LOVELY PROFESTIONAL UNIVERSITY

Lovely school of management TERM PAPER MGT-511 Business Environment

PESTLE Analysis of India

Subm tte! To" # $y"# %&' V sh(as )ha*&ana&ayan Suman

Subm tte! Ash sh

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Roll No' RS,-./A,. Reg' No' 0 ,.-.1232

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Ac*no(le!gment

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, am also thankful to all the respondents of my survey without whom the Term Paper would not have been completed successfully.

!"shish #uman$

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)ontents
Page No' ,' Abst&act 4' %etho!ology /' About In! a /' Int&o!uct on 1' PESTLE Analys s Pol t cal Econom cal Soc al Technolog cal Legal Env &onmental 3' )onclus on 2' Refe&ences " " " " " " " " ,6 ,3 ,5 ,2 ,4. 4, " " " " / 1 3 5 ,.

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Abst&act

n this term paper Pestle analysis of ndia. 'ow (rgani)ation take the analysis for setup the offices or industry in ndia. n this analysis tell the environment of ndia. *actors of ndia. +overnment policy, literacy, privatisation, legal problem, technology use ndia, any many factors given below.

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%etho!ology

*or This term Paper search articles on -ebsites, .ournals, /ewspaper, and Maga)ines. study books for these topics. also take help of faculty for preparing Term paper. go thoroughly websites data. also take help my friends and colgues. study on pro0uest website article, 1ournal. read some other essays regarding this.

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In! a
ndia, officially the 4epublic of ndia is a country in #outh "sia. t is the seventh5largest country by geographical area, the 2 most populous countries, and the most populous democracy in the world. The ndian (cean on the south, the "rabian #ea on the west, and the 6ay of 6engal on the east, ndia has a coastline of 3,,13 kilometres . t is bordered by Pakistan to the west, People7s 4epublic of 8hina, /epal, and 6hutan to the north, and 6angladesh and Myanmar to the east. ndia in the vicinity of #ri Lanka, Maldives, and ndonesia in the ndian (cean. 'ome to the ndus 9alley 8ivilisation and a region of historic trade area and vast empires, ndian subcontinent was identified with its commercial : cultural wealth for much of its long history. *our ma1or religions, 'induism, 6uddhism, .ainism and #ikhism originated country, while the ;oroastrianism, .udaism, 8hristianity and slam arrived in the first millennium of 8< and shaped the region7s diverse culture. The 6ritish <ast ndia 8ompany from the early eighteenth century and colonised by the =nited >ingdom from the mid51? century, ndia became an independent nation in 1?&3 after a struggle for independence that was marked by widespread non5violent resistance. ndia is a republic consisting of 2@ states and 3 union territories with a parliamentary system of democracy. t has the world7s 12th largest economy at market eAchange rates and the fourth largest in purchasing power. <conomic reforms since 1??1 have transformed it into one of the fastest growing economiesB however it
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still suffers from high levels of poverty, illiteracy, disease, : malnutrition. " pluralistic, multilingual, and multiethnic society.

In! a at 7lance
1. Population 2. "rea %. +eographical location &7 &. 8oastline length ,. Languages 2. Ma1or religions 8hristianity, #ikhism, .ainism 3. /ational anthem @./ational #ong in ?./ational emblem C C C C C C 1,1,D,DDD,DDD !1.1, billion$ %.% million s0uare kilometres C Lies between latitudes @ E

: %3 E 2 7 north and longitudes 2@ E 3 7 and ?3E 2,7 east 32DD km 13 ma1or languages, @&& dialects C 'induism, slam, 6uddhism,

.an gana mana written by 4abindranath Tagore C 9ande Mataram, composed #anskrit by 6ankimchandra 8hatter1i 4eplica of the Lion 8apital of #arnath

1D./ational flag C 'ori)ontal tricolour in e0ual proportion of deep saffron on the top, white in the middle and dark green at the bottom. n the centre of the white band is a wheel. 11. /ational animal 12. /ational bird
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Tiger !Panthera Tigris$ C Peacock

1%. /ational flower 1&. /ational tree 1,. /ational fruit 12. /ational currency paisa$ 13. /ational #port

Lotus C C C C 6anyan Mango 4upee !(ne 4upeeF1DD 'ockey

Int&o!uct on
PESTLE Analys s n $us ness Env &onment n business P<#TL< analysis role is very important. (riginally designed as a business environmental scan, the P<#TL< analysis is an analysis of the eAternal 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. P<#TL< meansC P5 Political <5 <conomical #5 #ocial T5 Technological L5 Legal <5<nvironmental The P<#TL< sub1ect should be a clear definition of the market being addressed, this is the followingsC5 " company looking at its market " product looking at its market
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 " brand in relation to its market " local business unit or function in a business

" strategic option, such as entering a new market

" potential ac0uisition " potential partnership "n investment opportunity /ow we see in details of P<#TL< factorsG mpact in ndia n neAt following pagesC

POLTI)AL
These refer to government policy such as the degree of intervention in the economy. -hat goods and services does a government want to provideH To what eAtent does it believe in subsidising firmsH -hat are its priorities in terms of business supportH Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the 0uality of the infrastructure of the economy such as the road and rail system. ndia is the biggest democracy in the -orld. The government type is federal republic. 6ased on <nglish common law, 1udicial review of legislative acts, accepts compulsory 8. 1urisdiction with reservations, separate personal law codes apply to Muslims, 8hristians, and 'indus. The political #ituation in the ndia is more or less stable. Most of its democratic history, the federal +overnment of ndia has been led by the ! /8$ ndian
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/ational 8ongress. #tate politics dominated by several national parties including the /8. The 6haratiya .anata Party !6.P$, the 8ommunist Party of ndia !8P $, and various regional parties. n the 2DD? ndian elections, the /8 won the biggest number of Lok #abha seats and formed a government with a alliance called the =nited Progressive "lliance !=P"$, supported by various left5leaning parties and members opposed to the 6.P. (verall ndia currently has a coalition led government and both ma1or political parties the =P" and 6.P, whichever comes in power. t comprises political stability and the policies of the government. deological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment. *or eAample, 6angalore established itself as the most important T centre of ndia mainly because of political support. n ndia many poltical factors those effect in business environment. Political pressures in ruling government and vote bank problems. These are the ma1or factors those affect on political environmentC5 89 Ta:at on ;ol cy

ndia has a well developed taA structure with a three5 tier federal structure, comprising the =nion +overnment, the #tate +overnments and the =rban : 4ural Local 6odies. The power to levy taAes and duties are distributed among the three tiers of +overnments, in accordance with the provisions of the ndian 8onstitution. The main taAesGduties that the =nion +overnment is empowered to levy are ncome TaA
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income, 8ustoms duties, 8entral <Acise and #ales TaA and #ervice TaA. The principal taAes levied by the #tate +overnments are #ales, #tamp Iuty, #tate <Acise, Land 4evenue, and Iuty on <ntertainment and TaA on Professions : 8allings. The Local 6odies are empowered to levy taA on properties, (ctroi TaA on Markets and TaAG=ser 8harges for utilities like water supply, drainage, etc.

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P& vat sat on

4educe the political interface in the management of enterprises, leading to improved efficiency and productivity. n ndia this time do many govt company +ood performance but some time later there are facing many problems so the go for privatisation.

<e&egulat on

ndia +ovt makes some "ct to freely do business in ndia. 8 v9 Inte&nat onal t&a!e &egulat ons

nternational trade regulation day by day ndia makes it fleAi able for foreign trade. !v$7ene&al n t at ves #ome policy to first Political initiates for the business environment in n ndia. !vi$ 7ove&nment stab l ty
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n ndia past 1D years govt is stable. 6efore 1D years ndia facing govt stability. f govt stability not market is not improve and no one come here for investment. !vii$Inte&nat onal stab l ty /o wars, no any country home problems, and no any type of war like ra0 they make uncertainty in market.

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E)ONO%I)AL
t includes interest rates, taAation changes, economic growth, inflation and eAchange rates. "s you will see throughout the J*oundations of <conomicsJ book economic change can have a ma1or impact on a firm7s behaviour. *or eAampleC higher interest rates may deter because it costs more to borrow investment

a strong currency may make eAporting 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 firm7s products n order to solve economic problems of our country, the government took several steps including control by the #tate of certain industries, central planning and reduced importance of the private sector. The main ob1ectives of ndiaKs development plans wereC nitiate rapid economic growth to raise the standard of living, reduce unemployment and poverty, 6ecome self5reliant and set up a strong industrial base with emphasis on heavy and basic industries, 4educe ine0ualities of income and wealth,

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 "dopt a socialist pattern of development L based on e0uality and prevent eAploitation of man by man,

"s a part of economic reforms, the +overnment of ndia announced a new industrial policy in .uly 1??1, The broad features of this policy as followsC The +overnment reduced the number of industries under compulsory licensing to siA. Iisinvestment was carried out in case of many public sector industrial enterprises. Policy towards foreign capital was liberali)ed. The share of foreign e0uity participation was increased and in many activities 1DD per cent *oreign Iirect nvestment !*I $ was permitted. "utomatic permission was now granted for technology agreements with foreign companies. *oreign nvestment Promotion 6oard !* P6$ was set up to promote and channelise foreign investment in ndia. The economic factors in ndia are improving continuously. The +IP !Purchasing Power Parity$ is estimated at about %.?2, trillion =.#. dollars in the year 2DD?. The +IP5 real growth rate in 2DD? was 2M. ndia has the third highest +IP in terms of purchasing power parity 1ust ahead .apan and behind =.#. and 8hina. *oreign direct investment rose in the fiscal year ended #eptember 2DD? to about =#N 1D.,%2 billion. There is a
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continuous growth in per capita incomeB ndiaKs per capita income is eApected to reach 4s. %%2@% by the end of 2DD?52D1D. This will lead to higher buying power in the 'ands of the ndian consumers. ndia +IP is now 2.,. Today ndia reserve =s dollor in +ood condition. n ndian economy is strong. -e see in recession our economy is less affect from recession compression to western countries. These following factorsC !i$ nterest rates

!ii$ Money supply !iii$ 8redit control !iv$ *inancial markets !v$ nflation !vi$ 8ompetitors pricing !vii$ +lobali)ation

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SO)IAL
8hanges in social trends can impact on the demand for a firm7s products and the availability and willingness of individuals to work. n the ndia, for eAample, 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. t also means some firms have started to recruit older employees to tap into this growing labour pool. t describes the characteristics of the society in which the organi)ation eAists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part o the social environment. t is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario ndia is the second most populous nation in the world with an approAimate population of over 1.1billion people. This population is divided in the following age structureC D51& years O %1.@M, 1,52& years O 2%.1M and 2, years and above O ,.1M. There has a !i$Mobility !ii$ ncome distribution !iii$Population demographics !iv$"ttitude to work and leisure !v$#tandard of education and skills
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!vi$-orking conditions

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TE)=NOLO7I)AL
/ew technologies create new products and new processes. MP% players, computer games, online gambling and high definition T9s are all new markets created by technological advances. (nline 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 0uality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. Today in ndia %+ technology starts. " heavy infrastructure for bandwidth. 6#/L and 4eliance have more covered city by optical fibre. ndia have many Technological Pro1ects. +ood #ervice provider in T sector eA T8#, nfosys and many more.Today ndia is a big market in mobile sector here ,52 player operataors and new operators launch their services soon. !i$ T Ievelopment !ii$/ew Materials and processes !iii$+overnment technology funding !iv$#peed of technology transfer !v$#oftware upgrades

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LE7AL
These are related to the legal environment in which firms operate. n recent years in the ndia There have been many significant legal changes that have affected firms7 behaviour. The introduction of discrimination and disability discrimination legislation, an increase in the minimum wage and greater re0uirements for firms to recycle are eAamples of relatively recent laws that affect an organisation7s actions. Legal changes can affect a firm7s costs and demand. This consists of legislation that is passed by the parliament and state legislatures. <Aamples of such legislation specifically aimed at business operations include the Trade mark "ct 1?2?, <ssential 8ommodities "ct 1?,,, #tandards of -eights and Measures "ct 1?2? and 8onsumer Protection "ct 1?2. n ndia take many type of permission to the sate govt or central govt. n ndia many type of act like license permission, copyright permission, and many types of other permission. !i$<mployment law !ii$Trade and product restrictions !iii$'ealth and safety regulations !iv$<= and international laws !v$Monopolies commission
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ENVIORN%ENTAL
<nvironmental factors include the weather and climate change. 8hanges in temperature can impact on many industries including farming, tourism and insurance. -ith ma1or climate changes occurring due to global warming and with greater environmental awareness this eAternal factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries !for eAample, more taAes being placed on air travel and the success of hybrid cars$ and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. n ndia we know that many types of enviormental problems this are basic things but more important for our enviorment. also biotic factors ,abiotic factors and their interaction with one another. pollution free industrial activity i.e is nessary condition of industrial organi)ation. ndustriali)ation and urbani)ation have resulted in a profound deterioration of ndia7s air 0uality. (f the % 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 ndia.

!i$Pollution problems !ii$Planning permissions

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!iii$-aste disposal !iv$/oise controls !v$<nvironmental pressure groups

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)ON)LUSTION

The P<#TL< analysis here shows what is a factor in ndia who relates to the 6usiness. This study is more and more beneficial for any business organi)ation. n the report given detail of our ndia political, social economical, legal, environmental and technological. This all the issue of ndia market stability, government politic. Political stability in ndia. "nd many other things show this. -e say that P<#Tl< analysis role is in today scenario in business very important. -e see here ndia P<#TL< analysis. n ndia many opportunity to open a business. #ome problems in ndia 6ut we >now every where every things is not available.

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Refe&ences
1. #alem sheikh TeAt 6ook 2. www.economicstimes.com %. httpCGGeconomictimes.indiatimes.comG & httpCGGpro0uest.umi.comG ,. httpCGGrapidbi.comGpestleG ntroduction5to5the5P<#TL<5 analysis5tool.htmlPpolitical 2. httpCGGwww.english5 test.netGgreGvocabularyGmeaningsG%&?Ggre5words.php 3. httpCGGen.wikipedia.orgGwikiG"bstractQM2@summary M2? @. httpCGGen.wikipedia.orgGwGindeA.phpHtitleF#pecial M%"#earch:searchFpestle:goF+o ?. httpCGGwww.english5 test.netGgreGvocabularyGmeaningsG%&?Ggre5words.php 1D. httpCGGwww.teesmaarkhan.comG2DD@GD3Gpest5 analysis5india.html 11. httpCGGwww.financialeApress.comGgsearch.phpH cAFpartner5pub5?,13332&,,%&&&D,C2tybby5 dbDc:cofF*(4 IM%"1D:ieF #(5@@,?51:0FPoltical M2D mpactM2DinM2Dbuisness M2Denviornment:saF#earchP122@ 12.httpCGGbooks.google.co.inGbooksH spellF1:0FsalimRsheikhRbuisnessRenviornment:btn +F#earchR6ooks
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