POLITICAL FACTOR (P) (PESTEL Factor)

Presented by: Pinkey Gupta (BU)

POLITICAL FACTOR

Political Factors

Government Stability

Employment &

Operational Laws

Government Leadership

Trade Restrictions of Reforms

Tax Regulation

Corruption Levels

Bureaucracy Issues

Stability of Neighbors

GOVERNMENT STABILITY World Bank Worldwide Governance Indicators.

Political Stability & Absence of Violence/Terrorism Value

Date Value2013-12-31 12.322012-12-31 11.852009-12-31 10.902005-12-31 17.791996-12-31 19.23

EMPLOYMENT & OPERATIONAL LAWS Support to Training and

Employment Programme for Women (STEP) .

Entrepreneurship Development Programme, Skill Development Programme (SDP),Management Development Programme .

Monetary & Fiscal Policy of Govt. of India.

TAX REGULATION The rate of the individual and corporate

tax has been reduced in order to bring more people in the tax net.

Local Arms Of MNCs Come Under Service Tax Scanner.

Heavy reduction in the import duties has been implemented.

TRADE RESTRICTIONS OF REFORMS FERA Restrictions Removed. RTP Restrictions Removed. Free Entry of Foreign Investment. Reduction in Restrictions of Export-

Import.

GOVERNMENT LEADERSHIP

Establishment of Foreign Capital Market & Capital Market Reforms.

Providing Incentive for Export. Statutory Liquidity Ratio (SLR) has been

lowered.

CORRUPTION LEVELS

85th Rank In Corruption Perception Index 2014.

Countries at the bottom need to adopt radical anti-corruption measures in favour of their people.

BUREAUCRACY ISSUES Abolition of Licensing. Freedom to Import Technology. Contraction of Public Sector. MRTP Restrictions Removed.

STABILITY OF NEIGHBOUR’S