why is it necessary to evolve the system of industrial licensing?

Dear Student

Industrial licensing was started after industrial development started in India after independence . Industries constitute the secondary sector of economy and is highly important for the growth and development of a nation . But then one must be wondering why was a licensing system established which was a hindrance in the way of formation of an industry . The answer is that license would prohibit formation of industries unlawfully . To form an industry one had to abide by the norms set down by the government and follow them strictly . Also every one did not receive a license . Only those who are potential enough and can utilize recources well were granted a license . Also certain forms of hazardous industries , child labour were prohibited by issuing license .

Regards .

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