RESEARCHON GO/NO GO DECISION /POSITION PAPER
INDIAPOLITICAL AND ECONOMIC ENVIRONMENT
IndianPolitical and Socio-Economic Environment
Kudchadker,Arvind P. Indian Political and Socio-Economic Environment. August2011. Web. 31 March 2014.
Presently Indian economy is ranked 9th in the global arena in reference to nominal GDP
It is ranked 4th in reference to the purchasing power parity
In reference to the market exchange, the IMF ranked India as number 11 in 2013.
In the financial year 2011-2012, its expected growth rate was between 7.5% and 8%.
Globalizationtrends in Indian economy
Gupt.Globalization trends in Indian economy. Indian Business Economy.2014. Web. 31 March 2014.
Trade protectionist policies ended in 1991
Balance of payment problems triggered trade liberalization
In 2007, economic liberalization reached the peak making India the fastest growing economy with a growth rate of 9%
Presently, India is considered a capitalist economy
India joined the World Trade Organization in 1995
Its labor force is second largest in the world
The service sector, industrial sector, and the agricultural sector make up 55%, 26%, and 18% of the GDP.
WorldBank. Business Environment Snapshots-India. 2013. Web. 31 March 2014.
In reference to global competitiveness India is ranked number 51
In reference to the financial markets, India is ranked number 17
India is ranked number 44 in respect to level of business sophistication across the globe
In respect to the degree of innovation, India is ranked number 39 globally
In the world, the level of banking is ranked number 24.
The major issues in India economy include powerful lobbies from farmers and trade unions
Is endowed with many natural resources with coal being its major mineral
The major agricultural products are rice, oilseed and wheat,
The major exports are textiles, petroleum products, and biotechnology
The main imports are gems, crude oil, and machinery.
The common industries in India are textile, pharmaceutical, and petroleum industries.
Telecommunications is the fastest growing sector in India followed by automotive industry.
EconomicEnvironment of India
Ramachandran,K S. EconomicEnvironment of India: Lessons from the Past and for the Future.New Delhi: Northern Book Centre, 2007. Print.
Since is the most populous economy after China, it also means it the second biggest market in the world.
The greatest challenge is economic development is that across the globe, India has the highest concentration of citizens living below the poverty line index.
Inflation is a concern
High level of corruption is common
English is the official business language
Successful business requires negotiations to establish relationships
Business lunches are preferred
AnOverview of Select Multinational Companies in the Indian Marketplace
Ondracek,James,Bertsch,Andy, Saeed,M. & Taft,Carlan. Scanning the BusinessEnvironment in India: An Overview of Select Multinational Companiesin the Indian Marketplace. June 2012. Web. 31, March 2014.
It is expected foreign direct investment will be legalized soon because the cabinet has already passed the bill.
Economic reforms have attracted many foreign firms because of the vast potential
Examples of global firms operating in India include METRO, IBM India, AVIVA and AMWAY India among others
IndianPolitical Environment Overview
RobotW.P. Indian Political Environment Overview. 2014. Web. 31 March 2014
It is has a plural political system
India is the biggest democracy in the world
The major parties are Bharatiya Janata Party (BJP)and Indian National Congress.
There are other more that 40 small parties established on region basis
Major political party is the Indian National Congress that advocates for socialist economic policies
The Bharatiya Janta Party (BJP) party ruled India between 1998 and 2004 during which they advocated for the caste system
in 2004, Indian National Congress won the election until to date
Indian National Congress is responsible for the present level of globalization in India to date