Business is an organized effort of using the man, machine, material, and methods effectively to make a profit. An environment is a place where the business takes place, and a Business Environment means the surroundings of the business units exist. A systematic understanding of the business environment helps to shape a proper business strategy. The economic reforms implemented in the last decade in the form of liberalization, privatization & globalization have brought a lot of challenges and opportunities to most countries. Gaining knowledge in the areas of Trade policies, inflation, and taxes helps a successful manager in the modern era of business.