Briefly discuss the impact of government policy changes on business and industry.
or
The impact of government policy changes has been positive for the economy’. Justify. changes on business and industry.
Impact of LPG policy changes on business and industry
- Increasing Competition
Changes in the rules of industrial licensing and entry of foreign firms, has increased the competition for Indian firms especially in service industries such as banking, communication, health, etc. - More Demanding Customers
Due to increase in competition, wider choice of products are available in the market. As a result, customers are becoming more choosy. He is now regarded as the ‘King of the market’. - Rapidly Changing Technological Environment
Increased competition in market forces the firms to develop new ways to survive and grow in market. Due to this, smaller firms face tough challenges for transformations in processes, technology, machines and products. - Necessity for Change
Rapid change in the market, forces the enterprises to continuously modify their operations. - Need for Developing Human Resource
The new market conditions require people with higher competence and greater commitment. Thus, the need to develop human resource is increasing. - Market Orientation
Earlier firms used to produce first and then sell goods in the market. But now, in the fast changing world, production-oriented technique is changed to market orientation, where firms study and analyse the market first and produce goods accordingly. - Loss of Budgetary Support to the Public Sector
The central government’s budgetary support for financing the public sector out days has declined over the years.
Public sector undertakings have realised that in order to survive, they will have to develop their own resources and be more efficient.