Before the economic reforms of 1991, the Indian economy was characterized by several critical features that shaped its growth trajectory. One of the defining aspects of the pre-reform economy was its highly controlled and regulated nature, driven by a series of policies rooted in the socialist economic model. This model, largely influenced by the idea of self-reliance, focused on state intervention and control in the key sectors of the economy. The Indian government maintained a dominant role in economic activities through the public sector, which was given the responsibility of managing industries such as steel, coal, telecommunications, and transportation. This control extended to the agricultural sector as well, where land reforms and various price controls aimed to ensure stability, but often led to inefficiency and stagnation in production. A central feature of the economy was the system of licenses, permits, and quotas, often referred to as the "License Raj." These controls restricted the entry of new businesses and discouraged private sector competition. The idea was to ensure that the economy remained protected from foreign competition and that the state could manage the distribution of resources. However, this led to a number of negative outcomes, including bureaucratic red