India

India is the world's seventh largest economy by nominal GDP, which stood at USD
2.4 trillion and the world's third largest economy by purchasing power parity
measured at USD 8.73 trillion, as of 2016. Agriculture contributes 16.1% to the GDP
while Industry contributes 29.5%. The contribution by the services sector is the
highest with 54.4%. The population of India is 1.25 billion and the labour force is
502.1 million, with 10.8 million of the labour force being unemployed. The inflation
rate, measured by CPI, in India is currently 5.47%.
The Indian Rupee is held in a floating exchange-rate system managed primarily
against the US dollar. The rate of exchange (Indian Rupee per US dollar) on 4 July
2016 was Rs. 67.38.
The Reserve Bank of India, in its weekly statistical supplement, stated that India's
total foreign exchange reserves stood at USD 353.46 billion at the end of July 2015.
This can be bifurcated into foreign currency assets (USD 329.87 billion) and gold
reserves (USD 18.25 billion).
The major industries include software, petroleum products, chemicals,
pharmaceuticals, agriculture, textiles, steel, transportation equipment, machinery,
leather, cement, mining and construction.
The major exports are software, petrochemicals, agriculture, leather, jewellery,
engineering goods, pharmaceuticals, textiles, chemicals, transportation, ores and
other commodities. The total exports for 2015-16 stood at USD 477.1 billion. The
major imports are crude oil, gold and precious stones, electronics, engineering
goods, chemicals, plastics, coal and ores, iron and steel, vegetable oil and other
commodities. The total imports for 2015-16 totaled USD 609.9 billion.
Under the Make in India scheme of the Indian government, 25 sectors that have
received major emphasis are automobiles, automobile components, aviation,
biotechnology, chemicals, construction, defence manufacturing, electrical
machinery, electronic systems, food processing, information technology and
business process management, leather, media and entertainment, mining, oil and
gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and
highways, space and astronomy, textiles and garments, thermal power, tourism and
hospitality and wellness.
PESTLE ANALYSIS of India
Political factors
The political environment of the country is strong and stable. Various political
parties actively participate in politics and have different ideologies and take on

development. The taxation system of the government is well developed and a

business is subject to income tax, sales tax, service tax, property tax, among
others. The government pays attention to various issues and introduces reforms
accordingly.
Economic factors
GDP growth rate of India is 7.9% while inflation rate is 5.47%. Foreign investment is
encouraged and new industries are being set up. New Economic Policy of 1991
resulted in reduction of industrial licensing, formation of FIPB, liberalization of
foreign capital, creating an environment conducive for growth. The country has
massive natural resources of coal, mica, titanium and manganese ore.
Socio-cultural factors
India has a population of more than 1.2 billion people with about 70% between the
ages of 15 and 65, giving her the opportunity to benefit from the demographic
dividend. High population growth rate has implied an enormous increase in the
labour supply. Cheap labour and a growing market have encouraged many
multinationals to invest in India. India continues to have a predominantly rural
population though the proportion of people living in urban areas has progressively
increased since 1951. The literacy rate has improved from 18.33% in 1951 to
74.04% in 2011.
Technological factors
Technology has significantly influenced product development and has helped in
cost-cutting. India is served with both 3G and 4G technology which has facilitated
several of their technological projects. Furthermore, the nation also possesses one
of the strongest IT sectors in the world, promoting constant IT development,
software upgrades and other technological advancements. Recently, India also
launched several satellites into space.
Legal factors
In the recent past, a number of legal changes have been implemented in India, such
as recycling, minimum wage increase and disability discrimination, which have
directly affected businesses here.
Environmental factors
The quality of air in India has been adversely affected by industrialization and
urbanization resulting in health problems. As a result, there have been
establishments of environmental pressure groups, noise controls, and regulations on
waste control and disposal.