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Students, especially those who aspire to management positions, need to understand the
important elements oI the external environment (i.e. legal/regulatory, political, social and
ethical) that signiIicantly aIIect !ndian business decisionmaking. They need to understand
the historical development and contemporary state oI businessgovernment relations, the
challenges the government presents to the business system, the historical origins and
current operation oI government regulation through the mechanism oI administrative
agencies, and the role oI business in the political arena.
!n this light, the book attempts to Iamiliarise the students withvarious legal, socioeconomic
and political Iactors that inIluence the business environment.
The Iirst chapter oI the book delves into explaining the continuum oI structure and Iunctions
oI a modern day government. The role oI the government has changed signiIicantly over the
years and there is a growing recognition that the government`s existence is to Iacilitate a
better liIe Ior its citizens and not to regulate them. !n this context, the economic role oI the
government has gained primacy. The laws that are Iramed under good governance thus
acquire special importance since they aIIect sound business decisions and also the liIe oI
people at large.
The eIIect on the population and people is an aspect which is dealt with in the second
chapter. This chapter seeks to explain certain legislations which aIIect the common man
and business. At the same time, it makes an attempt to understand the phenomenon oI the
quality oI liIe, Iollowed by standardised measurements Ior the same. Understanding the
methodology oI calculating the HD! is a must Ior every student who aims to understand the
changing role oI industry.
The new Iocus oI industry is competition instead oI the earlier paradigm oI monopoly
control and this becomes the Iocus oI the third chapter. The commanding heights oI the
!ndian Lconomy i.e. the !SUs have seen a trend oI disinvestment and also the economy as a
whole has seen a movement towards privatisation. This chapter aims to understand these
processes and also throw light on the Iuture Iocus oI the !ndian industry.
!inance is considered the blood stream oI any organisation or Ior that matter any economy.
ReIorms in the !inancial system have helped the process oI liberalisation. The Narsimhan
Committee on Banking Sector ReIorms understood the need Ior reIormed banks Ior the
liberalisation process. At the same time a new orientation to the Monetary and !iscal policy
was warranted. The Iourthchapter on !inancial System deals withall these issues.
ReIorms around the world have Iallen Ilat because oI a nonsupportive political structure. !t
is this whichwarrants an understanding oI the diIIerent kinds oI political systems. !ndia is in
need oI constitutional reIorms and |udicial reIorms which recognise the emergent needs oI
a new economy. An understanding oI all this is attempted in chapter Iive.
The World in itselI is integrating like an organism. !roduction has seen a slicing in its
process where one part is manuIactured in one remote corner oI the world and the other
parts in other corners. There is more Ilow oI resources Irom one region oI the world to
another than ever beIore. This requires some amount oI uniIormity across the globe.
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Towards this end, many indices oI comparison have been constructed. The
!ocus oI the sixthchapter is to address these international linkages.
!inancial scams rocked the corporate world at the beginning oI the 21st century.
Corporate responsibility and duties needed immediate attention. Also, the Iocus
was on corporate social responsibility as business acquired new roles which
helped them sustain longer temporarily. The last chapter addresses these
issues.
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About the Author
Mr. ManishSinha is a !ost Craduate in Lconomics Irom the Cokhale !nstitute oI
!olitics and Lconomics, !une. He is currently pursuing his M. !hil in
!nternational Lconomics Irom the Madurai Kamra| University.
He worked at the !ndian !nstitute oI Management, !ndore as an Academic
Associate. During his tenure at !!M!ndore, he did a case study on the viability
oI agricultural subsidies and also a technical note on liberalisation.
He is currently working as a !aculty at the Symbiosis Centre Ior Management
and HRD, !une. He has taught courses on Lconomics, !nternational !inance,
Business Lnvironment, Clobal Business Lnvironment and Debt Markets at
Symbiosis.
About the Author
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