1.

Factor Conditions:
In the last two decades, the depressing vision of Indias population as an overwhelming burden has
been turned on its head. India now views its population of 1.2 billion as a vast source of Human
capital.
India is a leading producer of many mineral resources and has a vast reserves of coal. Its lack of oil
and natural gas supplies has put a lot of dependency on imports.
India has all the ingredients of a knowledge-based economy by virtue of English language and
human resources.
India is suffering a huge setback because of its poor infrastructure which needs a lot of attention
going forward, to attract investments.

2. Demand conditions:
The more demanding the customers in economy, the greater the pressure facing nation to
constantly upgrade its competitiveness via innovation and improving its quality.
India attracted over 250 multinationals to set research centers. The economy is the worlds 12thlargest. As the educated middle class continues to rise and becomes more and more powerful, the
country would demand more and more and their consumptions will increase. Going forward, the
demand conditions are going to rise which may lead to better quality of education for the masses,
better governance, less corruption and greater equality. This will only increase the GDP and leads to
improvements in its innovation and services.

3. Related and supporting industries:

Services form the largest part of Indian GDP. One of the biggest advantages that India has is its IT
industry. It is a world leading provider of IT services and also employs a vast majority of people.
According to a Goldman Sachs report, India has the potential to show the fastest growth over the
next 30 50 years.
India clearly has low cost high quality labor compared to any other country in the world and it will
have a young workforce till 2050. But still it hasnt made any progress in the field of manufacturing.
Although it is the worlds cheapest producer of high quality steel, policy paralysis and corruption has
halted the India from becoming the worlds leading manufacturer.

4. Firm Strategy, structure and rivalry:

Indian IT industry has been the toast mainly because of its low cost innovation. The pharmaceutical
industry in India is seen in a very positive light as India is the leading producer of generic drugs. Thus
the firm strategy in India has remained low cost high quality production.
India has moved on from being a socialist country towards a capitalist economy. There is an open
market economics for most of the goods and services produced here. Thus this healthy rivalry
among the peers in their industry have made the firms to be more innovative and effective in their
offerings.