Question
Explain any two impacts of Government policy changes on Business and Industry.
Solution
Increased competition: Changes in government policies, especially, the New Industrial Policy, 1991 deregulated the industrial economy in a substantial manner through privatisation, liberalisation and globalisation. It resulted in increased competition for Indian firms from both domestic and foreign countries.
More demanding consumers: Due to globalisation and information technology boom, consumers became well aware of the availability of different products in the market. Due to wider choice for products, consumers became more demanding and specific about the quality, price and features of the products.
