Country Analysis: INDIA

A framework to identify and evaluate

the national business environment
GROUP 7
 Flow of the presentation:
• Strategy
• Goals of India
• Hindrances to the goals
• Context
• Contextual components
• Performance
• Conclusion
STRATEGY: nation’s implicit and explicit goals and
the policies designed to achieve those goals
 GOALS OF INDIA

• National Goals given in the Constitution

• "The people of India have solemnly resolved
that INDIA will:~ Be a Democratic Rupublic.
• Secure Justice and Equality and create a
National Fraternity of Equal Citizens.
• Secure Equal opportunity for all Citizens.
• Be a Socialist Republic."
 6 MAJOR PROBLEMS IN THE WAY OF NATIONAL GOALS

• India is the World's largest Democracy but India's Electoral System has
made it the world's biggest failure.
• India's Caste System creates Inequality and is Unjust. It causes National
Disunity.
• India's Education System does not give all Indians an equal opportunity.
• India is not a Socialist Republic. It has no Social Security System to
ensure all Citizens have the basic means of life.
• India cannot control its Population growth or create the wealth and
ground organization needed for Socialism.
• India must live in peace with neighbors. It must use National Resources
for Welfare instead of Warfare.
 CONTEXT: Defines a national system and
structure the incentives to mobilize and allocate
the resources
 CONTEXUAL COMPONENTS
• RESOURCES at a nation’s disposal
• PLAYERS and RULES of the game : firms/
government organizations / non-government
organizations
 INDIA’S RESOURCES: the human capital
• An unparalleled resource of an educated, hard-working, skilled and ambitious
workforce is the hallmark of India’s human capital.
• That this workforce is also one of the world’s youngest adds to India’s attractiveness as
an investment destination.
• Of the BRIC countries, India is projected to stay the youngest with its working-age
population estimated to rise to 70% of the total demographic by 2030 - the largest in
the world. India will see 70 million new entrants to its workforce over the next 5 years.
• English is the language of business in India and the large English-speaking workforce is
a benefit to investors and employers. In fact, the number of Indians who know English
is more than the population of the USA. India’s diverse cultural heritage puts its
citizens at ease with people from other cultures and vice versa.
• With over 380 universities, 11,200 colleges and 1,500 research institutions, India has
the second largest pool of scientists and engineers in the world. Over 2.5 million
graduates are added to the workforce every year, including 300,000 engineers and
150,000 IT professionals.
 The natural resources
• The main natural resources of India are iron ore, bauxite, and
copper ore. India is one of the major producers of iron in the
world. Iron ore is found all over India, the major contributors
being the states of Bihar and Orissa.
• Major portion of the energy in India is generated from coal. It is
estimated that India has around 120 billion tons of coal in
reserve, enough to last for around 120 years.
• Huge reserves of petroleum have been found off the coast of
Maharashtra and Gujarat.
• Electrical energy is generated by hydroelectric power, coal, and
nuclear energy. Half of the hydroelectric power is generated by
snowfield reservoirs high up in the Himalayas.
 FUTURE RISKS
Appreciating rupee
Patents are on the rise, but
nowhere near its peers
Technological Advances

ANALYSIS OF THE INDIAN

TECHNOLOGICAL
LANDSCAPE
 The Players
• The sales figures of Corporate India are projected to rise by 4.7 per cent in fiscal 2009-
10. They grew by 13.4 per cent in the December 2009 quarter, after falling for two
consecutive quarters. Sales growth is expected to accelerate to 18 per cent in 2010-11.
• Net sales of the manufacturing sector grew by 18.5 per cent in the December 2009
quarter compared to the year ago.
• The factors that led to this robust growth were a sustained rise in demand,
improvement in prices and a low base.
• Sectors like automobiles, auto ancillaries, tyre and textiles benefitted from the pick-up
in demand, while sugar, edible oils, polymers, steel and copper gained from the rise in
commodity prices.
• The Index of Industrial Production (IIP) rose by 16.8 per cent y-o-y in December 2009.
This was the highest monthly growth recorded by the index since April 1982.
• Rabi foodgrain production is expected to touch an all-time high of 117.7 million tones
in 2009-10.
• The economy is expected to grow by an impressive 9.2 per cent in 2010-11.
THE GOVERNMENT ORGANISATIONS
 PERFORMANCE
GDP growth of India:
GDP growth in US dollars:
In terms of HDI:
In comparison with other countries:
FDI inflows in India
 CONCLUSION:
• India must concentrate on improving infrastructure
• A holistic approach towards an inclusive growth is the need of the hour.

• Political nexus like red tapism, naxalite problems hindering the national growth should be addressed

• Growing population is a concern India should address

• Imbalanced regional development and widening economic disparities

• Better implementation of Intellectual Property Laws.

• Need to spend more on R & D activities.

• India’s dependence on thermal energy, mainly coal based, has resulted in a host of environmental
problems and should focus on alternatives (nuclear, wind energy)

• Must introduce policies to compete with China in manufacturing sector.