Government Policies for Business Growth

Meaning of Policy and Historical Overview of Policy Framework in India

We live in a democratic country where the people choose the government. And then these chosen representatives govern the nation via rules, laws, and policies. So let us learn a bit more about the nature and importance of government policies and the history of the policy framework in India.

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Meaning of Government Policy

A policy is a principle, rule or action which is proposed and implemented by a governing body or institution. These governing bodies take their decisions based on the opinions and views of a community or institution under the guidance of the government.

Similarly, a government also sets some laws and policies for its citizens. The intent is to exercise their executive powers to govern and ensure the well being of its citizens.

So government policy is a law or custom that guides the decisions of people and results in a positive outcome for the whole community. For example, the government policy to not sell liquor to underage minors is for the benefit of the entire community.

Government policies can be about a variety of issues like taxes, immigration, customs, pensions, traffic rules, school and college education, sanitation, pollution laws, environmental factors, forest conservation, etc. Policies aren’t exactly laws per se, but they lead to laws in certain cases.

Policy FrameworkSource:

Historical Overview of Policy Framework in India

The process of public policy does not develop overnight. It develops over years and decades in a country and governmental structure. In India, the research and experiments regarding public policies used to happen way back in the days of Nalanda and Vaishali universities.

It is believed that during the reign of Chandragupt Morya, Chanakya (the known scholar) outlined the public policy of his estate. In fact, Chanakya authored the book “Arthashastra” about the formation and implementation of state policies.

Ashoka the Great was also known for his implementation of the public policy framework. He encouraged peace and harmony via his policies ending the era of constant war and terror that preceded him. He also formed policies on taxes, trade, and warfare. Many of his learnings have been inscribed on the Ashoka Pillar.

Then came the era of the Mughal Empire. Even in this monarchy situation policy framework kept evolving. For example, Emperor Khilji introduced very strict tax reforms in the policy framework. Akbar also famously introduced significant land reforms helping his citizens. This is also an example of public policy.

After independence, there was a lot of chaos in the country due to the Partition. We also faced strong economic challenges. To unite the nation of several cultures, languages and inequalities was a very difficult developmental challenge for the government.

It was time for strong policies and a strong process of the policy framework in the country. Slowly and gradually the government implemented a system to form and implement strong policies to move our nation forward.

Solved Question for You

Q: All large companies must align their corporate policies to that of the nation in which they function. True or False?

Ans: The statement is True. Policies in all countries are not the same. They may differ in areas such as gender equality, environmental factors, religious issues. But the companies must try and abide by the countries public policy as much as possible. It is a herculean task of promoting inclusivity and diversity in the company.

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One response to “Economic Change Process of India”

  1. Kamya Treasure says:

    Good work and simplified for easy understanding😃

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