Indian Business Environment

Strengths
Huge pool of labour force
High percentage of cultivable land
Diversified nature of the economy
Huge English speaking population, availability of skilled manpower
Stable economy, does not get affected by external changes
Extensive higher education system, third largest reservoir of engineers
High growth rate of economy
Rapid growth of IT and BPO sector bringing valuable foreign exchange
Abundance of natural resources

Weakness
Very high percentage of workforce involved in agriculture which contributes only 23% of GDP
Arround a quarter of a population below the poverty line
High unemployment rate
Stark inequality in prevailing socio economic conditions
Poor infrastructural facilities
Low productivity
Huge population leading to scarcity of resources
Low level of mechanization
Red tapism, bureaucracy
Low literacy rates
Unequal distribution of wealth
Rural-urban divide, leading to inequality in living standards

Opportunities
Scope for entry of private firms in various sectors for business
Inflow of Foreign Direct Investment is likely to increase in many sectors
Huge foreign exchange earning prospect in IT and ITES sector
Investment in R&D, engineering design
Area of biotechnology
Huge population of Indian Diaspora in foreign countries (NRIs)
Area of Infrastructure
Huge domestic market: Opportunity for MNCs for sales
Huge matural gas deposits found in India, natural gas as a fuel has tremendous opportunities
Vast forest area and diverse wildlife
Huge agricultural resources, fishing, plantation crops, livestock

Threats
Global economy recession/slowdown
High fiscal deficit
Threat of government intervention in some states
Volatility in crude oil prices across the world
Growing Import bill
Population explosion, rate of growth of pobulation still high
Agriculture excessively dependent on monsoons