PESTEL ANALYSIS ON INDIA

Economical factors of India

Indian Economy can grow around 7 percent in 2009/10. This off course, is largely dependent on how the US Economy recovers over next few months. If US economy bottoms out around December, as many analysts are expecting, India can easily look at 7% upwards growth. The Economy will get back to its growth path of around 9% in medium term. The government has shown its eagerness for Fiscal consolidation. The Fiscal deficit target is suggested to be set at 3 percent of GDP at the earliest.

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Inflation is suggested to be a non-issue moving forward. The Economic Survey suggested allowing the public to hold greater equity in public sector banks and aligning of voting rights in banks with equity holdings. Calibrated monetary policy approach is suggested for early return to high growth path. The Economic Survey has suggested that quality Foreign Direct Investment should be allowed to seek regulatory reforms in higher education.

Technological Factors
New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new market created by technological advances. Online shopping, barcoding, CAD 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 th e organisations providing the products.

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Today in India 3Gtechnology starts. India is a big market in mobile sector here5-6 player operators and new operators launch their services soon There is a heavy infrastructure for bandwidth. BSNL and Reliance have more covered city by optical fibre. India have many Technological Projects. Some of the Good Service providers in IT sectors are TCS, Infosys and many more.

Legal Factors
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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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. Firms have to take permissions from state or central govt to launch business . E.g. permissions on: (i)Employment law (ii)Trade and product restrictions (iii)Health and safety regulations (iv)EU and international laws (v)Monopolies commission