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THE BUSINESS ENVIRONMENT


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Technological Environment

Science and technology has developed to such an extent that our entire life and living conditions have been magically transformed.

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Social Environment and Community Attitude

Society consists of different individuals belonging to different walks of life including the workers, farmers, teachers, bureaucrats, consumers, shareholders, etc., etc. The type of thinking which goes on in the minds of different people and the social environment and the behaviour of the people towards business is congenial, business can prosper more.

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Political Environment of Business

All of us are the products of the political environment around us. Managers and business executives are no exception. They must understand the working of the political system from time to time.

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Foreign Exchange Regulation Act, 1973 on dealings in foreign exchange

Some of the restrictions laid down by the Foreign Exchange Regulation Act, 1973 on dealings in foreign exchange are as follows

Click to read - Foreign Exchange Regulation Act, 1973 on dealings in foreign exchange

Objectives of exchange control

Some of the objectives of exchange control are

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Foreign Exchange Regulations

The term 'foreign exchange' refers to the foreign currency obtainable in exchange for the national currency of a country.

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Industrial Licensing Liberalization, 1978

n March 31, 1978, the Government raised the ceiling of exemption for licensing to Rs. 3 crores from Rs. 1 crore. While so liberalizing the licensing policy, it has given birth to a few contradictions and to that extent it has not been able to achieve the objective of reconciling the above conflicting interest.

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Industrial Licensing Policy, 1975

In October 1975 major changes for liberalizing the industrial licensing policy were announced. 21 industries were de-licensed.

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Streamlining of the Procedure of industrial Approval

On October 31, 1973, the Government of India announced a streamlined system of industrial approval procedure to be effective from November 1.

Click to read - Streamlining of the Procedure of industrial Approval

Industrial Licensing Policy, 1970

Following the recommendation of the Industrial Licensing Policy Inquiry Committee, the Government of India announced its revised licensing policy on February 18, 1970. The principal features of this policy may be outlined as under:

Click to read - Industrial Licensing Policy, 1970

Reports of the Licensing Policy Inquiry Committee

The Licensing Policy Inquiry committee, in its reprot tabled in Parliament on July 21, 1969, proposed a stricter licensing system calculated to shut out big business from large chunks of the industrial sector.

Click to read - Reports of the Licensing Policy Inquiry Committee

Hazari's Policy Recommendations

In what has came to be known as the Hazari report on industrial licensing in India, Dr. R. K. Hazari emphasised that there can be no improvement in the licensing system unless there is a basic change in the scope and planning of industrial programmes in the Planning Commission It would be proper to demarcate industrial programmes as “compulsive' and 'indicative'.

Click to read - Hazari's Policy Recommendations

Drawbacks in Licensing Policy

Though licensing under the Industries Act has been the principal official instrument of industrial planning, little appraisal ha been carried out of its role and purpose.

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Industrial Licensing

It emerges from the earlier account of the principal provisions and objectives of the Industries (Development and Regulation) Act, 1951, that licensing of new industrial units was introduced to serve as the principal official instrument of industrial planning and the enforcement of the spirit of this Act.

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Critique of New Industrial Policy

The main thrust of the new industrial policy of Janata Government is on small-scale, village and tiny sector industries as against the large-scale industries mainly controlled by big industrial houses and multi-nationals.

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Approach towards Slick Units of new policy

The new industrial policy has suggested a selective approach on the question of sick units.

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Restricting Family Control of Industries of new policy

The Industrial Policy Statement mentions that the Government will try to check the family control of business, particularly in the field of large scale industry and insist on professionalisation of management.

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Approach towards Foreign Collaboration of new policy

The new industrial policy clarifies that the provisions of the Foreign Exchange Regulation Act will be strictly enforced in relation to the existing foreign companies' investment.

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Promotion of Technological Self-reliance of new policy

Some words of Promotion of Technological Self-reliance of new policy

Click to read - Promotion of Technological Self-reliance of new policy

Approach towards large-scale houses of new policy

In the past, Large Scale Houses have developed disproportionately to the size of their internally generated resources and have been financing their operations by borrowed funds from public finance institutions and banks.

Click to read - Approach towards large-scale houses of new policy

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