PEST analysis of India

Political Factors

(1) Since 1991, India market become a free-market system and open to foreign investors ; (2) The political of India is relatively more stable than before , The stability of the regime affecting the development of the national economy; (3) There are different legal systems in different regions; (4) The Indian Constitution guarantees justice, equality and freedom of its citizens, and efforts to promote the exchanges between each other; (5) India is a parliamentary republic with a multi-party system, which is the world’s most popular democracy.

Economic Factors

(1) The average annual GDP growth rate of 5.8% over the past 20 years, and reaching 6.1% during 2011–2012; (2) Due to the rapid development of economy, India becomes one of the fastest growing countries in the world (according to the World Bank, the Indian economy is nominally worth US$1.848 trillion in 2011); (3) The inflation rate in India has always increased; the inflation rate was recorded at 7.81 percent in September of 2012; (4) India’s unemployment rate stands at 9.4%, and it is split out as 10.1% in rural areas, and 7.3% in urban areas; (5) Tax rates in India: income tax at a flat rate of 30% for Indian companies. Foreign companies pay 40%; Personal income tax varies.

Technological Factors

(1) India’s oil Reserve capacity is limited. India’s oil reserves which have been proven are about 5600000000 barrels, which is only 0.5% of World oil reserves; (2) In India, energy consumption structure is not very complicated. Coal accounted for 53%, oil is occupied 33%, natural gas 8% and nuclear power 1%. But India’s energy consumption demand is growing day by day; (3) The India government is not outstanding in innovation, because innovative energy mainly comes from the natives;

Sociocultural Factors

(1) The current population of India is 1,210,193,422,the sex ratio is 940 females per 1000 males; (2) India’s official language is Hindi, about 30% of the population use, English is also widely used as a second language in India. (3) Education levels: Female literacy was at a national average of 65% whereas the male literacy was 82%.

Reference
Economic Survey of India 2007: Policy Brief, Organisation for Economic Co-operation and Development, October 2007, retrieved 22 July 2011 Gupta O.P. and Kumar,Muneesh “ impact of introduction of index futures on stock volatility. The India experience”, NSE initiative, 25P(2002) World Economic Outlook Update, International Monetary Fund, June 2011, retrieved 22 July 2011 Velcheru Narayana Rao; David Shulman. Classical Telugu Poetry (2 ed.). The Regents of the University of California. Chenchiah, P.; Rao, Raja Bhujanga (1988). A History of Telugu Literature. Asian Educational Services. Kumar, Dharma (2005). The Cambridge Economic History of India, Volume II : c. 1757–2003. New Delhi: Orient Longman. Roy, Tirthankar (2006). The Economic History of India 1857–1947. Oxford University Press Datt, Ruddar; Sundharam, K.P.M. (2009). Indian Economy. New Delhi: S. Chand Group. p. 976. Times of India

http://blogs.timesofindia.indiatimes.com/developmentdialogue/entry/the-himachal-paradox-and-the-mystery-of-india-s-working-women?sortBy=MOSTDISCUSSED&th=1 Saraswati, Jyoti (2012). Dot.compradors: Power and Policy in the Development of the Indian Software Industry, Pluto Press, London