parrotspeak 1: licensing stimulates demand.
jayati ghosh in macroscan delineating the first of ten 'significant differences' between the chinese and indian economies:'The first relates to the nature of the economy itself, the institutional conditions within which policies are formulated and implemented. India could be described until recently as a traditional ''mixed economy'' with a large private sector, so it was and remains a capitalist market economy with the associated tendency to involuntary unemployment. So the need for macroeconomic policies to stimulate demand, as common in capitalist economies, operated in addition to the usual ''developmental'' role of the state'.
a question : is a licence-permit regime a 'macroeconomic policy' to stimulate demand ? are rationing and quotas demand-stimulating mechanisms ? agricultural output constituted half of the indian gdp - was that the 'large private sector' ?