Narendrachal Networks and Technologies Ltd.is a leader in technology innovation in U.S.A. creating products and solutions for a connected world, It has a large Research and Development team which invented the first smart watch W-I, which besides showing the time would also monitor few health parameters like heart beat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the fact that licensing requirements had been abolished. The company was also aware that there had been increased level of interaction and interdependence among the various nations of the world and India could be made a base for its international trade. It set up its office in Gujarat with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market Competition resulted in reduction in prices, thereby benefitting the customers.
(i) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain those concepts
(ii)Also, explain briefly any three impacts of these concepts on Indian business and industry

Explanation

The two major concepts related to government policy are
(a) Liberalisation It refers to an end of licence quota and many more restrictions and controls which were put on industries before 1991. The reforms aimed at deregulation and reduction of government controls, greater autonomy of private investment and less dependence on public sector
(b) Globalisation It refers to integrating our economy with the world's economy. It is the system of interaction among countries of the world in order to develop the global economy Physical geographical gap or political boundaries no longer remain barriers for a business enterprise to serve in a distant geographical market
(ii) Three impacts of these reforms on Indian business and industry are
(a) Technological environment Increased competition force the firms to develop new ways to survive and grow in the market. Thus there is a need to adopt the new technologies in order to survive in the long run
(b) Need for developing human resources The new market conditions require people with higher competence and greater commitment Hence there is a need of developing human resources
(c) Market-orientation The business enterprises start focusing on market-oriented techniques rather than production-oriented techniques.