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Indian Economic Environment

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THE INDIAN ECONOMIC ENVIRONMENT

Companies and their suppliers, marketing intermediaries, customers, competitors, and publics all operate in a macro environment of forces and trends, increasingly global, which shape opportunities and pose threats. These forces represent “non-controllables”, which the company must monitor and to which it must respond.

The beginning of the new century brought a series of new challenges: the steep decline of the stock market, which affected savings, investment, and retirement funds; increasing unemployment; corporate scandals; and of course, the rise of terrorism. These dramatic events were accompanied by the continuation of existing trends that have already influenced the global landscape. …show more content…

10,000. Income distribution of households in India has been changing significantly over time. Households belonging to the lower income segment have been steadily declining over the years, and the middle income households have been showing an increase. These are the results of economic growth. The NCAER (_) has classified Indian consumers into five categories --- destitute (annual household income of Rs. 16,000; not active participants in market exchange for a wide range of goods), aspirants (annual household income of Rs. 16,000-22,000; new entrants into the consumption systems due to increase in their real income), climbers (annual household income of Rs. 22,000-45,000; have desire and willingness to buy, but have limited cash at hand), consuming class (annual household income of Rs. 45,000-215,000; households that form the majority of consumers; have money and are willing to spend), and the rich (those who have money and own a wide range of products). The patterns of income distribution in urban and rural areas also vary.
SECTORS-
• Industry and services Industry accounts for 28% of the GDP and employ 14% of the total workforce. However, about one-third of the industrial labour force is engaged in simple household manufacturing only. Economic reforms brought foreign competition, led to privatization of certain public sector industries, opened up sectors hitherto reserved for the public sector and led to an

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