India’s Business Environment Essay Example

flourished economically due to its trade connections with nations spanning from the Far East to Western Europe and Africa.

The Indus civilization was renowned for its robust economy, which was evident in its focus on trade and efficient transportation. Trade silver coins were introduced by the Mahajanpada in 600 BC, which further enhanced trade. The conquest of India by the Maurya Empire around 300 BC led to a prosperous economy and flourishing trade. In the following 1500 years, India witnessed numerous rulers and gained recognition as the world's largest economy from the 1st to the 17th centuries AD.

During the Mughal Rule Before the Europeans, India was ruled for over 700 years by the Mughal emperors and had knowledgeable rulers in trade and commerce. This period brought economic prosperity and India witnessed some of its most prosperous years. Until the 17th century, India was not completely under British rule and therefore was not looted by colonial powers. However, it did face occasional economic downturns. Research indicates that India's gross domestic surplus goods contributed 25% to the global economy.

India's economy, estimated to be the second largest in the world and surpassing Great Britain's treasury, suffered a significant decline with the arrival of Europeans, altering its fate permanently.

They were responsible for causing extensive damage to the Indian economy with their reforms. This depletion of resources was two-fold. The primary factor contributing to the decline was the British exploitation of India over a period of 200 years. They purchased raw materials in India at lower prices and sold finished goods at significantly higher rates compared to the Indian market. As a result, this drastic change caused the once dominant world

economy to decline from 22% in 1700 AD to a mere 3%.

The text reveals that in just 200 years, India, as a significant country in the global economy and trade, witnessed a drastic 92% decrease in its contribution. This decline can be attributed to the impact of colonial rulers on the economy. The colonial era led to substantial changes in taxation, trade, and property taxes, which ultimately caused an economic breakdown. The closure of Indian industries resulted in people being compelled to exclusively purchase English goods, leading to financial losses for producers and individuals. However, this period also brought about some positive transformations, such as the introduction of the banking system and free trade, along with the use of a unified currency and exchange rates.

Weights and measures were implemented and trade flourished with the advent of railways, roads, telegraph lines, etc. After India gained independence, the economy gradually returned to its foundations and the Indian government prioritized agriculture, industries, trade, and foreign policies. The five-year plans aimed at building a strong Indian economy. Both agriculture and industries were given attention to achieve a well-rounded economy. Consequently, after some years of diligent efforts, the gross economy, which stood at 2 during the British era, improved significantly.

3% achieved stability in terms of height. The Indian economy experienced a transformation as a result of important reforms implemented by the government. There was an increased emphasis on the public and rural sectors, as well as a significant priority placed on exports. The political leaders directed their efforts towards achieving self-sufficiency and reducing imports.

Agriculture in India underwent significant changes with the "Green revolution" movement, which introduced better seeds, equipment, fertilizers,

and more. The Indian economy has experienced ongoing economic reforms since July 24, 1991, known as economic liberalization. Following India's independence in 1947, socialist policies were adopted, but attempts to liberalize the economy were made in 1966 and 1985. However, the first attempt was reversed in 1967.

After initially embracing socialism, a more robust version of this ideology was later embraced. In 1985, Prime Minister Rajeev Gandhi undertook a significant effort to advance this progression. However, progress was halted in 1987 and the complete reversal witnessed in 1966 did not materialize. Consequently, when India encountered a balance of payments crisis in 1991, it had to deliver 20 tons of gold to the Union Bank of Switzerland and 47 tons to the Bank of England under an agreement with the International Monetary Fund (IMF) aimed at providing assistance.

India implemented economic reforms imposed by the IMF as a condition of assistance. Led by P. V. Narasimha Rao and his finance minister Manmohan Singh (now the Prime Minister), the government introduced pioneering reforms in response, although not all demanded reforms were fully complied with. These policies, which were based on neo-liberal ideology, aimed to promote international trade and investment, reduce regulations, initiate privatization efforts, implement tax reforms, and control inflation.

Regardless of the ruling party, the liberalisation direction in India has remained consistent. However, influential entities such as trade unions and farmers have not been addressed by any party, nor have contentious issues like labour law reform and agricultural subsidy reduction. Unlike previous reforms initiated by Congress governments in 1966 and 1985, the reforms introduced by a minority government in 1991 were both successful and sustainable. The sustainability of these

economic reforms is a topic of ongoing debate in India. In 2007, India achieved its highest GDP growth rate of 9%, making it the second fastest growing major economy after China. Despite this, there has been a significant slowdown in the growth rate during the first half of 2012.

The Organisation for Economic Co-operation and Development (OECD) has suggested that India's average growth rate of 7.5% could lead to a doubling of average income within ten years. However, the OECD recommends additional reforms to expedite this progress. To match China, which began economic liberalization in 1978, Indian government coalitions are advised to persist in promoting liberalization. According to The McKinsey Quarterly, if significant barriers are eliminated, India's economy could achieve a growth rate of 10 percent per year, similar to China's growth rate.

There has been a significant debate surrounding the utilization of liberalization to foster inclusive economic growth. In India, income inequality has deteriorated since 1992, with the least affluent individuals witnessing stagnant consumption while the richest have experienced an increase in consumption. In the 2010 Index of Economic Freedom World Rankings, India's ranking improved from the previous year and placed at 124th out of 179 countries. Despite this, projections indicate that India will emerge as one of the world's fastest-growing economies and successfully accomplish its economic objectives in the coming decades.

The Indian economic indicators offer an accurate assessment of India's economy at different time periods, including specific indicators for individual states. These indicators aid in analyzing the Indian economy. In terms of demographics, India is the second-most populous country globally, with a population exceeding 1.21 billion people as per the 2011 census. This represents over

one-sixth of the global population.

Forecasts indicate that India is set to surpass China and become the most populous nation globally by 2025, with a projected population of 1.6 billion by 2050 due to its current growth rate of 1%. Presently, India accounts for 17.5% of the global population.

India's global ranking in 2010 was 102nd, with a population percentage of 41%. Over half of India's population is under the age of 25, and over 65% are below the age of 35. Projections suggest that by 2020, the average age of an Indian will be 29 years old compared to China's average age of 37 and Japan's average age of 48. Furthermore, it is predicted that India's dependency ratio will slightly exceed 0.4 by the year 2030.

India is a country with more than 2,000 ethnic groups and encompasses all major religions. It is also the birthplace of four important language families (Indo-European, Dravidian, Austroasiatic, and Tibeto-Burman) as well as two isolated languages (Nihali in Maharashtra and Burushaski in Jammu and Kashmir). The population of India shows significant variations in social aspects like income and education. In terms of linguistic, genetic, and cultural diversity, India surpasses even Africa. Religion plays a crucial role in Indian culture as it is the birthplace of Hinduism, Buddhism, Jainism, and Sikhism. India has a rich history of religious diversity and tolerance that is upheld through laws and customs.

According to the 2001 census, over 93% of Indians practice a religious faith. Hinduism is the dominant religion, comprising 80.5% of the population, while Islam, Christianity, and Sikhism account for 13.4%, 2.3%, and 1% respectively.

The practice of various religions is prevalent in India. Hinduism (79.8%),

Islam (14.2%), Christianity (2.3%), Sikhism (1.7%), Buddhism (0.8%), and Jainism (0.4%) are some of the major religions followed by the people. This diverse range of religious beliefs can be attributed to both indigenous faiths as well as the impact of religions introduced by traders, travelers, immigrants, invaders, and conquerors.

India has a significant number of followers of Zoroastrianism and Judaism, both religions having a rich history in the country. India is home to the largest population of Zoroastrians and Baha'i faithful globally [2][3]. Various other global religions also have connections to Indian spirituality. The Baha'i faith recognizes Buddha and Krishna as manifestations of God Almighty [4]. Furthermore, Hindu philosophy, which includes concepts such as yoga, meditation, Ayurvedic medicine, divination, karma, and reincarnation, has gained popularity through the Indian diaspora in the Western world [5]. As a result, Indian religions have had a widespread influence on a global scale.

Several organizations, including the Hare Krishna movement, the Brahma Kumaris, and the Ananda Marga, among others, play a significant role in spreading Indian spiritual ideas. It is important to note that India has the world's third-largest Muslim population and is also home to the third-largest Shia population globally. Additionally, India is known for its revered Sufi saints' shrines like Moinuddin Chishti and Nizamuddin Auliya, which attract visitors from around the globe. Moreover, India showcases impressive Islamic architectural landmarks such as the Taj Mahal and the Qutb Minar.

The Muslim Personal Law was given jurisdiction over civil matters and family matters within the community by constitutional amendments in 1985. The Constitution of India declares the country as a secular republic, ensuring its citizens' freedom to practice any religion or belief system,

or none at all. This right is considered a fundamental right in the Indian Constitution. Religions originating from the Indian subcontinent, including Hinduism, Jainism, Early Buddhism, and Sikhism, are known as Indian religions or dharmic religions. These religions are classified as Eastern religions.[web 1][note 1]

Indian religions, although originating in India, have a wide array of religious communities that are not limited to the Indian subcontinent. There is evidence of prehistoric religion in this region through scattered Mesolithic rock paintings. The recorded history of Indian religions begins with Hinduism or the ancient Vedic religion, which was practiced by the early Indo-Aryans. These practices were collected and eventually revised into what is now known as the Vedas. This era, referred to as the Vedic period, occurred from around 2000 to 1500 BCE when these texts were written, edited, and annotated.

The sramana tradition gave rise to Jainism and Buddhism between 700-500 BCE. Hinduism encompasses various denominations including Shaivism, Shaktism, Vaishnavism, Smarta, as well as smaller groups like the conservative Shrauta. Recently, Hindu reform movements have emerged. Sikhism was founded in the 15th century by Guru Nanak and the nine successive Sikh Gurus in Northern India. The majority of Sikh followers originate from the Punjab region. In terms of infrastructure, India has a well-developed transportation network that contributes to its economic growth.

India has a comprehensive transportation network that includes roadways, railways, shoreline shipping, and airways. This system is vital for the country's economic growth. The roadways cover over 44 lakh km and include both unmetalled and metalled roads. India has one of the world's largest roadway transportation networks, with National Highways making up less than 2% of the total

roadways.

Nevertheless, these highways in India facilitate 40% of the carriage of commodities and transportation of commuters in the country. The railways network in the country spans approximately 64,015 km or 39,777 miles, with electrification covering about 13,000 km. On a daily basis, the railways in India transport more than 11 million commuters and 11 Lakh tonnes of freight. Additionally, the shoreline of India is quite extensive.

Approximately 90% of the business activities on sea are managed by important harbors in India. These harbors include Mumbai, Kandla, Marmagao, Nhava Sheva, Tuticorin, Cochin, Vishakapatnam (Vizag), Chennai, Haldia, Paradwip, Ennore, New Mangalore, and Kolkata. Additionally, air travel is the quickest mode of transportation to any part of the world. Private carriers and Indian Airlines offer domestic flights, while Air India offers international flights. The four main airports in India are Kolkata, Chennai, Delhi, and Mumbai. Transportation plays a crucial role in India's economy as a whole.

The important modes of transport are air, road, and rail. The traditional means of transportation included walking, palanquin, bullock carts and horse carriages, bicycles, hand-pulled rickshaw, cycle rickshaw, and trams. The contemporary modes of transport include buses, taxis, suburban railway, auto rickshaws, rapid transit (metro and monorail), two wheelers, automobiles, and utility vehicles. Local Transport Motor transport is the commonest means of local transport in India.

Commuter rail services are limited to the metropolitan cities of Delhi, Mumbai, Bangalore, Chennai, Kolkata, and Hyderabad. However, at least 25 cities in the country have regular bus services which make up over 90% of the public transportation system in Indian cities. Bus services are both affordable and appropriate for all social tiers.

The bus services in the country are

primarily run by state-owned transport companies. Recently, the introduction of the Bus Rapid Transit (BRT) system has been witnessed in cities such as Delhi, Pune, and Ahmedabad. Additionally, in several cities, air conditioned (AC) buses are being operated. The city of Chennai boasts the largest bus terminus in Asia, known as Chennai Mofussil Bus Terminus. Furthermore, cities like Chennai, Mumbai, and Trivandrum also offer Double Decker Buses as part of their transportation options.

Taxis in India mainly consist of Hindustan Ambassador or Premier Padmini cars, although recently other vehicles like Maruti Esteem, Chevrolet Tavera, Mahindra Renault Logan, Maruti Omni, Toyota Innova, Tata Indica, Tata Indigo, and Hyundai Santro are also used as taxis. India currently has suburban railway services in Kolkata, Mumbai, Delhi, Chennai, and MMTS Hyderabad. The rapid transit system in India includes metro rail and monorail services. The Kolkata Metro is the oldest metro railway service in India, established in 1984. Other metro services in the country include the Delhi Metro, Chennai Mass Rapid Transit System, and Namma Metro (Bengaluru).

Under construction metro railway services include Rapid Metro Rail Gurgaon, Mumbai Metro, Chennai Metro, Jaipur Metro, Hyderabad Metro, Navi Mumbai Metro, and Kochi Metro. The long-distance transportation network in the country consists of railway services and flights. Trains are categorized based on their average speed, including Duronto Express, Shatabdi Express, Jan Shatabdi Express, Rajdhani Express, Superfast Express, Garib Rath, Express and Mail trains, Passenger and Fast Passenger, and Suburban trains. The suburban railway systems in the country are Chennai Suburban Railway, Delhi Suburban Railway, Barabanki-Lucknow Suburban Railway, Kolkata Suburban Railway, Mumbai Suburban Railway, Multi-Modal Transport System (MMTS), Lucknow-Kanpur Suburban Railway, and Pune Suburban Railway.

The Indian

Railways is responsible for all railway operations in the country. In India, the road transportation network consists of state highways, national highways, district roads, village or rural roads, and other types of roads. The total length of India's road transportation network is over 4.42 million km or 2.059 million miles. The aviation industry in India includes major airlines such as Air India, Kingfisher Airlines, Jet Airways, Air Deccan, SpiceJet, Paramount Airways, GoAir, and IndiGo Airlines.

The following international airports are located in India: Jaiprakash Narayan International Airport, Veer Savarkar International Airport, Rajiv Gandhi International Airport, Lokpriya Gopinath Bordoloi International Airport, Indira Gandhi International Airport, Dabolim Airport, Sardar Vallabhbhai Patel International Airport, Bengaluru International Airport Mangalore Airport, Cochin International Airport, Trivandrum International Airport, Calicut International Airport, Raja Bhoj Airport, Devi Ahilyabai Holkar Airport, Chhatrapati Shivaji International Airport, Dr. Babasaheb Ambedkar International Airport, Pune Airport, Jaipur International Airport, Chennai International Airport, Tiruchirapalli International Airport, Taj International Airport, Amausi Airport, Varanasi Airport, and Netaji Subhash Chandra Bose International Airport. In addition to these airports, there are numerous domestic and civilian airports throughout the country.

In India, waterway transportation is also a mode of transportation. The Government has proclaimed the following watercourses as National Waterways:

National Waterway 1: Starting from Allahabad and ending at Haldia. The main river is the Ganges - Bhagirathi - Hooghly River and the total span in October 1986 was 1,620 km or 1,010 miles.

National Waterway 2: Starting from Saidiya and ending at Dhubri.

The Brahmaputra river network spans 554 miles or 891 km and is part of National Waterway 2. Starting at Kollam and ending at Kottapuram, it includes the Udyogmandal and Champakara channels. National Waterway 3

covers 127 miles or 205 km and includes the West Coast Canal. National Waterway 4 is divided into two parts - one starting at Wazirabad and ending at Vijaywada, and the other starting at Bhadrachalam and ending at Rajahmundry. It encompasses the Krishna-Godavari river network and the Kakinada-Pondicherry channel system, spanning a total of 680 miles or 1,095 km. National Waterway 5 includes two divisions - one starting at Talcher and ending at Dhamara, and the other starting at Mangalgadi and ending at Paradeep. It covers the Mahanadi-Brahmani river network along with the East Coast Channel.

In 2007, the overall span was 387 miles or 623 km. Housing in India varies greatly and reflects the socio-economic mix of its vast population. Housing varies from palaces of erstwhile maharajas in Rajasthan to modern apartment buildings in big cities to tiny huts in far-flung villages. There has been tremendous growth in India's housing sector as incomes have risen.

Indian culture has certain distinctive features that influence its housing arrangements. The prevalent arrangement involves the extended family, also known as the joint family, living together in one house. This includes grandparents, sons, daughters-in-law, and grandchildren all sharing the same kitchen. Siblings and cousins grow up together within this arrangement. Each married couple has their own bedroom. The oldest woman in the household is responsible for determining the menu and taking charge of the cooking duties.

After marriage, women typically reside with their in-laws. However, there is a small but gradually increasing number of nuclear families in urban areas due to modernization. Even in urban areas, it remains uncommon for senior citizens to live alone. Furthermore, it is rare for

couples to cohabitate prior to marriage. Certain young individuals may choose to live in same-sex dormitories or shared housing during their time in college and early years of employment. Villages often capitalize on the favorable climate for their way of life.

Families in rural areas often bathe in rivers and ponds, while the majority of their time is spent outdoors. Cooking is done either using organic fuels in earthen stoves or modern kerosene stoves. Water is typically obtained from hand-drawn wells. Men find designated spots for ablutions throughout the day, while women wait until after dark and use designated outdoor spots, usually behind bushes. When visitors come to villages, they may see residents squatting down to play card games under trees or sitting on charpois, traditional hand-made beds that are brought outside during the day.

Consequently, the indoor space is primarily used by people in India for sleeping, changing, or watching TV in electrified homes. In India, healthcare is provided through a universal health care system run by the constituent states and territories. The Constitution mandates every state to enhance the nutrition level, standard of living, and public health as their primary duties. The National Health Policy was approved by the Parliament of India in 1983 and revised in 2002. Additionally, the private medical sector in India is more popular than the public health sector.

According to surveys, both urban and rural households in India prefer to use the private medical sector more frequently than the public sector. India has a life expectancy of 64/67 years (m/f) and an infant mortality rate of 61 per 1000 live births. The National Family Health Survey-3 indicates that 70% of urban

households and 63% of rural households rely on the private medical sector as their primary source of healthcare. The reliance on public and private healthcare sectors varies between states. The main reason for preferring private healthcare at the national level is the poor quality of care in the public sector, as reported by more than 57% of households.

[2] The National Rural Health Mission (NRHM) was launched in April 2005 by the Government of India with the goal of providing effective healthcare to rural people. It focuses on 18 states with poor public health indicators and weak infrastructure. Other major reasons for inadequate healthcare access in rural areas include distance to public sector facilities, long wait times, and inconvenient hours of operation. [27] India's telecommunication network is the second largest in the world in terms of total telephone users (both fixed and mobile phones).

It has one of the lowest call tariffs in the world enabled by the mega telephone networks and hyper-competition among them. It has the world's third-largest Internet user-base with over 137 million as of June 2012. Major sectors of the Indian telecommunication industry are telephony, internet and television broadcasting. Telephone Industry in the country, which is in an ongoing process of transforming into next generation network, employs an extensive system of modern network elements such as digital telephone exchanges, mobile switching centres, media gateways and signalling gateways at the core, interconnected by a wide variety of transmission systems using fibre-optics or Microwave radio relay networks.

India has a diverse access network that uses various technologies such as copper-pair, optic-fibre, and wireless to connect subscribers to the core. In the television segment, the relatively new

broadcasting technology called DTH has become highly popular. Additionally, the introduction of private FM has boosted radio broadcasting in India. The country's telecommunication system has greatly benefitted from the INSAT system, one of the largest domestic satellite systems worldwide. Overall, India's communication system is diversified and connects all parts of the country through telephone, Internet, radio, television, and satellite.

Indian telecom industry experienced rapid market liberalisation and growth in the 1990s, making it the world's most competitive and one of the fastest growing telecom markets. Within a span of ten years, the industry has grown more than twenty times, going from less than 37 million subscribers in 2001 to over 846 million subscribers in 2011. As of May 2012, India has the second-largest mobile phone user base in the world, with over 929.37 million users. Additionally, India boasts the third-largest Internet user-base worldwide, with over 137 million users as of June 2012. In the 2010-11 financial year, the Indian telecom sector's total revenue increased 7% to ?283,207 crore (US$52 billion), while revenues from the telecom equipment segment reached ?117,039 crore (US$21 billion).

Telecommunication has played a significant role in supporting the socioeconomic development of India and narrowing the rural-urban digital divide. It has also increased transparency in governance through the introduction of e-governance. The Indian telecommunication history began with the introduction of the telegraph. The Indian postal and telecom sectors are considered some of the world's oldest. In 1850, the first experimental electric telegraph line was established between Calcutta and Diamond Harbour, and it was later opened for use by the British East India Company in 1851.

The Posts and Telegraphs department was located within

the Public Works Department, specifically in a small corner. The department later constructed telegraph lines spanning 4,000 miles (6,400 km) to connect Kolkata (then Calcutta) and Peshawar in the north.