Demographic environment

The demographics of India are inclusive of the second most populous country in the world, with over 1.21 billion people (2011 census), more than a sixth of the world's population. Already containing 17.5% of the world's population, India is projected to be the world's most populous country by 2025, surpassing China, its population reaching 1.6 billion by 2050.[3][4] Its population growth rate is 1.41%, ranking 93rd in the world.

India has more than 50% of its population below the age of 25 and more than 65% hovers below the age of 35. It is expected that, in 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan; and, by 2030, India's dependency ratio should be just over 0.4

India has more than two thousand[citation needed] ethnic groups, and every major religion is represented, as are four major families oflanguages (Indo-European, Dravidian, Austro-Asiatic and Tibeto-Burman languages) as well as two language isolates (the Nihali language[6] spoken in parts

of Maharashtra and the Burushaski language spoken in parts of Jammu and Kashmir).

Further complexity is lent by the great variation that occurs across this population on social parameters such as income and education. Only the continent of Africa exceeds the linguistic, genetic and cultural diversity of the nation of India

Salient features

India occupies 2.4% of the world's land area and supports over 17.5% of the world's population. India has more arable land area than any country except the United States,[8] and more water area than any country except Russia, Canada and the United States. Indian life revolves mostly around agriculture and allied activities in small villages, where the overwhelming majority of Indians live. As per the 2001 census, 72.2% of the population[9] lives in about 638,000 villages[10] and the remaining 27.8%[9] lives in more than 5,100 towns and over 380 urban agglomerations.

Population: 1,210,193,422 (2011 est.) (2nd)

Growth rate:

1.41% (2009 est.) (93rd)

Birth rate: 22.22 births/1,000 population (2009 est.)

Death rate: 6.4 deaths/1,000 population (2009 est.)

Life expectancy:

69.89 years (2009 est.)

–male: 67.46 years (2009 est.)

–female: 72.61 years (2009 est.)

Fertility rate:

2.68 children born/woman (2010 est.) (82nd)

Infant mortality rate:

30.15 deaths/1,000 live births (2009 est.)

Age structure:

0-14 years: 31.1% (male 190,075,426/female 172,799,553) (2009 est.)

15-64 years:

63.6% (male 381,446,079/female 359,802,209) (2009 est.)

65-over: 5.3% (male 29,364,920/female 32,591,030) (2009 est.)

Sex ratio:

At birth: 1.12 male(s)/female (2009 est.)

Under 15: 1.10 male(s)/female (2009 est.)

15-64 years:

1.06 male(s)/female

(2009 est.)

65-over: 0.90 male(s)/female (2009 est.)

Nationality:

Major ethnic:

See Ethnic Groups of India

POLTICAL

These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

India is the biggest democracy in the World. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the India is more or less stable. Most of its democratic history, the federal Government of India has been led by

the (INC) Indian National Congress. State politics dominated by several national parties including the INC. The Bharatiya Janata Party (BJP), the Communist Party of India (CPI), and various regional parties. In the 2009 Indian elections, the INC won the biggest number of Lok Sabha seats and formed a government with a alliance called the United Progressive Alliance (UPA), supported by various left-leaning parties and members opposed to the BJP. Overall India currently has a coalition led government and both major political parties the UPA and BJP, whichever comes in power.

It comprises political stability and the policies of the government. Ideological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment. For example, Bangalore established itself as the most important IT centre of India mainly because of political support.

In India many poltical factors those effect in business environment. Political pressures in ruling government and vote bank problems. These are the major factors those affect on political environment:-

(i) Taxation policy

India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban & Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax income, Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales, Stamp Duty, State Excise, Land Revenue, and Duty on Entertainment and Tax

on Professions & Callings. The Local Bodies are empowered to levy tax on properties, Octroi Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.

(ii) Privatisation

Reduce the political interface in the management of enterprises, leading to improved efficiency and productivity. In India this time do many govt company Good performance but some time later there are facing many problems so the go for privatisation.

(iii) Deregulation

India Govt makes some Act to freely do business in India.

(iv) International trade regulations

International trade regulation day by day India makes it flexi able for foreign trade.

(v)General initiatives

Some policy to first Political initiates for the business environment in In India.

(vi) Government stability

In India past 10 years govt is stable. Before 10 years India facing govt stability. If govt stability not market is not improve and no one come here for investment.

(vii)International stability

No wars, no any country home problems, and no any type of war like Iraq they make uncertainty in market.