PESTLE Analysis of India

Following are the latest marco level features of India, which present the current prospect of India

Political
• Re-election of a Stable government with a large mandate and
consistent performance.
P Economic
• One of the fastest growing major economy in the world despite the fall of growth
from 7.2% (2017-2018) to 6.8% (2018-2019).
• Government focus on promotion of tourism in India emphasized by
• Contained average inflation in the last five years 2015-2019 within 4%.
iconic initiatives for example Incredible India 2.0 campaign.

E
• GST reduced the cost of local production from 28% to 18% for 200 items which
will lead to an increase in foreign direct investment (FDI).
Social • During 2018-19, total FDI equity inflows were GBP 34.6 billion out of which 60%
• The Indian Middle-Class population (income GBP 1,100 – 11,000 p.a.) were into the service sector.
has increased by 78% in the last 10 years, and the disposable income
of the middle-class population is growing at 16% p.a., which translates
to a higher spending capacity.
• The social environment of India is adapting and evolving. In the last 20
S Technological
• Smartphone and internet penetration has lead to a wide market reach via online
years, there has been shift of employment from agricultural sector to
service sector due to availability of affordable Education. India’s platform.
literacy rate is 74% and rising which has generated opportunities for • Internet penetration observed a boost with the entry of players like Reliance in
employment giving higher importance to education.
T the telecom industry. The number of internet users in India has registered an
annual growth of 18% and is estimated at 566 million in 2018.
• With the advent of smartphone technology, 27% of the Indian population use
Legal smartphones.
• 100% FDI in tourism and hospitality sectors is allowed including • The technological progress of India in the past 10 years has been immense with
tourism construction projects like the development of hotels, resorts,
and recreational facilities.
L projects such as the bullet train and space exploration showcasing the growth of
technology in India.
• India has improved its ranking on the World Bank's Doing Business
2019 report which has significantly improved from 142 in 2014 to 77 in Environment
2019. This steep incline was due to the implementation of Goods and

E
• Indian tourism thrives on the environment and heritage of the country. The
Service Tax in 2017 among removing of many archaic laws. peninsular structure of the country and presence of the Himalayan mountains
• Taxpaying is easier in India due to GST and digitisation of processes, aids water related activities as it giving rise to rivers, fresh water lakes and other
improving the country’s ranking in the World Banks Ease of Doing water bodies which are prime locations for water related activities.
Business Report 2018 by 53 places.
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