Importance Of Indian Business Environment

Business Environment
Business environment is a combination of the words business-environment. Business includes all activities connected with production, trade, banking, insurance, finance, energy, advertising, packaging and numerous other related activities.
Environment refers to all external forces, which have a bearing on the functioning of business. The environment includes factors outside the firm which can lead to opportunities for or threats to the firm. Although there are many factors, the most important of these factors are socio-economic, technological, supplier, competitors and government.
According to Arthur M Weimer, “Business environment encompasses the climate or set of conditions, economic, social, political or institutional

The domestic businesses as well as international businesses face cut throat competition to enter and survive in the Indian market. They can survive only through customer satisfaction and providing high quality products. The increased foreign direct investment in India has supplemented the domestic capital formation and has improved the balance of payment. Banking, Insurance, communication, transportation, telecommunication, tourism, healthcare, education, consultancy, BPO and other service sectors contribute more than half of the national income in India. As a member of WTO India will reduce the tariff and non-tariff barriers and reduce and repay the foreign debt. Indian business environment is committed to the Indian economy through promoting increased living standards of the people in India. The world economy witnessed recession in the year 2008-09. The stability of the banks and financial institutions was questioned. India’s export sector, inflow of foreign investment, employment opportunities, capital markets, domestic demand of capital and consumer goods were affected due to economic slowdown. But the Indian private and public houses have struggled a lot to bring the Indian economy in the better position again. It is a fact that the Indian business environment is in much better position now and the Indian economy is growing at pace now.
Relationship between business and business environment
Business and Business environment are inter related. Environment can stop and promote the growth of the business. Environment provides a platform to the business to grow with the help of favorable changes. Environment can also create challenges or problems for the business to grow. So business and environment are co related and they share a mutual