Business Environment in India

Topics: India, Investment, Government of India Pages: 14 (5127 words) Published: April 11, 2010
Business Environment Analysis
MNGT375.102 – International Business
Fall 2009 – Thursday 6:30PM
Mr. Dennis L. Noah
Brandon Barrett
Andrew Murphy
I. General Characteristics of the Country
The country’s terrain varies by region. The renowned Himalayas lie to the North while highland plains occupy the south, home to the Deccan Plateau. The West conveys a different terrain bringing large deserts. As a result of the terrain varying from region to region the climate follows suite. In the south the climate is tropical but moving northward it becomes more temperate. 7,000 km of coastline cover India’s borders making it very accessible. The Arabian Sea and the Bay of Bengal allow water transportation to be done easily for most of the country. The country has a somewhat established infrastructure. The infrastructure does not support its 1 billion plus people properly but despite that its infrastructure is sufficient for the short run and will only improve in the future. Telecommunications in recent years has experienced significant expansion due to the deregulation of telecommunication laws. The cellular service industry is experiencing extremely rapid growth. However the telephone density is merely 40 out of 100 people across the nation. There are a total of 81 million internet users which is a huge untapped market available. There are 349 airports in all of India. 250 of these airports have paved runways; however the other 99 airport’s runways are unpaved. There is 63,327 km of railways throughout the country which is a very established railway system. There is 3,316,452 km of established roadways in India which is the second largest amount for any country in the world. There are 53 national highways which carry a majority portion of the traffic. In addition to roads, there is 14,500 km of waterways mainly in rivers and canals in India. India contains 11 major seaports The conditions within India are not the finest. India is a premier destination and source of human trafficking for commercial sexual abuse and forced labor. Men, women, and even children are exploited and forced to work on mills, factories, and women are forced to marry unwillingly. India is also the world’s largest producer of Opium for pharmaceutical purposes; however an undetermined but high rate is also illicitly developed. Despite obvious obstacles in India’s current economy, the potential for this untapped market is infinite and an intelligent investment for many multinational corporations. II. Political & Legal Environment

The system of government in 23 states closely resembles the federal system Union (Political structure, 2009). However, seven Union territories in the country are administered by the President. The Chief Minister (CM) of a state government has the executive powers while the Governor, elected by the President, is the head of Executive (India's politics, 2009). The Council of Ministers of a state is lead by the CM and is responsible to the elected legislative assembly of the state just like the federal government (Political structure, 2009). The judiciary is independent of the executive in India. The Supreme Court (SC) is the apex court in the country. The High Court stands at the head courts of the states. Each state is divided into judicial districts presided over by a district and sessions judge, who is the highest judicial authority in a district (India's politics, 2009). "There are courts of civil jurisdiction, known in different states as munsifs, sub-judges, civil judges and the like. Similarly, criminal judiciary comprises chief judicial magistrate and judicial magistrates of first and second class" (India's politics, 2009). Corruption has gone down in India due to transparency, reformed and free judicial system (Country profile: India, 2009). The Supreme Court is supreme; it has original, appellate and advisory jurisdiction (Daniel, 2004). Its exclusive original jurisdiction extends to...
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