India Environment Analysis

The country lies in an area of approximately 3. 3 million square kilometers and has an area population of 1. 4 billion. The major religions in India are Hinduism, Islam, and Buddhism and there are 17 languages spoken in India in general. The food market in Indian is the sixth biggest market worldwide, with retail bringing in approximately 70% of the total sales (IBEF, 2016:04). The democratic will of the people is respected by political parties and the people in general which contributes to the stability of the country politically. The political culture of resilience also adds to the stable political environment and also in the attraction of foreign direct investment. The political stability in the country has positive effects on businesses and thus it will positively impact our company providing development opportunities.

• Corruption One of the greatest areas of concern in India is the high levels of corruption in the country. Being the second populous country worldwide, the corruption levels are high which negatively affects the country’s business as well as the political environment, which becomes a challenge for economic growth. 0% in the fiscal year 2018 and grow by 7. 4 by the fiscal year 2020. This provides great opportunities for businesses in the country and for our restaurant business expanding to the country. • High tax rate The increased tax rates in India pose a challenge for businesses in the country. The corporate tax rate in India was 30% as of February 2018 (Rahman, 2018:03). • Religion India is a "multi-ethnic," "multi-lingual" and "multi-religious" country. The public harmony in the nation is an extraordinary strength (Rahman, 2018: 04).

• Income increase Recently, there have been many changes in the environments in which businesses operate such as the disability discrimination legislation. Among the changes is the increase in the minimum wage for workers which had lead to increased levels for the people in India. This provides a great opportunity for our company in the country (Dhillon, 2018: 03). Therefore, the environment is not sustainable at all. • Pollution Despite the fact that India has made lots of progress recently, the country is experienced a number of environmental challenges with the biggest challenge being air pollution, water pollution, resource depletion and also floods making its environment unsustainable (Rahman, 2018:06). This has a negative effect on businesses and thus it’s likely to have severe impacts on our company.

Legal factors • Government regulations The companies in India are regulated by the Companies Act, 2013 which regulates the manner in which businesses are conducted in all industries. The country operates under a strong legal system combining both civil, religious and common law since its colonial generation (Kaul, 2017:05). • Rampant corruption The high levels of corruption in India also hinder foreign investors from expanding their businesses to the country. The high levels of corruption impact the economic and political environments which consequently affects the businesses operating in the country. • Poor infrastructure Despite the fact that India is known to have the most advanced IT infrastructure and the fact that the government accords much importance to infrastructure, the poor infrastructure in the country still remains a reason for foreign investors turning away from India.

For instance, the poor roads and power cuts in the country hinder foreign investment. The high transportation costs are also barriers to foreign investment (Gupta, 2010:02). The logistics sector faces several problems among them complex systems, expanding coordination costs over the inventory network confronting inadequate infrastructure, poor vehicle-load-carrying capacities which at the end result in delays and damages. All these problems lead to an increase in transportation costs in the country. The myriad number of taxes has made transportation challenging and very costly (Saripalle and Chebolu-Subramanian, 2017:05). References Top of Form AHMED, F. A. McGraw-Hill Bottom of Form BBC News. India country profile. Retrieved from https://www. bbc. com/news/world-south-asia-12557384 Dhillon, D. Shawarma a fast-selling Arabic fast food in Hyderabad. India TV.