Finance & economics | Free exchange

India’s Licence Raj offers America important lessons

Even when a protectionist system is dismantled, its problems can endure

Illustration of two men sitting in deck chairs on opposite sides of a barrier gate with a "STOP" sign in the middle. One man is reading The Wall Street Journal, and the other is reading The Times of India.
Illustration: Álvaro Bernis
|5 min read

Jawaharlal Nehru, India’s first prime minister, and Donald Trump, America’s president, do not share many similarities. Nehru was an erudite product of Harrow School and Trinity College, Cambridge; Donald Trump, for all his expensive education, is ultimately a rough-and-tumble graduate of New York real estate. A freedom fighter before becoming prime minister, Nehru spent nine years in British-run jails having campaigned against imperial rule; Mr Trump’s tangles with the law have involved hush money for a porn star. Nevertheless, Nehru’s Fabian socialism—a patrician distrust of commerce mixed with an intellectual love of scientific progress—means his views on trade are, many years later, mirrored by Mr Trump’s America-first instincts.

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This article appeared in the Finance & economics section of the print edition under the headline “Don’t repeat the Licence Raj”

From the July 5th 2025 edition

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