The presentation made above looks at the strengths, weakness, opportunities and threats of the country. It also does a PESTLE analysis of the country as a whole giving information about the business opportunities in existing as well as new business sectors.
5. Motto “Satyameva Jayate”
Anthem "Jana Gana Mana"
National song Vande Mataram
Capital: New Delhi
Official languag
es
Hindi, English
Religion 79.8% Hinduism
14.2% Islam
2.3% Christianity
1.7% Sikhism
0.7% Buddhism
0.4% Jainism
0.9% others
Government Federal
parliamentary
Constitutional
republic
President Pranab Mukherjee
Chief Justice Jagdish Singh Khehar
Lok Sabha
Speaker
Sumitra Mahajan
Legislature Parliament of India
(Rajya Sabha & Lok
Sabha)
Independence Dominion (15 August
1947)
From UK Republic (26 January
1950)
Area 3,287,263 km2
GDP (PPP) $9.549 trillion(Total )
$7,197(per capita)
GDP (nominal) $2.607 trillion(Total)
$1,965(per capita)
Gini 35.1 medium 79th
HDI 0.609 medium · 130th
Currency Indian rupee (INR)
Republic of India-Bharat Ganrajya
6. States (1–29) & Union territories
• Andhra Pradesh
• Arunachal Pradesh
• Assam
• Bihar
• Chhattisgarh
• Goa
• Gujarat
• Haryana
• Himachal Pradesh
• Jammu and Kashmir
• Jharkhand
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• Odisha
• Punjab
• Rajasthan
• Sikkim
• Tamil Nadu
• Telangana
• Tripura
• Uttar Pradesh
• Uttarakhand
• West Bengal
• Andaman and
Nicobar
• Chandigarh
• Dadra and
Nagar Haveli
• Daman and Diu
• Lakshadweep
• National Capita
Territory of Del
• Puducherry
7. Economic Evolution Of India
Ancient times till 1707 AD
British rule
INDIA AFTER INDEPENDENCE
1950-1979
1980-1990
Liberalisation and its effects (1991 Onwards)
India: Global R&D Hub
INDIAN ECONOMY – FUTURE PROSPECTS:
8. 1. Low in per capita and yet India is the third largest economy in Asia:
India has a per capita income of $ 1400, but still qualifies as the third largest
economy in Asia after China and Japan. This is only possible due to the large size
of its population,which is its ultimate consumer.
2. High Purchasing Power Parity (PPP):
As one of the top 10 economies in the world in terms of nominal GDP, it is also
among the top five economies in the world for sheer PPP numbers. A lot has been
achieved because of rising demand and favorable demographic conditions in the
country of 1.2 billion people.
3. BSE rules:
Bombay Stock Exchange or Sensex is considered to be among the largest stock
exchanges in the world and surely one of the oldest. it is listed among the top 10
largest stock exchanges in the world.
4. Young India:
Unlike other economies including China, India has vast population of people under
25 and it sets up as a boon for the country. As per official data more than 460 million
constitute the working population of the country and it is second largest in the world
after China.
5.More offices in a city:
Bangalore, a software hub of India is the city that possesses more number of Grade-
A offices than Singapore. As per the official data Bangalore has increased the
number of offices by six times since the year 2006 and regarded as one of the best
cities in the world to set up your office in.
Top 10 Mind-Blowing Facts About Indian Economics
9. 6. Most number of rich people:
Though, the figure looks vulgar in comparison to the number of poor people in the
country,
but India is the only country apart from China and US to possess more number of
billionaires than any other country. We have 55 billionaires at present and still
increasing.
7. Leader in outsourcing services:
India is the world leader in terms of providing outsourced IT services. Of late India is
experiencing some pressure in the sector after the arrival of Philippines in the market,
and still we manage to deliver around half of the world’s outsourced IT services. It
roughly accounts to be more than $ 45 billion.
8. Foreign reserves:
India has the seventh largest foreign currency reserves in the world. Indian economics
sits proud on reserves of around $ 300 billion. It makes it certain that the Indian
economy despite some hiccups recently is all set to grow more and acquire larger
capital assets in the years to come. At present our GDP has reduced to 5%, but as per
wide expectations we would be clocking 8% growth in coming in 2015-16.
9. Arms import:
Though, India lacks sincere facilities regarding arms manufacture, it is the world’s
second largest importer and on the verge of becoming the largest in the field of
importing arms and ammunitions from foreign countries. As per the figures from
Defense Ministry, India has spent around $50 billion on defense purchases in the last
decade.
10.
11. STRENGTHS
Agriculture Based Economy - High percentage of
cultivable land.
Huge Pool of Labor force - Skilled and Unskilled.
Availability of abundant Natural Resource.
Large Domestic Market.
Economic Planning.
Extensive higher education system.
Democratic Institution.
Rapid growth of IT and BPO.
Administrative Setup & Judiciary.
12. WEAKNESS
Very High percentage of workforce involved in
agriculture which involves only 17.2% of GDP.
(Excessive Dependency on Agri)
Rural poverty leads horrible wave of suicides by
indebted farmers.
Population Explosion.
High unemployment rate.
Low literacy rates.
Under Utilization of Natural Resource.
Poor infrastructural facilities.
Low rate of capital formation and Technological
Development.
13. OPPORTUNITIES
Development of agriculture.
Diversification of industry.
Low labour cost.
Area of infrastructure.
IT and ITes sector.
Flow of foreign direct investment.
Growing urbanization.
14. THREATS
Current Account Deficits (Growing Import bill -
$461.4 billion).
Continuous fall in rupee.
Higher population growth And unemployment.
Lack of stable Government.
Growing Volume Black Money.
Energy and food inflation.
Judicial decision.
Growing global competition.
15.
16. Political Factors
Federal form of government.
Business environment influenced by various
political factors.
Taxation system developed by union government.
Make in India
18. Economical Factors
Growth rate of 7.6% in the year 2015-16
estimated to slow down to 7.1%.
Business sectors in India:
% contribution to GDP
Agriculture
Industry
Service
17.9%
24.2%
Agriculture:
Agriculture, Forestry, Fishing.
Industry:
Mining, Quarrying, Manufacturing.
Service:
Trade & Repair, Hotels &
Restaurants,
Transport, Storage,Communication
& Broadcasting, Financial, Real
Estate, etc.
57.9%
19.
20. Social Factors
Family structure important.
Society influenced by 2000 years old caste
system.
More than 50% of population below age of 25.
Religious beliefs influence business practices.
22. Social Factors
Religion statistics of India:
% of popuation
Hindus (80.5%)
Muslims (13.4%)
Christians (2.3%)
Sikhs (1.9%)
Buddhists (0.8%)
Jains (0.4%)
Others (0.6%)
Religion not stated
(0.1%)
23. Technological Factors
Served with both 3G & 4G services.
Good service providers in IT sector.
Big market in mobile sector.
3 million technical and scientific professionals.
TRAI.
24. Legal Factors
Taxation policies encouraging FDI.
Fair, equitable and transparent judicial system.
Labour laws.
26. Environmental Factors
Disproportion in vulnerability between developed
& developing nations.
Sourced 34% of energy from renewable sources.
Environment Protection Act, 1986.
The Water Act,1974
27.
28. TOURISM:
• 7% of GDP.
• Visa extended to 43
countries from 12.
• Biometric data
collection method.
• Diverse tourism
destinations.
INVESTMENT
OPPORTUNITY:
• Transportation and
Accommodations.
• Wellness tourism.
• Eco-tourism.
• Fairs & festivals.
• Small scale
industries.
TOURISM SECTOR
29. AUTOMOBILES:
• 10% of GDP.
• Opened up
International
markets.
• 18% exports.
INVESTMENT
OPPORTUNITY:
• Ancilliary Industry.
• Automobile Service
Industry
• Automobile
Components.
automobile SECTOR
30. AGRICULTURAL
SECTOR:
• 13.7% of GDP.
• 2nd largest producer
and exporter.
INVESTMENT
OPPORTUNITY:
-Organic Farming
-Horticulture.
-Cold Storage.
-Educating farmers.
AGRICULTURAL SECTOR
30
31. TEXTILESECTOR
• Each state has it’s
unique style &
fabric.
• 5% of India’s GDP.
INVESTMENT
OPPORTUNITY:
-Manufacturing
outlets.
-Manufacturing
technical textiles.
Eg.:Buildtech,
Packtech, Sparttech,
etc.
TEXTILE SECTOR
31
32. TECHNOLOGY &
SOFTWARE SECTOR
• Largest pool of
software engineers.
• Developing
infrastructure.
• Metro cities
equipped with IT
INVESTMENT
OPPORTUNITY:
-Outsourcing B2B
solutions.
-Digital India.
-Innovation.
-Ease to do business.
TECHNOLOGY & SOFTWARE SECTOR
32
33. OTHER BUSINESS OPPORTUNITIES
Recycling business.
Healthcare sector.
Ayurveda & traditional medicine.
Franchising.
Renewable energy resources.
Editor's Notes
The broad features of this policy as follows:
•
The Government reduced the number of industriesunder compulsory licensing to six.
•
Disinvestment was carried out in case of manypublic sector industrial enterprises.
•
Policy towards foreign capital was liberalized. Theshare of foreign equity participation was increasedand in many activities 100 per cent Foreign DirectInvestment (FDI) was permitted.
•
Automatic permission was now granted fortechnology agreements with foreign companies.
•
Foreign Investment Promotion Board (FIPB) was setup to promote and channelise foreign investmentin India.