Indian Economic Environment
THE INDIAN ECONOMIC ENVIRONMENT
Companies and their suppliers, marketing intermediaries, customers, competitors, and publics all operate in a macro environment of forces and trends, increasingly global, which shape opportunities and pose threats. These forces represent “non-controllables”, which the company must monitor and to which it must respond.
The beginning of the new century brought a series of new challenges: the steep decline of the stock market, which affected savings, investment, and retirement funds; increasing unemployment; corporate scandals; and of course, the rise of terrorism. These dramatic events were accompanied by the continuation of existing trends that have already influenced the global landscape.
Within the rapidly changing global picture, the firm must monitor six major forces: demographic, economic, socio-cultural, natural, technological, and political-legal.
Economic Environment-
The available purchasing power in an economy depends on current income, prices, saving, debt, and credit availability. Marketers must pay careful attention to trends affecting purchasing power, because they can have a strong impact on business, especially for companies whose products are geared to high income and price-sensitive consumers.
India’s economy has been showing vibrancy of growth from 1991 ever since the government initiated programs to ease control on industry and commerce. In 1998-1999, the GDP of the country was estimated to be Rs. 17,410 billion, at current prices. By the year 2006-2007, the GDP was estimated to be Rs. 41,000 billion. By applying the purchasing power parity (PPP) method, India’s GDP is estimated to be about $3.319 trillion, making India the fourth largest economy in the world. GDP has also been growing at more than 7% per annum. The per capita income is also estimated to be increasing at the same rate. In addition, India has healthy foreign exchange reserves to cover the county’s imports for
Companies and their suppliers, marketing intermediaries, customers, competitors, and publics all operate in a macro environment of forces and trends, increasingly global, which shape opportunities and pose threats. These forces represent “non-controllables”, which the company must monitor and to which it must respond.
The beginning of the new century brought a series of new challenges: the steep decline of the stock market, which affected savings, investment, and retirement funds; increasing unemployment; corporate scandals; and of course, the rise of terrorism. These dramatic events were accompanied by the continuation of existing trends that have already influenced the global landscape.
Within the rapidly changing global picture, the firm must monitor six major forces: demographic, economic, socio-cultural, natural, technological, and political-legal.
Economic Environment-
The available purchasing power in an economy depends on current income, prices, saving, debt, and credit availability. Marketers must pay careful attention to trends affecting purchasing power, because they can have a strong impact on business, especially for companies whose products are geared to high income and price-sensitive consumers.
India’s economy has been showing vibrancy of growth from 1991 ever since the government initiated programs to ease control on industry and commerce. In 1998-1999, the GDP of the country was estimated to be Rs. 17,410 billion, at current prices. By the year 2006-2007, the GDP was estimated to be Rs. 41,000 billion. By applying the purchasing power parity (PPP) method, India’s GDP is estimated to be about $3.319 trillion, making India the fourth largest economy in the world. GDP has also been growing at more than 7% per annum. The per capita income is also estimated to be increasing at the same rate. In addition, India has healthy foreign exchange reserves to cover the county’s imports for
References: • http://www.ibef.org/economy/fdi.aspx • http://www.currentaffairs.gktoday.in • http://www.tradingeconomics.com/Economics/Unemployment-Rate.aspx?Symbol=INR • http://www.indiainbusiness.nic.in/indian-economy.pdf • Marketing management, Phillip Kotler ----------------------- RBI headquarters in Mumbai Mumbai-pune expressway, Maharashtra Slums next to high rise commercial buildings in kaloor, kochi