India

POLTICAL 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 reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the 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 dominated by several national parties including the INC. Bharatiya Janata Party (BJP), Communist Party of India (CPI), and various regional parties. In the 2009 Indian elections, the INC won the biggest number of Lok Sabha seats and formed a government with allies to form 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. India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban & Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income tax, Customs duties, Central Excise and Sales tax and Service tax. The principal taxes levied by the State Governments are Sales, Stamp Duty, State Excise, Land Revenue, and Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties, Octroi Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc. ECONOMICAL In order to solve economic problems of the country, the government took several steps including control by the State of certain industries, central planning and reduced importance of the private sector. The main objectives of Indias development plans were: Initiate rapid economic growth to raise the standard of living, reduce unemployment and poverty Become self-reliant and set up a strong industrial base with emphasis on heavy and basic industries

Reduce inequalities of income and wealth, Adopt a socialist pattern of development based on equality and prevent exploitation of man by man,

As a part of economic reforms, the Government of India announced a new industrial policy in July 1991, The broad features of this policy as follows: The Government reduced the number of industries under compulsory licensing to six. Disinvestment was carried out in case of many public sector industrial enterprises. Policy towards foreign capital was liberalized. The share of foreign equity participation was increased and in many activities 100 per cent Foreign Direct Investment (FDI) was permitted. Automatic permission was now granted for technology agreements with foreign companies. Foreign Investment Promotion Board (FIPB) was set up to promote and channelize foreign investment in India.

The economic factors in India are improving continuously. The GDP (Purchasing Power Parity) is estimated at about 3.965 trillion U.S. dollars in the year 2009. The GDP- real growth rate in 2009 was 6%. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign direct investment rose in the fiscal year ended September 2009 to about US$ 10.532 billion. There is a continuous growth in per capita income; Indias per capita income is expected to reach Rs. 33283 by the end of 2009-2010. This will lead to higher buying power of the Indian consumers. SOCIAL In India, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees, living longer. It also means some firms have started to recruit older employees to tap into this growing labour pool. It describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part of the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario

India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years 31.8%, 15-64 years 63.1% and 65 years and above 5.1%. TECHNOLOGICAL New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. Today in India, 3G technology and good infrastructure for bandwidth are available. BSNL and Reliance have covered cities by optical fibre. India has many Technological Projects. Good Service provider in IT sector like TCS, Infosys, etc. India is a big market in mobile sector with 5-6 major operators and small operators. India is investing in R & D in every sector. LEGAL The introduction of discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions. Legal changes can affect a firm's costs and demand. In India, legislation is passed by the parliament and the state legislatures. Examples of such legislation specifically aimed at business operations include the Trade mark Act 1969, Essential Commodities Act 1955, Standards of Weights and Measures Act 1969 and Consumer Protection Act 196. Much permission is required from State and central Governments for almost all forms of business transactions. Some of the legal laws: (i)Employment law (ii)Trade and product restrictions (iii)Health and safety regulations (iv)EU and international laws (v)Monopolies commission ENVIORNMENTAL With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries and the general move towards

more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. Industrialization and urbanization have resulted in a profound deterioration of India's air quality. Of the 3 million premature deaths in the world that occur each year due to outdoor and indoor air pollution, the highest number are assessed to occur in India. (i)Pollution problems (ii)Planning permissions (iii)Waste disposal (iv)Noise controls (v)Environmental pressure groups