Pest Analysis of India

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PEST Analysis of India

This paper will provide the advantages and disadvantages of different facets that fall within the PEST analysis: political, economical, social, and technological aspects of India.

Political:

India is the biggest democracy in the world, with a government type of federal republic. The country’s form of government mimics the United States with its federal structure. The federal government consists of executive, legislative, and judicial branches. In addition, India has adopted the a British style parliamentary system that allows for it its central government to have great power in relation to its states, according to US Department of State- Background Notes website (The Office of Electronic Information, Bureau of Public Affairs, 2010).

The advantages of India’s political system as it relates to doing business with the United States are that that there governmental structure is very similar. Both countries are the world's largest democracies; both are committed to political freedom protected by representative government. According to the US Department of State-Background Notes website, they both have a common interest in the free flow of commerce and resources, including through the vital sea lanes of the Indian Ocean. Lastly, they also share an interest in fighting terrorism and in creating a strategically stable Asia (The Office of Electronic Information, Bureau of Public Affairs, 2010).

One of the largest disadvantages of India’s political system consists of 6 recognized national parties and 40 different national parties; there is a lot of political turmoil that occurs within the political realm (The Office of Electronic Information, Bureau of Public Affairs, 2010).

Economical:

India is one of the fastest growing economies in the world; they are 12th largest economy in the world, and the third largest in Asia behind China and Japan with the average annual GDP growing at 5.4% within the past...
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