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General overview:
India is the vast country situated in southern Asia. India has shared its border with china and Pakistan,
Nepal, Bhutan and North. There still exists the small disputed with Pakistan which share border with
Afghanistan. India is surrounded by the Bay of Bengal, the Indian ocean to the south and the Arabian sea
to the west. To the north side of India there is Himalayan range. India is the second most populous country
with the population 1.21 billion people and 29 percent of the population living in urban areas. India has
more than 2,000 ethnic groups. India has the 29 states and seven union territories with new Delhi as the
capital. Languages in India is Hindi and is spoken in the major cities of India. English is also spoken in the
major cities of India and 21 other languages also spoken in India. The main religion of India is Hinduism,
Islam is 13.4 %, Christianity is 2.3. literacy of the country is 61 % and having life expectancy is 67. 14 years.
currency of India is rupee. India has the world 11 largest GDP in the world. The GDP crosses $1.843 trillion
in 2011. Trade partner of India are china, US, EU and the UEA. Sprawling over a land of 3,287,263 sq. Km,
India has a vast and varied geography. The four geographical regions are north, plains of the ganga and
the Indus, the desert region. 5.78 million foreign tourists visited the country in 2010.
The industry sector employs less than one-fifth of the workforce and accounts for 28.9% of GDP. Coal is
the country main energy source. Textile is another bigger industry and the chemical industry is the second
largest industrial sector. Rapidly growing software side and IT market has been boosting the export of
services and modernizing the Indian economy. McKinsey & Company report, more than half of the 3.9
million people employed in the Indian IT sector.
Socio-culture of india:
India culture is about 4500 years ago. Sa Prathama Sanskrati Vishvavara the first and the supreme culture
in the world. India culture having one of the best architects of Taj mahal, having mathematician and
medicine. Today, India is a very diverse country, with more than 1.2 billion people. The family values are
very high throughout india and are fundamental in daily life. According to india culture in which the
structure of the family is patriarchal; a woman must obey her father, her husband, her son. Arrange
marriages are the common places. Urban middle class people are running away from the arranges
marriages. Families are often live with the three or four generation in the same household. Tradition are
of dowry and the child care should be provided by the female. India has one of the oldest cast systems in
which people are divided into Brahmins, Kshatriyas, Vaishyas and Shudras, brahmins are the teacher and
the intellectual people, Kshatriyas, the warriors and rulers, there can be thirty cast in one village living
together. Patriarchal families are the norm, women are considered as the secondary position within the
home, 82.14% of males and 65.46% of females are literate.
Political factor:
Being the biggest democratic country in the world india is running on a federal form of government. The
whole political environment is greatly influenced by the political parties, politicians’ interest and
ideologies of the several political parties. Due to which the business of the country is greatly affected by
the political parties that are governing the state. The reforms made by them often suit the business terms
and compel foreign investors to invest in the India to get the international business inside the country to
increase the GDP. The taxations system of the country is well-developed and several taxes, such as income
tax, services tax and sales tax are imposed by the Union Government. Privatization is also influenced and
the government encourage free business through variety of programs.
Technological factor:
Technology can change the buying pattern of the business. India is very rich in technological term having
own mobile manufacturing companies. Due to strong IT market it can change the customer behavior could
be changed due to online shopping and home delivery of the goods. Organization produce to sell, but if
the spending power of the customers decreases or they become average to particular type of product or
service, the organization will be affected immensely. Due to technologies modernization is indicated by
the change in people food habits dress and speaking style to ease of availability of everything. The industry
is characterized by heavy, fixed capital investment due to modern technologies. Social changes also occur
due to technologies. Mechanistic approach viewing the universe as a collection of parts, that can
individually analyze and understood. Opportunities the contribution of the internet economy to the
country gross domestic product is expected to increase from 4% in 2010 to 5.6 % in 2016. Also, the number
of billion-dollar Indian companies from 141 fiscal year 2010 to more than 700 by 2020.
In the midterm foreign trade policy of 2015-20 the minister of commerce and industry has
enhanced the scope of Merchandise Exports from India Scheme (MEIS) and Service Exports from
India. For ready made garments the tax has been increased up to 2 percent by SEIS. And also
increased the validity of the duty credit script from 18 to 24 months.
In September the duty of the 28 milk items export also increased.
All the import and export are monitored by the foreign trade policy.
FTP enhances the trade policy of the country by increasing the exports as a trade expansion as an
effective instrument of economic growth.
The department of commerce increased the tax and also include some additional items under the
Merchandise Exports from India Scheme (MEIS) to support exporters.
CBEC has developed the integrated declaration.
Under FTP india has signed the Comprehensive Economic Partnership Agreement with South
Korea to increase the exports and imports.
The india has removed its licensing requirement for customer goods. For example, the Indian government
imposed the extra duty tax on the motorcycles and vehicles that is very restrictive. India maintains a
"negative list" of imported products subject to various forms of nontariff regulation. India treats boric acid
imports to stringent restriction. The united states urged india to eliminate its imports licensing
requirement on boric acid and other material.
FDI of india:
he total FDI investments in India April-June 2018 stood at US$ 12.75 billion, In 2018 the highest FDI of
$2.43 billion of USD. Followed by the $1.43 billion by trading, telecommunication $1.59 billion and
computer and hardware and the 1.41 billion. During April-June 2018, India received the maximum FDI
equity inflows from Singapore (US$ 6.52 billion). And other foreign investment in different sectors.
Summary:
India is the second largest country by population, having one of the largest areas. Cultural values are very
diverse and above 100 languages are spoken in india. Hindi is the capital language and Hinduism is the
national religion. India shared border with china and also have trade with china but india need to revamp
their foreign policy regarding china and Pakistan. Political, cultural, economic and the technological term
of the india have been discussed. Rupees has great influence on international trade but what needed to
be done is to allow the foreign investor to invest in india. They have to make their relation better with
Pakistan and china to strengthen their economy. Trade policy is very strict for some countries while lenient
for the other. the imbalance in the market is due to over population and due to less self-manufacturing
increase the unemployment.
References:
Technological Environment Affecting Indian Business - Research Paper Example. (2018, April 13).
Retrieved from https://paperap.com/paper-on-technological-environment-affecting-indian-business/
4 Factors that Affect the Foreign Exchange Rate in India. (2015, August 26). Retrieved from
http://www.economicsdiscussion.net/foreign-exchange-rate-2/4-factors-that-affect-the-foreign-
exchange-rate-in-india/10837