Economics Project.docx

INDIA India, officially the Republic of India is a country in South Asia. It is the seventh largest country by geographical area, the 2nd populous country, and the most populous democracy in the world. The Indian ocean on the south, the Arabian sea on the west, and the Bay of Bengal on the east, India has a coastline of 7,517 km. It is bordered by Pakistan on the west, People’s Republic of China, Nepal, Bhutan, to the North and Bangladesh and Myanmar to the east. India in the vicinity of Sri Lanka, Maldives, and Indonesia in the Indian Ocean. Home to Indus Valley Civilisation and region of historic trade area and vast empires, Indian subcontinent was identified with its commercial and cultural wealth for much of its long history. Four major Religions, Hinduism, Buddhism, Jainism and Sikhism originated country, while Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium of CE and shaped the region’s diverse culture. The British East India Company from the eighteenth century and colonized by the United Kingdom from mid-19th century, India became independent in 1947 after a struggle for independence that was marked by widespread non-violent resistance. India has 29 states 7 union Territories with parliamentary system of democracy. India is the 12 largest economy in the world and is also ranked 4 in terms of purchasing power. After the economic reforms made by the UPA government in 1991 India has been transformed to one of the fastest growing economy in the world. However the Indian economy has suffered by high levels of poverty, illiteracy, diseases and malnutrition.

India at Glance 1. Population

:

1,150,000,000 (1.15 billion)

2. Area

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3.3 million square km

3. Coastline length

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7600 km

4. Languages

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17 major, 844 dialects

5. Major religions

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Hinduism, Islam, Buddhism, Christianity, Sikhism, Jainism.

6. National anthem

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Jana Gana Mana

7. National song

:

Vande Mataram

8. National emblem

:

Replica of the lion Capital of Sarnath

9. National flag

:

Horizontal tricolor in equal proportion of deep saffron

on the top, white in the middle and dark green at the bottom. In the center of the white band is a wheel. 10. National animal

:

Tiger

11. National bird

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Peacock

12. National flower

:

Lotus

13. National tree

:

Banyan

14. National fruit

:

Mango

15. National currency

:

Rupee

16. National sport

:

Hockey

INTRODUCTION PESTLE Analysis in Business Environment In business pestle analysis role is very important. Originally designed as a business environmental scan, the pestle analysis is an external macro environment in which a business operates. These are factors which are beyond the control or influence of a business, however are important to be aware of when doing produnt development, business or strategy planning. PESTLE means: P: Political E: economical S: social T: Technological

L: Legal E: Environment The PESTLE subject should be a clear definition of the market being addressed, this is following:

A company looking at its market

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A product looking at its market

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A brand in relation to its market

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A Local business unit or function in a business

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A strategic option, such as entering a new market

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A potential acquisition

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A potential partnership

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An investment opportunity

Now we see in details of pestle factor/ impact in India in next following pages:

POLITICAL: These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decision can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and the rail system. India is the biggest democracy in the world. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservation, separate personal law codes apply to muslims, Christians, and hindus. The political situation in india is more or less stable. Most of its democratic history, the federal government of india has been led by the (INC) Indian National Congress. State politics domination by several national parties including the INC. the Bharatiya Janata Party (BJP), the

communist party of india (CPI), and various regional parties. In 2009 Indian elections, the INC won the biggest number of lok sabha seats and formed a government with a alliance called the United Progressive Alliance (UPA), supported by various left leaning parties and members opposed to the BJP. Overall India currently has a coalition led government and both major political parties the UPA and BJP, whichever comes in power. It comprises political stability and the policies of the government. Ideological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment. For example, Bangalore established itself as the most important IT centre of India mainly because of political support. In India many political factors those effect in business environment. Political pressures in ruling government and vote bank problems. These are the major factors those affect on political environment:i.

Taxation policy India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the state governments and the Urban and Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of the governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are the Income Tax, Customs duties, Central Excise and Sales Tax and Service Tax.