Indian Economy

[prasen9]

The whole government's policy pre-Narasimha was protectionist. Not only cars, foreign companies were driven out. Corruption, perhaps. But, I think it was rank bad policy and thinking. Some in the Congress really thought that by keeping foreign companies out, we would develop our own technologies and be great. But with thinking like, if it runs and sells, and we have a monopoly and are making good money, why bother innovating, Hindustan Motors (and its Ambassador car) dug their own grave. The government's protectionist policies extended its lifetime by a couple of decades. I know because my uncle worked there and we lived maybe 10km from it. This was the same across all industries, I think.