India, officially the Republic of India is a country which located in South Asia; it is the seventh-largest country by geographic area with 1.2 billion people.
PEST analysis in India
1. P: Political and Legal Environment
India is the world largest Democratic Republic with a Parliamentary form of Government and its constitution supported the trinity of justice, liberty and equality for all the citizens. However, it unlike the American political system and British political system because the Indian political system is a much more recent construct dating from India’s independence from Britain in1947.
For India’s legal, rule of law is quite strong in India, which has an ...view middle of the document...
Personal Income Tax
Individual income slabs are 0%, 10%, 20%, 30% for annual incomes upto Rs 50,000, 50,000 - 60,000, 60,000 - 1,50,000 and above 1,50,000 respectively.
Corporate Income Tax
For domestic companies, this is levied @ 35% plus surcharge of 5%, whereas for a foreign company (including branch/project offices), it is @ 40% plus surcharge of 5%. An Indian registered company, which is a subsidiary of a foreign company, is also considered an Indian company for this purpose.
The rates of basic duties vary from 0 to 30%.
Salient features are:
o Peak customs duty reduced from 220% (in 1991) to 30% (in 2002).
o The general project import duty (for new projects and substantial expansion of existing projects) reduced from 85% to 25%.
o Import duty under EPCG Scheme is 5%.
o R&D imports - 5% customs duty.
o Export made with imported inputs get concessions in form of duty drawback, duty entitlement pass book scheme and advance licence.
o Many type of industries such as 100% EOU and units in free trade zone get facility of zero import duty.
o An Authority for Advance Ruling for foreign investor
Excise duty on most commodities ranges between 0 to 16%. Only on seven items duty is imposed at 32%, viz., motor cars, tyres, aerated soft drinks, air conditioners, polyesters filament yarn, pan masala and chewing tobacco. Duty is charged at 30% on petrol
2. E : Economic environment
India’s economic is a mixed economy (which is government and private ownership of economic resources split rather evenly) and the seventh largest second most populous in the world with 1.2 billion people but not all are rich people because around 55% of populations are poor and the average annual income in India was U.S $1000. However, its economy has faster growing. From statistics in 2006, India’s real gross domestic product (GDP) rose by 9.2% which its growth rate is second only to China among Asian nations. Moreover, the strong GDP performance in 2006 capped five years of rapid economic expansion, transforming India into the third largest economy in Asia (after Japan and China).
In 2011, India’s economy: growth of Gross Domestic Product (GDP) was 8.6 per cent in 2010-11 representing an increase from the revised growth of 8.0 per cent during 2009-10, and India’s GDP is projected to continue to grow 8.8 per cent in 2011-12 and the inflation rate in India was last reported at 9.41 percent in April of 2011 and come up with the unemployment rate in India in2009/10 is 9.4 percent.
The major economic sectors in India are the Agricultural Sector, Manufacturing Sector, Financial Sector, Services Sector, Industrial sector and infrastructure. Agricultural sector is the mainstream of the Indian Economy and it accounts for about 20% of our GDP. While the Financial Sector is doing a great job of supporting the Indian Economy in all spheres, the manufacturing sector is...