The Importance of Business Regulation in India

India has been on a very strong growth trajectory, effectively doubling in size every five years. This is because without these government restrictions it would be impossible to do business there. The only practical way to get around the licensing Raj was to completely ignore it and run a business as an unofficial, unregulated entity. If someone came along to enforce the law, it was cheaper and easier to just pay them a bribe than it was to set up everything correctly in the first place.