Ans 2) It has become imperative for most companies to market their products and services outside their

domestic markets. But all markets are not equally attractive nor are the companies competent enough
to pursue all markets. A company has to be wise in selecting markets where its foray would be
successful.

For the past decade or so, India has been experiencing a constant growth in its GDP, along with a
continuous growth of liberalization from 1991 till date. The country has also been opening its doors to
attract investors and foreign companies to further promote growth. To get a better understanding of
the business environment in India, read on, as we analyze it through the PESTLE analysis of India.

What is Pestle Analysis?

It’s basically a framework used for scanning and analyzing an organization’s external macro environment
by considering factors which include political, economic, socio-cultural, technological, legal and
environmental.

1. Political Factors

Being one of the largest democracies in the world, India runs on a federal form of government. The
political environment is greatly influenced by factors such as government’s policies, politician’s interests,
and the ideologies of several political parties. As a result, the business environment in India is affected
by multivariate political factors. The taxation system is well-developed and several taxes, such as income
tax, services tax and sales tax are imposed by the Union Government. Other taxes, such as octroi and
utilities, are taken care of by local bodies. Privatization is also influenced and the government
encourages free business through a variety of programs.

2. Economic Factors

The economy of India has been significantly stable, since the introduction of the industrial reform
policies in 1991. As per the policy, reductions in industrial licensing, liberalization of foreign capital,
formation of FIBP and so on, has resulted in a constant improvement of India’s economic environment.
The country registered a GDP of $5.07 trillion in 2013 following a further improved GDP growth rate of
5% in 2014 as compared to 4.35% in 2013.

3. Social Factors

The social factors refer to any changes in trends which would impact a business environment. For
instance, the rise in India’s ageing population is resulting in a considerable rise in pension costs and
increase in the employment of older workers. India has a population of more than 1.2 billion people
with about 70% between the ages of 15 and 65. Therefore, there are structures with percentages
according to age. These structures contain varying flexibility, in education, work attitudes, income
distribution, and so on.

4. Technological Factors

Technology significantly influences product development and also introduces fresh cost-cutting
processes. India is served with both 3G and 4G technology which has facilitated several of their
technological projects. Furthermore, the country also possesses one of the strongest IT sectors in the
world, promoting constant IT development, software upgrades and other technological advancements.
Recently, India has also attempted to launch their satellites into space.

5. Legal & Environmental Factors

In the recent past, a number of legal changes have been implemented in India, such as recycling,
minimum wage increase and disability discrimination, which has directly affected businesses there.
However, when it comes to environment, the quality of air in India has been adversely affected by
industrialization and urbanization, also resulting in health problems. As a result, there have been
establishments of environmental pressure groups, noise controls, and regulations on waste control and
disposal.
So, here is the PESTLE analysis of India, which will provide you with a detailed analysis of the four
significant factors that affect its external macro environment.

Ans 7) An important aspect about the goods to be exported is compulsory quality control and pre-
shipment inspection. For this purpose, Export Inspection Council (EIC) was set up by the Government of
India under Section 3 of the Export (Quality Control and Inspection) Act, 1963. It includes more than
1000 commodities which are organized into various groups for a compulsory pre-shipment inspection. It
includes Food and Agriculture, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber Products,
Refractoriness, Ceramic Products, Pesticides, Light Engineering, Steel Products, Jute Products, Coir and
Coir Products, Footwear and Footwear Products.
An important aspect about the goods to be exported is compulsory quality control and pre-shipment
inspection. For this purpose, Export Inspection Council (EIC) was set up by the Government of India
under Section 3 of the Export (Quality Control and Inspection) Act, 1963. It includes more than 1000
commodities which are organized into various groups for a compulsory pre-shipment inspection. It
includes Food and Agriculture, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber Products,
Refractoriness, Ceramic Products, Pesticides, Light Engineering, Steel Products, Jute Products, Coir and
Coir Products, Footwear and Footwear Products.
ISI Certification

Indian Standards Institute now known as Bureau of Indian Standard (BIS) is a registered society under a
Government of India. BIS main functions include the development of technical standards, product
quality and management system certifications and consumer affairs. Founded by Professor P.C.
Mahalanobis in Kolkata on 17th December, 1931, the institute gained the status of an Institution of
National Importance by an act of the Indian Parliament in 1959.

AgMmark Certification
AgMark is an acronym for Agricultural Marketing and is used to certify the food products for quality
control. Agmark has been dominated by other quality standards including the non manufacturing
standard ISO 9000.

Benefits of ISI and Agmark Certification

Products having ISI Certification mark or Agmark are not required to be inspected by any agency. These
products do not fall within the purview of the export inspection agencies network. The Customs
Authorities allow export of such goods even if not accompanied by any pre-shipment inspection
certificate, provided they are otherwise satisfied that the goods carry ISI Certification or the Agmark.
In-Process Quality Control (IPQC)
In-Process Quality Control (IPQC) inspection is mainly done for engineering products and is applied at
the various stages of production. Units approved under IPQC system of in-process quality control may
themselves issue the certificate of inspection, but only for the products for which they have been
granted IPQC facilities. The final certificate of inspection on the end-products is then given without in-
depth study at the shipment stage.

Self Certification Scheme

Under the self Certification Scheme, large exporters and manufacturers are allowed to inspect their
product without involving any other party. The facility is available to manufacturers of engineering
products, chemical and allied products and marine products. Self-Certification is given on the basis that
the exporter himself is the best judge of the quality of his products and will not allow his reputation to
be spoiled in the international market by compromising on quality. Self-Certification Scheme is granted
to the exporter for the period of one year. Exporters with proven reputation can obtain the permission
for self certification by submitting an application to the Director (Inspection and Quality Control), Export
Inspection Council of India, 11th Floor, Pragati Tower, 26 Rajendra Place, New Delhi.

ISO 9000
The discussion on inspection certificate and quality control is incomplete without ISO-9000. Established
in 1987, ISO 9000 is a series of international standards that has been accepted worldwide as the norm
assuring high quality of goods. The current version of ISO 9000 is ISO 9000:2000.

Ans 5) A number of institutions have been set up by the government of India to promote exports. The
export and import functions are looked after by the Ministry of Commerce. The Government formulates
the export-import policies and programmes that give direction to the exports.
Exim policies aim at export assistance such as export credit, cash assistance, import replenishment,
licensing, free trade zones, development of ports, quality control and pre-shipment inspection, and
guidance to Indian entrepreneurs to set up ventures abroad.
1. International Presence
The Director of Exhibitions makes arrangements for participation in international exhibitions, holds
Indian exhibitions abroad, runs show rooms in foreign countries and, sets up Trade centres outside
India.

2. Export Promotion Council

The Director of Commercial Intelligence is concerned with commercial publicity through various media,
monthly publications, directories of foreign importers of Indian products, country-wise.

There are 22 export promotion councils for different products, offering services of export promotion
such as price, quality, packing, marketing, transport etc. They conduct market surveys, publish reports
on foreign trade, administer various export promotion schemes, develop trade contacts, quality control,
joint participation in trade fairs and exhibitions.

3. Setting up of Commodity boards to promote exports

Commodity Boards are set up to help export of the traditional items. There are seven Commodity
Boards apart from All India Handloom and Handicraft Board under the Commerce ministry. They advise
the government on its policies, signing trade agreements, fixing quota, etc.
4. Trade reps
There are Trade Representatives abroad who conduct market surveys, furnish information on exports-
imports, settle trade disputes and pass on information about the rules and regulations for imports.
5. Indian Institute of Foreign Trade
The Indian Institute of Foreign Trade (IIFT) was set up by the Government in co-operation with trade,
industry, universities, educational and research institutions. It is an autonomous body, set up to train
people in international trade, conduct research, survey and organize training programmes.

6. Participation
To promote, organize and participate in the international trade fairs, Government set up Trade Fair
Authority of India in 1977. It sets up showrooms and shops in India and abroad. It assists in development
of new items for diversification and expansion of India’s exports. They publish journals namely, Journal
of Industry & Trade, Udyog Vyapar Patrika, Indian Export Service Bulletin and Economic and Commercial
news.
7. Trade development Authority
In addition to the above, we have Trade Development Authority to collect information, conduct research
and render export finance and help in securing and implementing export orders.
8. Financing for export
The Export Credit Guarantee Corporation (ECGC) covers both commercial and political risks on export
credit transactions. Its head office is in Mumbai and branches are in Delhi, Calcutta and Chennai. In
1982, the Government set up EXIM Bank with head office in Mumbai, branch offices in other major cities
in India and abroad.
EXIM Bank finances exports and imports of machinery, finances joint ventures, provides loan,
undertakes merchant banking functions such as underwriting stocks, shares and bonds or debentures,
develops and finance export oriented industries, undertakes techno marketing studies and, promotes
international trade.
9. Advisory Councils
Some of the State Governments have set up specialized Export Trade Corporations which undertake
export promotion. They are established in Andhra Pradesh, Bihar, Karnataka, Uttar Pradesh, Madhya
Pradesh, Himachal Pradesh. There are also Advisory Councils like Board of Trade, Export-Import Advisory
Council, etc.

10. Technical assistance and Training

The Small Industries Development Organization (SIDO) with 26 small industries service institutions,
provide techno-managerial assistance like motivating entrepreneurs to export, provide information on
export-import and offer consultancy services with respect to export procedure, documentation and
export incentives.

It also provides training programmes to educate entrepreneurs on exports, conduct seminars, meetings,
holds discussions with export promotion agencies and publish small industry export bulletin, besides
liasing with the export promotion organizations for solving the problem of small scale exporters.

Disaster Management
Ans 4) An epidemic is then unusual increase in the number of cases of an infectious disease which
already exists in a certain region or population. It can also refer to the appearance of a significant
number of cases of an infectious disease in a region or population that is usually free from that disease.

Epidemics may be the consequence of disasters of another kind, such as tropical

storms, floods, earthquakes, droughts, etc. Epidemics may also attack animals, causing local economic
disasters.

In general, the Red Cross Red Crescent response to epidemics prioritizes creating awareness, advocating
effective action, social mobilization based on volunteer activities and logistics support (transport,
warehouses, etc). Federation support often complements the efforts of UN bodies.
Avian flu
Avian influenza (AI) is a viral infection primarily affecting birds (chickens, ducks, geese etc., both
domestic and migratory species), but also sometimes other species such as pigs and tigers.
Rarely, bird flu can cause severe infections in humans. There are many different strains or varieties of AI
viruses. They are a sub-group of influenza viruses, which includes the flu virus that causes seasonal
outbreaks in humans around the world every year.
Find more information about the Federation's activities in this area in the avian flu web page of the
health section of this web site.
Cholera
Cholera is mainly spread by drinking water contaminated by faeces. The fatality rate for severe,
untreated cases is 50 per cent; when treated this drops to one per cent.
The incubation period is 1-12 days and severe cases need hospitalisation. Less severe cases can be
treated with rehydration therapy on an outpatient basis. Only 10 per cent of those infected present
symptoms.
Key control factors are: ensuring a safe water supply and rigorous hygiene (hand washing and disposal
of soiled items).
Crowded wards are not a hazard to staff or visitors, if good hygiene is observed. Quarantine is
unnecessary. Vaccine is inappropriate in an emergency.
Ebola and Marburg

Two distinct viral diseases with similar symptoms. Both have a high fatality rate (up to 90 per cent for
Ebola) and are extremely contagious - transmission is through contact with all body fluids and organs,
use of contaminated needles and syringes, and the aerosol route.
Extraordinary precautions should be taken to prevent contamination of all those involved in assisting
patients. The reservoir of the two viruses is unknown.
Malaria
Malaria is transmitted by the bite of the anopheles mosquito, a dusk to dawn biter.
Where the disease is endemic, the local population has some degree of immunity. The people at
greatest risk are those from a non-malarial area, such as IDPs or refugees. They can be protected by a
weekly dose of a malaria suppressive drug. Of the four types of malaria, falciparum can be rapidly fatal
and needs prompt treatment.
Treatment is by orally administered drugs. Control measures include the spraying, filling or draining of
standing water where mosquitos breed, the spraying of living and sleeping quarters and the use of
bednets. Quarantine is unnecessary, as is the immunisation of contacts. An immunisation coverage of
less than 90 per cent means a major risk of outbreaks.
Meningococcal Meningitis
Meningococcal Meningitis is an acute bacterial disease. Epidemic waves occur at irregular, unexplained
intervals. Chiefly affects children and young adults, especially those in crowded living conditions.
The disease is transmitted by direct contact with nose and throat discharges. Infected individuals should
be separated from others and their immediate contacts put under close health surveillance.
Rapid treatment, with penicillin or ampicillin, is essential. Emergency immunization campaigns are
reasonably effective.
HIV/AIDS
HIV/AIDS (Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome) will kill more people
this decade that all the wars and disasters in the past 50 years. Since the AIDS epidemic began, 25
million people have died and more than 40 million are now living with HIV and AIDS. In 2001 alone, five
million people became infected worldwide.
Epidemic diseases are not new but what sets HIV/AIDS apart is its unprecedented negative impact on
the social and economic development of nations. Everyone, rich or poor, young or old, is affected by the
HIV/AIDS epidemic but people in developing countries, particularly young women, are the most
vulnerable. The majority of the victims are adults in the prime of their working and parenting lives. Their
legacy is a decimated workforce, fractured and impoverished communities, and millions of orphans.
While 70 per cent of HIV-infected people live in sub-Saharan Africa, AIDS is a global problem. In
countries like Zimbabwe and Botswana, over 25 per cent of people between the ages of 15-49 are
infected with the virus. HIV infection is also spreading rapidly in south and south-east Asia, the countries
of the former Soviet Union and the Caribbean.
AIDS can be prevented. The fight against the disease must be waged at the local level. Individuals and
communities can cope with the spread of HIV/AIDS by being properly informed, assessing accurately the
factors that put them at risk of infection and by subsequently acting to reduce those risks. The problem,
according to the World Bank, is that there has not been sufficient amount of coordinated activities to
slow and eventually reverse the spread of the disease. Individuals, governments, civil society, private
sector groups, international and non-governmental organizations must fully commit and participate in
scaling up response ensuring that complementary initiatives occur at the national and regional level.