bureaucrats on the one side and the traders/industrialists/big farmers on the other.