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Foreign Business In India Essay

2667 words - 11 pages


Officially identified as the republic of India, India is the seventh largest country in tern of area and the currently the second most populous country with over a billion people residing in the region, as a democratic country after the British rule, the Indian culture plays a major role in the development and operational structure with regards to its economic development. Language, food, religion, architectural structure and the overall way of living is primarily influenced by their culture orientation which is made up of several culture from the Indian subcontinent over a long period of time implying their strong view of culture in every practice including business and ...view middle of the document...

The phenomenal growth of India according to Partha Chatterjee in the recent years has simultaneously ignited the process of social change on a large scale and high speed that it’s occurrence is noticed globally. As the world largest democratic country set in 1950. India’s political agenda is set to promote and enforce equality, justice and the overall liberation of the country’s fast growing population with more than 1500 political parties and a population of a billion people, India has been a centre for fast pace development and foreign investment, regardless of the size and level of diversification. India has managed to avoid hard authoritarian rule of military rule/invasion strongly upholding the democratic drive of governance. Although plagued with corruption at the almost all levels of political authority, India has a bicameral union legislation which divided into the upper house and the lower house Rajya Sabha and Lok Sabha respectively with the objective to solidify states of the federation and the people of India as a whole headed by Supreme Court to maintain stabilization and more importantly to protect the constitution.

The legal system in India is based on the English Common law as they were colonised by the British government and later claiming their independence in 1947. India has a considerable amount of political diplomatic relationship with many nations, being one of the fastest growing economy with the 8th largest military expenditure and the 7th largest economy by nominal rates and 3rd in terms of purchasing power, India is a region. A great potential of global power and currently has a growing influence internationally and has a more rigid and prominent voice in world affairs. According to the BMI political risk index, the short term political risk is ranked as 15th on the list out of 31 countries in the same political and economic context with a 76.5 with the highest rate being 94.8 and the lowest being 39.6 which was achieved through economic stability and policy making strength and also to contribute is the contained threats from regional and domestic extremist in a long term context political risk rate remains high due to the poor characteristics of the society (BMI Research).
Edgin cloter to the US in foreign policy due to the threats by the extremist religious militants and more recently the relationship with China consisting of increased regional rivalry could pose as a disadvantage for foreign investment (Himalayan border dispute between India and China).

Economic Environment

India, given its size and population gives way for a fast past and multifunctional economic development opportunities more precisely as the second largest and most populous country behind China, the population has not grown due to the rate of fertility which has declined significantly but the population increase is due to improvement in infrastructure and health care which has led to rise in average life expectancy which is an...

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