Indian banking - Reform by death

The past is never dead. It's not even past," noted the American novelist William Faulkner. Arguably, the two most egregious economic policy mistakes of the past that continue to haunt India were the licensing of Indian industry during the Nehru years and the nationalisation of private banks by Indira Gandhi in 1969. These actions had one common disastrous feature: penalising and expropriating the Indian private sector. Other policies that turned out to have adverse consequences were different in principle.

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