MACRO BUSINESS ENVIORNMENT

SWOT ANALYSIS OF INDIAN ECONOMY

Group members

DHRUVA KUMAR L [1NH12MBA28]

KARTHIC A [1NH12MBA50]

KRISHNA PRAMOD C R[1NH12MBA54]

NITESH B [1NZ12MBA05]

SATHVIK H P [1NZ12MBA46]

RAJESH G [1NZ12MBA21]

INDIAN ECONOMY

By 2035 India would be the third largest economy of the world just after US and China as predicted by Goldman Sachs, the Global Investment Bank

It will grow to 60% of size of the US economy.

Features of indian economy

STRUCTURAL CHANGES IN THE INDIAN ECONOMY

DECLINING SHARE OF PUBLIC SECTOR DISTRIBUTION OF INCOME CAPITAL FORMATION AND SAVINGS IN INDIA INCREASE IN REAL NATIONAL INCOME

SWOT ANALYSIS OF INDIAN ECONOMY

Meaning of SWOT

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person.

It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. 

•Strengths: characteristics of the business or project that give it an advantage over others•Weaknesses: are characteristics that give disadvantage over others , they prevent us to accomplish our mission or goals.•Opportunities: this implies environment within which an organization operates.•Threats: elements in the environment that could cause trouble for the business or project , they are uncontrollable.

€ Labour force € High percentage of cultivable land € Diversified nature of the economy € Huge English speaking population, availability of

skilled manpower € Extensive higher education system€ Rapid growth of IT and BPO

Weakness

€ Agriculture € Population€ High unemployment rate € Poor infrastructural facilities € Low productivity € Low level of mechanization  € Low literacy rates € Unequal distribution of wealth € Inequality in living standards 

€ Entry of private firms 

€ Foreign Direct Investment

€ Huge foreign exchange earning

€ Investment in R&D, engineering design 

€ Area of biotechnology 

€ Huge population of Indian Diaspora in foreign countries (NRIs) 

€ Vast forest area and diverse wildlife 

€ Global economy recession/slowdown € High fiscal deficit € Threat of government intervention in some states € Volatility in crude oil prices across the world € Growing Import bill € Population explosion, rate of growth of population

still high € Agriculture excessively dependent on monsoons

Future of Indian Economy

Indian economy is expected to register GDP growth of 5% in FY13,

Inflation has remained consistently above the comfort level and currency problems have compounded in the last 18 months.

The last couple of quarters provided some ray of hope with the Finance Minister pushing for several reforms, controlling FY13 fiscal deficit to 5.2% of GDP, and targeting to lower it further to 4.8% for FY14.