Promotion is an essential element and an effective tool used by businesses, both small and large to create awareness and persuade the customers to buy the product and services on offer. Without proper promotion, business would remain stagnant it would be difficult to generate profit due to low visibility in the market. Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in preference over others. Promotion is a marketing tool, used as a strategy to communicate between the sellers and buyers. Through this, the seller tries to influence and convince the buyers to buy their products or services. It assists in spreading the word about the product or services or company to the people. Governments regulate businesses to ensure their activities comply with laws and regulations and protect consumers from unfair practices. They also provide financial assistance, tax incentives and subsidies to companies to encourage investment and stimulate economic development. Businesses should maintain a sound financial position, solvency, prestige, and goodwill to satisfy investors. Businesses should take continuous efforts for research, innovation, and expansion programme. Government is responsible for preparing the laws which make the business system function smoothly. In these we include various economic and business laws and it is the responsibility of the Government to provide for the implementation of the laws. Governments establish many policies that guide businesses. The government can make changes in fiscal policy which leads to changes in taxes, trade, subsidies, regulations, interest rates, licensing and more. Businesses should be flexible enough to respond to changing rules and policies. Business and government relationships in India are characterized by a combination of cooperation and competition, with both parties collaborating to foster a business-friendly climate and promote economic progress. A business needs to abide by the law of the state, should not corrupt any public servants and also encourage fair trade practices by engaging them; therefore to supply the qualitative goods at right time and right places is not the responsibility of business towards government.