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PESTLE & SWOT Analysis of Indian Economy
PESTLE & SWOT Analysis of Indian Economy
PESTLE & SWOT Analysis of Indian Economy
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degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions,
Income Tax Slabs for the Individual (Below 60 Years Age) for the Assessment Year 2013-2014
SI NO. 1. INCOME TAX SLAB Rs. 0 To 200,000 INCOME TAX RATE PAYABLE No Income Tax
2.
3. 4.
10%
30%
Income Tax Slabs for the Individual (Above 60 Years Age) for the Assessment Year 2013-2014
SI NO. 1. 2. 3. 4. INCOME TAX SLAB Rs. 0 To 250,000 Rs. 250,001 to 500,000 Rs. 500,001 to 1000,000 Rs. 10,00,001 INCOME TAX RATE PAYABLE No Income Tax 10% 20% 30%
There are over fifty national laws and many more state-level laws.
O Traditionally Indian governments at federal and state level have sought
to ensure a high degree of protection for workers. So for instance, a permanent worker can be terminated only for proven misconduct or for habitual absence. Collective labour laws
O The Industrial Disputes Act (1947) requires companies employing
more than 100 workers to seek government approval before they can fire employees or close down. In practice, permissions for firing employees are seldom granted.
India
182.5 8 hours None
China
America
1242.6 8 hours None None 50%
30 minutes per 5 hour 200 hours per year 100% Yes, if approved by government Yes Yes Rarely Yes 2.1 week salary
Yes, without approval of Yes, without approval government of government No No No NA Yes 4.3 week salary NO NA NO None
None
generally stable. Although corruption runs deep within the government and there is a stark diversity of politics, the government is generally stable
near-eternity and the next year may not be a good time for Indian investors.
O The Lanka resolution at the United Nations provoked the exit of the
Dravida Munnetra Kazhagam from the United Progressive Alliance (UPA) government.
political uncertainty until the next general elections at the very least
coalition partners will now be seen as a possible trigger for a no-confidence motion.
rate Pricing trends - inflation and interest rates Consumption, saving and investment Trends International trade and its contribution to GDP
Macroeconomic Performance
GDP Growth
India's quarterly GDP at factor cost at constant (2004-05) prices for Q3 of 2012-13 is estimated at Rs. 14,11,594 crore, as against Rs. 13,51,252 crore in Q3 of 2011-12, showing a growth rate of 4.5 percent over the corresponding quarter of previous year.
Based on an assessment of the current macroeconomic situation, the Reserve Bank of India decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75 percent to 7.5 percent with immediate effect.
Consumer Spending in India increased to 9298.39 INR Billion in the fourth quarter of 2012 from 8198.25 INR Billion in the third quarter of 2012. Consumer Spending in India is reported by the Central Statistical Organisation, India. Historically, from 2004 until 2012, India Consumer Spending averaged 6646.54 INR Billion reaching an all time high of 9298.39 INR Billion in November of 2012 and a record low of 4469.88 INR Billion in August of 2004.
Personal Savings in India increased to 20037.20 INR Billion in 2012 from 18329.01 INR Billion in 2011. Personal Savings in India is reported by the Central Statistical Organisation, India. Historically, from 1951 until 2012, India Households Savings averaged 2778.25 INR Billion reaching an all time high of 20037.20 INR Billion in June of 2012 and a record low of 6.34 INR Billion in June of 1952. In India, Households Savings correspond to the total income saved by households during a certain period of time.
The current account deficit widened to 4.6 percent of GDP in the first six months ending September 2012 as export growth slowed more sharply than imports and is expected to be at its highest at around 5 percent in 2012/13
Exports in India increased to 1412.06 INR Billion in February of 2013 from 1389.82 INR Billion in January of 2013. Exports in India is reported by the Directorate General of Commerce. Historically, from 1978 until 2013, India Exports averaged 235.01 INR Billion reaching an all time high of 1421.73 INR Billion in March of 2012 and a record low of 3.75 INR Billion in May of 1978. Indias main exports are engineering goods (19 percent of total exports), gems and jewelry (15 percent), chemicals (13 percent), agricultural products (9 percent) and textiles (9 percent). India is also one of Asias largest refined product exporters with petroleum accounting for around 18 percent of total exports. Indias main export partners are United Arab Emirates (12 percent of total exports) and United States (11 percent)
Imports in India decreased to 2214.49 INR Billion in February of 2013 from 2475.94 INR Billion in January of 2013. Imports in India is reported by the Directorate General of Commerce. Historically, from 1978 until 2013, India Imports averaged 350.87 INR Billion reaching an all time high of 2475.94 INR Billion in January of 2013 and a record low of 4.98 INR Billion in April of 1978. India is heavily dependent on coal and foreign oil imports for its energy needs. Other imported products include: machinery, gems, fertilizers and chemicals. Indias main import partners are China (12 percent of total imports), United Arab Emirates, Switzerland, Saudi Arabia, United States, Iraq and Kuwait.
Social Analysis
Demographic Dividend
Population:1,220,800,359 (2013 est.)(2nd) Growth rate:1.41% (2009 est.) (93rd) Birth rate:22.22 births/1,000 population (2009 est.) Death rate:1.4 deaths/1,000 population (2009 est.) Life expectancy:69.89 years (2009 est.) male:67.46 years (2009 est.) female:72.61 years (2009 est.) O Fertility rate:2.5 children born/woman (SRS 2010)(82nd) O Infant mortality rate:30.15 deaths/1,000 live births (2009 est.)
0-14 years:31.1% (male 190,075,426/female 172,799,553) (2009 est.) 15-64 years:63.6% (male 381,446,079/female 359,802,209) (2009 est.) 65-over:5.3% (male 29,364,920/female 32,591,030) (2009 est.) O Sex ratio At birth:1.12 male(s)/female (2009 est.) Under 15:1.10 male(s)/female (2009 est.) 15-64 years:1.06 male(s)/female (2009 est.) 65-over:0.90 male(s)/female (2009 est.)
Rural Snapshot
O Rural Population72.2%,
Income Distribution
Income Distribution
O How rich are the Indians today? What is the distribution of wealth in
India among its 1.2 billion citizens? What is considered rich? What is the income range of middle class households? O "Rich" households $35,000+ per year: 1.3% (16 million people)
O "Middle-class" households
deprived" households comprising, say, the bottom 300 million people. I bet the household income there is below $800 per year (~$2/day).
O About 170,000 people, or 0.01%, have a net-worth over
$1 million. Of these, 25 are dollar billionaires. Read the rest of the report.
Income Distribution
Education
is 65.46%. O Kerala with 93.9% literacy rate is the top state in India.
O Lakshadweep and Mizoram are at second and third position
rate in India.
Education
O Government of India has taken several measures to
improve literacy rate in districts and villages where people are very poor.
O There has been a good improvement in literacy
rate of India in last 10 years but there is still a long way to go.
Technological Analysis
R&D
O For instance, out of a total global R&D spend of $1143 billion,
the percentage claimed by the US is 33.6, Europe 24.5, and Japan and China 12.6 each, while Indias share is a meagre 2.1. O Government sources pick up 75-80 per cent of the R&D expenditure, and only 20-25 per cent spent by private sector and a mere three per cent by universities. Whereas the breakup of percentages for OECD countries is 69 by private enterprises, 18 by universities, 10 by government agencies and three by non-profit bodies. O The rates of super deductions go up to 200 per cent in India, being comparable with those across the globe and on par with countries such as Singapore, Malaysia and Hungary.
Outsourcing Hub
O Government supported policies like SEZ, STP
O Global Outsourcing Hub O Size - $100 billion
Chennai
O Total Direct Employment around 25 lakh
Communication
O Well Developed Network
LEGAL FACTOR
O Legal factors include discrimination law, consumer
law, antitrust law, employment law, and health and safety law. These factors can affect how a
LEGAL FACTOR
O Legal System is based on English Common Law
Statistics
O Rank: 10th (nominal) / 3rd (PPP)
others
Statistics
O GDP:
2012 IMF est.)[ IMF est.)[1 O GDP growth: O GDP per capita:
5.3% (2012-2013)[2] $1,455 (nominal: 139th; 2011) $3,944 (PPP: 125th; 2011)[1] O GDP by sector : agriculture: 17.2%, industry: 26.4%, services: 56.4% (2011 est.) O Inflation(CPI) : CPI: 10.56%, WPI: 7.18% (Dec 2012) O Population below poverty line: 29.8% (2010)
O Labour force:
Cont.
O Labour force: O Labour force
487.6 million (2011 est.) Agriculture: 52%, industry: 14%, services: 34% (2009 est.)
by occupation:
O Unemployment:
O Average gross
salary :
O Main industries:
Textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals
the tenth-largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). Hence attractive destination for foreign investors.
O India is the nineteenth largest exporter hence
analytical students
World class business-
servants etc
resources
Biodiversity & Traditional
knowledge base
Diversity vs. Ideas-Innovation-
Integration
Powerful spiritual strength
(yoga-Ayurveda-Healingtherapy services)
Geographical location
at various platforms
Big democracy, Big
Range of emerging professional champions IT & Software superpower Stable economy does not get affected by external
changes
Extensive higher education system third largest
reservoir of engineers
Age structure 0-14 years: 31.1% (male 190,075,426/female 172,799,553) (2009 est.) 63.6% (male 381,446,079/female 359,802,209) (2009 est.) 5.3% (male 29,364,920/female 32,591,030) (2009 est.)
Huge pool of labour force Huge English speaking
population
15-64 years:
65-over:
O Lack of learning habits & Team work spirit O Fear of sharing knowledge & taking risk O Thinking win-lose lose-win look-outside O Slow absorption of Innovation & change O Rush of getting high marks not Development
- 9.4% unemployed
O Stark inequality in prevailing socio-economic conditions O Poor infrastructural facilities O Low productivity O Huge population leading to scarcity of resources
of living
business.
O Inflow of FDI is likely to increase in many sectors.
terms
O Huge domestic market. Opportunity for MNCs for
sale.
- Population of 1210 million is a huge market
opportunities.($121billion revenue)
O Rural economic development. O Investment in research and development.
- High corruption