Pestle Analysis of India

India was able to attain its independence in the year 1947 and today it is regarded as one of the world’s largest democratic counties. Today, India is able to boast of a steady rise in its GDP that has taken place over the past two decades, coupled with another growth in liberalization. The country and its leaders have been quite welcoming to foreign investors who have come and helped see its economic growth. For a proper understanding of this great nation in its business and economic environment, it will be wise to take a look at both its PESTLE and SWOT analysis. This paper will take a brief look at these two analysis, starting with a brief introduction and explaining what they both stand for.

All these are factors that will affect or determine how businesses in a country will perform. Politicians have been known across the globe to take advantage of their positions in government to serve their own interest, and this is bound to be a huge problem especially in a country made up of billions of people. Politics plays a very crucial role in any nation and as such its negative sides will result in an equal negative impact on a nation’s business environment. Corruption for instance has been cited as huge problem in India, and its effects have already been seen. The following are some of the ways in which corruption has affected business in India: Due to corruption, the foreign direct investments in India have remained low compared to its peers such as Russia and China.

The rise in population in India for instance means that there is an increase in demand for goods and services. Despite the negative impact that a high population has on a developing country like India, it is still favorable for investors who take the opportunity to improve their businesses as they try to meet the demands of the people. India is also known as a multi-religious nation given the fact that its population is made up of people following various religions such as Hinduism, Islam, Christianity and many more (Gaer, 2016). This fact means that different people situated in different places of work have different values and beliefs which can affect how they conduct their businesses. These various religions also have their various needs in life that need to be met, and as such, the investors take advantage of the opportunities businesswise.

Consumer law This law is meant to serve and protect the rights of the consumer. It is a law that ensures customers are able to receive the right products for their money. With this law, a company that wants to put a product on the market will have to spend a significant amount of money in its advertising to ensure that the customer gets to know exactly what it is they are buying. This law will also provide good business for the companies that have been employed as watched dogs to ensure that these goods and services are right for the consumer. Copyright law This law is meant to safe guard a person’s right to a product or idea. Environmental factors have been known to affect businesses in many ways such as the type of goods to be brought, when to bring certain goods, the working habits of people during certain periods and many more.

In terms of climate for instance, India is known to be a very hot place recording high temperatures most parts of the year. As such, many investors tent to invest more in products such as electric fans or loose attires to enable the citizens be able to cope with the high temperatures. Businesses and offices have also had to spend more on ensuring that their places of work are well ventilated in order to keep their employees comfortable. The high population of people especially in India’s urban areas means that there is also a high rate of pollution. In this analysis we can start by looking at the strengths of India as a country. Strengths As a country India is recorded as one of the most densely populated countries in the world.

A large population means that there is readily available labor for businesses, and this labor force is made up of young and capable men and women. If this population is also able to get education, it also means that there will be a large number of skilled workers to help run businesses (Alam, 2017). India’s education system has also seen to it that there is a huge concentration on science and mathematics, thus enabling it to produce large numbers of skilled labor in the field of science and engineering. When the politicians are corrupt, they will fail to meet the needs of the people in terms of business ventures. Opportunities The large population of India will again have to come to play in terms of opportunities.

The huge population provides a ready market for investors looking to bring in their products and services. The large uneducated sector means that there is a huge opportunity for investment in the education sector (Alam, 2017). The huge population means that the citizens also have an opportunity to invest in domestic market as there is a lot of demand to needed to satisfy the people. Its poorest states still have cases of discrimination, domestic violence and inequality in terms of gender. When there is inequality in a place it means that there is a possibility that bright minds and ideas can be prevented from achieving their full potential and this can have a negative impact on businesses and they fail to grow.