Business Environment 1

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SWOT ANALYSIS INDIAN ECONOMY AS

BUSINESS HUB
INTRODUCTION
India is on the threshold of major reforms and is poised to
become the third-largest economy of the world by 2030.
India as a Business Hub Today is showing great potential.
In the words of our Hon’ble Prime Minister, India offers
the 3 'Ds' for business to thrive— democracy, demography
and demand.
Add to that a tech-savvy and educated population, skilled
labour, robust legal and IPR regime, and a strong
commitment to calibrated liberalization — India is a
destination that Foreign investors cannot overlook.
Also many efforts have been made by the center as well as
the states in form of reforms in order to make India a great
Business Hub.
STRENGTHS OF INDIAN ECONOMY
AS A BUSINESS HUB
Mixed Economic System
Agriculture Development
High percentage of cultivate land
Huge pool of labour force- skilled and unskilled
labour
Availability of abundant natural resources
Large domestic market
Rapid growth of IT and BPO
Abundance of natural growth
Third largest reservoir of engineers
Vast Industrial Presence In Both Sectors-Public And
Private
Demographic Dividend
India's Large, English-speaking Workforce Provides
International Competitive Advantages, Because English
Is The Default Global Business Language.
WEAKNESSES OF INDIAN
ECONOMY AS A BUSINESS HUB
Presence of Vast Industrial Sickness
Out-dated labour laws, and presence of too many
political labour and trade union.
Nascent Regulatory systems to check misuse of
market power by firms.
Dependency on Subsidies(SSI – Small scale
industries)
Inadequate and poor quality infrastructure cost and
time delays.
Illiteracy
Stereotypes And Discrimination
Unemployment
Poverty
Terrorism
Eclectic Tax System
Quality of Education
OPPORTUNITIES OF INDIAN
ECONOMY AS A BUSINESS HUB
Rapidly Growing Middle Class in India.
Niti Aayog plans to turn nation into “Blue
Economy”. 
Vast opportunities for Infrastructure development.
Vast opportunities for Medical Field Development.
Setting Up Of IFC (Investor Facilitation Cell) to
Help Out with Clearance Of Regulatory Approvals.
Implementation of “Maximum Governance &
Minimum Government” Ideology
Introduction Of Make In India
Implementation Of Skill In India
Increasing Importance to Public-Private-Partnership
Model
Emphasis on Green Field Investment
Development of Industrial Corridor
Industrial Friendly Laws , Rules & Regulation And
Incentive Schemes
Single Window Clearance Method
Investment in R&D, Engineering Design
Increasing Inflow Of Foreign Direct Investment
THREATS OF INDIAN ECONOMY AS A BUSINESS HUB

Continuous Fall In Rupee


Global economy recession/slow down
 High fiscal deficit
Volatility in crude oil across the world
Growing input bills - $461.4 billion
Population explosion, rate of growth of population is still
high
Inflation: 6.87 percent in July 2012
Use of offshore financial centers to avoid taxes
Crony Capitalism
Red Tapism & Bureaucratic Government
CONCLUSION
Irrespective of its weakness India has witnessed a
number of success stories - both Indian and
multinational firms have registered higher profits,
increased turnover and higher sales over the years.
This has induced them to reinvest profits and inject
fresh capital into their processes in order to reap the
benefits of the India growth story.

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