Impact of government policy changes on business and industry in India:
1. Competition has increased for Indian firms due to the entry of foreign firms.
2. Customers have become more demanding as they have a wider choice.
3. Technological environment is rapidly changing creating tough challenges for smaller firms.
4. It has become necessary for enterprises to change and modify their operations to cope with the turbulent market forces.
5. There is a need for developing human resource as the new market conditions require people with higher competence and greater commitment.
6. Enterprises are forced to adopt a market orientation so that they could study the market and produce goods accordingly.
7. There is loss of budgetary support to the public sector as the government feltthat the public sector needs to be more efficient in order to survive and grow.
