Government Policies for Business Growth
Introduction to Policy Framework in India
Objectives
After going through this chapter, you shall be able to understand the following concepts.
- Impact of government policies on business
- What are restricting, regulating and facilitating government policies?
- Shift in policies since independence
Introduction
Nations across the globe follow the system of forming policies to manage their countries in a manner which is healthy for general public, the business development and the government operating in the country. These policies are called public policies. After the Second World War, a lot of companies merged which had their businesses established in different parts of the world. All such companies align their activities with the public policies of the respective nations where they set up their businesses.
Bangladesh’s public policy allows import of second hand foreign cars. Toyota takes advantage of this policy to sell refurbished cars in market of Dhaka. It also provides for service stations in Bangladesh to serve the customers with after sales service. On the contrary, India disallows sale of imported cars by foreign car manufacturers unless in a joint venture or through a wholly owned Indian subsidiary, hence, Toyota manufactures cars in India in a joint venture with Kirlosker Motors.
Public policies are designed by government authorities in a manner keeping the challenges of the nation in deep consideration. Countries often differ on gender equality policies and their policies towards ethnicity, religion, etc. Companies have to mould themselves to regard these policies while they operate simultaneously in number of countries. It is a herculean task but an important one for the long term sustainability of the company in foreign markets.
Historical Sketch of Policy Framework in India
Public policies have always been a favourite topic of the researchers and historians. Experiments used to be carried out in universities of old times, like, Nalanda, Vaishali, etc. Chanakya’s policies are still a highly talked about subject amongst people who study history and other related fields of education. Chanakya was a wise man who was trusted with the responsibility of writing public policy of the state when Chandragupta Maurya was the king. Ashoka came up with the policy of peace and harmony which is still respected and taught in colleges and schools in his name. Delhi’s Emperor Allauddin Khilji introduced stringent tax system whereas Akbar brought land reforms under his leadership. No matter what the form of government is; monarchy, tyranny, democracy, public policies were always a major concern for every government.
India got independence in the year 1947. An era of deep political instability began with riots and famines becoming a general talk of the town. India was faced with a mammoth challenge of bringing strong public policies to bring control to the otherwise uncontrollable environment of the country.…
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