Business Environment | India and Canada

Running head: BUSINESS
BUSINESS
Name of the Student
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Author Note

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Introduction
The major purpose of this report will be to examine and compare the business
environment of the regions of India and Canada, which will help to find out any similarities
or differences between the two countries. The PESTLE analysis will be performed here to
find out and evaluate the business environment and marketing conditions of the two nations.
The PESTLE analysis will cover the political, economic, social, technological, legal and
environmental factors of the business environment of both the regions.
PESTLE Analysis of India
Political Factor
Political Situation - This factor states about the policies, rules and regulations related
to the wealth of the nation, products and services provided in the country, the decisions
related to politics made in the important areas of the business and the political infrastructure
provided in the present political scenario of the region affects the business environment of the
nation, both in domestic and international point of view. As India is a federal republic
Democracy involves the political stability of the government, which reflects the business
environment with the involvement of governmental policies.
Privatization – In modern times, India has minimized the political alliances in
managing the business houses, which has improved the productivity and efficiency of the
business operations. Privatization in the region of India has been moved out in a number of
stages, which deregulation, disinvestment and de-reservation.
Economic Factors
Taxation Policy – There is a well-organized tax structure that prevails in the region
of India. There are various mandatory contributions or taxes that the business entities need to

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make in India. These includes GST, corporate income tax, property tax, vehicle or pollution
tax among others. The overall tax system in the region of India is regarded as advantageous
for the expansion of the business entities.
Economic Reform – India has started to move towards a more industrial policy after
1991. The Government reduced the number of industries under compulsory licensing to six,
the Foreign Investment Promotion Board (FIPB) was instituted to channelize and promote
foreign investment in India and policy towards foreign capital was liberalized.
Interest Rates – The increase in the interest rates here means the suspension of the
investment and business plans. The consumers possess less disposable income to spend due
to increase in the repayments of mortgage.
Inflation – Inflation also effects the business houses in India. Due to this, uncertainty
is created in the decision making processes, which may have an adverse effect on the
business environment, because redistribution of money happens from lenders to borrowers.
Social Factors
Demographics – It has been found that the population in India is ageing. From a total
population of near to 1.34 billion people, 63.1 % falls between 15 and 64 years old, almost
31.8 % are below 14 years old and 5.1 % is over 65 years. Therefore, it can be stated that
most percentage of population belongs to the working population. This impacts the business
environment accordingly.
Lifestyle – The lifestyle of the people of India possess a diverse culture, which helps
the business houses to focus on a number of products and services according to the basic
needs and requirements of the people.