New economic policy has posed several challenges to "Indian Inc" in particular and the Indian economy in general. It has opened the doors to liberalization, privatization and globalization (LPG). This in turn has increased competition among Indian companies in price, quality, services, work culture, business ethics, and transparency. Indian companies have tried to adapt western management styles by integrating Indian sentiments, cultural, social and economic background. The challenges posed by LPG have sensitized the growth of several parameters of economic development, such as investments, employment generation, production, productivity, gross domestic product growth, foreign currency reserves and so on. This book incorporates contemporary examples into the back drop of changed economic scenario in India and the world to help students understand the challenges and opportunities facing the Indian economy. Broadly the book deals with:* Demand Analysis* Supply Analysis* Market Structure* Price Policy* Business Cycles* Balance of Trade and Balance of Payments* Foreign Aid.