· Economic environment - Economic environment includes broad factors like structure and nature of the economy, the stage of development of the economy, economic resources, the level of income of the economy, the distribution of income and assets among citizens, linkages with global economy, economic policies etc. 

· Economic Structure - Economic Structure encompasses factors such as contribution of different sectors like primary (agricultural), secondary (industrial) and tertiary (service) sectors. The character of each sector and its various components has bearing on the business.

· Economic policy - Economic policy is the term used to describe government actions that are intended to influence the economy. Some examples of these actions include setting tax rates, setting interest rates, and government expenditures. Economic policies like industrial policy, trade policy, foreign exchange policy, monetary policy, fiscal policy, and foreign investment and technology policy etc can exert high influence on business operations. · Economic systems - Economic systems are the means by which countries and governments distribute resources and trade goods and services. There are are three main types of economic systems - planned economy, market economy and mixed economy.

· Market Economy - In a Market Economy, prices are determined by levels of supply and demand, instead of central and or local government. Market forces determine what is produced, how much is produced, how it is distributed, plus the prices of goods and services. It is also referred to as Free Economy or Capitalism. Under this system, Government interferences will be minimum and can be termed as Laisses Faire system, ie.; lack of external force. USA and Japan are examples for free economy.

· Planned Economy - In a planned economy, all decisions regarding production, distribution, salaries, investment and prices are made by a central authority – usually the government. Government owns means of production. The closest examples to this type of economy are China, North Korea and Cuba (to a lesser extent). It is also equated with the concept of socialism.

· Mixed Economy - Mixed Economy envisages the co-existence of public sector units and private sector undertakings. Key establishments are owned and run by Government and the Government itself set norms and regulations for private establishments. All western European countries are in this style. After independence Indian economy accepted a mixed system where, Government decide and handle key and heavy manufacturing sectors, whereas the rest will be handled by private sector.

· Economic Planning in India - Economic Planning is a term used to describe the long term plans of government to co-ordinate and develop the economy with efficient use of resources. Economic planning in India was stared in 1950 after independence, it was deemed necessary for economic development and growth of the nation. The idea of Five year planning was taken from the erstwhile Soviet Union under socialist influence of first Prime Minister Jawahar lal Nehru. 

 · Planning Commission: Planning Commission was set up by the Government of India in 1950 with the objective of promoting the rapid rise in standard of living of people of India using the available resources in efficient manner. Jawaharlal Nehru was the first chairman of Planning Commission. First Five Year Plan started in 1951. NDA Government, in 2014, decided to set up NITI Aayog (National Institution for Transforming India), in place of the Planning Commission as a way to serve the developmental aspirations of the people of India.

· NITI Aayog - National Institution for Transforming India, also called NITI Aayog, was formed via a resolution of the Union Cabinet on January 1, 2015. NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs. Prime Minister is the Ex-officio chairman. At the core of NITI Aayog’s creation are two hubs – Team India Hub and the Knowledge and Innovation Hub. The Team India Hub leads the engagement of states with the Central government, while the Knowledge and Innovation Hub builds NITI’s think-tank capabilities. 

 · Public Sector Undertakings (PSUs) - The Government owned corporations are termed as Public Sector Undertakings in India. In a PSU majority (51% or more) of the paid up capital is held by Central government or by any State government or partly by the Central governments and partly by one or more state governments. The Public Sector Enterprises are run by the Government under the Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises.

· Maharatna/Navratna/Miniratna Status - The status of Maharatna, Navratna, Miniratna to Central Public Sector Enterprises (CPSEs) is provided by the Department of Public Enterprises. These prestigious titles provide them greater autonomy and goodwill to compete in the global market. 

· Strategic Public Sector Enterprises - Central Public Sector Enterprises (CPSEs) are further classified into 'strategic' and 'non-strategic'. Areas of strategic CPSEs are arms & ammunition, atomic energy and railways transport. All other CPSEs are considered as non-strategic. 

· Public-Private Partnership (PPP) - A Public-Private Partnership (PPP) is a partnership between the public sector and the private sector for the purpose of delivering a project or a service traditionally provided by the public sector. The advantage of a PPP is that the management skills and financial acumen of private businesses could create better value for money. PPP can increase the quality, the efficiency and the competitiveness of public services. 

· New Economic Policy, 1991 - The year 1991 is an important landmark in the economic history of post-Independent India. The country went through a severe economic crisis triggered by a serious Balance of Payments situation. The crisis was converted into an opportunity to introduce some fundamental changes in the content and approach to economic policy. The New Economic policy (NEP) launched in 1991 by the union Finance Minister Dr. Manmohan Singh ushered in the era of Liberalization, Privatization and Globalization (LPG). 

· Liberalisation - Liberalisation refers to the freeing of trade, investment and capital flows between countries. It refers to the gradual decrease in government command and control over the economic policies. Simplification of tax structure, removing quotas, bars and economic restrictions are some examples of liberalization. · 

· Department of Industrial Policy & Promotion (DIPP) - DIPP was established in 1995 and has been reconstituted in the year 2000. It is housed under Ministry of Commerce & Industry. Department of Industrial Policy & Promotion is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives.

· Privatization - Privatization is the process of transferring an enterprise or industry from the public sector to the private sector. In real life, it is done in different forms. In some cases, ownership of all shares is transferred from government to a single highest bidder (VSNL was taken by Tata Telecom). In some cases, a large chunk of shares is sold to public, but majority shares are in the hands of the government (ONGC, SAIL, State Bank of India etc.). · 

· Disinvestment - Literally, disinvestment means selling of assets. Here, in the case of PUSs, disinvestment means Government selling/ diluting its stake (share) in Public Sector Undertakings in which it has a majority holding. Disinvestment is carried out as a budgetary exercise, under which the government announces yearly targets for disinvestment for selected PSUs. 

· Strategic Disinvestment of PSUs - Strategic divestment refers to the government not only selling a substantial portion of its stake but also giving up the management control of the PSU to a private enterprise. This means that it will give up more than 51% of its stake to the private sector. 

· Department of Investment and Public Asset Management (DIPAM) - Department of Disinvestment was set up as a separate Department in 1999 and was later renamed as Ministry of Disinvestment in 2001. From May, 2004, Department of Disinvestment is one of the Departments under the Ministry of Finance. The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management (DIPAM) from 14th April, 2016. DIPAM is mandated to advise the Union Government in the matters of financial restructuring of PSUs. ·

· Industrial Policy - Industrialisation is the first and foremost requirement of rapid economic development of a country. The industrial policy refers to such formal declaration by the government through which general policies for industries adopted by the govt. are made public. The Government of India announced its Industrial Policy Resolution (IPR) on April 6, 1948. Subsequent Industrial Policies were announced in 1956, 1977 and 1980. 

· Hindu Rate of Growth - The term ‘Hindu rate of growth’ was coined by Professor Rajkrishna, an Indian economist, in 1978 to characterize the slow growth and to explain it against the backdrop of socialistic economic policies. The term came into being to show India’s contentment with the low growth rate, post independence. 

· New Industrial Policy, 1991 - Indian government announced New Industrial Policy on July 24, 1991. The basic assumption underlying the policy was ‘Continuity with change’. The industrial policy of 1991 is the big reform introduced in Indian economy since independence. The policy caused big changes including emergence of a strong and competitive private sector and a sizable number of foreign companies in India. 

· Second Generation Reforms - The term `second generation reform' is being increasingly used in India to refer to a general continuation of the process of economic reform and liberalisation initiated by the Centre at the behest of the International Monetary Fund in the early 1990s. The concept of second generation reform was evolved by the IMF to insulate developing countries from marginalisation in the wake of globalisation. Second generation reform involves a continuation of economic reform as construed by the IMF. 

· Business Incubator - An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space, capital, coaching, common services, and networking connections. 

· Legal Environment - This refers to set of laws, regulations, which influence the business organisations and their operations. Every business organisation has to obey, and work within the framework of the law. Businesses prefer to operate in a country where there is a sound legal system. However, in any country businesses must have a good working knowledge of the major laws protecting consumers, competitions and organizations. Businesses must understand the relevant laws relating to companies, competition, intellectual property, foreign exchange, labour and so on. For Example: New GST law will influence most of the businesses. 

· Foreign Exchange Management Act (FEMA) - FEMA came in to effect from January.1, 2000, by replacing the Foreign Exchange Regulations Act (FERA) of 1973. FERA was an act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. FEMA extends to the whole of India and also applies to all branches, offices and agencies outside India, owned or controlled by a person resident in India. 

· Rupee Convertibility - The convertibility of a currency such as Rupee has different meanings in different times. In existing standards, it means that the country’s currency becomes convertible in foreign exchange and vice versa in the market. In simple terms, exchanging Indian rupee for dollars is an example of rupee convertibility. 

· Current Account Convertibility - Current account convertibility refers to freedom in respect of payments and transfers for current international transactions. Current account convertibility implies that the Indian rupee can be converted to any foreign currency at existing market rates for trade purposes for any amount. It allows easy financial transactions for the export and import of goods and services. India has current account convertibility. For example – Mobile company importing mobiles from China and selling in India can get foreign exchange for its imports under Current Account Convertibility. 

· Capital Account Convertibility - Capital Account Convertibility is not just the currency convertibility freedom, but more than that, it involves the freedom to invest in financial assets (shares, bonds etc.) of other countries. Though it encourages the inflow of the foreign capital, but the risk is that it may accelerate the flight of the capital from the country if things are unfavourable. For example, an Indian can sell property here and take the Capital outside. Convertibility on the capital account is usually introduced after a certain period of introducing the Current account convertibility. In India, we have partial convertibility of Rupee on Capital Account. 

· Consumerism – The term ‘Consumerism’ came into existence in the early 1960s when it was coined by the business community in the western world particularly in America. Consumerism is a social force designed to protect consumer interests in the market place by organizing consumer pressures on business houses. In economics, consumerism may refer to economic policies which emphasise consumption. 

· Consumer Protection Act, 1986 - It is an Act of the Parliament of India enacted in 1986 to protect the interests of consumers in India. It makes provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith also. The act was passed in Assembly in October 1986. This Act extends to the whole of India except the State of Jammu and Kashmir and save as otherwise expressly provided by the Central Government by notification, it applies to all goods and services. This statute is regarded as the 'Magna Carta' in the field of consumer protection for checking the unfair trade practices and ‘defect in goods’ and ‘deficiencies in services’ as far as India is concerned. 

· Consumer Protection Council - The Consumer Protection Act postulates establishment of Consumer Protection Councils at different levels for the purpose of spreading consumer awareness.

(a) Consumer Protection Act empowers the Central Government to establish a Central Consumer Protection Council consisting of the Minister in charge of consumer affairs in the Central Government as its Chairman. 

(b) Consumer Protection Act provides for the establishment of State Consumer Protection Councils by the State Governments. The State Council shall consist of a Minister in charge of consumer affairs in the State Government as its Chairman. 

(c) In order to promote and protect the rights of consumers, within the district, the Consumer Protection Act, provides for the establishment of a District Consumer Protection Council in every district. It shall consist of the Collector of the district as its Chairman.

Consumer Dispute Redressal Agencies - Consumer Protection Act provides for a three-tier consumer disputes redressal system encompassing the district, state and national levels. 

The Consumer Protection Act, 2019 came into force on 20th July 2020 and the Act aims to provide for protection of interests of consumers by introducing an effective and timebound administration and settlement of consumer disputes.

· Environment Protection Act, 1986 - Environment Protection Act,1986 is an Act of the Parliament of India. In the wake of the Bhopal Tragedy, the Government of India enacted the Environment Protection Act of 1986 under Article 253 of the Constitution. Passed in March 1986, it came into force on 19 November 1986. The purpose of the Act is to implement the decisions of the United Nations Conference on the Human Environments. They relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property. The Act is an “umbrella” legislation designed to provide a framework for central government coordination of the activities of various central and state authorities established under previous laws, such as the Water Act and the Air Act. 

· Triple Bottom Line (TBL) - It is the philosophy that promotes the belief and evaluates the business’s performance on the basis that attainment of profit, care for people and care for the planet are equally important. The equal emphasis on these triple Ps, viz., Profits, People and Planet is known as the TBL. This idea at the macro level corresponds to the more evolved notion of the development of a country’s economy, society and ecology.

· India Vision 2020 - India Vision 2020 was initially a document prepared by the Technology Information, Forecasting and Assessment Council (TIFAC) of India's Department of Science and Technology under the chairmanship of A. P. J. Abdul Kalam and a team of 500 experts. Kalam described the plan as follows: "Transforming the nation into a developed country, five areas in combination have been identified based on India's core competence, natural resources and talented manpower for integrated action to double the growth rate of GDP and realize the Vision of Developed India". 

· Vision, Strategy and Three Year Action Agenda of NITI Aayog: The 12^th and last five year plan of India was completed on March 31, 2017. With this, the five year plans have become a thing of past. NITI Aayog has come up with a new idea of planning for future development of India and has come up with three plans spread over three different time periods. 

(a) First is a 15 year “Vision” that encompasses overall goals and objectives of the country for next 15 years. 

(b) Second is a 7 year “Strategy” which lays the roadmap of development for next seven years dividing those goals and objectives into two parts. 

(c) Third and Final is a “Three Year Action Agenda” which states the tasks and targets to be accomplished in next three years time frame, further dividing the strategy into two parts.

New India 2022 - NITI Aayog will soon come out with a development agenda for ‘New India 2022’, which will spell out the strategy for expediting economic growth. The work on the strategy document is in an advanced stage and will most likely be titled ‘Development Agenda document for New India 2022’. And once this document has been completed and put in public domain, the work on preparing 15-year vision till 2030 will start. The think-tank, in a presentation last year, had said the foundation for freedom from six problems—poverty, dirt, corruption, terrorism, casteism and communalism—will be laid by 2022 when India celebrates 75 years of independence.