PESTLE Analysis of India

Submitted To: - Submitted

By:-
Mr. Vishwas Chakranarayan Ashish
Suman
Roll No.
RS1904A10
Reg. No.
10905868

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 Acknowledgment

My sincere thanks and gratitude to my faculty who inspired me by his

able guidance and was a constant guiding light during the course.
The support and knowledge provided by him has been a great value
addition for me and will go a long way in building a promising career.
Last but not least, I am also thankful to all the respondents of my
survey without whom the Term Paper would not have been completed
successfully.

(Ashish
Suman)

Contents
Page No.
1. Abstract : 4
2. Methodology : 5
4. About India : 6
4. Introduction : 9
5. PESTLE Analysis 7
Political : 10
Economical : 13

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 Social : 16
Technological : 17
Legal : 18
Environmental : 19
6. Conclusion : 20
8. References : 21

Abstract

In this term paper Pestle analysis of India. How Organization take the
analysis for setup the offices or industry in India. In this analysis tell
the environment of India. Factors of India. Government policy,
literacy, privatisation, legal problem, technology use India, any many
factors given below.

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 Methodology

For This term Paper I search articles on Websites, Journals,

Newspaper, and Magazines. I study books for these topics. I also take
help of faculty for preparing Term paper. I go thoroughly websites
data. I also take help my friends and colgues. I study on proquest
website article, journal. I read some other essays regarding this.

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India
India, officially the Republic of India is a country in South Asia. It is the
seventh-largest country by geographical area, the 2 most populous
countries, and the most populous democracy in the world. The Indian
Ocean on the south, the Arabian Sea on the west, and the Bay of
Bengal on the east, India has a coastline of 7,517 kilometres .It is
bordered by Pakistan to the west, People's Republic of China, Nepal,
and Bhutan to the north, and Bangladesh and Myanmar to the east.
India in the vicinity of Sri Lanka, Maldives, and Indonesia in the Indian
Ocean.
Home to the Indus Valley Civilisation and a region of historic trade area
and vast empires, Indian subcontinent was identified with its
commercial & cultural wealth for much of its long history. Four major
religions, Hinduism, Buddhism, Jainism and Sikhism originated
country, while the Zoroastrianism, Judaism, Christianity and Islam
arrived in the first millennium of
CE and shaped the region's diverse culture. The British East India
Company from the early eighteenth century and colonised by the
United Kingdom from the mid-19 century, India became an
independent nation in 1947 after a struggle for independence that was
marked by widespread non-violent resistance.
India is a republic consisting of 28 states and 7 union territories with a
parliamentary system of democracy. It has the world's 12 th largest
economy at market exchange rates and the fourth largest in
purchasing power. Economic reforms since 1991 have transformed it
into one of the fastest growing economies; however it still suffers from
high levels of poverty, illiteracy, disease, & malnutrition. A pluralistic,
multilingual, and multiethnic society.

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 India at Glance
1. Population : 1,150,000,000 (1.15 billion)
2. Area : 3.3 million square kilometres
3. Geographical location : Lies between latitudes 8
4'
& 37 6 ' north and longitudes
68 7 ' and 97 25' east
4. Coastline length : 7600 km
5. Languages : 17 major languages, 844 dialects
6. Major religions : Hinduism, Islam,

Christianity, Buddhism,
Sikhism, Jainism
7. National anthem : Jan gana mana written by Rabindranath
Tagore

8.National Song : Vande Mataram, composed

in Sanskrit by Bankimchandra
Chatterji
9.National emblem : Replica of the Lion Capital of Sarnath

10.National flag : Horizontal tricolour in equal

proportion of deep saffron on

the top, white in the middle and

dark green at the bottom. In the centre of the white band is a wheel.

11. National animal : Tiger (Panthera Tigris)

12. National bird : Peacock

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13. National flower : Lotus

14. National tree : Banyan

15. National fruit : Mango

16. National currency : Rupee (One Rupee=100 paisa)

17. National Sport : Hockey

Introduction
PESTLE Analysis in Business Environment
In business PESTLE analysis role is very important. Originally designed
as a business environmental scan, the PESTLE analysis is an analysis of
the external macro environment in which a business operates. These
are factors which are beyond the control or influence of a business,
however are important to be aware of when doing product
development, business or strategy planning.
PESTLE means:
P- Political
E- Economical
S- Social
T- Technological
L- Legal
E-Environmental

The PESTLE subject should be a clear definition of the market being

addressed, this is the followings:-

A company looking at its market

A product looking at its market

A brand in relation to its market

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 A local business unit or function in a business

A strategic option, such as entering a new market

A potential acquisition

A potential partnership

An investment opportunity

Now we see in details of PESTLE factors/Impact in India In next

following pages:

POLTICAL
These refer to government policy such as the degree of intervention in
the economy. What goods and services does a government want to
provide? To what extent does it believe in subsidising firms? What are
its priorities in terms of business support? Political decisions can
impact on many vital areas for business such as the education of the
workforce, the health of the nation and the quality of the
infrastructure of the economy such as the road and rail system.
India is the biggest democracy in the World. The government type is
federal republic. Based on English common law, judicial review of
legislative acts, accepts compulsory ICJ jurisdiction with reservations,
separate personal law codes apply to Muslims, Christians, and Hindus.
The political Situation in the India is more or less stable. Most of its
democratic history, the federal Government of India has been led by
the (INC) Indian National Congress. State politics dominated by several
national parties including the INC. The Bharatiya Janata Party (BJP), the
Communist Party of India (CPI), and various regional parties. In the
2009 Indian elections, the INC won the biggest number of Lok Sabha
seats and formed a government with a alliance called the United

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Progressive Alliance (UPA), supported by various left-leaning parties
and members opposed to the BJP. Overall India currently has a
coalition led government and both major political parties the UPA and
BJP, whichever comes in power.
It comprises political stability and the policies of the government.
Ideological inclination of political parties, personal interest on
politicians, influence of party forums etc. create political environment.
For example, Bangalore established itself as the most important IT
centre of India mainly because of political support.
In India many poltical factors those effect in business environment.
Political pressures in ruling government and vote bank problems.
These are the major factors those affect on political environment:-
(i) Taxation policy
India has a well developed tax structure with a threetier federal
structure, comprising the Union Government, the State Governments
and the Urban & Rural Local Bodies. The power to levy taxes and duties
are distributed among the three tiers of Governments, in accordance
with the provisions of the Indian Constitution. The main taxes/duties
that the Union
Government is empowered to levy are Income Tax income, Customs
duties, Central Excise and Sales Tax and Service Tax. The principal taxes
levied by the State Governments are Sales, Stamp Duty, State Excise,
Land
Revenue, and Duty on Entertainment and Tax on Professions &
Callings. The Local Bodies are empowered to levy tax on properties,
Octroi Tax on Markets and Tax/User Charges for utilities like water
supply, drainage, etc.

(ii) Privatisation

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Reduce the political interface in the management of enterprises,
leading to improved efficiency and productivity. In India this time do
many govt company Good performance but some time later there are
facing many problems so the go for privatisation.

(iii) Deregulation
India Govt makes some Act to freely do business in India.
(iv) International trade regulations
International trade regulation day by day India makes it flexi able
for foreign trade.
(v)General initiatives
Some policy to first Political initiates for the business environment in
In India.
(vi) Government stability
In India past 10 years govt is stable. Before 10 years India facing govt
stability. If govt stability not market is not improve and no one come
here for investment.
(vii)International stability
No wars, no any country home problems, and no any type of war like
Iraq they make uncertainty in market.

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ECONOMICAL
It includes interest rates, taxation changes, economic growth,
inflation and exchange rates. As you will see throughout the
"Foundations of Economics" book economic change can have a major
impact on a firm's behaviour. For example:

higher interest rates may deter investment because it costs more

to borrow

a strong currency may make exporting more difficult because it

may raise the price in terms of foreign currency

inflation may provoke higher wage demands from employees

and raise costs

higher national income growth may boost demand for a firm's

products
In order to solve economic problems of our country, the government
took several steps including control by the State of certain industries,
central planning and reduced importance of the private sector. The
main objectives of Indias development plans were:

Initiate rapid economic growth to raise the standard of living,

reduce unemployment and poverty,

Become self-reliant and set up a strong industrial base with

emphasis on heavy and basic industries,

Reduce inequalities of income and wealth,

Adopt a socialist pattern of development based on equality
and prevent exploitation of man by man,

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As a part of economic reforms, the Government of India announced a
new industrial policy in July 1991, The broad features of this policy as
follows:

The Government reduced the number of industries under

compulsory licensing to six.

Disinvestment was carried out in case of many public sector

industrial enterprises.

Policy towards foreign capital was liberalized. The share of

foreign equity participation was increased and in many activities
100 per cent Foreign Direct Investment (FDI) was permitted.

Automatic permission was now granted for technology

agreements with foreign companies.

Foreign Investment Promotion Board (FIPB) was set up to

promote and channelise foreign investment in India.
The economic factors in India are improving continuously. The GDP
(Purchasing Power Parity) is estimated at about 3.965 trillion U.S.
dollars in the year 2009. The GDP- real growth rate in 2009 was 6%.
India has the third highest GDP in terms of purchasing power parity
just ahead Japan and behind U.S. and China. Foreign direct investment
rose in the fiscal year ended
September 2009 to about US$ 10.532 billion. There is a continuous
growth in per capita income; Indias per capita income is expected to
reach Rs. 33283 by the end of 2009-2010. This will lead to higher
buying power in the Hands of the Indian consumers. India GDP is now
6.5. Today India reserve Us dollor in Good condition.
In Indian economy is strong. We see in recession our economy is less
affect from recession compression to western countries. These
following factors:

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(i) Interest rates
(ii) Money supply
(iii) Credit control
(iv) Financial markets
(v) Inflation
(vi) Competitors pricing
(vii) Globalization

SOCIAL
Changes in social trends can impact on the demand for a firm's
products and the availability and willingness of individuals to work. In
the India, for example, the population has been ageing. This has
increased the costs for firms who are committed to pension payments
for their employees because their staff are living longer. It also means
some firms have started to recruit older employees to tap into this
growing labour pool.
It describes the characteristics of the society in which the organization
exists. Literacy rate, customs, values, beliefs, lifestyle, demographic
features and mobility of population are part o the social environment.
It is important for managers to notice the direction in which the
society is moving and formulate progressive policies according to the
changing social scenario
India is the second most populous nation in the world with an
approximate population of over 1.1billion people. This population is
divided in the following age structure: 0-14 years 31.8%, 15-64 years
63.1% and 65 years and above 5.1%. There has a
(i)Mobility

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(ii)Income distribution
(iii)Population demographics
(iv)Attitude to work and leisure
(v)Standard of education and skills
(vi)Working conditions

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TECHNOLOGICAL
New technologies create new products and new processes. MP3
players, computer games, online gambling and high definition TVs are
all new markets created by technological advances. Online shopping,
bar coding and computer aided design are all improvements to the
way we do business as a result of better technology. Technology can
reduce costs, improve quality and lead to innovation. These
developments can benefit consumers as well as the organisations
providing the products. Today in India 3G technology starts. A heavy
infrastructure for bandwidth. BSNL and Reliance have more covered
city by optical fibre. India have many Technological Projects. Good
Service provider in IT sector ex TCS, Infosys and many more.Today
India is a big market in mobile sector here 5-6 player operataors and
new operators launch their services soon.
(i) IT Development
(ii)New Materials and processes
(iii)Government technology funding
(iv)Speed of technology transfer
(v)Software upgrades

LEGAL
These are related to the legal environment in which firms operate. In
recent years in the India There have been many significant legal
changes that have affected firms' behaviour. The introduction of
discrimination and disability discrimination legislation, an increase in
the minimum wage and greater requirements for firms to recycle are
examples of relatively recent laws that affect an organisation's actions.
Legal changes can affect a firm's costs and demand.

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This consists of legislation that is passed by the parliament and state
legislatures. Examples of such legislation specifically aimed at business
operations include the Trade mark Act 1969, Essential Commodities
Act 1955, Standards of Weights and Measures Act 1969 and Consumer
Protection Act 196.
In India take many type of permission to the sate govt or central govt.
In India many type of act like license permission, copyright permission,
and many types of other permission.
(i)Employment law
(ii)Trade and product restrictions
(iii)Health and safety regulations
(iv)EU and international laws
(v)Monopolies commission

ENVIORNMENTAL
Environmental factors include the weather and climate change.
Changes in temperature can impact on many industries including
farming, tourism and insurance. With major climate changes occurring
due to global warming and with greater environmental awareness this
external factor is becoming a significant issue for firms to consider. The
growing desire to protect the environment is having an impact on
many industries such as the travel and transportation industries (for
example, more taxes being placed on air travel and the success of
hybrid cars) and the general move towards more environmentally
friendly products and processes is affecting demand patterns and
creating business opportunities.
In India we know that many types of enviormental problems this are
basic things but more important for our enviorment. also biotic factors

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,abiotic factors and their interaction with one another. pollution free
industrial activity i.e is nessary condition of industrial organization.
Industrialization and urbanization have resulted in a profound
deterioration of India's air quality. Of the 3 million premature deaths
in the world that occur each year due to outdoor and indoor air
pollution, the highest number are assessed to occur in India.

(i)Pollution problems

(ii)Planning permissions
(iii)Waste disposal

(iv)Noise controls

(v)Environmental pressure groups

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CONCLUSTION

The PESTLE analysis here shows what is a factor in India who relates to
the Business. This study is more and more beneficial for any business
organization. In the report given detail of our India political, social
economical, legal, environmental and technological. This all the issue
of India market stability, government politic. Political stability in India.
And many other things show this. We say that PESTlE analysis role is
in today scenario in business very important. We see here India PESTLE
analysis. In India many opportunity to open a business. Some
problems in India But we Know every where every things is not
available.

References
1. Salem sheikh Text Book
2. www.economicstimes.com
3. http://economictimes.indiatimes.com/
4 http://proquest.umi.com/
5. http://rapidbi.com/pestle/Introduction-to-the-PESTLEanalysis-
tool.html#political
6. http://www.englishtest.net/gre/vocabulary/meanings/349/gre-
words.php
7. http://en.wikipedia.org/wiki/Abstract_%28summary
%29
8. http://en.wikipedia.org/w/index.php?title=Special%3ASearch&se
arch=pestle&go=Go

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9. http://www.englishtest.net/gre/vocabulary/meanings/349/gre-
words.php
10.http://www.teesmaarkhan.com/2008/07/pestanalysis-india.html
11.http://www.financialexpress.com/gsearch.php? cx=partner-pub-
9517772455344405:6tybbydb0c&cof=FORID%3A10&ie=ISO-8859-
1&q=Poltical
%20Impact%20in%20buisness %20enviornment&sa=Search#1268
12.http://books.google.co.in/books?
spell=1&q=salim+sheikh+buisness+enviornment&btn
G=Search+Books

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