SWOT ANALYSIS OF INDIAN ECONOMY

JCE, MBA Belgaum

IntroductionSWOT is an acronym (Short Form) for Strength, Weakness, Opportunities and Threats.

SWOT analysis is an important tool for audit and analysis of overall strategic position of business as well as its environment.

It takes into account all positive and negative factors, Inside and outside of firm that affects success.

SWOT analysis provides information that helps in synchronizing firms resources and capabilities with competitive environment where firm operates.

Cont….

India is the 8th largest economy in world in terms of Nominal GDP,and  3rd largest by purchasing power parity (PPP).

India is one of the fastest Developing Economic Superpower with potential to become the world's 3rd largest economy by 2020 .

India is the16th-largest exporter and the 8th-largest importer in the world.

Cont….

Cont….

The economy slowed to around 5.0% for the 2012–13 fiscal year compared with 6.2% in the previous fiscal.

India's GDP grew by 9.3% in 2010–11; thus, the growth rate has nearly halved in just three years. GDP growth rose marginally to 4.8% during the quarter through March 2013, from about 4.7% in the previous quarter.

Literature review Archana Bhatia Associate Prof. Head and Dean Department

of Commerce DAV College Faridabad December 2013

(SWOT Analysis of Indian tourism Industry)

Deepika Jhamb1 Ravi Kiran2 1- Research Scholar & Teaching Associate, Thapar University, Patiala,

India 2- Professor, Thapar University, Patiala, India

2011Organized retail in India - Drivers facilitator and SWOT

analysis

STRENGTH

Agriculture

High percentage of cultivable land.

Huge pool of labour force

Huge English speaking population,

availability of skilled manpower

Extensive higher education system, third

largest reservoir of engineers

Rapid growth of IT and BPO sector bringing

valuable foreign exchange

Abundance of natural resources

WeaknessVery high percentage of workforce involved in agriculture which contributes only 17.2% of GDP.

Around a quarter of a population below the poverty line

High unemployment rate

Poor infrastructural facilities

Low productivity

Huge population leading to scarcity of resources

Low literacy rates

Rural-urban divide, leading to inequality in living standards

OpportunitiesScope 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

Huge population of Indian Diaspora in foreign countries (NRIs)

Huge domestic market: Opportunity for MNCs for sales

Vast forest area and diverse wildlife

Huge agricultural resources, fishing, plantation crops, livestock

ThreatsGlobal 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

population still high

Agriculture excessively dependent on

monsoon

Conclusion

• As India is known for it’s unity in diversity in the same way Indian economy is also unified blend of SO vs. WT.

• India has weakness but it is space of thinking new ideas and perception, understand it as a space of opportunities and transform into strength.