Question

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and evelopment team which invented the first smartwatch, named as W-7. The watch besides showing the time also monitors few health parameters like a heartbeat, blood pressure etc.

While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.

It set up its office in Jamnagar with a view to capturing the Indian market. In a short span of time, the company emerged as a market leader. The success of the company attracted many other players to enter the market. The competition resulted in the reduction in prices, thereby benefiting the customers.

1) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.

2) Also, explain briefly any three impacts of these concepts on Indian business and industry.

Nandrachal Networks and Technologies Ltd. is a leader in technology innovation in the U.S.A.
creating products and solutions for a connected world. It has a large Research and Development team which invented the first smartwatch W-I, which besides showing the time would also monitor few health parameters like the heartbeat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the fact that licensing requirements had been abolished. The company was also aware that there had been an increased level of interaction and interdependence among the various nations of the world and India could be made a base for its international trade. It set up its office in Gujarat with a view to capturing the Indian market. In a short span of time, the company emerged as a market leader. The success of the company attracted many other players to enter the market. The competition resulted in the reduction in prices, thereby benefitting the customers

1) In the above paragraph, two major concepts related to government policy have been discussed Identify and explain those concepts.

2) Also, explain briefly any three imparts or those concepts on Indian business and industry

Infotech Networks Ltd. was an innovation leader in technology in Canada, creating products and solutions for a connected world. It had a large Research and Development team which invented the first smartwatch. T-12, which besides showing the time would also monitor few health parameters like heart-beat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the removal of unnecessary control over the economy and trade liberalisation through rationalisation of the tariff structure and reform with respect to foreign exchange. It set up an office in Kolkata with a view to capturing the Indian market. In a short span of time, the company emerged as a market leader. The success of the company attracted many other players to enter the market. The competition resulted in reduced prices thereby benefitting the customers.

1) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.

2) Also, explain any three impacts of these concepts on Indian business and industry

Answer 1

1) Two major concepts related to government policy which have been discussed in the above paragraph are

Liberalisation: Liberalisation refers to the progressive elimination of government control and restrictions in the form of licenses, permits and quotas. The main aim was to liberalise the Indian business industry from excessive government control and to give complete freedom to make their own decisions regarding the investments, marketing, pricing and production.

Quote for Liberalisation- ‘Company decided to take advantage of the fact that licensing requirements had been abolished

Globalisation: Globalisation refers to the process of securing socioeconomic integration and development of various economies of the world. It is a conscious and active process associated with the free flow of information, knowledge, services and goods so as to expand business and trade across the borders of countries. It aims at increasing openness, growing economic independence and promoting economic integration in the world economy.

2) Impacts of Liberalisation and globalisation on Indian business and industry are

• Increased competition: The policy allowed easy entry of foreign firms and abolition of licensing. The domestic companies thus, have to compete with the international firms in the market which is a serious challenge and threat to them. 
• Increased demand: Because of the fierce competition from the foreign market and new businessmen joining the production line, there has been a tremendous increase in customers’ demands for the better choice of goods and services. 
• Change in business policies: The business enterprises had to alter their policies and operations from time to time following the government policies under the new industrial policy.