Political Environment

 

The political factor is the most important factor which affects the business in Indian environment. The unstable political environment brings stagnancy in the development. The changes in ruling party bring economic policy changes, affecting the business. The sectorial preferences, such as an agricultural versus an industrial, an educational versus a basic research, an investment in the service versus a core sector come about with change in the ruling political party and its policies. Such changes have a long-term impact on business performance. The manager has to deal with such changes effectively.