SWOT ANALYSIS OF INDIAN ECONOMY

SWOT STANDS FOR

Strengths , Weaknesses Opportunities Threats.

STERNGTHS

1.Huge pool of labour force

2.High percentage of cultivable land

3.Diversified nature of the economy 4.Huge English speaking population, availability of skilled manpower 5.Stable economy, does not get affected by

external changes

SWOT ANALYSIS OF INDIAN ECONOMY

6.Extensive higher education system, third largest reservoir of engineers 7.High growth rate of economy 8.Rapid growth of IT and BPO sector bringing valuable foreign exchange 9.Abundance of natural resources

WEAKNESSES

1.Very high percentage of workforce involved in agriculture which contributes only 23% of GDP 2.Arround a quarter of a population below the poverty line 3.High unemployment rate 4.Stark inequality in prevailing socio economic conditions 5.Poor infrastructural facilities

WEAKNESSES

6.Low productivity

7.Huge population leading to scarcity of resources 8.Low level of mechanization

9.Red tapism, bureaucracy 10.Low literacy rates

WEAKNESSES

11.Unequal distribution of wealth 12.Rural-urban divide, leading to inequality in living standards

OPPORTUNITIES

1.Scope for entry of private firms in various sectors for business 2.Inflow of Foreign Direct Investment is likely to increase in many sectors 3.Huge foreign exchange earning prospect in IT and ITES sector 4.Investment in R&D, engineering design 5.Area of biotechnology

OPPORTUNITIES

6.Huge population of Indian Diaspora in foreign countries 7.Area of Infrastructure 8.Huge domestic market: Opportunity for MNCs for sales 9.Huge natural gas deposits found in India, natural gas as a fuel has tremendous opportunities
10.Vast forest area and diverse wildlife 11.Huge agricultural resources, fishing, plantation crops, livestock

THREATS

1.Global economy recession/slowdown 2.High fiscal deficit 3.Threat of government intervention in some states 4.Volatility in crude oil prices across the world 5.Growing Import bill

THREATS

6.Population explosion, rate of growth of population still high 7.Agriculture excessively dependent on monsoons

INDIAN AUTOMOBILE INDUSTRY

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year.[1] It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009.[2] India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010.

SNIPPETS
Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world

SNIPPETS

India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia recently crossed the 1 million mark.

FACTORS AFFECTING THE DEMAND AND GROWTH OF THE AUTO SECTOR IN INDIA

Rise in the industrial and agricultural output indirectly helps Indian Auto industry Growth in the road infrastructure increases demand for vehicles Rise in the Per capita income increases two/four wheeler sales Rising working class and middle class contribute to increased demand of automotives

Exhaustive range of options in price and models of automotives Attractive Finance Schemes for purchase of automotives Favorable Government Policies for the auto sector

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany, Netherlands and South Africa.[29] India's automobile exports are expected to cross $12 billion by 2014.[30]

According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.[31] In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.[32] Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.[33]