Political and Legal Environment of India

The democratic will of the people, reflected in local and national elections, is widely respected and accepted by political parties and the people in general. This political culture of tolerance contributes enormously to the maintenance of a stable political climate, which is indeed a very important factor in attracting foreign direct investment (FDI). Since the 1980s, Indian politics has become dynastic, perhaps due to the lack of party organization, independent civil society associations mobilizing support for the party, and centralized election funding. [4] An example of dynastic politics is the Nehru-Gandhi family, which produced three Indian prime ministers. Social factors refer to any change in trend that would affect a business environment. For example, India`s growing ageing population is leading to a significant increase in pension costs and an increase in the employment of older workers. India has a population of over 1.2 billion people, about 70% of whom are between the ages of 15 and 65. Therefore, there are structures with percentages by age. These structures have different flexibilities, in terms of education, attitudes to work, income distribution, etc. Links to the website of the Ministry of Foreign Affairs for general information on the political environment in the country. As with any other democracy, political parties represent different parts of Indian society and regions, and their core values play an important role in Indian politics.

The executive and legislative branches of government are headed by representatives of political parties elected by elections. Through the electoral process, the Indian people decide which representative and political party should lead the government. Through elections, each party can obtain a simple majority in the House of Commons. Coalitions are formed by political parties if no party obtains a simple majority in the House of Commons. If a party or coalition does not have a majority in the House of Commons, a government cannot be formed by that party or coalition. The formation of coalition governments reflects the transition of Indian politics from national parties to smaller, narrower regional parties. Some regional parties, especially in southern India, unlike national parties, are deeply linked to the ideologies of the region, so the relationship between the central and national governments in different states has not always been free of resentment. The inequality between the ideologies of the political parties that dominate the center and the state leads to a very distorted distribution of resources between states.

It is essentially a framework used to analyze and analyze the external macroeconomic environment of an organization taking into account factors such as political, economic, socio-cultural, technological, legal and environmental factors. To learn more about PESTLE analysis, click here. The propensity for environmental awareness can open up more growth opportunities for businesses in India, as sustainability is key. These include scarcity of raw materials, pollution, carbon footprint, climate change. The growing concern about environmental issues is a consequence of the ongoing ecological crises. Companies need to develop innovative strategies to combat this. A key element of this “PESTEL Analysis of India (Country Profile)” is the economic environment.

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