Impact of Economic Reforms on the Business

The impact of economic reforms on the business are :

1. Increasing Competition: Deli censing and liberalized entry of foreign firms increased the

competition for Indian firms.

2. More Demanding Customers: As the customers are now well-informed and increased competition in

the market has created buyer’s market.

3. Rapidly changing Technological Environment: Increased competition has made it compulsory for

Indian firms to adopt the latest technology.

4. Necessity for change: After economic reforms, enterprises have to continuously modify their

operations as market forces have become turbulent.

5. Need for Developing Human Resource: As new market conditions require people with higher

competence and greater commitment.

6. Market Orientation: With an increase in competition and consumerism, firms have shifted to a market-oriented approach.

7. Loss of Budgetary Support to the Public Sector: Due to the decrease in the role of the public sector, the Government has also reduced the financial support to them.