Business Studies · Class 12

Active learning ideas

Impact of Government Policy Changes on Business

Let's journey back to 1991, a year that forever changed the rules of the game for every business in India. We will explore how the landmark LPG reforms dismantled the old system and created the dynamic, competitive market we see today.

• CBSE Learning Outcomes
• NCERT/CBSE Class 12 Business Studies: Part A - Principles and Functions of Management, Chapter 3 - Business Environment

• 40–60 min
• Pairs → Whole Class
• 3 activities

Activity 01

• Formal Debate
• 45 min · Whole Class

Formal Debate: LPG Reforms - Boon or Bane for Small Businesses?

Divide the class into two groups to debate the pros and cons of the 1991 economic reforms specifically for Micro, Small, and Medium Enterprises (MSMEs) in India. This encourages critical thinking and the use of evidence to support arguments.

Evaluate the impact of increased competition on Indian firms post-1991.

Facilitation Tip

Provide students with articles or data points for both sides to ensure an informed debate.

What to look for

Conduct a 'Think-Pair-Share' where students first individually list one positive and one negative impact of LPG, then discuss with a partner, and finally share with the class.

• Analyze
• Evaluate
• Create
• Self-Management
• Decision-Making

Activity 02

• Case Study Analysis
• 40 min · Small Groups

Case Study Analysis: Then vs. Now

In small groups, students analyse two companies in the same sector, one from the pre-liberalisation era (e.g., HMT watches, Ambassador cars) and one from the post-liberalisation era (e.g., Titan/Apple Watch, Maruti Suzuki/Hyundai). They will compare their business strategies, marketing, and customer focus.

Explain how the market orientation of businesses shifted after the economic reforms.

Facilitation Tip

Encourage groups to present their findings visually using a comparison chart or a short presentation.

What to look for

Assign a project where students analyse the journey of a specific Indian company (e.g., Bajaj Auto, Tata Motors) and how it adapted its strategies to survive and thrive after 1991.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

Activity 03

• Case Study Analysis
• 60 min · Pairs

Industry Impact Analysis

Students choose an Indian industry (e.g., telecom, banking, aviation, retail) and create a presentation or report detailing how government policy changes since 1991 have specifically impacted it. They should cover aspects like key players, technology, and consumer choice.

Analyse the challenges and opportunities faced by Indian businesses as a result of globalisation.

Facilitation Tip

Suggest students look at old advertisements from their chosen industry to see the change in marketing messages.

What to look for

Provide a checklist where students rate their confidence (low, medium, high) in explaining each of the major impacts of the policy changes, such as 'Increased Competition' or 'Need for Developing Human Resources'.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

A few notes on teaching this unit

Start by painting a vivid picture of the pre-1991 era to establish a strong baseline for comparison; use examples like waiting lists for scooters or landline phones. Deconstruct 'LPG' into three separate, digestible concepts before weaving them together. Use case studies of familiar brands to make the impacts tangible and relatable for students.

Upon completing this topic, students will be able to critically evaluate how government policy changes have impacted business operations, from competition and technology to customer focus.

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Watch Out for These Misconceptions

• Liberalisation only means more foreign companies can enter India.

  Liberalisation primarily involved dismantling the domestic 'License Raj'. It meant removing industrial licensing, reducing tariffs, and giving Indian private companies more freedom to expand and diversify without needing extensive government permission.

• Privatisation and Disinvestment are the same thing.

  Disinvestment is the sale of a part of the government's equity in a Public Sector Undertaking (PSU). Privatisation occurs when this sale results in the transfer of ownership and control to the private sector, typically when the government's stake falls below 51%. Disinvestment does not always lead to full privatisation.

• Globalisation has only harmed Indian businesses by increasing competition.

  While competition did increase, globalisation also provided Indian businesses with immense opportunities. It gave them access to new markets for export, advanced technology, foreign capital, and international collaborations, which helped many Indian companies become global players themselves.

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Methods used in this brief

• Formal Debate
• Case Study Analysis