1. POLITICAL ENVIRONMENT IN INDIA

2. INTRODUCTION
The political and legal environment provides a framework within which the business is to function and its existence depends upon the success with which it can face the various challenges constructed out of legal and political framework

3. IMPACT OF POLITICAL ENVIRONMENT ON BUSINESS
The viability of a business depends on theability with which it can meet the challenges arising out of the political legal framework
The political system prevailing in the country promotes, shelters, directs and controls the business activities of the country
To ensure economic development of the country, the political system should be honest, stable, efficient and dynamic. The system must ensure political participation of the people as well as personal security to the citizens.

4. FACTORS CAUSING POLITICAL INSTABILITY
Civil War
Declaration of Emergency in the country
Changes in the form or structure of Administration of Government

5. POLITICAL INSTITUTIONS
Under a democratic setup, the political environment comprises of three vital political institutions
Legislature
Executive
Judiciary

6. LEGISLATURE
Legislature is the most powerful institution. The powers vested in legislature are:
Policy making
Law making
Approval of budgets
Executive control
To act as a mirror of public opinion

7. EXECUTIVE
Government is the executory body of the laws which are framed by the legislature
The role of the government is to shape, direct and control the business activities
Indian constitution provides for a federal setup with powers being divided between central and the state governments

8. JUDICIARY
The judiciary sees to it that the exercise of authority by the executives is according to the general rules laid down by the legislature
It is the power of the judiciary to settle legal disputes that affect business considerably.
The democracy of a country can die if an alert, independent and quick to act judiciary is not there.