<Li> Income Tax Department and Customs Department became inefficient in checking tax evasion . </Li> <Li> Infrastructure investment was poor because of the public sector monopoly . </Li> <Li> Licence Raj established the "irresponsible, self - perpetuating bureaucracy that still exists throughout much of the country" and corruption flourished under this system . </Li> <P> The fruits of liberalisation reached their peak in 2006, when India recorded its highest GDP growth rate of 9.6% . With this, India became the second fastest growing major economy in the world, next only to China . The growth rate has slowed significantly in the first half of 2012 . An Organisation for Economic Co-operation and Development (OECD) report states that the average growth rate 7.5% will double the average income in a decade, and more reforms would speed up the pace . The economy then rebounded to 7.3% growth in 2014--15 . </P>

Who introduced lpg model of economic development in india