India is a South Asian country and the 7th largest country in the world by area. It is the most populous country in the world with a population of 1.428 billion people. The Indian Economy has a market worth and value of approximately 3.94 trillion USD by the end of 2024. Today, we’ll discuss the PESTLE analysis of Indian Market; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Indian Market
Some of the main political factors in the Indian Market PESTLE analysis are as follows;
I-Government Regulations
The Indian government’s regulations and policies are flexible and tight for businesses and companies. They focus on a wide range of areas like labor laws, tech regulations, health and food safety regulations, trade policies, foreign investment regulations, import and export laws, and others. However, the objective of a variety of laws and regulations is to regulate the Indian Market and protect the interest of ordinary users.
II-Trade Policies
The Indian government has a flexible trade policy and it focuses on attracting investors and businesses from all over the world. The objective of a flexible trade policy is to create employment opportunities for its people and amplify the growth of the country’s economy.
III-Political Stability
India has a stable political environment and it plays a key role in the growth of the country. The visionary leadership of Prime Minister Narender Modi has collaborated with various local political parties and brought them on the same page for the growth of the country. However, the stable political environment has earned the trust and confidence of local businesses and foreign investors.
Economical Factors Affecting Indian Market
Some of the main economic factors in the Indian Market PESTLE analysis are as follows;
I-Economic Growth
According to an estimate, the GDP of Indian economy will be approximately 16.019 trillion USD by 2024 and it is the 3rd highest in the world. The GDP growth rate of the particular country’s economy is that it doesn’t tell the whole picture. It is no doubt India is the world’s leading consumer market with highest growth potential, and its high population presents a lot of challenges and it reduces the country’s per capita rate to a great extent.
II-Currency Exchange Rate
India has the 5th largest currency exchange rate market and its worth is approximately 15 trillion USD. Indian Market is the largest producer of doctors, engineers, software developers, and other tech professionals; they’re providing their professional services in various countries all over the world. However, they send foreign remittances back to their home country to their family and loved ones.
III-Taxation
India has a tax rate of approximately 12.5% if the annual increases over 1.25 Lakhs in a fiscal year. It is a reasonable tax rate for businesses and companies, and it allows them an opportunity to grow and earn income and contribute to the country’s economy.
Social Factors Impacting the Indian Market
Some of the main social factors in the Indian Market PESTEL analysis are as follows;
I-Changing Customer Market
The Indian Consumer Market is highly diverse comprising a wide range of people with various socio-cultural and religious differences. It presents a lot of challenges to businesses and companies to conduct thorough market research to comprehend the needs, wishes, and demands of the customer’s market.
II-Cultural Diversity
India has a rich cultural diversity with a strong heritage and civilization. It is necessary for businesses and companies to become familiar with various cultural festivals for various ethnic groups through the years. It allows them to develop the most relevant product relevant to the needs and demands of the customers and amplifies its customer market reach, network, and sales.
III-High Population
The high population makes the Indian Market the world’s largest consumer market; it offers both opportunities and challenges. For instance, the high population rate puts great pressure on the country and the government to feed all the starving mouths. On the other hand, it presents opportunities for the world’s largest labor market.
Technological Factors Affecting the Indian Market
Some of the main technological factors in the Indian Market PESTEL analysis are as follows;
I-Advanced Technology
Indian Market is implementing the latest advanced technological tools and equipment for the growth of their businesses and companies. It helps them to smoothly and efficiently perform their operations with a low wastage rate and optimum utilization of resources. However, the Indian Market has shown tremendous growth and progress in the technology and software development industry.
II-Alliances and Collaboration
The Indian Market has attracted the attention of the world’s leading tech businesses and companies. The country offers them cheap labor, low raw material sourcing costs, and low production and manufacturing costs. It makes them outsource their production and manufacturing operations into the Indian Market and offer the finished products to the end consumers.
Legal Factors Impacting Indian Market
Some of the main legal factors in the Indian Market PESTEL analysis are as follows;
Regulatory Compliance
Indian Market needs to comply with government regulations and policies of various countries. It comprises labor laws, trade policies, import and export laws, taxation, foreign investment laws, interest rates, and others. Regulatory compliance would help them to smoothly perform their operations without causing any legal and regulatory issues.
Environmental Factors Affecting Indian Market
Some of the main environmental factors in the Indian Market PESTEL analysis are as follows;
Sustainability Initiative
Indian Market needs to make a strong commitment to environmental sustainability initiatives. It comprises investing in renewable sources of energy, biodegradable packaging, ethical sourcing, and social responsibility to reduce the carbon emission rate. However, it allows them to keep up with the growing environmental sustainability trends.
Conclusion: Indian Market PESTLE Analysis |PESTEL Analysis of Indian Market |External Environmental Analysis of Indian Market | Strategic Analysis of Indian Market
After an in-depth study of the pestle analysis of Indian Market; we have realized that Indian Market is the world’s leading consumer market. If you are learning about the Indian Market PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
