Pest Analysis of Paint Industry in India
PEST ANALYSIS
The pest analysis refers to four main factors:
POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL
The analysis will focus towards the industry that how the political stability, rules and regulation, and the legal system of the country affecting the overall industry. The economic condition, liberalization, policy toward foreign investment, and growth rate of the economy as a whole also help to analyze the overall industry attractiveness and potential for the growth. The social aspects like people are more involved in the painting process, trend of nuclear family; low interest rate of housing loan, increase of urbanization and change in thinking of the people all this is helpful for the industry consideration, also the change in technology, production process, distribution channel and more use of tinting machine that help for better shading of color. POLITICAL ENVIRONMENT
The analysis of the political and legal environment will consider the following aspect:
Largest Democracy. Taxation policy i.e. reduction in excise duty and custom duty on raw material and final products. Fair amount of political stability. Political consensus on economic reforms and higher target of growth of the economy. Sound legal system – a factor contributing large foreign direct investment.
Growth in the early nineties was constrained by high excise duties. After the rationalization of the excise duty structure in 1992 and consequent pick up in industrial growth, the paints segment began posting increasing growth.
Over the last ten years, the industry has grown at a compounded annual growth rate (CAGR) of 12-13% and in the next five years, it is expected to grow at a CAGR of 11-12%. The industry has apositive correlation with the country's gross domestic product (GDP) as both have the same growth drivers. http://www.thefreelibrary.com/Encouraging+growth+potential+for+the+Indian+paint+industry:+the...-a0206850849 The finance minister
The pest analysis refers to four main factors:
POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL
The analysis will focus towards the industry that how the political stability, rules and regulation, and the legal system of the country affecting the overall industry. The economic condition, liberalization, policy toward foreign investment, and growth rate of the economy as a whole also help to analyze the overall industry attractiveness and potential for the growth. The social aspects like people are more involved in the painting process, trend of nuclear family; low interest rate of housing loan, increase of urbanization and change in thinking of the people all this is helpful for the industry consideration, also the change in technology, production process, distribution channel and more use of tinting machine that help for better shading of color. POLITICAL ENVIRONMENT
The analysis of the political and legal environment will consider the following aspect:
Largest Democracy. Taxation policy i.e. reduction in excise duty and custom duty on raw material and final products. Fair amount of political stability. Political consensus on economic reforms and higher target of growth of the economy. Sound legal system – a factor contributing large foreign direct investment.
Growth in the early nineties was constrained by high excise duties. After the rationalization of the excise duty structure in 1992 and consequent pick up in industrial growth, the paints segment began posting increasing growth.
Over the last ten years, the industry has grown at a compounded annual growth rate (CAGR) of 12-13% and in the next five years, it is expected to grow at a CAGR of 11-12%. The industry has apositive correlation with the country's gross domestic product (GDP) as both have the same growth drivers. http://www.thefreelibrary.com/Encouraging+growth+potential+for+the+Indian+paint+industry:+the...-a0206850849 The finance minister