1.

2PLASTIC INDUSTRY STEEPLED IN INDIA:

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 governments policies,
politicians 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 welldeveloped and several taxes, such as income tax, services tax and sales tax are imposed by the
Union Government. Other taxes, such as octopi 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 Indias
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 Indias 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, , 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.

http://pestleanalysis.com/pestle-analysis-india/

1.1 PLASTIC INDUSTRY STEEPLED IN CHINA:

Political Factors
Political factors which impact China are:

Government regulations

Both formal and informal rules, which firms must abide by, impact the country. Many people
claim that the political force is the most unsettled force. Over the past few years, the government
focused on the development of e-commerce.

Legal issues

The legal framework for e-commerce is still in its early stage. China has little experience for
drafting e-commerce legislation for topics like intellectual property rights protection and tax.
There arent any regulations supporting the privacy, recognition of digital signatures, consumer
rights and validation of electronic contracts yet.

Economic Factors
Over the past five years, Chinas economy experienced significant GDP growth rate. Reports
suggest that if China continues to excel at this rate, it ill surpass US GDP soon. Some factors
which might help are:

Sigh rate of savings

Abundant and skilled labor

More export business

Potential urban growth

Any economic development could have a major impact on the SMEs and their actions. Chinas
GDP rate suggests that each citizen is adding more and more values to the society. This is in turn

increasing consumers purchasing power. The labor cost in China is extremely low. This is why
leading companies like Apple are inclined to hire workers from the country.
The growth rate is impressive, but it can slow down. Some of the worrying trends in China are:

High inflation rate

High property prices

The Peoples Bank of China has increased interest rates. The reserve requirement for commercial
banks is also nine times higher now. Moreover, the central bank is urging banks to lend less and
impose limits on home purchases.

Social Factors
The social and cultural aspect of China plays an important role as the demographics constantly
change. For example, population growth and age distribution fluctuate. These can alter social
trends and cultural values. Family size and social behaviors often impact how decisions are
taken. Other social factors are consumer lifestyles, education, religion, and emigration. China is a
collectivistic culture, based on Geert Hofstedes value dimensions.
The literacy rate in China is over 90%. China emphasizes on education and majority of the
nation are literate.
There are 420 million Internet users in the country. As there is internet access, Chinese people
often shop online. Taobao is the largest local e-commerce website, and many people spend a lot
of their things from the site. that the volume will increase in near future.
E-commerce has changed how local consumers see shopping. However, there is still a group who
wish to avoid the perceived risk associated with online shopping. They prefer physical shopping
and like the face to face contact.

Technological Factors
Some common technological factors studied in PEST are:

New products being developed

New purchasing mechanisms such as the intranet and extranet

New production technology

New distribution mechanisms like Internet

New methods of working like mobile telecommunications

A major technological problem in China is that the development of the B2C industry does not
have a safe and stable online payment system. As Chinese buyers are on high Uncertainty
Avoidance level and Long-Term Orientation, the problem is strengthened.

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Company Profile

Business Type

: Manufacturer / Supplier

Year Established

: 1995

Products Manufacturer and

Supplier

Pvc rigid pipes, pvc pipes & fittings, couplings,

: reducers, electrical pipe, electrical conduits, pvc
electrical pipes

ompany Bhagyalaxmi Plastic Industries

Name

DOOR NO-32, ASHRA INDUSTRIAL ESTATE, OPPOSITE KHODIYAR

Address ESTATE, BEHIND MAHALAXMI FABRICS MILL, NAROL-ISANPUR

ROAD, Ahmedabad - 382443, Gujarat, India

Mr. Vikram J. Maheshwari (Partner)
Contact
Person

1.2 stappled analysis in Gujarat:

political factors:
The governments, union or state, are formed through elections held every five years (unless
otherwise specified), by parties that claim a majority of members in their respective lower
houses (Lok Sabha in centre and Vidhan Sabha in states). India had its first general
election in 1951, which was won by the Indian National Congress, a political party that went
on to dominate the successive elections up until 1977, when the first non-Congress
government was formed for the first time in independent India. The 1990s saw the end of
single party domination and rise of coalition governments. The elections for the 16th Lok
Sabha, held from April 2014 to May 2014, once again brought back single-party rule in the
country, with the Bharatiya Janata Party being able to claim a majority in the Lok Sabha
There are many types of political parties in India - National Party and Regional/State party.
Every political party must bear a symbol and must be registered with the Election
Commission of India. Symbols are used in Indian political system as an identity of political
parties and that illiterate people can also vote by recognizing symbols of party.
President of India[edit]
Main article - President of India
The Constitution of India lays down that the Head of State and Union Executive is the President
of India. S/He is elected for a five-year term by an electoral college consisting of members of
both Houses of Parliament and members of legislative assemblies of the states. The President is
re-eligible for elections; however, in India's independent history, only one president has been reelected till now - Rajendra Prasad.
The President appoints the Prime Minister of India from the party or coalition which commands
maximum support of the Lok Sabha, on whose recommendation he/she nominates the other
ministers. The President also appoints judges of the Supreme Court and High Court. It is on the
President's recommendation that the Houses of Parliament meet, and only the president has the

power to dissolve the Lok Sabha. Furthermore, no bill passed by Parliament can become law
without the president's assent.
However, the role of the president of India is highly ceremonial. All the powers of the president
mentioned above are exercised on recommendation of the Union Cabinet, and the president does
not have much discretion in any of these matters. The president also does not have discretion in
the exercise of his executive powers, as the real executive authority lies in the cabinet. The
current President is Pranab Mukherjee
Vice President of India[edit]
Main article - Vice President of India **
The Office of the Vice-President of India is constitutionally the second most senior office in the
country, after the President. The vice-president is also elected by an electoral college, consisting
of members of both houses of parliament.
Like the president, the role of the Vice-President is also ceremonial, with no real authority vested
in him/her. The Vice-President fills in a vacancy in the office of President (till the election of a
new president). His only regular function is that he functions are the Chairman of the Rajya
Sabha. No other duties/powers are vested in the office. The current Vice President is Mohammad
Hamid Ansari.
The Prime Minister and the Union Council of Ministers[edit]
For detailed reading - Prime Minister of India, Union Council of Ministers, Narendra Modi
ministry
The Union Council of Ministers, headed by the Prime Minister, is the body with which the real
executive power resides. The Prime Minister is the recognized head of the government.
The Union Council of Ministers is the body of ministers with which the PM works with on a
day-to-day basis. Work is divided between various ministers into various departments and
ministries. The Union cabinet is a smaller body of ministers which lies within the Council of

Ministers, which is the most powerful set of people in the country, playing an instrumental role
in legislation and execution alike.
All members of the Union Council of ministers must be members of either House of Parliament
at time of appointment, or must get elected/nominated to either House within six months of their
appointment.
It is the Union Cabinet that co-ordinates all foreign and domestic policy of the Union. It
exercises immense control over administration, finance, legislation, military, etc. The Head of the
Union Cabinet is the Prime Minister. The current Prime Minister of India is Narendra Modi.
State Governments[edit]
Full article - State governments of India
India has a federal form of government, and hence each state also has its own government. The
executive of each state is the Governor (equivalent to the president of India), whose role is
ceremonial. The real power resides with the Chief Minister (equivalent to the Prime Minister)
and the state council of ministers. States may either have a unicameral or bicameral legislature,
varying from state to state. The Chief Minister and other state ministers are also members of the
legislature.