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Market Economical Analysis

In: Business and Management

Submitted By lwon
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INTRODUCTION
This following report is used to justify the proposed country, India, as the potential country for Global Business Solutions’ client, Rein Wess (RW), to produce and sell their books. Therefore, this report highlights and debates on both aspects presented within the economic environment of India.

ECONOMIC ANALYSIS

Opportunities

• Sustained Economic Growth
According to various sources such as FTSE, MSCI (Morgan Stanley Capital International), The Economist and Standard & Poor, India is believed to be a huge emerging market. India’s annual real GDP3 estimated growth is approximately 8% yearly in 2000 to 2008. This suggests that the current economic conditions are largely favourable as the economy is growing strongly and positively despite the GFC4. This provides RW’s business a stable economic foundation to start their business steadily in India.

[pic]
Figure 1, Source: (World Bank, 2011) & (ET Bureau, 2011)

• Large Population Market

India’s current 1.21 billion population (Census India, 2011) is expected to grow at 1.3% in 2010. (World Bank, 2011) Of which, 672 million people are in the age-group 15 to 64 years which falls under the "working age population".

50% of India's population is under 25 years of age and there is a higher male to female ratio (Census India, 2011). This is highly favourable for RW because there might be an increase in demand for educational books as both new entrants (mainly males) of the workforce along with those in the workforce are keen on advancing their career prospects. (Bora, 2011) Concurrently, this huge pool of working class population provides a large opportunity for RW to hire their potential staffs.

• Increase Cheap and Skilled Labour

According to Johnes' research, there has been a shift towards a knowledge based workforce. (Time of India, 2011) In addition, India…...

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