India used to have such conditions. Look up Hero Honda, Maruti Suzuki etc. What happened was that the MNCs weren't interested at all. India followed with liber

India used to have such conditions. Look up Hero Honda, Maruti Suzuki etc. What happened was that the MNCs weren't interested at all. India followed with liberalization and removal of such "license raj" in 1991. Economy has done much better since.