What is the concept of Business environment? Explain the emerging scenario of business environment in India.

The term ‘business environment’ connotes external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise. These include customers, competitors, suppliers, government, and the social,
political, legal and technological factors etc. While some of these factors or forces may have direct influence over the business firm, others may operate indirectly. Thus, business environment may be defined as the total surroundings, which have a direct or indirect
bearing on the functioning of business. It may also be defined as the set of external factors, such as economic factors, social factors, political and legal factors, demographic factors,and technical factors etc., which are uncontrollable in nature and affects the business decisions of a firm.

The scenario of business environment in India is changing at a fast speed. Some of these changes are caused by the developments taking place within India and some have been influenced because of certain global developments. Some of the important features of emerging scenario of business environment in India have been discussed hereunder.

Political Uncertainty

India is considered to be one of the largest democracy in the world and its democratic system seems not only to have survived since independence but has actually strengthened over the years. However, at present, there is a lot ______ __________ ______ _____ ____ _________ _________ ___ __________ _________ __________.
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