Indias Economy today:

India has a GDP $1.430 billions (2010) and is ranked as the 12th fastest growing economy today. The average growth since 1997 has been estimated to 7% annually, even during the financial crisis in 2007-2009. In 2010 their GDP growth was 9.998%. But even tho the country in growing the GDP per capita is only $3,400 witch makes india number 163 on the top GDP per capita list. They have currently a 10.8 % unemployment. It was estimated by the CIA world fact book in 2007 that 25% of the population in India lives below the poverty line. The biggest sectors in Indias economy is: Agriculture Textiles Handcraft Services Agriculture stand for 66% of Indias populations livelihood and it is the sector where 15,8% of the Indian workforce gets their income from. The main products being produced is rice, wheat, oilseed, cotton, jute and tea. The biggest employment sector is the service sector with 58,4% of the indian workforce. The fact that this sector is so big is because many of the American and British companies move services such as technical support to india where the english speaking population grows every day. The industry in India mainly produces textiles, chemicals, food processing, steel, transportation equipment, cement and mining, Industrial production growth rate is 9,7% they are currently number 21 in he world. Even tho India is liberal, allot of the economy is controlled buy the government. It is estimated that the government owns approximately 40 % of Indias GDP exchange rate. Another important standpoint in Indias economy is that they are a buying nation or self-sufficient, in difference to Japan, the four tigers and China who all rely on exporting. India is a member of G20 but In 2010, the per capita income of India was $ 3,290 and according to the World Bank, India is still classed as a low-income economy.

Economic History

In the early stage before Great Britain colonized India the country mostly survived of agriculture. In the time of colonization India as a country developed and became more civilized. The banking system and free trade are some of the examples of the influence England had on India. After their independence India struggled to be self sufficient in food, they made plans, build roads, invested in the army and transferred electricity to cities without all ti improve the standard of living and to declare they were their own country they build up higher walls then necessary around the country. Since the early 1990 india has gradually opened up their county to the international market and as the government has privatized state owned enterprises the countries economy has developed and since 1997 the GDP growth has

Sourses http://business.mapsofindia.com/india-economy/history.html https://www.cia.gov/library/publications/the-world-factbook/geos/in.html http://www.economywatch.com/economicstatistics/India/GDP_Growth_Constant_Prices_National_Currency/ http://www.economywatch.com/indianeconomy/

Overall strength and weaknesses

The major strengths in india it its population. The middle class is growing in number, economic strength and in education. Inda is one of the worlds leading countries in education, and even tho they dont speak english as a first languish a big part of Indias population speaks english. This makes india a perfect place for companies to place their customer service office. The economy in the country is rapidly growing which gives companies a perfect start for branding. Weaknesses in India are bad infrastructure, cultural differences and possible terrorism in the future. Firstly the ability to move goods in the country can be hard if the roads and railways are bad. There is also the problem for the population to travel in to cities that can make it hard to reach consumers outside the city-boundary. This is why a good infrastructure is important for the growth of a country. Another hinder in doing international business with India can be the major differences in culture. India is a large nation with a big differences in culture compared to most of the counties in the world. Their hierarchy system has affected the society as well as the business structure. The way of seeing life, not as a coincidence but as faith and destiny and the fact that you cant decide the outcome of your owned life, is not the major way of seeing life in USA and Europe. The differences in culture also means differences in holidays which may not be the same as the one in the home country, making it hard to combine the business calendar. Possible threats in the future can be Pakistan. A developing country who gets founds from USA to strengthen their military. As the economy of India grows stronger and there already is tension between the countries it may be worsen during time putting India at a risk for terrorism in the future.

http://www.mtholyoke.edu/~nmonasch/pakistan-india%20conflict.html http://www.hotathrandom.com/IndianCaste.htm http://business.mapsofindia.com/india-economy/history.html http://www.economywatch.com/indianeconomy/

Conclusions and Recommendations

Our conclusions for this paper is that the best opportunities can be found in the growing middle class of India. With the progress in the economy the focus in india is sure to be the middle class. Therefor the main business opportunities we can find are: Insurance Banking Electricity suppliers Automobile Computer Infrastructure Pharmaceutical companies Only around 60 % of the inhabitants of India have a banking account and therefore there is room for expansion in the area of insurance and banking. Suppling the worlds second largest population with electricity is not easy. Since the oil price has increased India needs to find new ways, hopefully environmentally healthy, to provide their country with electricity. Wind, sun and nuclear power has been to expensive to develop for India but right now as they grow the demand for electricity grows making it an interesting market. India also has the worlds second largest car-market after China, there for we believe in the car industry will develop more in the next couple of years. We also believe in the concept of food and believe that food such as subway, McDonald, Pizza Hut and Tacco Bell can grow to be huge in India, if they try to adopt to the culture this includes changes such as no cow meat (since Cow is a holy animal in Hinduism). If an international company can maintain the western theme while making the changes necessary to adopt to culture, they will have a good chance of success in international business.

Sources
http://www.hurriyetdailynews.com/n.php?n=serious-energy-shortages-in-india-andpakistan-2011-05-09 http://www.worldaffairschallenge.org/uploads/Energy_CQ__Energy_Crisis_in_India_1_.p df http://online.wsj.com/article/SB124698224794006463.html