INDIA

India, officially the Republic of India is a country in South Asia. It is the seventh largest country
by geographical area, the 2nd populous country, and the most populous democracy in the world.
The Indian ocean on the south, the Arabian sea on the west, and the Bay of Bengal on the east,
India has a coastline of 7,517 km. It is bordered by Pakistan on the west, People’s Republic of
China, Nepal, Bhutan, to the North and Bangladesh and Myanmar to the east. India in the
vicinity of Sri Lanka, Maldives, and Indonesia in the Indian Ocean.

Home to Indus Valley Civilisation and region of historic trade area and vast empires, Indian
subcontinent was identified with its commercial and cultural wealth for much of its long history.
Four major Religions, Hinduism, Buddhism, Jainism and Sikhism originated country, while
Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium of CE and
shaped the region’s diverse culture. The British East India Company from the eighteenth century
and colonized by the United Kingdom from mid-19th century, India became independent in 1947
after a struggle for independence that was marked by widespread non-violent resistance.

India has 29 states 7 union Territories with parliamentary system of democracy. India is the 12
largest economy in the world and is also ranked 4 in terms of purchasing power. After the
economic reforms made by the UPA government in 1991 India has been transformed to one of
the fastest growing economy in the world. However the Indian economy has suffered by high
levels of poverty, illiteracy, diseases and malnutrition.

India at Glance

1. Population : 1,150,000,000 (1.15 billion)

2. Area : 3.3 million square km
3. Coastline length : 7600 km
4. Languages : 17 major, 844 dialects
5. Major religions : Hinduism, Islam, Buddhism, Christianity,

Sikhism, Jainism.

6. National anthem : Jana Gana Mana

 7. National song : Vande Mataram
8. National emblem : Replica of the lion Capital of Sarnath
9. National flag : Horizontal tricolor in equal proportion of deep saffron
on the top, white in the middle and dark green at the bottom. In the center of the white
band is a wheel.
10. National animal : Tiger
11. National bird : Peacock
12. National flower : Lotus
13. National tree : Banyan
14. National fruit : Mango
15. National currency : Rupee
16. National sport : Hockey

INTRODUCTION

PESTLE Analysis in Business Environment

In business pestle analysis role is very important.

Originally designed as a business environmental scan, the pestle analysis is an external 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 produnt development,
business or strategy planning.

PESTLE means:

P: Political

E: economical

S: social

T: Technological
L: Legal

E: Environment

The PESTLE subject should be a clear definition of the market being addressed, this is
following:-

 A company looking at its market

 A product looking at its market
 A brand in relation to its market
 A Local business unit or function in a business
 A strategic option, such as entering a new market
 A potential acquisition
 A potential partnership
 An investment opportunity

Now we see in details of pestle factor/ impact in India in next following pages:

POLITICAL:

These refer to government policy such as the degree of intervention in the economy. What goods
and services does a government want to provide? To what extent does it believe in subsidizing
firms? What are its priorities in terms of business support? Political decision can impact on many
vital areas for business such as the education of the workforce, the health of the nation and the
quality of the infrastructure of the economy such as the road and the rail system.

India is the biggest democracy in the world. The government type is federal republic. Based on
English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction
with reservation, separate personal law codes apply to muslims, Christians, and hindus. The
political situation in india is more or less stable. Most of its democratic history, the federal
government of india has been led by the (INC) Indian National Congress. State politics
domination by several national parties including the INC. the Bharatiya Janata Party (BJP), the
communist party of india (CPI), and various regional parties. In 2009 Indian elections, the INC
won the biggest number of lok sabha seats and formed a government with a alliance called the
United Progressive Alliance (UPA), supported by various left leaning parties and members
opposed to the BJP. Overall India currently has a coalition led government and both major
political parties the UPA and BJP, whichever comes in power.

It comprises political stability and the policies of the government. Ideological inclination of
political parties, personal interest on politicians, influence of party forums etc. create political
environment. For example, Bangalore established itself as the most important IT centre of India
mainly because of political support.

In India many political factors those effect in business environment. Political pressures in ruling
government and vote bank problems. These are the major factors those affect on political
environment:-

i. Taxation policy
India has a well developed tax structure with a three-tier federal structure, comprising the
Union Government, the state governments and the Urban and Rural Local Bodies. The
power to levy taxes and duties are distributed among the three tiers of the governments,
in accordance with the provisions of the Indian Constitution. The main taxes/duties that
the Union Government is empowered to levy are the Income Tax, Customs duties,
Central Excise and Sales Tax and Service Tax.