In this chapter, we shall learn about the nature and concept of business environment and its various components. Issues related to how the components of a business environment affect organizations and human resource (HR) policies and practices are discussed. Various trends and emerging dimensions of the business environment with relevance to human resource management (HRM) are also highlighted.
India's Economic Growth
The national portal of the Government of India mentions that India has emerged as the fastest growing major economy in the world, according to the International Monetary Fund (IMF). It is the world's sixth largest economy by nominal gross domestic product (GDP) and the third largest by purchasing power parity (PPP). The Indian economy grew at 7.7 per cent in the first three months of 2018. India has one of the fastest growing service sectors in the world, with an annual growth rate above 9 per cent since 2001.
Major strengths of India are as follows: