Business Environment Report: India and Canada, PESTLE Analysis

This report offers a comparative analysis of the business environments in India and Canada, utilizing the PESTLE framework to examine political, economic, social, technological, legal, and environmental factors. The analysis of India covers political stability, privatization, taxation policies, economic reforms, interest rates, inflation, demographics, lifestyle, software, the power sector, international trade regulations, climate, and air pollution. The analysis of Canada focuses on its political stability, economic strength, social diversity, technological advancements, legal framework, and environmental challenges. The report highlights similarities and differences between the two countries, discussing opportunities for businesses in both regions. The conclusion summarizes the key findings and emphasizes the importance of understanding these factors for successful business operations. The report references several academic sources to support its findings.

Running head: BUSINESS
BUSINESS
Name of the Student
Name of the University
Author Note

1BUSINESS
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

2BUSINESS
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.

3BUSINESS
Technological Factors
Software – As the global people are becoming more tech-savvy due to the
advancement of the technology, it affects the software business in India. This has resulted in
the annual growth rate of exports of software in this region, which followed a constant rate of
more than 50 percent from the year 1991.
Power Sector – India possess a strong rate of self-sufficiency in context of overall
power energy needs. The government of India have recently developed various strategies and
plans which includes various strategies and plans.
Legal Factors
International Trade Regulations – The country has begun to implement regulation
which has strengthened exports and imports in the region after 1992. Further provisions have
been made in the foreign trade acts along with the establishment of routes of collaboration
between the foreign trade and the central government.
Environmental Factors
Climate – The weather in the region of India possess lengthier monsoons and equal
lengthier dry periods, which acts as a challenge for the business entities. Proper infrastructure
needs to be like that which will be able to face the climatic alterations.
Air Pollution – It possess a strong presence in the climate of India. Most number of
premature deaths occur in the country. Companies have to initiate internal regulations and
standards to help in minimizing of this ratio (Sridhar et al., 2016).

4BUSINESS
PESTLE Analysis of Canada
Political Factor
Canada is the establishing member of the organization of United Nations and is also a
powerful nation, it possesses a healthy relation with most of the powerful countries in the
globe. Canada is also a democratic country, having a parliamentary system with that of India.
Apart from this, it also has a constitutional monarchy. The region has a good stability in
politics, and one of the protected places to perform the business operations. The nation
possesses low crime rate along with trustworthy policing services, thus making a very healthy
place for business.
Economic Factor
The region of Canada possesses the 10th largest economy globally as of 2018, and has
free trade agreements with various nations, apart from India. It also has an improves mixed
economy, and both the people of Canada and the government make financial choices. The
Gross Domestic Product was around USD1.8 trillion in 2018. The financial growth for 2019
is expected to increase by 2%. The region is able to draw the attention of businesses and
investors from around the globe with world-class infrastructure and strong and dynamic
economy (Silinevicha & Kalinina 2017).
Social Factor
The population in the region of Canada is not that big compared to the area, through
which it is known that Canada is the 2nd largest country globally. Like India, Canada is also a
diverse country, and there are many opportunities for the business houses to attract the people
of the region. Many people of the region are newcomers, and there is a big scarcity of skilled

5BUSINESS
workers in the nation. The living standard in the country is one of the highest globally, which
is also an attracted area for the business entities from around the world.
Technological Factors
Like all other places, the advancement of technology also plays a crucial role in the
region of Canada. It can be stated that technology is one of the fastest growing areas in the
region of Canada. Both private and public investments in technology sector of Canada are
growing at a swift rate. Technology is altering the landscape of many traditional industries
and is contributing both the organizations as well as people various opportunities across the
people of Canada.
Legal Factors
In the legal factor, specific rights of the people are safeguarded by law in Canada.
There are a number of methods available to operate business in the country. For example,
joint ventures, corporations, general or limited partnerships, sole proprietorships, trusts, co-
operatives, and Branch plant operations are the most general ones. In the context of
international operations of businesses, corporation is the most popular procedure of entry into
the country. All these helps to operate different kinds of businesses in the region of Canada.
Environmental Factors
There are numerous environmental challenges that the nation of Canada has to face in
their business environment. The increase in air pollution, smog, acid rain and changes in the
climatic conditions affects the business environment of the region. The government of
Canada has taken numerous initiatives to minimize the air pollution along with the emissions
of greenhouse gases (Rastogi & Trivedi 2016).

6BUSINESS
Conclusion
From the above PESTLE analysis, it can be noted that there are both similarities and
differences between the political, economic, social, technological, legal and environmental
factors of the business environment. There are also many opportunities that prevail in the
business environment of the region of India and Canada for the business houses to perform
businesses in those nations.

7BUSINESS
References
Rastogi, N. I. T. A. N. K., & Trivedi, M. K. (2016). PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET), 3(1), 384-388.
Silinevicha, V., & Kalinina, K. (2017). THE DEVELOPMENT OF THE EVALUATION
SYSTEM OF FACTORS, INFLUENCING ON THE ORGANIZATION FOR THE
PREVENTION OF RISKS OF ITS ACTIVITY IN THE MARKET IN ANY FIELD
OF ACTIVITY, USING PEST--ANALYSIS. Professional Studies: Theory &
Practice/Profesines Studijos: Teorija ir Praktika, (18).
Sridhar, R., Sachithanandam, V., Mageswaran, T., Purvaja, R., Ramesh, R., Senthil Vel, A.,
& Thirunavukkarasu, E. (2016). A Political, Economic, Social, Technological, Legal
and Environmental (PESTLE) approach for assessment of coastal zone management
practice in India. International Review of Public Administration, 21(3), 216-232.