Indian Market: A Hub for Global Investors

The assignment analyzes the Indian market, identifying key factors that have contributed to its growth. It discusses the role of government spending on research and funding technologically related projects, which has enhanced the Indian market and presents opportunities for business expansion. Additionally, it touches upon the significance of population growth and cultural simplicity in attracting foreign investors.

Global business
Introduction
Indian market is the only industry which has outperformed others in
the global market competition (Gaspar 2017, P.75). This paper would look at
some of the factors surrounding this industry which makes it attractive to
international investors. In this case, the group would use a pestle analysis
which consists of two steps. The first step involves getting information about
political, social, economic and any other factors surrounding the Indian
market while the second step would include identifying which of the pest
factors represents opportunities.
Getting information
This step involves gathering information about the factors surrounding
the Indian market. Being one of the largest democracies, India has a federal
form of government which is based on common law and this means that
political factors do not have a significant impact of the effectiveness of its
market (Debasish and Anil 2013, P.32). However, some of the political
factors surrounding introduction of various government regulations
whenever a new government comes into power sometimes affects the Indian
market (Thompson and Martin 2010, p.87).
Secondly, the economic factors surrounding the Indian market are favorable
and this is evident in the amount it contributes to the governments GDP.
According to Debasish and Anil (2013, P.30), Indian market uses forward and
future contracts to undertake various measures like evading exchange risk
which helps them in minimizing losses associated with the exchange rate
fluctuation. Being one of the BRIC countries, the economy of this country has
been growing, hence leading to a positive impact on its market (Deresky
2017, p.56). The introduction of industrial reforms has made the economy of
this country to be stable, hence making its market to realize significant
growth. According to Thompson and Martin (2010, p.89), India also has good
tax systems which makes its market to be attractive.
Social factors surrounding Indian market includes race nationality,
employees’ rights, language barriers and many more (Gaspar 2017, P.75). In
India, English is widely spoken and this has enabled the Indian market to
attract many global companies. Also, there is an increasing share of the
working population because there is the availability of jobs for both skilled
and unskilled workers (Ali 2010, p.92). This is important because it creates
employment opportunities for all kind of people which in turn increases the
country’s economy through taxation (Hyma 2017, p.80). Also, the country
has a large number of universities which offers education to the people
hence increasing their skills in the Indian market.

Moreover, the technological factors affecting the Indian market include
government spending on research and development, changes in mobile
technology and the internet. According to Parvesh (2016, p. 15), the
development of technology in this Asian country has opened various
opportunities and favored business growth. This has made its market to be
favorable for running many sorts of businesses (Ali 2010, p.95). India also
has a great interest in implementing technological advancements which can
benefit its market through enhancing the power sector (Ali 2010, p.923.
Power sector plays a key role in enhancing the market of a particular country
because it determines various aspects which affect the final consumers, like
for instance determining the selling prices because of the cost incurred in
production.
Some of the environmental factors influencing the effectiveness of the
Indian market are workplace efficiency, climate, and other ecological factors.
While conducting a business in the Indian market, one must adhere to all
environmental preservation requirements (Ali 2010, p.95). The high demand
for environmental conservation has made the Indian market to be attractive
to many because most people want to conduct their businesses in markets
associated with good environmental conditions.
The Indian market is influenced by different legal requirements that
have been put in place by the government (Arun 2012, p.85). The market
has been highly influenced by the continuous changes that occur due to
various reasons because once a change occurs, businesses which operate in
this market must also change their operational strategies.
Identifying opportunities and threats
After analyzing pestle factors, this step involves identifying factors
which have led to the growth of Indian market in India (Parvesh 2016, p. 15).
One of the political factors which have led to the growth of this to the growth
of Indian market is having a federal government which is based on common
law. (Arun 2012, p.85). The Indian government is also stable and also
associated with few political issues which can have a significant impact on
the market.
Moreover, some of the economic factors which have substituted the
growth of Indian market are the use of forward and futures contracts to
undertake various measures like minimizing losses associated with the
exchange rates (Deresky 2017, p.55). Also, the Indian market depending on
the foreign clients has enabled the fluctuation exchange rate to bring a great
difference in the business performance. The stable economic condition in this
country presents great opportunities and makes its market to be attractive
because consumers have high levels of disposable income, meaning they are
able to purchase products from time to time (Parvesh 2016, p. 15).

On the social factors that presents opportunities in the Indian market
is the fact that its population has been growing and demand for some
products has been increasing (Parvesh 2016, p. 16). Being one of the
populated countries has made its market to continue growing because huge
population implies that there are many consumers who can purchase
products ad services (Deresky 2017, p.55). The cultures associated with
Indians also makes its market to be attractive because it is simple and easy
to be understood by people who have interest in running businesses in this
country.
Additionally, technological factors which have led to the growth of
Indian market in include government spending on research and spending
(Hyma 2017, p.80). The government spends some of its resources in
undertaking research and funding technologically related projects to ensure
the country becomes technologically developed. Emphasizing on
technological development has enhanced Indian market and presents
opportunities for business growth because according to Deresky (2017,
p.57), it leads to cost reduction, good quality of production, and also
enhances creativity.

References
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