Mr yadav Vikash XYZ, lakxman vihar, 1666b/9, Gurgaon - Haryana IndiaIndian Economy A Global Destination

India has a relatively young population, a large pool of talent that speaks English, and a proven expertise in IT. It is one of the worlds most dynamic economies and an attractive destination to do business. India competes with other emerging BRIC (Brazil, Russia, India & China) economies for global investments. With consistency in policies towards economic reforms since 1991, a democratic India, along with china will ensure that the Asian Century will become a reality. Good economics is good politics. A country led by a world class economist can only best understand this adage. Enter India, Enter manmohanomics, for long, in this country, multinationals were referred to as agents of neocolonialism. In 1991 finance minister Manmohan Singh, played a key role in bringing about a mind set change in the socialist fabric of governance. The policies of the nation dealing with the economy were beginning to be liberalized and multinationals were being wooed. That was more than a decade back. The country has today come a long way since then and ahs become one of the worlds most dynamic economies. The consistency in the economic policies of the various governments since 1991 lends credence to the theory tat Indias economic reforms are irreversible. For a company investing successfully in the Indian market the results could proved to be quite encouraging and optimistic. If, for instance coca cola which left India for a 16 year exile persuades every Indian to drink just one serving per year it would mean additional sale of more than one billion bottles. In India 16 million people travel by train every day and 15 million travel by Air every year. It is this kind of potential that has today made India one of the worlds most attractive market for one the worlds most expensive products. Before investing in a country most managers may get reassurance only from economic parameters such as per capita income, inflation, growth business and so on. But to take advantage of global talent, companies will have to look at other non economic parameters as well. These non economic parameters that constitute essential aspects of business policy normally include politics, geography, governance, quality of workforce, culture, security etc. Business Environment in India Business Environment of Indian Economy can broadly include the following: Political Legal Environment Economic Geographic environment Socio cultural environment Political Legal Environment India, the worlds largest democracy, possesses a solid and time tested political infrastructure and political institutions. The India democratic system is strongly established and it is almost inconceivable that Indians would choose any other system. Efforts by elected leaders to create dictatorship are met with stiff opposition often leading to pre mature downfalls of the government. The law protect individual rights. The government is

increasingly deregulating businesses. Earlier restrictions to protect state monopolies have mostly gone. Political Legal Environment The democracy is vibrant Political freedom is high Political stability is high The judiciary is active, free and fair Several laws to root out corruption are being proposed e.g. right to information act etc. The press is dynamic and powerful Presence of strong autonomous institutions e.g. election commission, Indian armed forces, Vigilance commission etc. Economic environment From Pledge gold to the bank of England to sitting pretty on forex reserves exceeding $ 142 billion, the Indian economy has come a long way. The recent devastation caused by tsunami in south East Asia saw a new confident india which not only refused aid but also partenered with a US led coalition to provide relief to various countries that are affected by natural catastrop. Economic Environment: Large pool of affluent middle class Foreign firms are treated at par with Indian firms. Developing banking system International brands are recognized Telecommunications have been upgraded. IT sector is highly developed and dynamic The aviation sector has been made more liberal Accounting standards are at par with the west Infrastructure is being developed Natural resources in abundance (including iron and coal) Strong base of intermediaries in manufacturing and services exists.

Socio Cultural Environment India has a high context culture. In such cultures, the communication may be indirect and the expressive manner, in which the message is delivered, becomes critical. Historically, India has been very accommodative. Indians are characteristically peace loving and religious. The co-existence of several communities, differentiable on the basis of religion, region, and caste and so on, is testimony to the fabled Indian character. Socio Cultural Environment Family relationships and personal rapport are valued A large English speaking liquid pool of talent Education is very important and people make sacrifices to study A large and vibrant middle class. The number of working women is increasing.