Page 36 - DMGT401Business Environment

Unit 1: Indian Business Environment

3. Diversified nature of the economy Notes
4. It has huge English speaking population, availability of skilled manpower
5. Stable economy, does not get affected by external changes
6. Extensive higher education system, third largest reservoir of engineers

7. High growth rate of economy
8. Rapid growth of IT and BPO sector bringing valuable foreign exchange
9. Abundance of natural resources

Weaknesses

1. Very high percentage of workforce involved in agriculture which contributes only 23% of
GDP
2. Around a quarter of a population below the poverty line
3. High unemployment rate

4. Stark inequality in prevailing socio economic conditions
5. Poor infrastructural facilities
6. Low productivity
7. Huge population leading to scarcity of resources
8. Low level of mechanization

9. Red tapism, bureaucracy
10. Low literacy rates
11. Unequal distribution of wealth

12. Rural-urban divide, leading to inequality in living standards
Opportunities

1. Scope for entry of private firms in various sectors for business
2. Inflow of Foreign Direct Investment is likely to increase in many sectors
3. Huge foreign exchange earning prospect in IT and ITES sector
4. Investment in R&D, engineering design

5. Area of biotechnology
6. Huge population of Indian Diaspora in foreign countries (NRIs)
7. Area of Infrastructure
8. Huge domestic market: Opportunity for MNCs for sales

9. Huge natural gas deposits found in India, natural gas as a fuel has tremendous opportunities
10. Vast forest area and diverse wildlife
11. Huge agricultural resources, fishing, plantation crops, livestock

LOVELY PROFESSIONAL UNIVERSITY 29