Overview of India: PEST Analysis and Trade Policies

Running head: INTERNATIONAL BUSINESS
December 20
2018

INTERNATIONAL BUSINESS 1
Executive Summary
International business exports services and goods across the world, which support in earning
appreciated foreign exchange. This foreign exchange is utilized to recompense for imports.
Foreign exchange supports in making the business profitable and increases the strength of the
economy of the country. The motive of this report is to provide a brief overview of India,
which is considered as the seventh largest country across the world. The report has discussed
different aspects of the country such as trade policies, natural resources, barriers, the position
of foreign direct investment, etc. Besides this, it has provided some highlights of the country's
political, technological, social, and economic situations. In the end, some recommendations
have been provided for India that can support it in long run.

INTERNATIONAL BUSINESS 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of India..................................................................................................................3
PEST Analysis of India..........................................................................................................4
Political Factors..................................................................................................................4
Economic Factors...............................................................................................................5
Socio-cultural Factors........................................................................................................5
Technological Factors........................................................................................................6
Natural Resources..................................................................................................................6
Land Resource....................................................................................................................6
Forest resources..................................................................................................................7
Mineral Resources..............................................................................................................7
Factor endowment that creates competitive advantage..........................................................7
Exchange and Foreign Currency influences..........................................................................8
Influence of Exchange Rate...............................................................................................8
Existing trade policies, systems, barriers, and incentives......................................................9
EXIM Policy System..........................................................................................................9
Export Promotion Capital Goods Scheme.......................................................................10
Import Licensing..............................................................................................................10
Incentives.........................................................................................................................10
Anti-dumping and countervailing measures....................................................................10
Existing levels of foreign direct investment.........................................................................11
Summary and recommendation................................................................................................11
References................................................................................................................................13

INTERNATIONAL BUSINESS 3
Introduction
The intent of this report is to provide a clear understanding of India as an assessment of a new
emerging market where rapid GDP growth has created attractive investment opportunities.
The report will be comprised of a general overview of India or region. The political,
economic, socio-cultural, and technological influences, benefits, and advantages will be
discussed to understand the viability of the nation. Besides this, it will give an overview of
the present natural resources and factor endowment that create a competitive advantage for
the nation. The key aspect that is important to be discussed while talking about India is the
influences of the exchange rates and foreign currency. Moreover, to increase the knowledge
regarding the different restrictions and advantages offered by the government of India, the
report will provide a brief idea of the countries present trade policies, barriers, incentives, and
systems. It will also include the discussion regarding existing foreign direct investment and
will provide some of the recommendations for the country to overcome all the barriers in the
route of development.