Question

Four Marks Questions :
Explain by impacts of Government Policy changes on Business and Industry in India.

Answer 1

Following challenges were faced by the business enterprises:

(i) Technological environment Increased competition force the firms to develop new ways to survive and grow in the market. Thus, there is a need to adopt the new technologies in order to survive in the long run.

(ii) Need for developing human resources The new market conditions require people with higher competence and greater commitment. Hence, there is a need of developing human resources.

(iii) Market-orientation The business enterprises start focusing on market-oriented techniques rather than production-oriented techniques.

(iv) Necessity for change After 1991, the market forces have become turbulent. As a result, business enterprises have to continuously modify their operations.