Socio-economic issues of India

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//Before writing about the socio-economic issues of India, we have to understand the macro environmental factors that should be considered by all kinds of Business Organizations. Then, we will discuss about the socio-economic issues of India from the MNC Manufacturing Company's point of view. It will assist in understanding the issues related to the socio-cultural and economic factors that should be considered by the Organizations for getting success in the business.//

Introduction

Before starting a business, all organization should make the macro environmental factors analysis in order to study the position of the industry, the economy, nature of the competition, the scope of invasion by substitute products, etc. In other words, it can be said that the environmental survey is essentially a diagnosis of the changes in the environment. The socio-cultural as well as economic issues of India from the point of view of a MNC manufacturing company are:

1. Economic Issues:

The economic environment of India is a vital component of the mega environment. Industry and business highly depend on economic environment. The fortune of industry and of any MNC company rests heavily on the purchasing power of the people and purchasing power is largely a product of the economic environment (Ramaswamy & Namakumari, 2005). The factors that should be considered under economic environment by the manufacturing company are:

Ø The economic conditions of India

Ø Rate of growth of the economy (GDP), rate of growth of each sector like agriculture, industry, consumer goods, etc.

Ø Rate of inflations and ...