Briefly explain the term liberalization. How Indian business houses/management responded to this change?
Briefly explain the term liberalization. How Indian business houses/management responded to this change?
Liberalisation refers to the relaxation of the previous government restriction usually in area of social and economic policies. When government liberalised its trade, it means it has removed the tariff, subsidies and other restriction on the flow of goods and services between two or more than two countries. Indian business house/management has responded in the following ways to this change :
(i) Increasing competition: Liberalisation has paved the way for privatization and foreign companies to operate along with government-led businesses thus leading to increased competition. This has led to development of new products and services, innovation, efficient allocation of resources, competitive pricing, increased productivity and profitability across businesses in sectors like telecommunication, banking and financial services.
(ii) Export orientation : Liberalisation has encouraged policy and reforms led by globalisation. This has enabled Indian businesses to earn foreign exchange for importing raw materials, spare parts and components. Further, Indian businesses increased exports of both agricultural and non-agricultural produce leading to self-sufficiency.
(iii) Technological development: Increased competition with the entry of foreign among businesses to produce quality-driven products for domestic and foreign companies has led to technological development in India. Government policies and regulations are directed toward adopting state-of-art technologies and compliances markets.
(iv) Demanding customers : Consumers have become well-informed and can make conscious choices for demanding a variety of competitively-driven products/services. Indian customers are demanding quality and value-driven products and services.
(v) Need for developing human resources : The entry of foreign companies along with the technological developments has created a need for highly skilled, trained and competent human resources. Accordingly, businesses are trying to offer training, attractive salaries and incentives for promoting individual growth in human resources.
Liberalisation refers to the relaxation of the previous government restriction usually in area of social and economic policies. When government liberalised its trade, it means it has removed the tariff, subsidies and other restriction on the flow of goods and services between two or more than two countries. Indian business house/management has responded in the following ways to this change :
(i) Increasing competition: Liberalisation has paved the way for privatization and foreign companies to operate along with government-led businesses thus leading to increased competition. This has led to development of new products and services, innovation, efficient allocation of resources, competitive pricing, increased productivity and profitability across businesses in sectors like telecommunication, banking and financial services.
(ii) Export orientation : Liberalisation has encouraged policy and reforms led by globalisation. This has enabled Indian businesses to earn foreign exchange for importing raw materials, spare parts and components. Further, Indian businesses increased exports of both agricultural and non-agricultural produce leading to self-sufficiency.
(iii) Technological development: Increased competition with the entry of foreign among businesses to produce quality-driven products for domestic and foreign companies has led to technological development in India. Government policies and regulations are directed toward adopting state-of-art technologies and compliances markets.
(iv) Demanding customers : Consumers have become well-informed and can make conscious choices for demanding a variety of competitively-driven products/services. Indian customers are demanding quality and value-driven products and services.
(v) Need for developing human resources : The entry of foreign companies along with the technological developments has created a need for highly skilled, trained and competent human resources. Accordingly, businesses are trying to offer training, attractive salaries and incentives for promoting individual growth in human resources.
