The impacts of government policy changes on Business and Industry in India are the following:
i. Increasing Competition: Today, business is facing all round competition. The competition for Indian companies has increased especially in service industries like: Telecommunication, Airlines, Banking, insurance, etc. Competition has crossed the national boundaries and assumed a global shape.
The following are the chief competitors:
(a) New and old Indian companies,
(b) Multinational Companies,
(c) Import. Increasing competition has adversely affected many companies. For example, once a popular Western Coloured Television has lost much ground in the TV market and its contribution to the market is almost negligible.
ii. More Demanding Customers: As a result of the economic reforms, the customers have complete information about the goods available in the market. Earlier, they used to purchase goods and services without much inquiry because of the lack of information. But these days because of the availability of enough information the area of customers’ demand has increased considerably. Now, they have started buying good quality goods and services.
