ECONOMICS PROJECT SUBMISSION

Submitted To

Professor Dharmendra

United World School Of Law (U.W.S.L.)

Karnavati University

(Faculty- Economics)

Submitted By

NAME: - Akshat Gupta

Roll no.:- 13

Semister: - 2

Section:-B

Analysing the macroeconomics of India and Argentina

Professor’s signature:
Index
1. Introduction
1.1 Introduction of PESTEL
1.2 Introduction of STEEPLED
2. Overview of India
3. PESTEL analysis of INDIA
4. STEEPLED analysis of Argentina
5. Education And Consultancy Industry of India
6. Education And Consultancy Industry of Argentina
7. Comparisons of PESTEL of India and Argentina
8. Comparison of education and consultancy industry
1: Introduction
Economics is the study of how society uses limited resources in good way. It focuses on
mainly four factor of production, and they are land, labour, capital and entrepreneur.
Economics is divided in mainly two parts;

1) Micro economics 2) Macro economics

Macro Economics: the branch of economics that studies the overall working of a national
economy. It is more focused on the big picture and analysing things such as growth, inflation,
interest rates, unemployment, and taxes. When you hear the Federal Reserve is raising
interest rates or that the national unemployment rate is 7.5%, you are hearing about
macroeconomic topics.

Micro Economics:  the branch of economics that studies how households and businesses
reach decisions about purchasing, savings, setting prices, competition in business, etc. It
focuses at the individual level, while macroeconomics looks at the decisions that affect entire
countries and society as a whole.

1.1 Introduction to PESTEL:

PESTEL is a framework or tool used to analyse and monitor the macro-environmental factors
that may have a profound impact on an organisation’s performance. 

P: Political

E: Economical

S: Social

T: Technological

E: Environmental

L: Legal
1.2 Introduction to STEEPLED:

STEEPLED is an extended modal of PEST and PESTEL analysis, and thus, it covers more
factor, consequently offering top managers and business owners and more complete
information

S: Social

T: Technological

E: Education

E: Ethical

P: Political

L: Legal

E: Economic

D: Demographic
2: Overview of India

India also known as the Republic of India is a country in South Asia. It is the seventh

largest country by area and with more than 1.3 billion people; it is the second most
populous country as well as the most populous democracy in the world. Bounded by
the Indian Ocean on the south, the Arabian Sea on the southwest, and the Bay of Bengal on
the southeast, it shares land borders with Pakistan to the west; China, Nepal, and Bhutan to
the northeast; and Bangladesh and Myanmar to the east. In the Indian Ocean, India is in the
vicinity of Sri Lanka and the Maldives, while its Andaman and Nicobar Islands share a
maritime border with Thailand and Indonesia.

Population

India is the seventh largest country in the world. It is the second most populated. In the coming
25 years, it might overtake China to become the world’s most populated country. The country
has an estimated population of 1.21 billion. 29 percent of the population living in urban areas.
India has more than 2,000 ethnic groups.

States and Union Territories

India comprises of 29 states and seven Union Territories, with New Delhi as the capital. A
number of cities in India have undergone name changes since independence in 1947. Major
alterations over the past 20 years include Bombay switching to Mumbai, Madras became
Chennai, Calcutta changing to Kolkata and Bangalore renamed as Bengaluru.

Languages

In India, Hindi is the official language and is spoken throughout the major cities. English is also
widely spoken in urban areas. There are 21 other languages that are commonly spoken across
the country.
Religions

The main religions in India are Hinduism (80.5 percent), Islam (13.4 percent), Christianity (2.3
percent), and Sikhism (1.9 percent). Other religious groups include Buddhists, Jains and Parsis
(1.8 percent).

Literacy and Life expectancy

Literacy within the country is 61 percent and average life expectancy is 67.14 years old.

Economy

The official currency in India is Rupee. Our country is the world’s fourth-largest Purchasing
Power Parity (PPP) and has the 11th largest GDP (gross domestic product) in the world. In the
year 2011, GDP was $1.843 trillion. A member of G20, India is also the fastest growing
economies globally.

Major trade partners of India are China, the USA, the United Arab Emirates, the European
Union, Russia and Japan. You can find natural resources such as iron ore, coal, mica,
manganese, bauxite, chromite, limestone, barite, thorium, titanium ore, diamonds and crude oil
in India. Outsourcing industries and information technology in India are growing at an alarming
rate.

Geographical Features

Sprawling over a land of 3,287,263 sq. Km, India has a vast and varied geography. The four
geographical regions of the country are mountains in the north, the plains of the Ganga and the
Indus, the desert region and the southern peninsula.

The world’s highest mountain range is the Himalayas in the north. Kanchenjunga, the world’s
third highest mountain at 8,586m (28,169 ft.), sits on the India–Nepal border.
Tourism

Tourism in India is a booming industry. 5.78 million Foreign tourists visited the country in
2010. There are several tourists’ spots that attract the tourists.

Politics and Government

On 26 January 1950, the constitution of India came in existence. It comprises of 29 states and
seven Union Territories. Our Indian constitution offers the citizens of India some basic
freedoms.

India operates as a socialist, sovereign and a secular democratic republic with a parliamentary
system of government. Here, the president is head of the union of states, and a prime minister is
head of the government. The prime minister runs the office with the help of the cabinet ministry.

Every state has an elected government with a governor as the head. Noteworthy, Union
Territories are ruled directly by an administrator appointed by the president. Most of all, there
are a number of political parties that fight together. Some of the main national political parties
are the Indian National Congress (INC), Bharatiya Janata Party (BJP), and the Communist Party
of India-Marxist.
3: PESTEL of INDIA

1: Political:

India is one of the most powerful countries in the world. It is the largest democracy in the
world and enjoys a relatively stable political environment. New Delhi is the capital of India.
India neighbours two powerful countries i.e. China and Pakistan. Other neighbouring
countries are Bangladesh, Myanmar, Nepal, Bhutan, & Sri Lanka.

Democratic will of the people reflected in the local and national elections is mostly respected
and accepted by the political parties and people in general. This political culture of tolerance
contributes immensely to maintain a stable political climate which is in fact a very important
factor to attract foreign direct investment (FDI). However, sporadic political unrest is not
very uncommon in India.

A major area of concern in India is corruption. It badly affects the country’s business and
political environment, posing a challenge to the country’s economic growth. Corruption
increases the cost of business operations and often affects foreign direct investment.
However, a growing public awareness and government initiatives are combating the
challenges of corruption.

2: Economical

According to the IMF 2017 economic forecast, India’s GDP is worth $2.4 trillion making it
the 7thlargest economy in the world by nominal GDP. The GDP will grow by 7.0% in FY18
which is expected to increase to 7.4% by FY20 (The World Bank Group, 2018).

The current corporate tax rate in India is 30% (as of February 2018). It is worth noting that
the country witnessed frequent corporate tax rate changes over the years. For example, the tax
rate in 2010 was 33.99%, while it reached an all-time high of 38.95% in 2001 (Trading
Economics, 2018).

India is one of the top countries in many industries. For example, it is the 7th largest coffee
producing countries in the world (International Coffee Organisation, 2017). It is also one of
the top agriculture producing countries in the world.
India’s key exports are petroleum products, jewellery, pharmaceutical products, transport
equipment, machinery and readymade garments to name but a few. On the other hand, India
imports crude petroleum, gold and silver, electronic good, pearls and precious stones and
many other things. Some of the top trading partners of India are China, UAE, Switzerland,
Saudi Arabia, USA, and Qatar (Guardian News and Media Limited, 2016). Some of the
important recent developments in Indian economy are as follows:

 During 2018-19 (up to February 2019), merchandise exports from India have
increased 8.85 per cent year-on-year to US$ 298.47 billion, while services exports
have grown 8.54 per cent year-on-year to US$ 185.51 billion.
 Nikkei India Manufacturing Purchasing Managers’ Index (PMI) reached a 14-month
high in February 2019 and stood at 54.3.
 Net direct tax collection for 2018-19 had crossed Rs 10 trillion (US$ 144.57 billion)
by March 16, 2019, while goods and services tax (GST) collection stood at Rs 10.70
trillion (US$ 154.69 billion) as of February 2019.
 Proceeds through Initial Public Offers (IPO) in India reached US$ 5.5 billion in 2018
and US$ 0.9 billion in Q1 2018-19.
 India's Foreign Direct Investment (FDI) equity inflows reached US$ 409.15 billion
between April 2000 and December 2018, with maximum contribution from services,
computer software and hardware, telecommunications, construction, trading and
automobiles.
 India's Index of Industrial Production (IIP) rose 4.4 per cent year-on-year in 2018-19
(up to January 2019).
 Consumer Price Index (CPI) inflation stood at 2.57 per cent in February 2019.
 Net employment generation in the country reached a 17-month high in January 2019.

3: Social:

India has a gigantic consumer market with a total population of approximately 1.2 billion.
Such a huge market is a great opportunity for multinational companies. No wonder why so
many multinationals are operating in India! India offers cheap labour and the labour force is
expected to reach 160-170 million by 2020 (IBEF, 2018). Accessible and affordable labour
force has encouraged many multinational companies to outsource some of their business
operations to India.

India is a multi-ethnic, multi-lingual, and multi-religious country. Communal harmony is a

great strength; however, the country sometimes witnesses tensions in ethnic lines. India has a
world-renowned film industry. It is also world renowned for some of the sports e.g. Cricket
and Hockey. IPL (Indian Premier League) attracts cricket legends and talents to India.

India is one of the most attractive markets in the world in many sectors. Standard of living is
gradually improving and the country has a growing middle class with good disposable
income. However, it is worth noting that India still suffers from poverty and according to the
World Bank, 1 in 5 people in India are still poor.

4: Technology:

India has a strong network of science and technology institutions and trained manpower. It
has the third-largest scientific and technical manpower in the world with 162 universities
awarding over 4,000 doctorates degrees and 35,000 post graduate degrees annually. India’s
gross expenditure on R&D (GERD) increased from Rs 65,961.33 crore (US$ 14.07 billion) in
2011-12 to Rs 104,864.03 crore (US$ 16.27 billion) in 2016-17. India’s medical technology
(MedTech) sector is forecasted to reach US$ 9.6 billion in 2022 and US$ 7.8 billion in 2020
from US$ 5.7 billion in 2017.

India is among the top-ranking countries in the field of basic research. IBM’s India inventors
contributed over 800 patents in year 2017, making India the second highest contributor after
the US region. In May 2018, CISR was awarded Clarivate Analytics India Innovation Award
2018 in the Government Research Organizations Category.

The engineering R&D and product development market in India is forecasted to grow at a
CAGR of 20.55 per cent to reach US$ 45 billion by 2020 from US$ 28 billion in FY18.
India’s R&D investments are forecasted to increase to US$ 83.27 billion in 2018 from an
estimated US$ 76.91 billion in 2017. The Government of India is extensively promoting
research parks technology business incubators (TBIs) and (RPs) which would promote the
innovative ideas till they become commercial ventures. In July 2018, Atal Innovation Mission
along with MyGov launched “Innovate India Platform” with the aim of providing a common
point for all the innovation happening across India. India Space Research Organisation
(ISRO) launched space technology incubation centre was launched in Tripura, Agartala . It
is one of the six centres, planned to build national capacity in new locations, as of September
2018. The Government of India is planning to launch a National Artificial Intelligence Centre
under the Ministry of Electronics and Information Technology by July 2019.

5: environmental:

While India has made a lot of progress over the years, the country still faces a number of
environmental challenges e.g. air pollution, water pollution, floods, resource depletion such
as water and forest, loss of biodiversity, and diversion of consumer waste into rivers.
Expatriates may sometimes find it difficult to live under some of these environmental
challenges.

6: Legal:

The last element to address in the PESTEL analysis of India is the legal landscape. As
mentioned above, India is a famous destination for foreign direct investment. Depending on
the scope and the business needs, foreign investors can set up a company, branch, or a limited
liability partnership in India. Indian companies are governed by the Companies Act, 2013.
There are a number of labour laws that regulate employment relations in India e.g.
Employees’ State Insurance Act 1948 (ESI Act), Industrial Disputes Act 1947 (ID Act),
Maternity Benefit Act 1961 (MBA) and the Payment of Bonus Act 1965 (PBA).
4: STEEPLED of ARGENTINA
1: Social

Family ties: Family ties are considerably stronger in Argentina than they are in North
America or in many northern European nations. Moreover, in Argentina as in most Latin
American countries, family ties are notably broader than in North America and northern
Europe. The North American and northern European family usually consist of one’s spouse
and children (and occasionally one’s parents). In Argentina, family ties remain very close for
most kinship relationships. Thus, in Argentina, cousins, in-laws, uncles and aunts, nephews,
nieces, and godparent relationships are customarily considered part of one’s immediate
family.

Consequently, Argentine family ties furnish much stronger admission (than in North America
or northern Europe) to business joint ventures, to amiable terms in negotiations, and to access
to relatives in high positions. The result is that in some cases North American or north
European business visitors to Argentina find themselves unable to contact those in authority
because they may not realize the importance of such connections.

Gender Roles: The genders are more clearly differentiated in Argentina than in the United
States. To a large extent, the United States attempts both through legislation and social norms
to ignore gender differences in the work place, while such differences are considerably more
emphasized in Latin America as a whole, including Argentina. This has not, however, meant
that Argentine women have stayed out of the work force. Currently, 41.3 percent of all
Argentine women work, while well over 50 percent of Argentine women between the ages of
20 and 50 work This shows a dramatic increase from just 1970, when less than one Argentine
woman in four was economically active.

Religion: Argentina is officially a Catholic country. By law, for example, the President of the
nation must be a Roman Catholic. Nonetheless, Argentina has freedom of religion, and (due
to its history of immigration) a wide variety of religions are practiced.

2: Technological

A marked dichotomy exists between the technological infrastructure available in the major
urban centres (notably Buenos Aires, Rosario, and Còrdoba) and that available in the
countryside. Argentina’s major urban areas tend to share with northern Europe, Canada, and
the United States a view of technology as a controlling mechanism. The more one moves
away from these urban areas, however, one arguably may notice a traditionally more
ambivalent view toward the use of technology. At the very least, many rural areas are less
likely to have state-of-the-art equipment and may prove somewhat resistant to
technologically driven changes. Additionally, the road infrastructure in Argentina is
inconsistent. While the road system between and within the major urban centres is well-
developed, no major system of highways outside of the more developed urban regions. This
makes it difficult to travel to many parts of the nation.

Considerable improvement too many aspects of the Argentine technological infrastructure

has followed the privatization of state-run industries implemented throughout the 1990s.
While these are evident in many areas, they may be most apparent in the telephone system,
which has improved both in the overall quality of service and in the access to international
calling. Nonetheless, Argentina has a considerably weaker telephone system than most
nations of its economic importance. Many households have no phones at all, while even in
Buenos Aires, the phone system frequently cuts off during inclement weather.

3: Environmental

The principal environmental responsibilities are vested in the Ministry of Public Health and
the Environment; the Sub secretariat of Environmental Planning in the Ministry of
Transportation and Public Works; and the Sub secretariat of Renewable Natural Resources
and Ecology within the Secretariat of State for Agriculture and Livestock. In 1977, the
Metropolitan Area Ecological Belt State Enterprise was created to lay out a 150-km greenbelt
around Buenos Aires, with controls on emission and effluents as well as on building density.

The major environmental issues in Argentina are pollution and the loss of agricultural lands.
The soil is threatened by erosion, salinization, and deforestation. Air pollution is also a
problem due to chemical agents from industrial sources. The water supply is threatened by
uncontrolled dumping of pesticides, hydrocarbons, and heavy metals. Argentina has a
renewable water supply of 276 cubic km. In 2002, some 97% of all city dwellers and over
70% of rural dwellers had access to improved water sources. In 2000, about 12.7% of the
land area contained forest and woodland.
4: Economical

The economy of Argentina has been recently on rise after the recovery from a severe
economic crisis of 2001/2002. Over the last 5 years, the country’s GDP growth has been
quite high: 9.2% in 2005, 8.6% in 2007 and 6.6% in 2008 (slowed down by the international
financial crises). Traditionally, the country’s economy was based on the production of
agricultural goods, and now Argentina remains among the world’s leading exporters of such
products as corn, wool, wheat, sunflower seeds, soybeans, fruit, meat, tobacco, food
processing and other related products. Besides, the country has numerous natural reserves of
important minerals, including coal, iron ore, copper, zinc and tin, as well as vast resources of
natural gas and oil, which make the country self-sufficient in its needs for energy.

Economic environment of Argentina is one of the most attractive markets among the national
economies of Latin American countries. A lot of financial and other investments were
recently received from such developed countries as Japan, the U.S., Germany, Italy, Spain,
Canada, the United Kingdom, France, China, and many others. It is estimated that currently,
about 450 companies owned by the U.S. investors operate in Argentinean market, giving a
job to more than 150,000 local employees. The most attractive and profitable industries for
overseas investors include manufacturing, real estate, construction and transportation,
telecommunication, mining and energy sectors.

5: Political

Argentina has been treated as a pariah state by the global funds markets. Corruption and
cronyism abound, as does harassment of businesses. In 2001, Colombia was practically a
failed state till staging a comeback that saw its stock market surge a lot more than fifteen
fold. In 1999, Brazil could not service its debt; Given that defaulting on a file $95 billion of
its financial debt in 2001, nowadays it’s the region’s juggernaut economic system. Now
Argentina is getting a second look by investors, who have bid up the Merval stock index by
163 percent given that its credit-crisis low in November 2008. (The index is off 7 percent in
2010.)
They are now trying to raise money and mend fences ahead from the 2011 presidential
election.

Argentina is also bidding to re-enter the worldwide personal debt markets, a precondition to
increase foreign direct and portfolio funding. Another plus: With the worldwide financial
system recovering and both China and Brazil white-hot, the export outlook for the country’s
cornucopia of agricultural goods is improved. Significantly of Argentina’s 1.07 million
square miles are fertile and inside reach of ports on its long Atlantic seaboard. Meanwhile,
the country’s publicly traded banks, attractively valued compared with lenders in
neighbouring nations, are an investment opportunity.

6: Legal

The Court System of Argentina consists of Federal and Provincial court systems.  Federal
courts include the Supreme Court, 17 appellate courts, and district and territorial courts on the
local levels. The Federal Court System hears cases concerning the National Government or
any of its agencies, conflicts involving two or more provinces, matters involving foreign
people or companies, and certain alleged violations of individual Constitutional rights.  There
are certain district courts that have judges that handle administrative matters. Each province
has its own judicial court system.  The provincial court system consists of supreme, appellate,
and lower courts.  There are three main types of courts in the provincial system- civil,
criminal, and labour courts. The Provincial Supreme Courts or Superior Tribunals of Justice
consist of three to nine members, depending on the province.

7: Ethical

This paper is directed towards providing an Argentine perspective on the role of ethics in
the business world. Although in the past several countries have investigated the
institutionalization of ethics within corporate life, a concrete study into that field has never
been properly undertaken in Argentina. However, a bird’s eye view of the ethics policies
currently enforced in companies operating in Argentina creates an adequate context for
understanding the ethics phenomenon as it has emerged in that country. To that effect, the
major companies conducting business activities in Argentina were questioned on various
subjects, ranging from company size to motivation behind providing an ethical background
from which to do business, in order to allow a comprehensive analysis on company life in
Argentina, as related to ethics. The survey conducted presented evidence that a wide sector of
the Argentine business world believe ethics to be a factor of ever-growing importance, which
would explain the relatively recent measures taken to instil ethical standards of conduct
within corporations.

8: Demographical

Argentina's population continues to grow but at a slower rate because of its

steadily declining birth rate. Argentina's fertility decline began earlier than in
the rest of Latin America, occurring most rapidly between the early 20th century
and the 1950s, and then becoming more gradual. Life expectancy has been
improving, most notably among the young and the poor. While the population
under age 15 is shrinking, the youth cohort - ages 15-24 - is the largest in
Argentina's history and will continue to bolster the working-age population. If
this large working-age population is well-educated and gainfully employed,
Argentina is likely to experience an economic boost and possibly higher per
capita savings and investment. Although literacy and primary school enrolment
are nearly universal, grade repetition is problematic and secondary school
completion is low. Both of these issues vary widely by region and socioeconomic
group.

Argentina has been primarily a country of immigration for most of its history,
welcoming European immigrants (often providing needed low-skilled labour)
after its independence in the 19th century and attracting especially large numbers
from Spain and Italy. More than 7 million European immigrants are estimated to
have arrived in Argentina between 1880 and 1930, when it adopted a more
restrictive immigration policy. European immigration also began to wane in the
1930s because of the global depression. The inflow rebounded temporarily
following WWII and resumed its decline in the 1950s when Argentina's military
dictators tightened immigration rules and European economies rebounded.
Regional migration increased, however, supplying low-skilled workers escaping
economic and political instability in their home countries. As of 2015,
immigrants made up almost 5% of Argentina's population, the largest share in
South America. Migration from neighbouring countries accounted for
approximately 80% of Argentina's immigrant population in 2015.

The first waves of highly skilled Argentine emigrant workers headed mainly to
the United States and Spain in the 1960s and 1970s, driven by economic decline
and repressive military dictatorships. The 2008 European economic crisis drove
the return migration of some Argentinean and other Latin American nationals, as
well as the immigration of Europeans to South America, where Argentina was a
key recipient. In 2015, Argentina received the highest number of legal migrants
in Latin America and the Caribbean. The majority of its migrant inflow came
from Paraguay and Bolivia.
5: Education and Consultancy Industry in India
Education Industry:
India’s education sector offers a great opportunity with approximately 29 per cent of India’s
population being between the age group of 0-14 years. India’s higher education segment is
expected to increase to US$ 35.03 billion by 2025. The education sector in India is estimated
at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.
India has over 250 million school going students, more than any other country. It also has one
of the largest networks of higher education institutions in the world. Number of colleges and
universities in India reached 39,050 and 903, respectively in 2017-18. India had 36.64 million
students enrolled in higher education in 2017-18. Gross Enrolment Ratio in higher education
reached 25.8 per cent in 2017- 18. In December 2018, the Government of India published that
3.43 million candidates had enrolled in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
2016-20 scheme.
The Central Government plans to disburse US$ 1 billion to states for introducing skill
development initiatives. In November 2016, Ministry of Skill Development and
Entrepreneurship launched Pradhan Mantri YUVA Yojana, at a cost of US$ 74.68 million for
providing entrepreneurship education and training to students in the country. Skill India
Mission 2015 aims at skilling 400 million Indian youths by 2022. As of December 2018,
there were 15,044 Industrial Training Institutes in the India. In October 2017, in order to
boost the Skill India mission, two new schemes, SANKALP and STRIVE were launched
with an outlay of Rs 6,655 crore (US$ 1.02 billion). Revitalising Infrastructure and Systems
in Education (RISE) by 2022 was announced in union budget 2018-19 with an outlay of Rs 1
lakh crore (US$ 15.44 billion) for four years. Skill India programme has benefitted more than
one crore (10 million) youth annually.
Education sector in India remains to be a strategic priority of the government. The
Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the
education sector through the automatic route since 2002.The sector has received cumulative
FDI worth US$ 1.75 billion up to June 2018. Indian education sector witnessed 18 merger
and acquisition deals worth US$ 49 million in 2017. In May 2018, the Ministry of Human
Resource Development, Government of India launched Samagra Siksha scheme with the aim
of achieving holistic development of school education in the country. The Government of
India is working on the draft of the New Education Policy to address the changing dynamics
in the education industry of the country as per the requirement of the population. As of
November 2018, National Education Policy Framework has been launched. New National
Education Policy draft is ready and would be given to the Central Government.
Market Size
India has the world’s largest population of about 500 million in the age bracket of 5-24 years
and this provides a great opportunity for the education sector. The education sector in India is
estimated at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.
Number of colleges and universities in India reached 39,050 and 903, respectively in 2017-
18. India had 36.64 million students enrolled in higher education in 2017-18. Gross
Enrolment Ratio in higher education reached 25.8 per cent in 2017-18.
The country has become the second largest market for e-learning after the US. The sector is
expected to reach US$ 1.96 billion by 2021 with around 9.5 million users.
Investments/ Recent developments.
The total amount of Foreign Direct Investments (FDI) inflow into the education sector in
India stood at US$ 1.75 billion from April 2000 to June 2018, according to data released by
Department of Industrial Policy and Promotion (DIPP).
The education and training sector in India has witnessed some major investments and
developments in the recent past. Some of them are:

 Indian education sector witnessed 18 merger and acquisition deals worth US$ 49
million in 2017.
 The Ministry of Human Resource Development, Government of India is also planning
to rise around Rs 1 lakh crore (US$ 15.52 billion) from private companies and high
net worth individuals to finance improvement of education infrastructure in the
country.
 India has signed a loan agreement with World Bank under 'Skills Acquisition and
Knowledge Awareness for Livelihood Promotion' (SANKALP) Project to enhance
institutional mechanisms for skills development.
 Singapore is going to open its first skill development centre in Assam, which will
provide vocational training to youth in the region.

Government Initiatives
Some of the other major initiatives taken by the Government of India are:
  In August 2018, Innovation Cell and Atal Ranking of Institutions on Innovation
Achievements (ARIIA) were launched to assess innovation efforts and encourage a
healthy competition among higher educational institutions in the country.
 In August 2018, Government of India launched the second phase of ‘Unnat Bharat
Abhiyan’ which aims to link higher educational institutions in the country with at
least five villages. The scheme covers 750 such institutions.
 The allocation for school education under the Union Budget 2018-19 is expected to
increase by 14 per cent, to focus on accelerating existing schemes and quality
improvement.
 In order to boost the Skill India Mission, two new schemes, Skills Acquisition and
Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill
Strengthening for Industrial Value Enhancement (STRIVE), have been approved by
the Cabinet Committee on Economic Affairs (CCEA), Government of India, with an
outlay of Rs 6,655 crore (US$ 1.02 billion) and will be supported by the World Bank.
 The Ek Bharat Shreshtha Bharat (EBSB) campaign is undertaken by Ministry of
Human Resource Development to increase engagement between states, union
territories, central ministries, educational institutions and general public.
 Prime Minister Mr Narendra Modi launched the Skill India initiative – ‘Kaushal
Bharat, Kushal Bharat’. Under this initiative, the government has set itself a target of
training 400 million citizens by 2022 that would enable them to find jobs. The
initiatives launched include various programmes like: Pradhan Mantri Kaushal Vikas
Yojana (PMKVY), National Policy for Skill Development and Entrepreneurship
2015, Skill Loan scheme, and the National Skill Development Mission.

Government Achievements
Following are the achievements of the government in the past four years:

 Under the mid-day meal scheme initiated by the Government of India, about 95
million students of around 1.14 million schools enjoy fresh meal every day.
 The Government has laid foundation of 141 universities and 7 IITs in the past four
years.
 With an aim of promoting innovation and entreprenuership among secondary school
students in the country NITI Aayog, Government of India has launched the Atal
 Innovation Mission (AIM) In June 2018, 3,000 additional Atal Tinkering Labs were
approved, taking the total number of labs to 5,441.

Road Ahead
In 2030, it is estimated that India’s higher education will:

 Adopt transformative and innovative approaches in Higher education.

 Have an augmented Gross Enrolment Ratio (GER) of 50 per cent
 Reduce state-wise, gender based and social disparity in GER to 5 per cent.
 Emerge as a single largest provider of global talent, with one in four graduates in the
world being a product of the Indian higher education system.
 Be among the top five countries in the world in terms of research output with an
annual R&D spent of US$ 140 billion.
 Have more than 20 universities among the global top 200.

Various government initiatives are being adopted to boost the growth of distance education
market, besides focusing on new education techniques, such as E-learning and M-learning.
Education sector has seen a host of reforms and improved financial outlays in recent years
that could possibly transform the country into a knowledge haven. With human resource
increasingly gaining significance in the overall development of the country, development of
education infrastructure is expected to remain the key focus in the current decade. In this
scenario, infrastructure investment in the education sector is likely to see a considerable
increase in the current decade
Moreover, availability of English speaking tech-educated talent, democratic governance and a
strong legal and intellectual property protection framework are enablers for world class
product development, as per Mr Amit Phadnis, President-Engineering and Site Leader for
Cisco (India).
The Government of India has taken several steps including opening of IIT’s and IIM’s in new
locations as well as allocating educational grants for research scholars in most government
institutions. Furthermore, with online modes of education being used by several educational
organisations, the higher education sector in India is set for some major changes and
developments in the years to come.
Exchange Rate Used: INR 1 = US$ 0.015 as of March 30, 2018.
Consultancy Industry:

In India, after the liberalisation of the economy, consultants were hired by Indian companies
that wanted to expand their operations abroad. Now, Indian consultants, particularly those in
the IT world, are most sought after, not only in India but also by world powers, for
developing their global businesses.

Today, TCS, Infosys, Wipro have offices all over the world, and they give US and European
consultancies a run for their money. Among other major IT consulting and outsourcing
companies in India are Tech Mahindra, HCL Technologies, Genpact, Mphasis, and Mindtree.

The Indian consulting story began in the 1990s when C. K. Birla requested McKinsey to
devise a turnaround project for Hindustan Motors. Soon, McKinsey opened an office in
Delhi, employing about 100 consultants.

According to an estimate, there are now over 10,000 big and small consulting firms in India,
6,000 of them in the four metros of Delhi, Mumbai, Chennai, and Kolkata.

According to the Associated Chambers of Commerce and Industry, the Indian consulting
industry is expected to record revenues of Rs. 27,000 crore by 2020. One estimate says that
between 500 and 600 high-value consulting contracts, worth $250 million to $300 million,
are awarded every year by Indian companies, including 30 or 40 projects worth over $2
million each.

As in many other sectors, low cost was the first major initial advantage of Indian consulting
companies and consultants. But their major clients and their partners abroad have found that
Indian consultants have other advantages, such as professionalism, industriousness,
willingness to learn, and adaptability to technology. Their competitors have started to view
them as worthy equals.

However, they suffer from shortcomings, too. Among them are poor brand equity, experience
in foreign markets, ability to maintain quality, and low level of R&D. But they can overcome
these difficulties and emerge more powerful in the global scenario if they adopt the best
practices in the industry and improve their knowledge resources and data warehousing.
Due to the involuntary reduction in workforce, many organizations lack the technological,
strategic and project management abilities to handle market and technical changes in the ever
growing market. Therefore, currently, the business world desperately needs consulting
assistance.  It is projected that by the next three years, there would be more than 2.2 lakh
people getting employment in almost 10,000 consultancy firms across the nation.
Owing to the shortage of enough qualified people, some consulting firms have already
devised creative solutions by launching their own accredited MBA programs. Many people
are inclined towards this profession because of its heightened demand and visibility, along
with enticing salary packages.
The major strengths that set Indian consultancy firm above the consultancy organizations of
developed economies are professional competence, low-cost structure, high acceptability,
flexible thinking, high learning agility, strong interpersonal skills, focused approach and
overall business understanding. Moreover, their expertise in diverse areas and familiarity
with the local conditions are a few other reasons that help them to score over the global
players. However, the Indian consulting sector has some shortcomings, which have been
hindering the export growth such as limited local presence in a foreign country due to lack of
intensified market expertise, low quality assurance, low brand equity, lack of strategic tie-
ups, insufficient international experience of Indian Consultants working overseas, and low
level of R&D. Despite these limitations, the consulting sector in India is responding
creatively to the changing needs of the clients and seeking innovations to meet their future
needs.
The adoption of best practices data warehousing, knowledge management tools and internet
ensures the faster growth of this industry in near future. Despite the expansion of the
consulting organizations, the size of individual firms is growing in response to another
industry trend. Consulting firms that are unable to compete on size are trying to fulfil the
client’s requirements by outsourcing their project to another firm while maintaining
responsibility for the overall project.
6: Education and Consultancy Industry in Argentina
Education Industry:
U.S. education is well-positioned in Argentina. There continues to be strong interest but yet
diminishing demand due to economic environment in Argentina. The new elected
Government, took office in December 2015, and has abolished many trade barriers and taxes
for transfer of funds and travel.  Education will be prioritized in the Argentine market as it
was in the past.
Historically, the U.S. educational system has attracted Argentine students wishing to pursue
university degrees in the following areas: Humanities and Social Sciences, Business,
Engineering and Computer Sciences, Agricultural and Biological Sciences, Natural and
Physical Sciences, Mathematics and Health Studies. Argentina’s university system is one of
Latin America’s best, and features various universities which are engaged with U.S.
universities in student exchange programs. 
In the 2016-17 academic years, 2,219 Argentine students studied in the U.S., a 0.8% increase
over the previous year. These numbers should increase in the future due to new local
government policies and a better economic environment. There are concrete opportunities to
increase the number of Argentine students attending U.S. universities in the following niches:
student exchange programs, web based education, a combination of short term education with
tourism, short-term education in Spanish, development of satellite campuses, and the
development of executive education programs.  U.S. universities wishing to attract Argentine
students should consider actively increasing recruitment campaigns in order to raise their
visibility.  Financing and scholarship opportunities, as well as information on the process to
obtain a U.S. student visa are essential topics for U.S. educational institutions when
promoting themselves in Argentina.

The U.S. educational system has attracted many Argentine students wishing to pursue
university degrees, training and student exchange experiences in the following areas:
Humanities and Social Sciences, Business & Management, Engineering and Computer
Sciences, Agricultural and Biological Sciences, Natural and Physical and Life Sciences.
Argentines usually express high interest in exchange programs and education in the U.S.
The number of Argentine students seeking full-time education in the U.S. has grown over the
last 20 years and there is a growing trend towards full-time undergraduate studies.
Argentine graduate-level students have always been inclined to continue their studies in the
U.S., a system that boasts high-quality, flexibility and educational-opportunities provided by
a wide variety of institutions and academic programs.
The number of international student exchange organizations has also grown significantly in
the last years. Commonly, professionals seek to engage in exchange programs or courses
leading to improve their skills in management, law, logistics, quality control, production and
marketing, IT, filmmaking as well as in medical and scientific fields.

Student Exchange Program agreements are generally the easiest way for U.S. institutions to
generate a relationship with an Argentine school, as they are regarded as an opportunity to
offer students international exposure at reduced costs. Study Abroad Programs are also
welcome, but as costs of these are usually significantly higher than the Student Exchange
option, it makes it hard for local schools to promote them.
Given that tuition fees represent a big investment for Argentine students paying for their
education, one area to explore is the corporate market. For example, short courses (one-week
to four-week) on topics such as Mergers & Acquisitions, Negotiation, Service Marketing, and
others may represent high profit generators. Also, targeted English courses on selected topics
such as Finance, Law, Accounting, Human Resources, and others are of interest to middle
and upper level managers that seek to advance in their careers and feel the need to improve
their English skills in their field of interest.
Another niche opportunity is represented by Argentine pre-MBA students who are required to
use study materials such as business case studies in English but lack the language level
needed to complete their assignments in a successful manner. Many universities would be
willing to partner with an institution that can offer this specific service locally.
U.S. universities wishing to penetrate the Argentine market should consider to actively
increasing recruitment campaigns in order to raise their visibility in Argentina. When
promoting U.S. education opportunities to prospective Argentine students, U.S. institutions
must be ready to address concerns about financing/scholarship opportunities as well as about
the student visa process.  A list of strong market entry methods are suggested below.

Market entrance strategies should be considered on a case by case basis depending on the
U.S. institution and the program offering, etc. 
7: Comparison of PESTEL of India and Argentina

1: Political comparison:

India is one of the most powerful countries in the world. It is the largest democracy in the
world and enjoys a relatively stable political environment. A major area of concern in India
is corruption. It badly affects the country’s business and political environment, posing a
challenge to the country’s economic growth. Corruption increases the cost of business
operations and often affects foreign direct investment. Argentina has been treated as a pariah
state by the global funds markets. Corruption and cronyism abound, as does harassment of
businesses. Argentina is also bidding to re-enter the worldwide personal debt markets, a
precondition to increase foreign direct and portfolio funding. Another plus: With the
worldwide financial system recovering and both China and Brazil white-hot, the export
outlook for the country’s cornucopia of agricultural goods is improved.

2: Economical Comparison:

According to the IMF 2017 economic forecast, India’s GDP is worth $2.4 trillion making it
the 7thlargest economy in the world by nominal GDP. The GDP will grow by 7.0% in FY18
which is expected to increase to 7.4% by FY20 (The World Bank Group, 2018). The current
corporate tax rate in India is 30% (as of February 2018). The economy of Argentina has been
recently on rise after the recovery from a severe economic crisis of 2001/2002. Over the last
5 years, the country’s GDP growth has been quite high: 9.2% in 2005, 8.6% in 2007 and
6.6% in 2008 (slowed down by the international financial crises). Economic environment of
Argentina is one of the most attractive markets among the national economies of Latin
American countries.

3: Social Comparison:

India has a gigantic consumer market with a total population of approximately 1.2 billion.
Such a huge market is a great opportunity for multinational companies. India is a multi-
ethnic, multi-lingual, and multi-religious country. Communal harmony is a great strength;
however, the country sometimes witnesses tensions in ethnic lines. India has a world-
renowned film industry. It is also world renowned for some of the sports e.g. Cricket and
Hockey. Family ties are considerably stronger in Argentina than they are in North America
or in many northern European nations. In Argentina, family ties remain very close for most
kinship relationships. Argentina is officially a Catholic country. By law, for example, the
President of the nation must be a Roman Catholic. Nonetheless, Argentina has freedom of
religion, and (due to its history of immigration) a wide variety of religions are practiced.

4: Technological Comparison:

India has a strong network of science and technology institutions and trained manpower.
India’s medical technology (MedTech) sector is forecasted to reach US$ 9.6 billion in 2022
and US$ 7.8 billion in 2020 from US$ 5.7 billion in 2017. India is among the top-ranking
countries in the field of basic research. IBM’s India inventors contributed over 800 patents in
year 2017, making India the second highest contributor after the US region. A marked
dichotomy exists between the technological infrastructure available in the major urban
centres (notably Buenos Aires, Rosario, and Còrdoba) and that available in the countryside.
Argentina’s major urban areas tend to share with northern Europe, Canada, and the United
States a view of technology as a controlling mechanism.

5: Environmental Comparison:

While India has made a lot of progress over the years, the country still faces a number of
environmental challenges e.g. air pollution, water pollution, floods, resource depletion such
as water and forest, loss of biodiversity, and diversion of consumer waste into rivers. The
principal environmental responsibilities are vested in the Ministry of Public Health and the
Environment; the Sub secretariat of Environmental Planning in the Ministry of
Transportation and Public Works; and the Sub secretariat of Renewable Natural Resources
and Ecology within the Secretariat of State for Agriculture and Livestock. The major
environmental issues in Argentina are pollution and the loss of agricultural lands. The soil is
threatened by erosion, salinization, and deforestation.
6: Legal comparison:

The last element to address in the PESTEL analysis of India is the legal landscape. As
mentioned above, India is a famous destination for foreign direct investment. Depending on
the scope and the business needs, foreign investors can set up a company, branch, or a limited
liability partnership in India. Indian companies are governed by the Companies Act, 2013.
The Court System of Argentina consists of Federal and Provincial court systems.  Federal
courts include the Supreme Court, 17 appellate courts, and district and territorial courts on the
local levels. The Federal Court System hears cases concerning the National Government or
any of its agencies, conflicts involving two or more provinces, matters involving foreign
people or companies, and certain alleged violations of individual Constitutional rights. 
8: Comparison of Educational Industry
Education Industry:

India’s education sector offers a great opportunity with approximately 29 per cent of India’s
population being between the age group of 0-14 years. India’s higher education segment is
expected to increase to US$ 35.03 billion by 2025. The education sector in India is estimated
at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.
India has over 250 million school going students, more than any other country. It also has one
of the largest networks of higher education institutions in the world. Number of colleges and
universities in India reached 39,050 and 903, respectively in 2017-18. India had 36.64 million
students enrolled in higher education in 2017-18. Gross Enrolment Ratio in higher education
reached 25.8 per cent in 2017- 18. In December 2018, the Government of India published that
3.43 million candidates had enrolled in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
2016-20 scheme. India has the world’s largest population of about 500 million in the age
bracket of 5-24 years and this provides a great opportunity for the education sector. The
education sector in India is estimated at US$ 91.7 billion in FY18 and is expected to reach
US$ 101.1 billion in FY19. Number of colleges and universities in India reached 39,050 and
903, respectively in 2017-18. India had 36.64 million students enrolled in higher education in
2017-18. Gross Enrolment Ratio in higher education reached 25.8 per cent in 2017-18.
Education sector in India remains to be a strategic priority of the government. The
Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the
education sector through the automatic route since 2002.The sector has received cumulative
FDI worth US$ 1.75 billion up to June 2018. Indian education sector witnessed 18 merger
and acquisition deals worth US$ 49 million in 2017. In May 2018, the Ministry of Human
Resource Development, Government of India launched Samagra Siksha scheme with the aim
of achieving holistic development of school education in the country. The Government of
India is working on the draft of the New Education Policy to address the changing dynamics
in the education industry of the country as per the requirement of the population.
Statistics from Argentina’s Ministry of Education show that dropout rates are high at the
secondary level as well and that many students do not graduate on time: 36.3 percent of the
students enrolled in grade 10 in 2015 were above the official school age, and the dropout
rates for grades nine, ten, and eleven were 9 percent, 12.5 percent and 8.6 percent,
respectively. Argentinian students also perform poorly in comparative tests, such as the
OECD PISA study. In 2012, Argentina ranked only 57th out of 64 countries participating in
the study, behind Chile, Mexico, Uruguay, and Brazil.[2] A World Bank analysis of
Argentina’s learning outcomes found that there had been virtually no improvement in
Argentina’s PISA performance between 2000 and 2012, while countries like Brazil, Chile,
Colombia, Mexico, and Peru all made significant gains. Given that Argentina is one of South
America’s richest countries, Argentinian scholars have noted that problems like high dropout
rates cannot be simply explained with socioeconomic factors like poverty, but are also owed
to low student motivation and structural problems within the education system. Among the
issues that have been raised are the decentralized and fragmented nature of the system and the
fact that there is no nationwide secondary school leaving examination. What is clear is that
there are notable regional disparities in Argentina’s education system. As the eighth-largest
land mass country in the world, Argentina is a big and culturally diverse country. There are
significant differences between more rural provinces and urban centers like the city and
province of Buenos Aires, where 43.4 percent of all elementary, secondary and non-
university higher education students were enrolled in 2015. Argentina has a federal system of
government, and the different provinces have far-reaching autonomy over educational
matters. Regional disparities exist in terms of ease of access to education, quality of
education, education budgets, infrastructure, or teacher salaries to name but a few examples.