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What steps can we take to understand government, related lobbies and their policies

We need to understand the government policies and what lobbies are doing for us to make necessary changes related to taxes, business costs, privileges, subsidies available and keeping watch on the liabilities.

There are mainly three types of Economic policies formed by the government:
  1. Fiscal policy: It is about the revenue collection thatgovernment plans through taxation and makes changes in taxation slabs which affects the spending and saving capacity of citizens, impacting the income distribution and in general the overall level of economic activities. It is administered under laws of legislature.The changes suggest the state of economy is either in boom or recession.
  2. Monetary policy It takes care of money supply by revising the interest rate which influences the degree of inflation as well as the total money supply in market available for spending or short-term borrowing.
  3. Supply-side policy Attempts to increase the productive capacity of the economy.

Government uses the money collected in the welfare of people for education and food either free or subsidized, healthcare services at lower costs and military to provide protection.
Further to the above policies these are the few more which will directly or indirectly affect the business strategies and internal policy formation.

It becomes important to learn about this policy as it describes broadly the laws, rules and regulations, the court decisions as well as the local ordinances which affect our lives because of which the group of influential people try to support or protest the public policy with the support of political parties. It is mainly for public administration purpose.

It is a commercial policy for international trade both the import and export, its privileges and restrictions, free trade or establishment restrictions.

The lobby tries to influence the government’s decision for benefit of people with particular interests. Individuals, Associations, NGO’s or Groups of people make attempts to challenge the decisions of government is known as lobbying; they approach the legislators and other government officials and is generally considered as corrupting the law using the socioeconomic power. If lobbies act in interest for benefit of general public the government policies perform and achieve the purpose for which they are formed.

Government keeps on developing new schemes and releases new policies for betterment of commerce in the country. These norms are based on what government deems fit for the economic growth. The latest change in policies is on Healthcare in India, Tourism etc. The funds have been allocated for Infrastructure, Fisheries and Animal Husbandry etc. Increase in Loans to women self help groups. Over all this strengthens the market and allows rolling of money in various industries.

The Make in India and Start-up India is inspiring Indians to take maximum benefit of the available resources, securing the Indian monies, reducing imports, intensification of capacities of production in India and increasing the employment for the youth. The FDI (Foreign Direct Investment) Policy is enabling newer forms of business like e-commerce, restricts the sale of bundled goods to save the small traders else sales will happen mostly online, and in sectors like insurance the 100% FDI is not permitted.

Layman and Business Houses can adapt to utilize the changes in policies, innovating the methods of savings, profit extracting and improved living. With recession, we come across different schemes but business never stops hence every change in policy is different challenge for individuals and businessmen.

The impact of all these policies is observed in day to day lives and our businesses; the right understanding facilitates the overall needs of economy and the economic growth for which the policies are formed and applied.