eep-2 econ environment prof. tarun das

7/30/2019 EEP-2 Econ Environment Prof. Tarun Das

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EEP Session-2 1


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EEP Session-2 2

Contents of this presentation


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EEP Session-2 3


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EEP Session-2 4

SWOT analysis

PEST analysis

Five forces analysis


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EEP Session-2 5

Strengths (internal)

Weaknesses (internal)

Opportunities (external)

Threats (external)


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Political factors

Economic factors

Socio-cultural factors

Technological factors


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EEP Session-2 7

Political ideology of the government

Legislation and Acts

Anti Monopolies legislation

Environmental protection laws Taxation policy

Employment laws

National Public policy

Global Public Policies


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Economic growth Inflation

Employment

Disposable income

Business cycles

Availability and cost of energyAvailability and prices of raw materials


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Demographic factors

Role of women

Extent of Poverty

Extent of Inequality Regional Disparities

Caste and creed

Race and religion

Food habits


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New discoveries and innovations Speed of technology transfer

Rates of obsolescence Internet connections Information and Communications

Technology (ICT)


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Source: Adapted from M. E.

Porter, Competitive Strategy,

Threat ofThreat ofsubstitutessubstitutes

Potentialentrants

Threat ofThreat ofentrantsentrants

BargainingBargaining

powerpower

Substitutes

BargainingBargaining

powerpower

COMPETITIVERIVALRY

1.8 Five forces analysis


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Area (million sq.Kms) 3.3 [7th of 205]Population (million) 1095 [2nd of 205]

Nominal GDP (US$ billion) 806 [10th of 195]GDP PPP adjusted (US$ billion) 4156 [4th of 224]GDP PPP per capita (US$) 3678 [48th of 223]GDP nominal per capita (US$) 736 [149th of 195]

Economic freedom index 1.5 [123rd of 156]Poverty ratio (%) 20%Poor People-Ratio in the world 41% [1st of 80]Technological achievement index 0.2 [59th of 68]

Average years of schooling 5.1 [65th of 100]Literacy rate 61 [144th of 174]English speaking (million) 100 [2nd of 52]English as first language (000) 179 [13th of 62]


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Age 0-14 years 31.2% [97th of 226]

Age 15-64 years 63.9% [126th of 226]Age 65 years & over 4.9% [127th of 225]

Urbanization 28% [172nd of 199]

Persons per room 2.7 [2nd of 60]

Hindus (million) 800 [1st of 165]

Muslim (million) 138 [3rd of 165]

Roman Catholic (mln) 17 [15th of 170]

Religion Hindu 80.5% [2nd of 17]Religion Muslim 13.4% [61st of 100]

Roman Catholic 1.6% [124th of 170]


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Arable cropland (million hectares)169.7 [3rd of 148]

Banana production (million tons) 11 [1st of 48]Cereal production (million tons) 121 [46th of 149]Cotton production (000 bales) 12.5 [3rd of 109]Corn production (million tons) 13 [8th of 17]

Rice production (million tons) 89 [3rd of 16]Wheat production (million tons) 67 [4th of 17]Meat production (million tons) 4.6 [7th of 149]Root production (million tonnes) 29.9 [4th of 149]

Agricultural tractors (million) 2.5 [2 of 190]


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CO2 Emissions (000 tons) 1,008 [5th of 178]

Water Available (000 cubic meters) 1.56 [3rd of 141]

Coal production (million tons) 359 [5th of 31]

Oil Production (Million tonnes) 38.01 [24th of 48]

Oil consumption (million tons) 119.3 [6th of 63]

Oil Exports (000 bbl/day) 350 [28th of 77]Oil Imports (Million bbl/day) 2.1 [8th of 71]

Nat. gas reserve (bln cubic feet) 542.4 [3rd of 72]

Nuclear power generation (terawatt-hours)17.8 [8th of 29]

Nuclear reactors operable 14 [9th

of 29]Electricity generation (billion kwh) 668 [5th of 133]

Electric power consumption (bln kwh) 494 [7th of 132]

Electric power T&D loss 26.3% [2nd of 132]


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Corruption index 2.9 [9th of 160]

No. of procedures to register property 6 [8th of 167]No.of start-up procedures to register a business 11 [6th of 171]Time required to build a warehouse 270 days [8th of 168]Time required to enforce a contract 1,420 days [4th of 171]Time required to register property 62 days [6th of 167]Time required to start a business 35 days [4th of 171]Time to prepare and pay taxes 264 hours [80th of 169]Time to resolve insolvency 10 years [2nd of 151]Trademarks, nonresidents 5,393 [18th of 99]Trademarks, residents 60,985 [8th of 98]


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Car production (lakhs) 7.1 [16th of 49]Manufactures imports (% of merch. Imports) 52.4 % [100th of 155]

Manufacturing value added (2000 US$ bln) 91 [6th of 155Manufacturing value added (current US$ bln) 115 [7th of 167]

Motor vehicle production (lakhs) 8.9 [14th of 35]

Heavy truck production (000) 110 [6th of 36]

Ores & metals exports (% of goods exports) 6.9% [25th of 154]Ores & metals imports (% of goods imports) 5.0% [10th of 155]Patent applications, nonresidents (Number) 10,671 [10th of 96]Patent applications, residents (Number) 6,795 [10th of 97]

Textiles and clothing (% of manufacturing) 24.4% [7th of 101]


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Aircraft departures (000) 214.3 [19th of 155]

Airports with paved runways 74 [7th of 117]

Highways (million Kms.) 3.3 [1st of 181]

Motor vehicles (per 100 people) 12 [104th of 134]

Waterways (000 kms.) 14.5 [9th of 106]

Broadband subscribers (million) 1.3 [22nd of 117]

Internet bandwidth (000 Mbps) 20 [8th of 167]

Internet Hosts (million) 1.5 [22nd of 227]

Internet Service Providers 43 [7th of 229]

Internet charge (US$/month) 6.78 [70th of 180]Secure Internet servers (million) 825 [9th of 183]

Internet users (million) 60 [3rd of 195]


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INDIAN LABOREconomic activity (Men aged 65 plus) 52.67% [54th of 162]

Female economic activity growth 4% [3rd of 156]Unemployment rate 7.8 % [101st of 182]Workers' remittances paid (US$ Bln) 1.0 [31st of 149]Workers remittances received (US$ Bln) 23.7 [1st of 156]IMMIGRATION

Immigrants as percentage of total population 0.517 [65th of 195]Number of immigrants (million) 5.7 [8th of 195]Immigration to the USA 2004 (million) 1.25 [4th of 10]International migration stock (% of population) 0.52% [77th of 205]International migration stock (million) 5.7 [8th of 205]Refugees (000) 186 [1st of 110]


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INDIAN LABOREconomic activity (Men aged 65 plus) 52.67% [54th of 162]

Female economic activity growth 4% [3rd of 156]Unemployment rate 7.8 % [101st of 182]Workers' remittances paid (US$ Bln) 1.0 [31st of 149]Workers remittances received (US$ Bln) 23.7 [1st of 156]IMMIGRATION

Immigrants as percentage of total population 0.517 [65th of 195]Number of immigrants (million) 5.7 [8th of 195]Immigration to the USA 2004 (million) 1.25 [4th of 10]International migration stock (% of population) 0.52% [77th of 205]International migration stock (million) 5.7 [8th of 205]Refugees (000) 186 [1st of 110]


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Fiscal Situation:

Tax revenue (% of GDP) 10.2 [81st of 98]

Taxes on exports (% of tax revenue) 0.06 [21st of 36]Goods & services Tax (% of total) 31.4 [54th of 98]Goods & services Tax (% value added) 5.3 [74th of 89]Taxes on income (% of total taxes) 43.9 [22nd of 98]Taxes on intnl trade (% of revenue) 13.8 [22nd of 86]

Total tax rate (% of profits) 81.1 [14th of 171]INDIAN MEDIAAverage cost of local call (US$) 0.02 [136th of 151]Cinema attendance (billion) 2.9 [1st of 78]Films produced (number) 946 [1st of 50Newspapers (number) 5.221 [1st of 67Televisions (million) 63 [4th of 215Radios (million) 116 [4th of 221]


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3.1 Strengths of Indian Economy Fourth largest economy in terms of PPP-adjuste

GDP after USA, China and Japan Sustained high growth in the recent past High percentage of cultivable land Youngest labor force, relatively skilled, and

peaceful industrial relations

Largest pool of technical manpower Largest English speaking population Huge domestic market with second largest

population, democratic system, independentjudiciary, free press, vibrant NGOs

Rich natural resources, well established financiasystem, dynamic private sector and wide spreainfrastructure


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3.2 WeaknessPoor performance of agriculture

High dependence of agriculture on monsoons

Growing infrastructure constraints

High energy intensity

High inflationHigh interest rates

Weak regulatory institutions

Outdated laws on businessInflexible Land and Labor markets

High fiscal deficit and public debt


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Rising and diversified export markets Manageable current account deficit Rapid growth of IT and BPO sector bringing valuable foreign

exchange. Largest exporter of computer and software services($31.3 billion in 2006).

major exporter of services (11th largest with a shareof 2.5% world market) and exports of softwareservices $ 40.3 billion during 2007-08)

Large stock of wealth of non-residents Indians Liberal trade and foreign investment policies Substantial inflow of direct foreign investment in recent years

Indian firms are going abroad and taking over foreign

companies. Overseas direct investment from India

increased from $ 13.5 billion in 2006-07 to US $ 17.9billion in 2007-08. Low debt services (amortization plus interest payments) ratio to

gross current A/C earnings.


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Global financial turmoil and recession in USA

and developed countries Still dependence on imports of pulses and

edible oil

Hardening of international prices of crude oil

and edible oil Growing import bill

Fleeing of foreign institutional investment(FIIs) in 2008

Significant depreciation of Indian rupee in2008

Th k


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Thank you

Have a Good Day

eep-2 econ environment prof. tarun das

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