india swot analysis by elfphabet9

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									                                            india swot analysis

india swot analysis

Source: http://newsgroups.derkeiler.com/Archive/Soc/soc.culture.zimbabwe/2008−05/msg00091.html



      • From: "kylerandor" <kylerandor@xxxxxxxxxx>
      • Date: Mon, 26 May 2008 11:11:03 −0500

India SWOT Analysis

India Political SWOT

Strengths
?? India is the worldâ??s most populous democracy. A secular constitution,
framed
in 1950, guarantees justice, liberty and equality, while aiming to
promote
fraternity among the citizenry
?? More than 200 political parties contested the April−May 2004 general
election, and 58% of the countryâ??s 672mn−strong electorate turned out
to
vote

Weaknesses
?? Large coalition governments complicate policy−making at the centre, as
regional parties pursue their own agendas. The competence of state
government varies enormously across Indiaâ??s 35 states and union
territories
?? The UPAâ??s Congress Party is forced to bow to pressure from the Left
Front,
which it relies upon for its parliamentary majority. This places yet
another
obstacle to private−sector integration into the defence sector
?? Indiaâ??s poor relations with Pakistan. The two countries have gone to
war
three times since they were â??partitionedâ?? on independence from Britain
in
1947

Opportunities
?? Thawing relations with Pakistan present an opportunity to ease tensions
in
the worldâ??s most dangerous nuclear flashpoint
?? Devolving greater powers to Indiaâ??s elected district and village
councils,
known as panchayats in Hindi, could reduce the estimated 40% of all
development spending lost through bureaucratic corruption


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Threats
?? Hindu nationalism, championed by the Sang Parivar, presents a growing
threat to Indiaâ??s constitutionally enshrined secularism. Communal
tensions
between Hindus and minority Muslims, Christians, Sikhs and Buddhists can
lead to violence
?? Fear of attempts to form a Muslim state in the troubled north−east
region
exacerbates existing religious tensions

India Security SWOT

Strengths
?? Substantial standing army among the largest in the world
?? Dominance of the Indian Ocean, owing to a current lack of naval rivals
in the
immediate vicinity
?? Expansive geography and mountainous border area in the north east
deter
invasion
?? Secure second strike capability within its modest nuclear arsenal

Weaknesses
?? Relatively low military expenditure per troop reflects the lack of
high−tech
military equipment available
?? Lengthy borders and an extensive coastline make effective policing
difficult.
?? Significant and long−running insurgent groups de−stabilise border
regions,
especially in the north−east. Links between Indian and Pakistani
terrorist
groups are growing, for example through the sale of arms
?? Two nuclear powers neighbour India, both of whom have engaged the
country militarily over the past few decades
?? Tactical parity with Pakistan at particular points in the common
border

Opportunities
?? Increasing military and defence co−operation with the US and Israel
could
create a rival axis to the expected Chinese regional dominance, and offer
India a greater range of arms for procurement
?? Indiaâ??s continued redeployment of troops from Jammu and Kashmir may
encourage more productive talks with Pakistan in future months. Economic
growth should fuel greater military expenditure and allow for more
high−tech
purchases

Threats

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?? Continuing violence in Kashmir and the relative autonomy of groups
operating there could well undermine the peace process
?? Chinaâ??s rapid economic expansion and military modernisation increase
the
threat from the north
?? Several long−running internal insurgencies in the north west and north
east
continue to frustrate security
?? The influx of refugees has become a serious security concern
?? The US sale of F−16 nuclear−capable block 60 variants to Pakistan will
reduce current Indian aerial supremacy

India Defence Industry SWOT

Strengths
?? Sophisticated defence industry able to produce medium−technology
weaponry
?? Diverse factories throughout the industry sub−sectors
?? Colonial history has left a legacy of co−operation with overseas firms
?? Indiaâ??s decision that future warships will only be equipped with
long−range
surface−to−air missile systems such as Barak II indicate its development
of a
blue water capacity

Weaknesses
?? State−owned factories are restricted in their innovations, financially
unaccountable and weighed down by bureaucracy
?? Ongoing institutional inertia is dangerous and wasteful â??
technologies are
often duplicated despite their free availability in the civilian sector
?? Lack of indigenous development and involvement of private sector
?? Extremely poor research and development facilities given the
sophistication
of the industry
?? Previous reliance on Soviet arms restricted the technology available to
India
?? Large−scale purchases of (dated) second hand equipment, the
interoperability
of which is unproven.

Opportunities
?? Missiles may now be exported and state−owned agencies are permitted to
enter into joint co−development and co−production ventures with foreign
companies
?? A tentative privatisation process could encourage greater civilian
involvement
?? Major procurement programmes, such as the recent Hawk deal, are
offering
useful co−production, licensing and offset benefits for the industry
?? Increasing international attention in Indiaâ??s arms exports

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?? As relations with Russia are at a peak, now is the time to use joint
ventures
for maximum advantage and to develop R&D skills
?? Defence spending is expected to rise from INR860bn in 2006−07 to
INR960bn in 2007−08. The Indian Air Force will account for about 40% of
the
total increase; the Indian Army for about 30%.

Threats
?? Growing competition from Chinaâ??s recovering defence industry
?? India has still not developed an independent and self−reliant defence
production capability and systems, requiring it to spend time maintaining
good relations with suppliers, and continuing a dangerous tradition of
reliance

India Economic SWOT

Strengths
?? A vast supply of cheap, skilled labour has turned India into the back
office of
the world. More than half of the population is under the age of 25
?? Services. Booming exports of IT−enabled services, from call centres to
software developers, are a valuable source of foreign exchange

Weaknesses
?? Agriculture. Poor June−September monsoon rains can slash rural incomes
and consumption. Two−thirds of the population depends on farming for its
livelihood.
?? Public finance. Nearly half the government's revenue is spent on
interest
payments, salaries and pensions. Public debt stands at 80% of GDP.

Opportunities
?? Much of the service sector, which accounts for more than half of GDP,
remains outside of the tax net. Taxing more service−sector companies
would
boost revenue receipts The government has implemented some tax reforms.
?? A value−added tax (VAT) introduced in 2005 to replace a complex web of
sales taxes and lower tax rates presented in the 2005−2006 budget should
help boost compliance and therefore raise revenue.

Threats
?? Widespread poverty remains, with more than a third of India's 1bn−plus
population living on less than a dollar a day, according to the World
Bank.
?? Still under 1% of the population pay income tax due to the limited
flexibility in
changing the tax system in response to the emerging middle classes.

India Business Environment SWOT


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                                            india swot analysis
Strengths
?? India attracted US$5.3bn in foreign direct investment inflows in 2004,
according to the United Nations Conference on Trade and Development, a
25% increase from the previous year.
?? A cheap but skilled English−speaking labour force can do the jobs of
Western workers for a fraction of the wages paid in North America or
Europe.

Weaknesses
?? The competitiveness of local firms is undermined by reams of official
red
tape, from foreign investment restrictions to inflexible labour laws.
?? Intellectual property rights are poorly protected in India. India is
one of 15
countries on the 'priority watch list' compiled by the Office of the US
Trade
Representative.

Opportunities
?? India could enhance the competitiveness of local industry through
further
liberalisation and deregulation.
?? Indian Prime Minister Manmohan Singh is eager to reform the banking
sector in order to increase the availability of long−term financing,
particularly
for large infrastructure projects

Threats
?? The arrival of Western players, including management consultants
Accenture and technology giant IBM, is bidding up local wages in the
outsourcing sector.
?? China still remains a major competitor for FDI flows into India. India
has
excessive bureaucracy and poor infrastructure in comparison with China,
which attracted over US$60.6bn in 2005.



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