T E C H N O LO G I C A L

A N D R E G U L AT O RY
ENVIRONMENT IN
INDIA
 Technological
Ø Environment
Technological in
environment in India should
be favorable to quality improvement, cost
reduction, & introduction to new products
In market. It should also lead to Industrial
development with global competitiveness.
Ø In India, the government has setup large
number of R & D Activities, space research
centers etc. for introduction of new
technology in different areas.
Ø For a long period of time, technological
environment was not favorable for introduction
of updated technology ion manufacturing
activities.
Ø Funds & Import Policies were not freely
provided for import of updated foreign
technology.
Ø Foreign collaboration & joint ventures were also
not freely allowed. The scope given to MNC’s
were limited.
Ø Research & development activities were not
given encouragement through special
facilities/concessions.
Ø This suggests that technological environment
was not favorable to industrial growth till the
beginning of economic reforms and
globalization by 1980’s.
Ø Now, the technological environment has changed
considerably along with liberalization and
globalization of Indian Economy.
Ø The need of updated technology in Indian
industries was accepted for cost reduction, quality
improvement and raising competitiveness of
Indian goods in domestic & foreign markets.
Ø Foreign exchange and liberal imports are now
allowed for the introduction of new technologies
in Indian industries.
Ø The expansion of infrastructure facilities in regard
to transport , communication, electricity etc also
encourages the application of modern technology
to industries.
 Features of Current
Technological
2) Importance of Upgrading Technological
Environment is Accepted.

4) Liberal facilities provided for technological up

gradation.

6) Importance of modernization of India.

4) Significance of Quality Improvement.

6) Technological development and business

development.
 Regulatory
Ø Environment
Regulatory In
Environment is the result of various
laws made for avoiding evils in Industrial Growth.
Ø Regulations are necessary for avoiding excessive
Industrial activities in big cities. They are required
for pollution and ecological imbalance.
Ø However they should not create obstacles in
Industrial growth. In early thirty Years Regulatory
Environment was responsible for corruption ,
Favourism , etc. Fortunately Regulatory
Environment is now made Simple , Easy and Quick
in recent years .
 Features
1) Role of various laws creating regulatory
Environment.
2) Unwanted restrictions creates Obstacles in
Industrial Growth for long period.
3) Relaxation of Restrictions.
4) Liberalization of economic policies for
favorable regulatory Environment .
5) Favorable to Rapid Industrial Growth.
Conclusion:
The Regulatory Environment in India is
becoming favorable to Indian business due to
economic reforms and Liberalization.
Establishment of business enterprises is now
easily possible due to procedural simplification.
Joint Ventures and Collaboration are also
possible with limited formalities.
Capital can be raised easily from the market