Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Why has the economic environment of business in India been steadily changing?

Options:

Due to international influences

Due to technological advancements

Mainly due to government policies

Due to cultural shifts

Correct Answer:

Mainly due to government policies

Explanation:

The economic environment of business in India has been steadily changing mainly due to the government policies. At the time of Independence the Indian economy was mainly agricultural and rural in character and about 70% of the working population was employed in agriculture and about 85% of the population was living in the villages. Production was carried out using irrational, low productivity technology. Communicable diseases were widespread, mortality rates were high. In order to solve economic problems of our country, the government took several steps including control by the State of certain industries, central planning and reduced importance of the private sector.