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SWOT ANALYSIS OF
INDIAN ECONOMY
The economy of India is the
eleventh largest economy in the
world by nominal GDP and the
fourth largest by purchasing power
parity (PPP).
.
Huge pool of labour force .
High percentage of cultivable land .
Diversified nature of the economy.
Availability of skilled manpower.
Stable economy, does not get affected by external
changes .
Extensive higher education system, third largest
reservoir of engineers.
High growth rate of economy .
Rapid growth of IT and BPO sector bringing
valuable foreign exchange
Abundance of natural resources .
VERY HIGH PERCENTAGE OF WORKFORCE
INVOLVED IN AGRICULTURE WHICH
CONTRIBUTES ONLY 23% OF GDP
HIGH UNEMPLOYMENT RATE
POOR INFRASTRUCTURAL FACILITIES
LOW PRODUCTIVITY
HUGE POPULATION LEADING TO SCARCITY OF
RESOURCES
LOW LEVEL OF MECHANIZATION
RED TAPISM, BUREAUCRACY
LOW LITERACY RATES
UNEQUAL DISTRIBUTION OF WEALTH
RURAL-URBAN DIVIDE, LEADING TO
INEQUALITY IN LIVING STANDARDS
 Scope for entry of private firms in various sectors for
business .
 Inflow of Foreign Direct Investment is likely to increase
in many sectors.
 Huge foreign exchange earning prospect in IT and ITES
sector .
 . Huge population of Indian Diaspora in foreign
countries (NRIs) .
 Opportunity for MNCs for sales.
 Huge natural gas deposits found in India, natural gas as
a fuel has tremendous opportunities.
 Vast forest area and diverse wildlife .
 Huge agricultural resources, fishing, plantation
crops, livestock
GLOBAL ECONOMY
RECESSION/SLOWDOWN
HIGH FISCAL DEFICIT .
THREAT OF GOVERNMENT INTERVENTION
IN SOME STATES.
VOLATILITY IN CRUDE OIL PRICES
ACROSS THE WORLD .
GROWING IMPORT BILL .
POPULATION EXPLOSION, RATE OF
GROWTH OF POPULATION STILL HIGH .
AGRICULTURE EXCESSIVELY DEPENDENT
ON MONSOONS.
Swot analysis of indian economy

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Swot analysis of indian economy

  • 2. The economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). .
  • 3. Huge pool of labour force . High percentage of cultivable land . Diversified nature of the economy. Availability of skilled manpower. Stable economy, does not get affected by external changes . Extensive higher education system, third largest reservoir of engineers. High growth rate of economy . Rapid growth of IT and BPO sector bringing valuable foreign exchange Abundance of natural resources .
  • 4. VERY HIGH PERCENTAGE OF WORKFORCE INVOLVED IN AGRICULTURE WHICH CONTRIBUTES ONLY 23% OF GDP HIGH UNEMPLOYMENT RATE POOR INFRASTRUCTURAL FACILITIES LOW PRODUCTIVITY HUGE POPULATION LEADING TO SCARCITY OF RESOURCES LOW LEVEL OF MECHANIZATION RED TAPISM, BUREAUCRACY LOW LITERACY RATES UNEQUAL DISTRIBUTION OF WEALTH RURAL-URBAN DIVIDE, LEADING TO INEQUALITY IN LIVING STANDARDS
  • 5.  Scope for entry of private firms in various sectors for business .  Inflow of Foreign Direct Investment is likely to increase in many sectors.  Huge foreign exchange earning prospect in IT and ITES sector .  . Huge population of Indian Diaspora in foreign countries (NRIs) .  Opportunity for MNCs for sales.  Huge natural gas deposits found in India, natural gas as a fuel has tremendous opportunities.  Vast forest area and diverse wildlife .  Huge agricultural resources, fishing, plantation crops, livestock
  • 6. GLOBAL ECONOMY RECESSION/SLOWDOWN HIGH FISCAL DEFICIT . THREAT OF GOVERNMENT INTERVENTION IN SOME STATES. VOLATILITY IN CRUDE OIL PRICES ACROSS THE WORLD . GROWING IMPORT BILL . POPULATION EXPLOSION, RATE OF GROWTH OF POPULATION STILL HIGH . AGRICULTURE EXCESSIVELY DEPENDENT ON MONSOONS.