What is SWOT analysis of India?

Dr.Sheetal Nair | Serial Entrepreneur | Storyteller | Author

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More than a decade after a global financial crisis that showcased policy tools designed for such traumatic events, the toolbox is dwindling. The outlook for the current financial year 2021-22 has been adversely affected by the resurgence of the COVID-19 pandemic in India and abroad.

Cutting interest rates, a tried-and-true means of encouraging people to buy more things and take out bigger loans, can only last for so long.

In some cases, central banks have revived or amped up their emergency “quantitative easing” programs – aimed at bolstering bond prices and containing interest rates.

Even if policymakers do manage to prompt people to keep pumping money into economies, it remains unclear whether that will be decisive. Fears about COVID-19’s fundamental impact on supply chains needed to get goods into stores run deep, and a lot of stock market volatility is now being automatically triggered by algorithms.

So, me and my partners at our firm DSS Group were in the middle of a whirlwind debate on how to diversify our businesses so that we remain more secure for such future shocks, when we realised that this pandemic is actually an advantage.

How?

Let’s do a SWOT analysis with focus on weakness/threats & opportunities

WEAKNESS/THREATS

• COVID-19 brought an 11-year bull market to an abrupt end. Now, the central bankers faced with the task of stepping in to avert another financial crisis must do so with balance sheets not yet fully recovered since the last one

• The coronavirus calls for wartime economic thinking, in addition to a coronavirus spending bill, India will require a stimulus package worth as much as $2 trillion.

• Even in a place like Vietnam that has done an admirable job of containing the spread of the coronavirus, its economic impact – potentially exacting a full percentage point of GDP growth

• Despite the best efforts of lawmakers in India, several critical areas of economic stabilization are likely to remain unaddressed

OPPORTUNITIES

• Corruption can be rooted out - The cost of corruption in developing countries like India has been estimated at $1.3 trillion a year, three-quarters of sub-Saharan Africa’s GDP. Perhaps the COVID-19 crisis will galvanize governments to action reduce leakages, creating fiscal space to serve the poor better while setting the stage for recovery and sustained economic growth

• The focus on technology based innovative methods to operate businesses will receive a thrust, forceful due to the fact that the pandemic has rendered majority of the population immobile. This shall open up a plethora of options for new ventures or business which thrive on the use of new technology

Examples:

• Medical / Pharmacy (Medkart)

• Grocery Stores (Jio Mart)

• Educational Technology (Udemy)

• Online Gaming (Rummycircle)

• OTT (Voot)

Fitness & Wellness Apps (HealthifyMe)

• Healthcare Consultation & Online Sales (1Mg)

NET TAKEAWAY

During the pandemic the overall, the largest single sector of new business growth was Health Care (16%). The largest combined sector was in Personal Services (Retail, Leisure, and Hospitality), perhaps taking advantage of opportunities as COVID reshaped the personal services economy.

Also, there is a clear shift in business activity from urban areas to suburban areas in 2020-21. Nearly half (46%) of newly created businesses are located in the suburbs, compared to 2019, when just 33% of new businesses were started in suburban areas. These patterns further suggest that the pandemic-induced shift in population and economic activity away from urban cores is a long-term feature of the economic landscape.

In our previous article, we studied a detailed SWOT Analysis of BMW. Today in this article we will study about SWOT Analysis of BASF India. We will also take a look at quick stats, products as well as company history.

BASF India is known for its chemistry, they are known for their chemicals, plastics, performance products, and crop protection products for oils and gas. They are the world’s leading chemical company in India, and they believe in developing innovative solutions for customers around the world. Their employees have passion & determination, due to that they are leading. 

BASF India’s marketing strategies help in boosting their growth, this is another reason why they are leading. After covid almost every business is going online, so you must know how to do marketing online means how to promote products & services through digital marketing. So if you are interested in learning the latest marketing efforts which are digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Before we go into the SWOT Analysis of BASF India, let us know about BASF India as a company.

Swot analysis of India. The Republic of India or Bharat is a South Asian country. She’s the world’s most populated country after China, and she’s the world’s largest democratic country in terms of population. The capital of the country is New Delhi.

India shares the border with Myanmar, Bangladesh, Bhutan, Nepal, China, and Pakistan. The country has a long history that dates back to 55000 years ago, and it has got a lot of ups and downs. Gupta Empire came into existence in the 3rd century. The British Empire officially started ruling India in 1858. Before granting independence, the British government separated India into two parts; Hindu majority current-day India and Muslim majority current-day Pakistan.

According to an estimate, India’s annual GDP in 2020 was 2.59 trillion US dollars, and it’s the 6th world’s highest. Out of which, the per capita was 1876 dollars, and it’s the 142nd world’s highest.

Approximately more than 1,393,409,038 (1.4 billion) people are populating India. Hindi and English are the two official languages of the country. Roundabout 80% of the people believe in Hinduism.

Today, we’ll study the swot analysis of India. Here we’re going to analyze the internal and external factors of the 2nd most populous country. For macro-environmental factors, check out the pestle analysis of India. Here’s the swot analysis of India as follows;

Strengths of India

Solar Energy

India has the perfect location for utilizing solar energy, and the country is using it in the form of cookers, water pumps, and solar lanterns. She earned the status of being the first country to produce and consuming electricity at the commercial level in 2015. The government had a sale of 1.4 million solar cookers during the same year.

Food Production

India is an agricultural country, and it produces a plethora of crops and grains every year. In other words, the government has an extra availability of food supply. In fact, India is the 2nd world’s largest food producer after China. She really needs to upgrade the equipment of her because her productivity is falling.

Appreciate Working Life

India has a closed and joined family system where younger people take care of their parents and grand-parents. More than half of her population comprises younger people less than the age of 35. That’s why the country’s socio-cultural setup appreciates the full-time working life because it keeps the family moving.

India provides cheap labor to western companies, and there isn’t much language barrier. A majority of Indians can speak English. The other reason foreign companies prefer Indian labor is that they can quickly assimilate with Western lifestyles, cultures, and attitudes.

Tech Industry

Tech culture and tech companies are increasing in India, creating more job opportunities for young people. Indian provides tech support to multinational tech companies 24 hours a day because of the time differences.

Skilled Workforce

Indian universities produce millions of educated and skilled professionals every year. After completing their education, these young graduates go out in the world to find the right job for their career.

Weaknesses of India

Poor Reputation

India has the reputation of being a poor country. Her poverty level hides the country’s strengths and skilled workforce as we know that India is home to a large population. When some bad apples are involved in the robot-callers and phone scamming activities in foreign countries, they identify the scammers as Indians because of the accent.

Unequal Wealth Distribution

According to an estimate, approximately 1% of the Indian population is rich, and it controls the whole country’s wealth. It has raised a serious question about the unequal wealth distribution, which increases the poverty level among people. They say that poverty is the mother of all evils. When people have a hungry belly, they’re willing to do anything to make both ends meet.

As we have discussed in the strength section, India is the 2nd world’s largest food producer, and her increasing poverty level doesn’t make sense. According to an estimate by Global Hunger Index 2020, India ranked at the 94th position out of 107 countries. It’s very high, and if you compare it with the previous ranking, India has been decreasing the poverty level.

Opportunities available to India 

Business Investment

The Indian economy has got sufficient room for investment in the business sectors. It’s because the country provides the cheap labor facility. It’s something that attracts the attention of many multinational companies. When they invest in the country, it will improve their economic conditions.

Basic Necessities

According to a study, approximately more than 1 million people would accommodate 69 major cities of India by the end of 2025. Those cities don’t have basic facilities like clean air and water that people could use. If her cities don’t get the things in order, then most of her population would suffer a lot. Resultantly, it would impact the growth of her economy.

Income Gap

The gap between the rich and poor class is increasing because of the unequal wealth. The Indian government should launch various projects to bridge the gap. It would create more job opportunities, and the country would ascend.

The Indian economy has adapted the liberal and globalized policies like freedom of speech, LGBTQ, globalization, trade agreement, and many others. It’s because of such a mindset her economy has been moving at an aggressive rate. If the country keeps in the same direction, she will resolve many of her economic and social challenges.

Threats India has to face 

Extreme Poverty

India is facing two major issues; poverty and increasing population. They both factors are complementing each other. Some politicians are experts suggesting that the government should launch two-child regulation just like. It would help the country to slow down the population growth. The minimum income should be around 2 dollars per day to be out of the poverty line. There are many who are unable to earn that much.

Population Bomb

If India’s population keeps increasing at this rate, it will cross China’s population by the end of 2023. Her resources are scarce, and the number of people is increasing. Many people don’t even have access to the basic necessities of life, and they live in far off villages.

Hypertension

If you think India’s young population is a plus point for the country and the government is utilizing the young talent. The majority of young people are of the age of 35, and approximately more than 40% of them are facing the issue of hypertension. It’s because of the limited career opportunities and extreme economic conditions. According to an estimate, approximately 30% of Indian people die because of hypertension.

Conclusion 

After an in-depth study of the swot analysis of India, we have concluded that India is indeed the world’s leading growing economy. Increasing hypertension, population, and scarcity of resources are the serious issues of the country. India should launch mega projects to utilize her young talent, and the economic prosperity would resolve most of the country’s problems.

Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.