India is the second largest country with massive population and has the big democratic country of the world. The Indian economic sector contributes in the service sector with 69% of total GDP, wholesale and retail trade with 23%, financial institution and real estate sector with 17% and these sectors play the vital role in the economic development of India. The country has large population and it is concentrating on its education and IT development and it is growing its business in different sectors.
The political system of the country is strong and different political parties take part in active politics. In the political environment, there are various elements like ideologies of different political parties, policies of government, interest of politicians, and they take action on different issues for the betterment of the people. The taxation system of the government is well developed and people pay income tax, services tax, property taxes and sale tax. The government has adopted its privatization policy to improve the efficiency and productivity of the government.
It has maintained the deregulation policy, international trade regulations, general initiatives, government stability and the international stability, which has created the economic development in the country. The government pays attentions on different issues of the country and they are introducing some reforms to make it economically strong and productive. The elections are conducted at the end of the tenure of any government, so there is no political turmoil among the political parties.
The economic situation of the country is strong and it includes taxation changes, interest rates, inflation, economic growth, and exchange rates. The government introduced the industrial reforms in 1991 and there is reduction in industrial licensing, formation of FIBP, and liberalization of foreign capital, which has created the improvement in the economic environment of the country. It has earned the GDP of $5.07 trillion in 2013, which was improved with the growth rate of 5% in 2015 while 4.35% in 2013.
The country has done remarkable success in doing the business of General Motors, BMW, Toyota, Mercedes Benz, Ford, Honda, Volkswagon and Hyundai. The country has encouraged the foreign investment in the country and new industries are being set up in the country. The country has massive natural resources of iron ore, coal, mica, titanium, manganese ore, and chromites. The country has enough foreign exchange reserves and it is paying attention on education, healthcare, banking, financial sector, and residential housing. The government is making timely decision for investment and business policies for the foreign product manufacturers, executives, investors, and material suppliers.
The social factors of India comprise of various social trends and changes like values, festivals, languages, traditions, belief, lifestyle, demographic features and customs. The majority of population is Hindu but there are Muslims and Sikhs are also in great number. There are different norms in the society, which are mobility of the population, income distribution, demographics of population, attitude to work and leisure, working hours & conditions and standard of education and skills. The labor market of India and the social development index also show the social factors of the country, which are in deplorable conditions and they need to be addressed.
Although there is religious freedom for the people of all religions, but the Hindu extremists have create violence against the followers of other religions and they take action against them from time to time. They attack the people of other religion and government seems fail to control their atrocities, which encourage them to expand it in various other regions. These activities have suffered the reputation of India and people hesitate to come to India to invest their amounts or visit the country as tourists. Various gang rape cases were also reported in different parts of the country, which show the alarming situation of the country.
India has made significant advancement in technology and it has prepared new smart phone with latest specification and also did a great deal in IT technology. It is focusing on product development and now introduced fresh cost cutting process. It provided 3G and 4G technology to its users and also facilitates them. It has developed online gambling, MP3 players, computer games and high definition TVs and they can also do online shopping. The new technology has reduced cost, improve the quality of the products and lead to the innovation in their technology. The new operators are launching their services including IT development, government technology funding, new materials and its processes, software upgrades and speed of technology transfer.
India has to face different environmental factors and the change in climate or weather can affect the business like tourism, farming and insurance. The global warming is becoming major external factor and it is significant issue to grow desire to protect environment and it has great impact on different industries. Pollution free industry is the primary necessity for industrial organization. The industry and urbanization has damaged the environment and most of the premature deaths are occurred in India. The air pollution has affected the public health and their living conditions, and it caused air pollution, planning permissions, waste disposal, environment pressure groups and noise control. The Indian government is aware of these pollution problems and they are taking necessary steps to control the air pollution and the growing number of traffic on the roads, which cause noise pollutions. These issues are serious and they need immediate attention of government and need to be addressed in short time.
Indian government has made many legal changes and introduced disability discrimination legislation and has increased the minimum wage. These latest legal changes can affect the costs and demand of the firms and they will boost the production of these companies. They also focused on business operations like Trade mark Act 1969, Standard of Weights and Measures Act 1969, Essential Commodities Act 1955 and Consumer Protection Act 196. In order to expand business and corporate sector, Indian government implements different legislations like Employment Law, Health and Safety regulations, Monopolies Commission, Trade and product restrictions and EU & international laws.