India Case Study

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GE Case India

3) In the post 1990 time period in India, the economy seen a sharp increase in sales

thanks to privatization and deregulation. Private market factors can deliver many

goods or services efficiently than the government due to free market competition.

Over time this will lead to lower prices, improved quality more choices, less

corruption, and quicker delivery. Deregulation lowered barriers to entry in

industries. When more firms entered an industry, competition increased and

consumers had more choices for products and services and more supplies of

products leads to cheaper prices for the consumers. Removing barriers of foreign

direct investment encouraged other countries to invest their capital in India.

Foreign businesses in India created new jobs. It also helped in increasing the

salaries of the workers. This enabled them to get access to a better lifestyle and

more facilities in life. It has been observed that foreign direct investment allowed

for the development of the manufacturing sector of India.

4) India’s is developing strength in the areas of software and pharmaceuticals. By

referring to some of the facts the case mentioned, these two industries look very

profitable and promising. (“ The information technology sector where India has

emerged as a global center for software development with sales of $50 billion in

2007, which accounts for approximately 5.4% of their GDP’’). Since the nation has

seen that they do in fact have the ability to grow in this sector it would be pointless

to not focus on developing strength in this industry. To the pharmaceutical industry,

it’s an opportunity for India to keep their companies as credible players. India’s

companies have many advantages which are; technological strong, low cost of

production, low research and development costs, innovative scientific manpower, and the strength of nation laboratories. India is...
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