MODULE 1 MODULE 1 MODULE 1

1.1.1. Legal 1.1.2. Legal 1.1.10. Legal

Environment
Legal environment of business is
what makes the working of the
enterprise harmonious. It
accumulates every aspect which is
remotely concerned with the
business firm. The term “Legal
Environment of business” relates
to the code of conduct of any
company. It defines the legal
boundaries and the scope of the
firm. The Legal Environment of
Business introduces us to the role
of legal agendas in managerial
decisions. It helps managers in the
operation of their business and
allows them to know the limits
and boundaries of there being in
the name of their respective firms.
Environment
To make the working of an
organisation harmonious, legal
environment of business is used. It
is a collection of every little aspect
related to business. The rules and
regulations followed by a business
are called “Legal Environment of
business”. It describes the scope
and legal limits of a firm. The role
of legal schemes in managerial
decision-making is presented by
legal environment of business. It
allows managers to know the
boundaries present in the name of
their firms and smooth operations
of business.
Environment
The legal environment of company
is what ensures that the organisation
runs smoothly. It collects all aspects
of a company enterprise that are
remotely related. The term “Legal
Environment of Business” refers to
a company’s code of conduct. It
establishes the firm’s legal
boundaries and scope. The Legal
Environment of Business explains
how legal objectives influence
management decisions. It assists
managers in the management of
their businesses and allows them to
understand the limits and bounds of
existence of their particular
enterprise.

It makes their decisions apt to the It helps managers to take decisions It aligns their choices with the legal
legal system. These regulations that are suitable with legal system. system. These rules make it easier
assist the business enterprise to be This contributes in supporting for businesses to comply with the
under the scope of Law and business to be under scope of Law law and government requirements.
government’s regulations. and government’s regulations. It Companies, firms, managers,
Companies, firms, managers, also support and protect the rights owners, and the holders of their
owners, and their share or of firms, owners, shareholders, shares or debentures all try to
debenture holders endeavour the debenture holders and managers. support and preserve the rights.
operation to help and protect the
rights.
The legal liability and legal They are also entangled in a number
They also get bind into several consequences from the decisions of legal entanglements that deal
legal tenures that cope up to legal and actions binds several legal with legal accountability and legal
liability and legal consequences tenures. Legal environment is not consequences as a result of their
from their decisions and actions. only consists of legal systems and decisions and acts. One could
One might think that the business its process but also covers several believe that the legal system and its
environment consists of just the sources of law of society. processes are all that exists in the
legal system and its processes. commercial world. However, the
But the fact of the matter is that truth is that these also obscure
these also cover up several various sources of law in the
sources of law of our society. It includes various aspects that need society.
comparison and comprehensive
It requires comparison and an in- study of legal rules of business. It necessitates a thorough
depth study of various aspects Tort law, criminal law, contract law examination and comparison of
related to the legal rules of and government regulatory many areas of business law. Tort
business. The legal terms that mechanisms are some of legal terms law, contract law, criminal law, and
relate to it are tort law, contract related to it. government regulatory procedures
law, and criminal Law and are legal terminologies that apply to
government regulatory Therefore, legal environment assists it.
mechanisms. business in taking right decisions

At last, the legal environment
helps to make the business
decisions that are ethical and are
in hand with the welfare of
society. To put in simple terms,
everything that is related to the
welfare of any registered parties
which can be among, owner, the
business itself, equity
shareholders, creditors, debtors,
debenture holders or any third-
party that is bound in a legal
contract with the company itself,
come under the term of the legal
environment.
(Discussed in Unit 2 in detail)
1.1.2. Economic
Environment
The term economic environment
refers to all the external economic
factors that influence buying
habits of consumers and
businesses and therefore affect the
performance of a company. These
factors are often beyond a
company’s control, and may be
either large-scale (macro) or
small-scale (micro). It has
immediate and direct impact on a
business. Rate of interest,
inflation rate, change in
disposable income of people,
monetary policy, stock market
indices etc. are some economic
factors, which could affect
business firms. Increase or
decrease of the economic factors
results in opportunities or
constraints on a business
enterprise.
(Discussed in Unit 3 in detail)
1.1.2.1. Components of 1.1.3.1. Components
Demographic Environment Demographic Environment
Demographic variables are the
most popular bases for
distinguishing customer groups
for business purpose. Some of the
demographic variables that are
used for business purpose are as
and beneficial for society. It means
welfare of owners, shareholders,
debtors, creditors or any other third-
party that is bound in a legal
contract with company is a part of
legal environment.
(Discussed in Unit 2 in detail)
1.1.3. Economic
Environment
All the external factors that
influence buying behaviour of
consumers and businesses and
affect the performance of company
are known as economic
environment. These factors are
non-controllable and directly affect
the business. It consists of two
types i.e. macro (large-scale) or
micro (small-scale). The various
economic factors that affects the
business are interest rate, inflation
rate, stock market indices, monetary
policy, change in disposable income
of people, etc. The opportunities or
threats of firms are affected by an
increase or decrease of various
economic factors.
(Discussed in Unit 3 in detail)
of 1.1.11.1. Components
Demographic Environment
The most useful basis of comparing Following are the components of
customer groups for business demographic environment:
purposes are demographic
variables.
Following are the various
demographic variables:
Finally, the legal framework aids in
the making of ethical corporate
decisions that are aligned with
societal benefit. To put it another
way, anything that has to do with
the well-being of any registered
parties, such as the owner, the
business itself, equity shareholders,
creditors, debtors, debenture
holders, or any third-party who is
obligated by a legal contract with
the firm, falls within the legal
environment.
(Discussed in Unit 2 in detail)
1.1.11. Economic
Environment
The external factors that affect the
purchasing behaviour of the
consumers and businesses result in
the changes in the business
performances are defined as the
economic environment. These
factors are generally comprised
large-scale, i.e., macro factors and
small-scale, i.e., micro factors and
are often beyond the control of
business. Some of economic factors
that affect the business operations
include interest rate, inflation rate,
change in people’s disposable
income, monetary policy, stock
market indexes, and so on. Business
opportunities and restraints are
occurred as the result of the increase
and decrease in economic factors.
(Discussed in Unit 3 in detail)
of
follows:
1) Age and Life-Cycle Stage: 1) Age and Life-Cycle Stage: The
Consumers wants and first demographic variable is
liabilities change with age. age and life-cycle of consumer.
On the basis of age, a market Due to change in age, needs and
can be divided into four parts wants of consumers also
viz., children, young, adults change. Therefore, on the basis
and old. of age factor, a market can be
divided into children, young,
2) Gender and Sexual adults and old.
Orientation: When God
created human being he made 2) Gender and Sexual
Males and Females and gave Orientation: Gender
them distinct survival needs. orientation is most common
The gender segmentation is demographic variable widely
one of the most common used for segmentation of
forms of segmentation as market because the needs and
around the globe man and wants of males and females for
woman have always been survival are different.
vocal about their separate
needs. 3) Marital Status: Marital status
3) Marital Status: Life style of is one of the demographic
a person depends on whether variables in which lifestyle of a
he is married or not. An person is dependent. For
unmarried bachelor prefers to example, the purchase
enjoy life and his purchase behaviour of an unmarried and
behaviour will show more of married person will differ i.e.
food and entertainment and married person will purchase
less of furniture. But a house or furniture whereas
married person will purchase unmarried person spends more
house and the furniture. on entertainment and food.
4) Income: Income varies along 4) Income: One of the important
the population in any country. demographic variables is
In India it is as diverse as income which differs with the
from few hundred rupees a population of a country. In
month to millions a month. In India, there is a high income
this scenario the customers disparity between people i.e.
will behave differently in rich and poor. Therefore,
terms of wants as per their different income group have
income. different needs and wants
according to their spending
capacity.
5) Social Class: It has a strong
influence on preference in 5) Social class: Social class
cars, clothing, home consists of individuals who
furnishings, leisure activities, have a status in a society.
reading habits etc. Many Various items like clothes, cars,
Companies design products home furnishing, and leisure
and services for specific activities are strongly
social classes. influenced by social class of a
person. Many companies design
products to fulfil the needs of a
6) Family Size: The size of the specific social class.
family affects the amount and
1) Age and Life-Cycle Stage:
With age, there are changes in
the needs and liabilities of the
consumers. Children, young,
adult and old are the four stages
of the market on the basis of
age. And at different stage,
consumers have different
demands.
2) Gender and Sexual
Orientation: Both male and
female have different survival
needs. Gender segmentation is
one of the most popular types of
segmentation, since men and
women have long been vocal
about their unique requirements
all across the world.
3) Marital Status: Whether a
person is married or not is also
one of the major factors for
different demands. That is,
where a married person would
likely to buy furniture and
house, an unmarried person
wants his spending more on
food and entertainment.
4) Income: Income is another
factor that affects the business
environment as consumer make
demands and purchases
according to their purchasing
power. For example, a person
with low income cannot afford
to make demand for purchasing
SUVs. And thus, SUVs only
target high income class people.
5) Social Class: Business
environment also includes the
component of social class and
status of the consumers.
Consumer’s social class may
have great influence on their
preference in clothing, cars,
home furnishings, leisure
activities, and so on.
6) Family Size: The amount of
size and purchases also affects
the consumer behaviour which
is also one of the components of
the business environment. A
small-sized family has
 size of purchases. The 6) Family Size: The size of
consumption pattern of a big-
sized joint family differs from
a small-sized nucleus family.
7) Occupation: Various
occupations can influence the
buying behaviour. People in
sales and people in academic 7) Occupation: The occupation of
training will have different
purchase behaviour.
8) Educational Level: The
academic standard segments
people with same income i.e.
with a similar ability to buy
into their different likelihood
to buy.
9) Religion: Religious rituals,
traditions and cultures also
differentiate and segment the
market.
consumption pattern different
purchases is directly depends from the big-sized joint family.
upon the size of a family. The 7) Occupation: Business
pattern of consumption habits environment also includes the
of a nuclear family is different different occupations of the
from a joint family. consumers. People in academic
field have different purchasing
pattern from that of the people
a person is a significant in sales.
demographic variable that 8) Educational Level: The
affects the buying behaviour of academic standard divides
a consumer. The purchase persons with equal incomes,
behaviour of a doctor will be i.e., similar purchasing power,
different from people in sales. into groups with differing
likelihoods of purchasing.
8) Education level: Educational 9) Religion: The market is also
level of a person also influences segmented and differentiated on
buying patterns of consumer. the basis of different religions
The higher education level and cultures followed by the
means higher income and also consumers.
higher spending capacity.

9) Religion: The demographic

variable to segment a market
can be on the basis of religion
i.e. different religious rituals,
traditions and cultures.

1.1.2.2. Demographic 1.1.3.2. Demographic 1.1.11.2. Demographic

Factors Affecting Business
The demographic factors affecting Following
business are as follows:
1) Increase in Production: 1) Increase in Production: One
Increase in the size of
population can enlarge the
production base of the
economy. The increase in size
of population enlarges the
scope of division of labour
which in turn results large
scale production, reduces cost
of production and prices and
expands market. Naturally,
increase in the size of
population of these countries
would promote production
through better exploitation of
its available land and other
resources.
Factors Affecting Business
are the various
demographic factors affecting
business:
of the demographic factors that
affect business is increased size
of production. The base of
economy largely depends on
the size of population. The
increased size of population
leads to larger scope of division
of labour and consequently
results in larger scale of
production, reduced cost of
production and prices and
expansion of markets.
Therefore, exploitation of land
and other resources of a country
will be better to increase
production capacity due to
increase in population.
Factors Affecting Business
Following are the demographic
factors affecting business
environment:
1) Increase in Production: The
production base of the economy
increases with the increase in
the population size. The breadth
of division of labour widens as
the population grows, resulting
in large-scale manufacturing,
lower production costs and
prices, and a wider market.
Naturally, as these countries
populations grow, they will be
able to better use their existing
land and other resources,
resulting in increased
productivity.

2) Income Influence: Income is 2) Income Influence: Income is a 2) Income Influence: One

one demographic variable that demographic characteristic that demographic characteristic that
 can affect businesses. A matters to business. A has an impact on businesses is
company’s products usually corporation's products are often income. The products of a
appeal to certain income targeted at specific income corporation frequently appeal to
groups. For example, groups. High-end women’s specific income groups.
premium products such as clothing is a prime example of a Premium items, such as high-
high end woman’s clothing premium product that appeals end women’s apparel, for
usually appeal to women with mostly to women with higher example, tend to appeal to
higher incomes. Conversely, incomes. As a result, lower- women with greater earnings.
people with comparatively income people spend more People with lesser salaries, on
lower incomes are more money on discounted items. the other hand, are more prices
sensitive to price and, They are also more price sensitive and, as a result, may
therefore, may prefer sensitive, and therefore, more choose to buy discounted items.
purchasing discount products. likely to purchase discounted Lower-income people have less
People with lower incomes items. Since they have less disposable income. The things
have less disposable income. disposable income, the things they buy are mostly determined
Value is a major determinant they buy are largely influenced by their perceived value.
in the products they purchase. by their perceived value. 3) Supply of Labour and
3) Supply of Labour and 3) Supply of Labour and Economic Development: The
Economic Development: Economic Development: An supply of labour also increases
Increase in the size of increase in the number of as the result of the increase in
population can pave the way people can increase the supply population size. The
for increasing supply of of skilled labour and as such development of country’s
labour. Availability of skilled accelerate capital formation and economy relies greatly on the
labour is an important economic development. availability of skilled labours.
determinant of economic 4) Age Variables: The age of a This leads to the increase in
development. This will in turn customer is also a demographic capital formation and economic
raise the pace of capital factor that influences business. growth.
formation and economic Certain age groups are more 4) Age Variables: Another
development as well. likely to be interested in a demographic factor that has an
4) Age Variables: Age is company’s products or services. influence on businesses is age.
another demographic element Typically, younger people Certain age groups are more
that impacts businesses. A under the age of 35 are the first likely to be interested in a
company’s products and to buy high-tech items such as company’s products and
services are more likely to cell phones, electronic books, services. Younger individuals
appeal to certain age groups. and so on. Although the under the age of 35 are
Younger people under 35 are millennial generation continues frequently the first to buy high-
often the first consumers to to increase its purchasing power tech items such as cell phones,
purchase high-tech products and market share, the baby electronic books, and video
like cell phones, electronic boomer generation remains a games. The millennial
books and video games. The major market and a formidable generation is expanding its
millennial generation is force. purchasing power and market
increasing buying power and share, yet the baby boomer
growing market share while generation is still a huge and
baby boomers remain a large 5) Population as a Source of viable demographic.
and viable group as well. Capital Formation: Congested 5) Population as a Capital
5) Population as a Source of countries often have hidden Formation Source:
Capital Formation: unemployment, or what is Uncovering hidden
Disguised unemployment called hidden poverty, which unemployment in a densely
prevailing in an over can be exploited for capital populated country can be a
populated country can be a accumulation. For example, source of capital production.
potential source of capital surplus farm labour could be Similarly, surplus agricultural
formation. Similarly, surplus shifted to the industrial sector labourers might be relocated to
labourers in the rural sector for low self-sufficiency wages. the industrial sector for
can be shifted to industrial Through cost-cutting subsistence pay. All of this
sector at a low subsistence equipment, all of this will result would result in a significant
 wages. All these would lead
to considerable amount of
capital formation through cost 6) Geographic Region: Those
saving devices.
6) Geographic Region:
People’s buying preferences
also vary by geographic
region, which is another type
of demographic. Those who
meet buyers’ needs and
requirements in certain
geographic regions can earn
higher profits. For example,
people often prefer certain
food and drink flavours in
certain markets. Companies
that sell the flavours
consumer’s desire in various
areas are more likely to
profit. Those who do not 7) Obtaining
offer these flavours may risk
losing customers to other
competitors.
7) Obtaining Demographic
Information: One of the best
ways to collect consumer
demographic data is through
market research surveys.
These surveys can be
conducted by phone, mail,
Internet or in person. The key
is collecting as much
demographic information as
possible. Other demographic
variables, besides age, income
and geography, include
household size, education,
occupation, gender, race and
employment status. Most
marketing research
professionals include
demographic questions at the
end of their surveys. 8) Ethnic Background: People
Warranty cards are another
way to collect this
information from customers.
8) Ethnic Background: People
from different cultures have
different tastes and have
different buying habits from
one another. For example, if
a kitchen remodelling
contractor expands his
business to a community in
which it is culturally
in large capital formation. quantity of capital formation as
a result of cost-cutting
measures.
that match the needs and 6) Geographic Region: Another
criteria of buyers in certain sort of demography is
geographic areas can prosper geographic region which also
more. People’s buying habits influences the purchase
differ by geographical region, behaviour of the consumers.
which is a different type of Those that match the demands
demography. People frequently and criteria of purchasers in
prefer certain food and drink certain geographic areas might
flavour, for example, which benefit more. In some
makes it more profitable for marketplaces, for example,
companies to provide these individuals frequently favour
flavours under a variety of specific food and drink
conditions. A company that flavours. Companies that
does not provide these flavours supply the flavours that
risks losing customers to a customers want in a variety of
competitor that does. sectors are more likely to
Demographic make money. Those that do
Information: Market research not provide these flavours risk
is one of the most effective losing clients to competitors
techniques to get consumer who do.
demographics. These surveys 7) Obtaining Demographic
can be completed over the Information: Market research
phone, by email, on the web, or surveys is one the best methods
in person. The most important for collecting the consumer
thing is to gather as much demographic data. These
demographic data as you can. surveys can be taken over the
Household size, education, phone, via mail, online, or in
occupation, gender, race, and person. The trick is to get as
employment status are all much demographic data as
demographic characteristics possible. Aside from age,
other than age, income, and income, and location, other
location. The majority of demographic factors include
market researchers add household size, education,
demographic questions at the occupation, gender, race, and
end of the study. Another employment status. At the end
option to get this information of most surveys, marketing
from your clients is to offer a research experts add
warranty. demographic questions.
Customers can also be asked for
this information via warranty
from various cultures have cards.
diverse likes and shopping 8) Ethnic Background: People
habits. Therefore the contractor from various cultures have
must then prepare for the sales distinct likes and shopping
process in order to gain habits than one another. For
consumers and profit from the example, if a kitchen
sale. for example, if the kitchen remodelling contractor
contractor expands to a town in expands his business to a town
which it is culturally normal to where negotiating every
negotiate all purchases. It is purchase is culturally
crucial to change the price, and acceptable, the contractor will
it is necessary to comprehend need to prepare for the sales
 acceptable to negotiate every
purchase, the contractor will
need to prepare himself for
the sales process and
potentially altering his
pricing to ensure that he gets
clients and still makes a
profit. It is also important to
understand and respect the
different holidays and
cultural traditions of specific
ethnic demographics.
1.1.3. Technological
Environment
Technological environment refers
to the state of science and
technology in the country and
related aspects such as rate of
technological progress,
institutional arrangements for
development and application of
new technology, etc. Technology
is the making, modification,
usage, and knowledge of tools,
machines, techniques, crafts,
systems, methods of organisation,
in order to solve a problem,
improve a pre-existing solution to
a problem, achieve a goal or
perform a specific function. It can
also refer to the collection of such
tools, machinery, modifications,
arrangements, and procedures.
Technological Environment
means the development in the
field of technology which affects
business by new inventions of
productions and other
improvements in techniques to
perform the business work.
(Discussed in Unit 3 in detail)
1.1.4. Natural
Environment
Natural environment is the group
of natural resources which is used
by business. For example, for
producing goods, manufacturing
business gets all raw materials
and respect the numerous
holidays and cultural traditions
unique to a particular ethnic
group.
1.1.4. Technological
Environment
In addition to describing a country’s
science and technology level, the
technological environment
incorporates factors such as the
speed of technological progress and
the institutions that support the
development and implementation of
new technologies. Technology is
defined as the creation,
modification, application, and
understanding of tools. Also
included are the machinery,
technologies, crafts, systems, and
organisational approaches utilised
to solve issues, improve current
solutions, attain goals, or execute
specific roles. In addition, it might
refer to a variety of tools,
equipment’s, processes and many
more.
Through new product innovations
and technological advances in other
business processes, the
technological environment refers to
the pace of technological growth
and how it impacts businesses.
1.1.5. Natural
Environment
A group of natural resources
exploited by enterprises is referred
to as the natural environment.
Manufacturing enterprises, for
example, take all raw materials
process and maybe adjust his
pricing to guarantee that he
obtains clients while still
making a profit. It is also
crucial to recognise and
respect the many holidays and
cultural practises of various
ethnic groups.
1.1.12. Technological
Environment
The condition of science and
technology in a country, as well as
associated characteristics such as
the rate of technical advancement,
institutional arrangements for the
development and implementation of
new technology, and so on, are
referred to as the technological
environment. Technology is the
creation, modification, application,
and understanding of tools,
machines, techniques, crafts,
systems, and organisational
procedures in order to solve a
problem, enhance an existing issue
solution, achieve a goal, or perform
a certain function. It can also be
defined as the grouping of tools,
machines, modifications, setups,
and processes.
The term “technological
environment” refers to
advancements in the realm of
technology that have an impact on
business through new product
developments and other
advancements in business
procedures.
(Discussed in Unit 3 in detail)
1.1.13. Natural
Environment
The set of natural resources used by
the business environment are
defined as the natural environment
of the business. Manufacturing
enterprises, for example, take all
from nature. All agricultural input from nature in order to make things. raw materials from nature for
will use in manufacturing. His In order to produce, all agricultural producing goods. Even
machines are also made by inputs will be used. Natural metal is manufacturing machines are also
nature's metals. His used energy is also used in its machinery. Natural made from the natural metals and
also from natural gas or diesel oil gas, diesel, or natural electricity are the energy such as electricity,
or electricity which comes from also employed as sources of energy. natural gas, diesel oil, etc., are also
nature. the result of natural environment.
When we employ those herbal
In business, when we use these assets without limits in business, the When we exploit natural resources
natural resources without any natural environment alters. Floods, without limits in business, the
limit, natural environment famines, tsunamis, and earthquakes natural environment changes.
changes. Global warming, floods, are all consequences of global Floods, famines, tsunamis, and
famines, tsunami and earth quake warming. As a result, it is now the earthquakes are all consequences of
are its result. So, now it is the responsibility of business to global warming. As a result, it is
duty of business to protect this safeguard the natural world. now the responsibility of business
natural environment. He should Business will be required to assist to safeguard the natural
support for planting more and with the planting of an increasing environment. He should advocate
more trees. He also stops to number of trees. Business also for the planting of additional trees.
misuse of natural resources. After prevents the misappropriation of He also puts an end to the waste of
this, he can create co-ordination natural resources. After that, natural resources. After that,
with nature. business will be able to work with businesses will be able to work with
nature in harmony. nature in harmony.
The “natural environment” is
defined in the light of corporate Within the context of corporate In terms of corporate social
social responsibility (CSR) as the social responsibility (CSR), the responsibility (CSR), the “natural
natural, physical surroundings in “herbal surrounds” is defined as the environment” is defined as the
which human life takes place. herbal, physiological environment natural, physical surroundings in
Some would call it nature, our in which human existence takes which human existence takes place.
living planet, life on Earth or the place. Some call it nature, our living Some call it nature, our living
geophysical world, but here it is planet, life on Earth, or the planet, life on Earth, or the
important to distinguish between geophysical world, but it is crucial geophysical world, but it is vital to
the two words of the term to distinguish between the two distinguish between the two words
“natural” and “environment.” The meanings of the term “herbal” and “natural” and “environment” in this
composition of these two words “surroundings.” Composition of context. Certain elements that are
includes and excludes certain these sentences includes and vital to grasp in regard to CSR are
features that are important to excludes positive functions, which included and excluded in the
understand in relation to CSR. can be relevant to understanding construction of these two terms.
CSR.
(Discussed in Unit 4 in detail) (Discussed in Unit 4 in detail)

MODULE 2 MODULE 2 MODULE 2

1.1.5. Various Laws 1.1.6. Various Laws 1.1.14. Various Laws

Affecting Indian Affecting Indian Business Affecting Indian Business
Business
Components of legal environment
comprise all those set of rules,
regulations and laws which affect
the business enterprises and their
activities. All the business
enterprises need to function in
accordance with the legal
framework formulated in the
Following are the various laws
All laws, rules, and regulations that affecting Indian business
regulate a corporation and its environment:
operation can be described as the
legal environment. All businesses
must conform to the legal
framework in place in the country.
Indian companies must adhere to
the following laws:
country. The major laws
affecting business in India are as
follows:
1) Companies Act, 1956: This
Act was introduced in the
year 1956 by the Parliament
of India, which permitted
establishment of the
companies by following the
process of registration and
deployed the responsibilities
and duties of companies, their
secretaries, directors, etc.
With the help of Ministry of
Corporate Affairs and the
Offices of Registrar of
Companies (ROC), Company
Law Board, Director of
Inspection, Public Trustees,
Official Liquidators, etc., the
Government of India
administers the Companies
Act 1956. All the matters
related to the incorporation of
new companies, and the
administration of existing
firms are managed by the
Registrar of Companies.
2) Foreign Exchange
Management Act, 1999:
FEMA, 1999 is an Act which
deals with the systematic
development and amendment
of laws relating to foreign
exchange market in India.
This Act emphasises on
promotion of external trade
and payments as well as
organised growth and
maintenance of the India’s
foreign exchange market.
3) The Factories Act, 1948:
Fundamentally, Factories Act,
1948 has been developed to
safeguard the health and
security of labours as well as
children. Only the factories
employing 100 or more
workers were entitled to
follow this Act.
4) Industrial Dispute Act, 1972:
This Act specifies the
conditions under which a
business unit can be shut down,
and other related issues
1) Companies Act, 1956: The 1) Companies Act, 1956: The
Indian Companies Act, passed Indian Parliament passed the
by the Indian Parliament in Companies Act in 1956,
1956, specifies the duties, allowing corporations to be
responsibilities, and a process formed by following the
for incorporation of registration procedure and
corporations. Government of defining the obligations and
India regulates companies duties of firms, their secretaries,
under the Companies Act 1956 directors, and others. The
through the Ministry of Companies Act 1956 is
Corporate Affairs, Company administered by the
Law Board, Director of Government of India through
Inspection, Public Trustees, and the Ministry of Corporate
Official Liquidators, among Affairs and the Offices of the
other offices. Companies Registrar of Companies (ROC),
Registrars are responsible for Company Law Board, Director
registering and managing all of Inspection, Public Trustees,
new and existing businesses. Official Liquidators, and others.
The Registrar of Companies is
in charge of all things relating
to the formation of new
businesses and the management
of existing businesses.
2) Foreign Exchange 2) Foreign Exchange
Management Act, 1999: It Management Act, 1999:
aims to promote external trade FEMA (Foreign Exchange
and payments, as well as Market Act of 1999) is an Act
maintain and organize growth that deals with the systematic
of India’s foreign exchange creation and updating of
market. It was passed in the regulations relevant to India's
year 1999. Its primary function foreign exchange market. This
is to develop and amend laws Act emphasises the
relating to foreign exchange in development of external
India. commerce and payments, as
well as the expansion and
preservation of India’s foreign
3) The Factories Act, 1948: A currency market in a well-
primary purpose of the organised manner.
Factories Act was to protect the 3) Factories Act, 1948:
health and safety of workers Fundamentally, the Factories
and children working in Act of 1948 was enacted to
factories with more than 100 protect the health and safety of
workers. workers and children. This Act
was only applicable to factories
4) Industrial Dispute Act, 1972: employing 100 or more people.
Under this Act, company units 4) Industrial Dispute Act, 1972:
can be closed under certain Industrial Dispute Act, 1972
circumstances, along with other outlines the circumstances under
concerns that affect employers which a company unit may be
and employees in the industrial closed, as well as other concerns
 concerning industrial
employers and employees. It
also specifies provision
regarding the situations such as
illegal and unlawful strikes,
lock-outs, retrenchment, lay-
offs, dismissing employees,
etc.
5) Industries (Development
and Regulation) Act, 1951:
The Central Government
developed this Act for
developing and regulating
industries in India. The
primary aim of the Act is to
control the pattern and
direction of industrial
development, to regulate the
various industrial operations,
performances and outcomes
of industrial units in the
welfare of the public, and to
take essential measures for
growth of industries in India.
6) Monopolies and Restrictive
Trade Practices Act, 1969:
This Act operates to provide
that the working of the
economic system does not
cause concentration of
economic power in one hand.
It was developed for
controlling and prohibiting
the monopolistic and
restrictive trade practices, and
other related matters.
7) Bureau of Indian Standards
Act, 1986: The Government
of India enacted this Act in
order to establish a Bureau for
marking and quality
certification of goods, for
cordial development of
activities of standardisation
and for other related matters.
8) Consumer Protection Act,
1986: This Act was passed in
1986 by the Parliament of India
to safeguard the interests of
consumers in India. It handles
the matters related with the
settlement of consumer
disputes and so on, by making
provisions for setting up of
consumer councils and other
sector. Additionally, it includes
provisions addressing illegal and
unlawful strikes, lockouts,
retrenchments, layoffs, and firing
employees.
5) Industries (Development and
Regulation) Act, 1951: Various 5)
provisions of the Act aid in
promoting and regulating
enterprises in India. Specifically,
the Industrial Development Act
provides guidelines for the
pattern and direction of industrial
growth, regulates industrial
operations, outcomes, and
performances, as well as takes
necessary steps toward India’s
industrial development.
6) Monopolies and Restrictive 6)
Trade Practice Act, 1969:
Basically, it protects the public
interest by preventing the
concentration of economic power
in the hands of a single party. It
also regulates and prohibits
monopolistic practices and
restrictive trade practices, among
other things.
7)
7) Bureau of Indian Standards
Act, 1986: To establish the
Bureau for marking and quality
certification of goods, to promote
smooth growth of standardisation
activities, and to serve other
purposes, the Indian government
adopted this Act.
8)
8) Consumer Protection Act,
1986: Specifically, the Act was
passed in 1986 by the Indian
Parliament to ensure the
interests of Indian consumers. It
relates to issues like consumer
dispute resolution and promotes
the setting up of consumer
councils and other institutions
for the purpose of assisting in
the process.
affecting industrial employers
and employees. It also includes
provisions for illegal and
unlawful strikes, lockouts,
retrenchment, layoffs, and
discharging employees, among
other things.
Industries (Development and
Regulation) Act, 1951: This Act
was created by the Indian
government to help promote and
regulate enterprises. The Act's
major goal is to manage the
pattern and direction of industrial
development, to regulate
different industrial operations,
performances, and results for the
public good, and to take
necessary steps for India’s
industrial progress.
Monopolies and Restrictive
Trade Practices Act, 1969:
This Act ensures that the
functioning of the economic
system does not result in the
concentration of economic
power in the hands of a single
party. It was created to regulate
and prohibit monopolistic and
restrictive trade practises, as
well as other related issues.
Bureau of Indian Standards
Act, 1986: This Act was passed
by the Indian government in
order to establish a Bureau for
the marking and quality
certification of goods, the
smooth growth of
standardisation operations, and
other connected problems.
Consumer Protection Act,
1986: The Indian Parliament
approved this Act in 1986 to
protect the interests of Indian
consumers. It deals with issues
such as consumer dispute
resolution and other related
issues by establishing consumer
councils and other bodies to
assist in the process.
 authorities which help in doing
the same.
9) Environment Protection 9) Environment Protection Act, 9) Environment Protection Act,
Act, 1986: This Act
empowers Central
Government of India to take
necessary steps in order to
deal with environmental
po1llution and protect and
maintain the environment. It
also gives power to send
written orders to any officer
or individual for violating any
provisions of the Act. These
powers include prohibiting,
regulating or closing any 10) Competition Act, 2002: The
industry or its operation.
10) Competition Act, 2002:
According to the Competition
Act, 2002, Indian traders
should not conduct any
activity which encourages
monopoly. An activity related
with production, distribution
or pricing will be considered
void, if it is found that it
promotes monopoly and is
going against the Act. This
Act is very beneficial for
setting up of a healthy
competitive environment in
the country.
1986: By enacting this act, the 1986: According to
Indian government is Environment Protection Act,
empowered to take appropriate 1986, Indian Central
measures for the prevention and Government is allowed to make
mitigation of pollution. The act important measures to control
also provides that any officer or the environmental pollution and
official violating any of its safeguard and preserve the
provisions may be issued a environment. It also grants the
written warning. This authority authority to issue written orders
allows for the prohibition, to any officer or anybody who
regulation, or closing of any violates any of the Act’s
industry. requirements. Any industry or
its operation can be prohibited,
2002 Competition Act prohibits regulated, or closed under these
Indian traders from engaged in authorities.
behaviour that encourages 10) Competition Act of 2002: The
monopoly. If it is discovered Competition Act of 2002 states
that a practice connected with that Indian traders shall not
production, distribution, or engage in any behaviour that
price encourages monopoly and fosters monopoly. If it is
violates the Act, it shall be discovered that a
considered void. A healthy manufacturing, distribution, or
competitive environment will pricing activity encourages
be created by this Act. monopoly and violates the Act,
it will be declared void. This
Act is extremely advantageous
to the country’s establishment
of a healthy competitive
environment.

1.1.6. Recent Trends 1.1.7. Recent Trends in 1.1.15. Recent Trends in

in Fiscal Policy Fiscal Policy
Fiscal policy has evolved since
the pandemic began. In 2020-21,
the fiscal deficit was 9.2 percent
of GDP, double the previous
year’s deficit. That year, the
government deployed an all-of-
the-above strategy: it increased
current expenditures such as rural
employment and food subsidy
programs; guarantees for finance
for small enterprises, farmers,
non-banking financial firms, and
more; and capital expenditures on
infrastructure. In 2021-22, the
deficit is expected to be 6.9
percent of the GDP, with reduced
current expenditure and increased
capital expenditure. The new
budget pegs the deficit in 2022-23
Fiscal Policy
The impact of the pandemic on
fiscal policy has been remarkable.
In 2020-21, the fiscal deficit
increased by two per cent to 9.2 per
cent of GDP. Government policy
that year included all of the above,
including increased spending on
programmes such as rural
employment, food subsidies, and
loans to small businesses, farmers,
non-banking financial firms, and
infrastructure developments.
Capital expenditures are projected
to grow at least twice as fast as
current expenditures in 2021-22 to
lead to a 6.9% deficit in 2021-22
and a 6.4% deficit in 2022-23, with
current expenditures falling and
capital expenditures increasing
There are many changes in the
Indian fiscal policy since the
pandemic begins. The fiscal deficit
was 9.2% of the GDP during the
year 2020-21 which was double the
fiscal deficit of the previous year.
All of the strategies like rural
employment and food subsidy
programs, guarantees for finance for
small enterprises, farmers, non-
banking financial firms, capital
expenditure on infrastructure, and
so on, were deployed by the
government that year.
The fiscal deficit is expected to be
6.2% of GDP for the year 2021-22
with increase in capital expenditure
and decrease in current expenditure.
at 6.4 percent of GDP, again with
a reduction in current expenditure
but a large increase in capital
expenditure.
These deficits have pushed public
debt to high levels. India’s public
debt to GDP ratio is the largest
among similarly placed EMEs
and is budgeted to rise in the next
fiscal year. Interest payments
were 42 percent of revenue
receipts in 2020-21 and 39
percent in 2021-22; they are
budgeted to jump to 43 percent in
2022-23. In pre-pandemic years,
they hovered at about 36 percent.
Further, some of the government
guarantees given to ensure
liquidity support during the
pandemic will also add to the
liabilities in the coming years.
Although the government has not
presented its medium-term
outlook for debt and deficits in
the last two budgets, it is clear
that high growth is necessary to
ensure that debt servicing does
not become a problem.
The budget for 2022-23 and the
government’s decisions in the last
two years reveal a fiscal strategy
for growth that seems to comprise
three Ps: protectionism through
increasing tariffs, incentives to
increase production, and projects
to create infrastructure by the
government to raise demand and
crowd in private investments.
Perhaps the central pillar of the
fiscal strategy for growth is the
push for capital expenditure
projects. The government intends
to shovel its way out of the crisis
by undertaking infrastructure
construction in roads and
highways, railways, urban metro
rail, telecommunications, and
more. As a percentage of GDP,
capital expenditure increased
from 1.67 percent in 2019-20, to
2.15 in 2020-21, to 2.3 percent in
greatly.
In spite of these shortfalls, India has
the highest public debt-to-GDP
ratio among similarly located
EMEs, and that ratio is expected to
rise further in the close of the fiscal
year. In 2020-21 and 2021-22,
interest payments accounted for 42
per cent of revenue; in 2022-23, it is
expected to climb to 43 per cent.
Interest payments accounted for
over 36% of revenue before the
epidemic. Some government
guarantees made during the
pandemic to ensure liquidity
support will increase the liability in
the years ahead.
As part of the fiscal plan for
growth, capital expenditures are
viewed as one of the most important
drivers of growth. The government
plans to construct highways, trains,
metro rails, telecommunications,
and other infrastructure to solve the
problem. During 2019-20, capital
expenditures as a percentage of
GDP rose from 1.67 per cent to
2.15 per cent, 2.3 per cent in 2020-
21, and 2.9% in 2021-22 (excluding
a one-time debt discharge for the
state-owned airline). Capital
expenditures are projected to rise to
2.9 per cent in 2022-23. The budget
further proposes that some of these
infrastructure projects be paid for
from transfers from the Union
Government’s budget to state
According to the budget 2021-22,
the fiscal deficit will be expected to
be 6.4% for the year 2022-23 with
large increase in capital expenditure
and decrease in current expenditure.
There has been high level of
increase in the public debts as the
result of these deficits. India has the
highest public debt-to-GDP ratio
among similarly situated EMEs, and
it is expected to climb in the coming
fiscal year. Interest payments
accounted for 42% of revenue
collections in 2020-21 and 39% in
2021-22; in 2022-23, they are
expected to increase to 43%. They
were about 36% in the years leading
up to the epidemic. In addition,
some of the government guarantees
offered to assure liquidity support
during the epidemic will add to the
liabilities in the years ahead.
Despite the fact that the government
has not disclosed its medium-term
debt and deficit projections in the
previous two budgets, it is evident
that high growth is required to avoid
debt servicing becoming a concern.
The drive for capital expenditure
projects is perhaps the most
important component of the fiscal
plan for growth. The government
plans to shovel its way out of the
problem by building roads and
highways, trains, urban metro rail,
telecommunications, and other
infrastructure. Capital spending
climbed as a proportion of GDP
from 1.67% in 2019-20 to 2.15% in
2020-21, 2.3% in 2021-22
(excluding a one-time debt
2021-22 (excluding one-time government budgets, as many discharge for the government-
discharge of debt for the infrastructure projects come under owned airline), and is expected to
government-owned airline), and is state government jurisdiction. grow to 2.9% in 2022-23.
again budgeted to rise to 2.9 Furthermore, because many
percent in 2022-23. Further, the infrastructure projects are within
budget proposes financing some state government’s responsibilities,
of this infrastructure construction the budget proposes paying some of
through transfers from the Union this infrastructure investment
Government’s budget to the through transfers from the Union
budgets of state governments, Government’s budget to state
because many infrastructure government budgets.
projects are in their jurisdictions.

1.1.7. Impact of EXIM 1.1.8. Impact of Exim 1.1.16. Impact of EXIM

Policy on Business Policy on Business
Following are the implications of
EXIM policy on business:
1) Implications on
Agriculture: Special
Agricultural Produce Scheme
has been introduced for
promoting the export of fruits,
vegetables, flowers, and their
value added products.
2) Implications on Handlooms
and Handicraft:
Establishment of Handicraft
SEZ and Handicraft Export
Promotion Council would
promote development of
Handloom and Handicraft
Industry.
3) Implications on Gem and
Jewellery Sector:
i) This is special thrust area
in this policy.
ii) Duty free imports of other
inputs would give a
further boost to this
sector.
4) Implications on Leather and
Footwear Industry:
i) Duty free import as a
specified percentage of
exports.
ii) Exemption on customs
duty on equipment for
effluent treatment plants
would help promoting
export form this sector.
5) Implications on Service
Industry:
i) An exclusive service
promotion council has
Policy on Business
Impact of EXIM policy on business
are:
1) Implications on Agriculture:
Several schemes for promoting
exports of fruits, vegetables,
flowers and products, and their
value have been introduced.
2) Implications on Handlooms
and Handicraft: Development
of handloom and handicraft
industry could be promoted
through establishment of a SEZ
and a handicraft export
promotion council.
3) Implications on Gem and
Jewellery Sector:
4) Implications on Leather and
Footwear Industry:
i) J
ii) In order to encourage
exports from this sector, the
government should exempt
equipment used for
wastewater treatment
facilities from customs
taxes.
5) Implications on Service
Industry:
i) Several services,
including some that are
important in key
markets, have been
assigned to an
Following are the impacts of EXIM
policy on business:
1) Implications on Agriculture:
EXIM policy leads to the
introduction of Special
Agricultural Produce Scheme
for the promotion of export of
agricultural products and their
value added products.
2) Implications on Handlooms
and Handicraft: It emphasises
the promotion of development
of handloom and handicraft
industry through the
introduction of Handicraft SEZ
and Handicraft Export
Promotion Council.
3) Implications on Gem and
Jewellery Sector: Gems and
jewellery sector is another
major area affected by the
EXIM policy. The sector will
be stimulated even more with
the duty-free imports of other
inputs.
4) Implications on Leather and
Footwear Industry: Duty-free
imports on leather and footwear
industry as a proportion of total
exports. A customs tax
exemption on equipment for
wastewater treatment facilities
will aid in the promotion of
exports from this industry.
5) Implications on Service
Industry: To map the prospects
for important services in key
markets, an exclusive service
marketing council has been
 been set up in order to exclusive service established. Develop strategic
map the opportunities for promotion council. market access programmes,
key services in key ii) Collaborating with such as brand creation, in
market. sectorial players, collaboration with sectoral
ii) Develop strategic market develop strategies for players and identify service
access programmes like market access, industry nodal entities.
brand building in co- including brand-
ordination with sectorial building, and identify
players and recognize service industry
nodal bodies of the representatives.
service industry.

1.1.1. India’s Recent 1.1.9. India’s Recent 1.1.17. India’s Recent

Foreign Trade Policy Foreign Trade Policy Foreign Trade Policy
(2021-2026) (2021-2026) (2021-2026)
India is an emerging player in the Indian foreign investment has been India is a newcomer to the global
global economy and the foreign affected significantly by the Indian economy, and the government’s
policies formulated by the government’s foreign policies since foreign policies have had a
government has made a the country joined the global considerable impact on foreign
significant effect on the foreign economy. The new foreign trade investments made in and by India.
investments made in and by India. policy that India needs to set up India must establish a set of
For the success in the economic every five years is essential for its measures called as new foreign
development, India has to adopt a economic development. trade policy every five years in
set of policies after the expiry of order to succeed in economic
every 5 years known as new development.
foreign trade policy. To discuss the “New Foreign Trade
Policy” for the period 2021-2026, The committee of the Ministry of
The meeting of the committee of the committee of the Ministry of Commerce and Industry met on the
the Ministry of Commerce & Commerce and Industry met on the 12th of January 2021 to discuss the
Industry was held on 12th 12th of January 2021. Members of New Foreign Trade Policy for the
January, 2021 on the subject of Parliament and top officials of the period 2021-2026. Mr. Hardeep
‘New Foreign Trade Policy’ for Ministry attended the meeting, Singh Puri, Minister of State for
the tenure of 2021-2026. The which was presided over by H.E. Commerce and Industry, presided
Minister of State for Commerce & Hardeep Singh Puri, Minister of over the meeting, which was
Industry Mr. Hardeep Singh Puri, State for Commerce and Industry. attended by Hon’ble Members of
chaired the meeting and Hon’ble Parliament and top Ministry
Members of Parliament & senior officials.
officers of the Ministry attended The FTP emphasises the
the meeting. government’s strategies to promote The new foreign trade policy’s
the export of goods in order to principal goal is to make India a
The main mission of the new boost economic growth. This policy global trade leader in the next five
foreign trade policy is to make will make India a global trade years, from 2021 to 2026. The FTP
India a leader in the International leader within five years, from 2021 highlights the government’s
Trade in the next 5 years, i.e. to 2026. initiatives for promoting goods
2021 – 26. The FTP outlines the exports in order to boost the
government strategies to promote country’s economic growth.
export of goods to increase the
economic growth in the country.

1.1.1.1. Aim of New 1.1.9.1. Aim of New Foreign 1.1.17.1. Aim of New Foreign
Foreign Trade Policy (2021- Trade Policy (2021-2026) Trade Policy (2021-2026)
2026) Aim of new foreign trade policy: Following are the aims of new
Following are the aim of new 1) Improving regulatory, policy, foreign trade policy:
foreign trade policy: and framework restrictions that 1) Increase both service and
1) Boost the exports of both aid in reducing transaction costs product exports. This goal will
services & goods. This aim and simplifying business be reached by addressing
will be achieved by transactions will enable the numerous regulatory, policy,
addressing various constraints country to achieve its goal of and framework restrictions that
related to regulatory, policy & increasing service and product aid in the reduction of
framework that helps in exports. transaction costs and the ease of
lowering the transaction costs 2) The commerce department, doing business.
& helps in ease of business through its Directorate General 2) Assist the districts in realising
doing. of Foreign Trade, works with their full potential as an export
2) Help the districts to reach its state governments and union hub. The commerce department,
potential as an Export Hub. territories to implement the through the DGFT, works with
The commerce department initiative so that districts can state governments and union
through DGFT engages with maximise their potential as an territories to carry out the
the State Governments & the export hub. project.
Union Territories for the 3) To address India’s trade 3) Improve the infrastructure for
implementation of the imbalances, improve the the domestic services and
initiative. infrastructure for operating industrial sectors to reduce
3) Improvise the infrastructure domestic services and industrial India’s trade deficit.
for the operations of domestic sectors. 4) Regular meetings with
services & manufacturing 4) Meet with the Chamber of chambers of commerce,
sectors to correct the trade Commerce, industry groups, industrial groups, and export
imbalance in India. and the Export Promotion promotion councils will be
4) Regular meetings will be held Council on a regular basis to conducted to solicit their
with the chambers of get feedback. feedback.
commerce, industry
associations, and export
promotion councils to take
their inputs.

1.1.1.2. Expectations from

New Foreign Trade Policy 1.1.9.2. Expectations from 1.1.17.2. Expectations from
2021 -26 New Foreign Trade Policy New Foreign Trade Policy
Some key expectations are as 2021 -26
follows:
1) WTO Compliant Tax
Incentives: The government
has introduced the Remission
of Duties or Taxes on
Export Products (RoDTEP)
to end the need of the hour,
i.e. WTO compliant tax
benefits. The RoDTEP
became effective from 1st
January, 2021 and it replaces
MEIS but the rates &
conditions of the scheme is
yet to be announced.
2) Infrastructure Upgrade:
The trade infrastructure needs
to be developed and thus, the
government has introduced a
scheme in 2017 to develop
the trade infrastructure for the
export sector. The scheme
(2021-26)
Following are the major Following are the major
expectations from new foreign trade expectations from new foreign trade
policy 2021-26: policy (2021-26):
1) WTO Compliant Tax 1) WTO Compliant Tax
Incentives: A new law has Incentives: To address the
been introduced by the pressing need for WTO-
government called Remission compliant tax incentives, the
of Duties or Taxes on Export government has created the
Products (RoDTEP) which ends Remission of Duties or Taxes
the need of the hour, namely on Export Products (RoDTEP).
WTO compliant tax benefits. The RoDTEP replaced MEIS
2) Infrastructure Upgrade: For and took in effect in January 1,
the purpose of developing the 2021, however the scheme’s
export industry’s trade rates and criteria have yet to be
infrastructure, the government revealed.
initiated a three-year scheme in 2) Infrastructure Improvements:
2017 to be implemented for the The government recognises the
purpose. need to improve trade
3) Digitalisation: Import and infrastructure, and in 2017, it
export process are becoming launched a programme to do so
paperless and online with the for the export industry. The
 was introduced for a period of
3 years.
3) Digitalisation: The process
of digitalisation makes the
whole process of import &
export paperless and online.
This helps in bringing a
transparency in the trade
happens globally. Thus, the
policy must be formulated to
make the whole process
digitalised.
4) Easy Access to Credits:
There is a problem that goes
way back, related to lending
money to MSMEs because
they lack adequate collateral.
There is a demand of credit
access from the exporters
especially MSMEs. This
policy can help to start or
open up the alternate avenues
and the advisory group has
advised to increase the
borrowing limits at the Export
Import Bank of India.
5) Tax breaks: The government
must support in respect of
easing & lowering the tax
rates. The confederation of
Indian Industry proposes to
simplify the import duty
structure, i.e., high duties on
finished goods & lower or
minimal duties on the raw
materials.
6) Import Wish List: India’s
import community has a wish
list that includes permission
to import capital goods on
self – certification basis & to
import prohibited goods with
the approval of Central
Government or Inter –
Ministerial Standing
Committee.
7) Export Awareness: There
are many exporters who lacks
awareness in respect of trade
opportunities. The Indian
government must formulate
policy in such a way that it
consists of workshops &
process of digitalisation. This
means that the international
trade takes place in a 3) Digitisation: The digitalisation
transparent manner. As a result,
it is very important to formulate
a policy to facilitate this
digitalisation process.
4) Easy Access to Credits: The
loan process for small and
medium-sized enterprises,
particularly small and medium- 4) Easy Access to Credits: There
sized businesses, has long been
challenged because of a lack of
suitable collateral. Exporters
have indicated a desire for
access to financing. The
Advisory Board proposes
boosting the borrowing limits
of India's Export-Import Banks
as part of this approach to help
locate and develop alternative
pathways.
5) Tax breaks: As a part of
government’s efforts to 5) Tax Breaks: The government
simplify and reduce tax rates,
the Confederation of Indian
Industry recommends that
import tariff structure be
simplified, with higher taxes on
completed items and reduced or
zero duties on raw materials.
6) Import Wish List: Indian 6) Import Wish List: Permission
importers hope to obtain
consent from the Central
Government or the Inter
Ministry Standing Committee
for the importation of capital
goods and restricted
commodities on a self-
certification basis.
7) Export Awareness: Exporters 7) Export Awareness: Many
are not aware of the market
opportunities available to them
and the Indian government
should develop programs to
educate them about foreign
legislation, global markets, and
other issues.
plan was implemented during a
three-year period.
process makes the whole import
and export procedure paperless
and online. This contributes to
increased transparency in global
trade. Therefore, the whole
process must be digitalised with
the formation of the policy.
is a long-standing issue with
lending money to MSMEs due
to a lack of suitable collateral.
Exporters, particularly MSMEs,
have expressed a desire for
financial access. This strategy
can assist to establish or open
up other pathways, and the
advisory panel has
recommended that the Export
Import Bank of India’s
borrowing limitations be
increased.
should assist efforts to ease and
cut tax rates. The Confederation
of Indian Industry advises that
the import tariff system be
simplified, with higher taxes on
completed items and reduced or
zero duties on raw materials.
to import capital goods on a
self-certification basis and to
import restricted commodities
with the agreement of the
Central Government or the
Inter-Ministerial Standing
Committee is on the wish list of
India’s import community.
exporters are unaware of the
trade prospects available to
them. The Indian government
should develop policies that
include seminars and awareness
initiatives to educate exporters
about foreign laws, global
markets, and other issues.
awareness programs to make
the exporters aware about the
international laws, global
markets, etc.