PESTAL ANALYSIS OF UK (UNITED KINGDOM)

INTRODUCTION OF COUNTRY
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United
Kingdom (UK or U.K.) or Britain, is a sovereign country located off the north-western coast
of the European mainland. The United Kingdom consists of four constituent
countries: England, Scotland, Wales and Northern Ireland.
The United Kingdom is the sixth-largest economy by nominal GDP and ninth-largest
economy by purchasing power parity. It has a high-income economy and has a very
high Human Development Index rating, ranking 14th in the world. It was the world's first
industrialised country and the world's foremost power during the 19th and early 20th
centuries.

POLITICAL CONDITIONS
-Index of economic freedom
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

India United Kingdom WORLD

Comment
From the above chart it is shown that the United Kingdom (UK) economic freedom is
better than the world and India in comparison of the last ten year data by taking into
consideration of various variables like property rights, judicial effectiveness, Government
integrity, Tax burden, Government spending and so on.
Transparency international index
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United Kingdom India

Comment
In the Transparency international index UK is in the position of 12th rank compared to
the other 180 countries in the world. Whereas India is the 80th position among the same. From
this it is clear that UK is more transparent then India.

United Kingdom India

Score Score
77/100 41/100
Rank Rank
12/180 80/18
Worldwide Governance Indicators (WGI)

Comment
From the above data of the Worldwide Governance Indicators which includes accountability,
political stability, governance, regulations, law and corruption. It is clear that UK holds a
better position in comparison to India based on the data of the year 2013 and 2018 with five
years of gap. And it is also clear that India is increasing its efficiency to reach the 100% of
governance.

This data is from Annual Report on Competition Policy Developments in India.


Quick charts
Territory-specific tax
information.
Corporate income tax rate (%)
Corporate income tax due dates
CIT return due date
CIT final payment due date
CIT estimated payment due dates
Personal income tax rates (%)
Personal income tax due dates
PIT Return due date
PIT final payment due date
PIT estimated payment due dates
Standard VAT rate (%)
Withholding tax rates (%)
(Dividends / Interest / Royalties)
Worldwide Tax Summaries
India United Kingdom
Domestic corp.: 25 if turnover/gross receipts do not exceed 19
INR 2.5 billion; otherwise, 30 (surcharge of 7% of tax if
income exceeds INR 10 million and 12% of tax if income
exceeds INR 100 million);
Foreign corp.: 40 (surcharge of 2% of tax if income
exceeds INR 10 million and 5% of tax if income exceeds
INR 100 million);
Additionally, health and education cess at 4% of tax and
surcharge.
30 September of succeeding tax year. The tax return needs to be filed within one year from the
30 November of succeeding tax year if the corporation has end of the accounting period.
international transactions with associate affiliates/specified
domestic transactions.
Before submission of return of income (i.e. 30 Varies according to the size of the company making the
September/November as the case may be). payment. See the UK Corporate summary for more
information.
Estimated tax is due in quarterly instalments payable Varies according to the size of the company making the
before the 15th day of each quarter of tax year (i.e. 15 payment. See the UK Corporate summary for more
June [15%], 15 September [45%], 15 December [75%], 15 information.
March [100%]).
35.88 (i.e. 30% + 15% surcharge + 4% health and 45
education cess)
July 31 of the tax year. 31 January following the end of the tax year.
Final income tax payment shall be made on or before the 31 January following the end of the tax year.
due date of filing of the income tax return.
If the tax payable on estimated income for a tax year is Two instalments, on 31 January during the tax year and on
likely to exceed INR 10,000, advance tax need to be paid 31 July following the tax year.
in quarterly instalments payable before 15th day of each
quarter of tax year (i.e. 15 June [15%], 15 September
[45%], 15 December [75%], 15 March [100%]).
Goods and services tax: 18 20
Resident: 0* / 10 / 10; Resident: 0 / 20 / 20;
Non-resident: 0* / 20** / 10 Non-resident: 0 / 20 / 20
(The above are to be enhanced by surcharge and health
and education cess)
*No WHT applied on dividend declared and paid by Indian
company to its shareholders; however, the company
declaring dividend is required to pay Dividend Distribution
Tax.
** Special WHT rates apply in certain cases where WHT
Ease of Doing Business score

DB DB
country 2019 2020
India 67.5 71
United
Kingdom 83.6 83.5

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DB 2019 DB 2020

Comment
From the table and chart it is clear that the score of doing business in UK is higher than the
score of India. But in the year 2019 score of India was 67.5 and thereafter increased to 71 in
the year 2020 whereas UKs score is stagnant.
Human Development Report
year India United Kingdom
(129) (15)
200 0.497 0.867
0
200 0.539 0.89
5
201 0.581 0.905
0
201 0.627 0.916
5
201 0.647 0.92
8

1
0.9
0.8
0.7
0.6
0.5 India (129)
United Kingdom (15)
0.4
0.3
0.2
0.1
0
2000 2005 2010 2015 2018

Comment
From the above chart it is known that India is ranked at 129th position whereas UK is ranked
at 15th position this defines the current position of the two countries in the world human
development in which UK is in good position in comparison with India. But, the data table
above gives the detailed development rate of various years in which India’s growth rate from
the base year 2000 to 2018 is 30% where UK’s growth rate on the same is only 6%.
Social Progress Index

Comment
From the above chart the social progress index of two countries from the year 2014 to 2019
UK is holding 13th rank with the score of 88 and India is in 102nd rank with the score of 59 in
the recent year. But in comparison to UK, India SC-index is surging every year.
UNESCO Institute for Statistics
INDIA
UNITED KINGDOM
Comment
The above data of the two countries specifies that India’s population is more of in the age of
15 to 35 years of age group and its per capita is less than that of UK. And also the rate of
GDP growth is 7% which is more than UK where its growth rate is 1.4%. This shows that
India is developing fast in comparison to United Kingdom.
And in comparison to the world and United Kingdom the Indian life expectancy is 69 years
which is less than that of the world and UK i.e:72 and 81 years. Also the GNI per capita is
also less compared to world and UK.

Country comparison tool

Comment
From the above graph it is known that of power distance and uncertainty avoidance in UK is
less than that of India which means there is less discrimination and stability in handling the
uncertainty is more efficient. And, other parameters in the graph are higher than that of India
which describes that UK is a masculine and indulgence country. But, both are long term
oriented countries.

Global Consumption Database

International Monitory Fund data
United Kingdom

India

Comment
The above data of International Monitory Fund organisation of 189 countries shows the in
brief the present economic condition of the two countries namely UK and India.
Where, the Real GDP growth (Annual percent change) of UK is 1.4 and India is 7 which is
greater. And, Inflation rate, average consumer prices (Annual percent change) of UK is 1.9
and India is 4.1 which specifies that India is growing and also its inflation rate is also
increasing side by side.
World Bank Economies and Open Data

Comment
The graph above shows the changes in GDP, Population, school enrolment and CO2
emissions of United Kingdom, India and the World.
In case of Gross Domestic Product UK and India GDP is 2.8 and 2.7 trillion where world
GDP is 85.9 trillion. The population of UK is 6.6crores where India’s population is
135crores.
In case of the school enrolments India is highest when compared to the world and United
Kingdom.
CO2 emission of United Kingdom is more compared to the world and India. But UK is
reducing its emission drastically. Whereas India’s emission rate is increasing every year
similar to that of world.
Coface Economic Studies & Country Risk
Enterprise surveys
Comment
The above data is related to the enterprise surveys conducted all over the world. It specifies
that India’s financial position it good when compared to the position of all the countries in
Asia and the world. And in case of the firms characteristics Indian firms are almost holding
an equal position when compared to the enterprises of Asian continent and the world.
And, at the end performance survey data shows that Indian enterprises are good at utilising
capital and sales growth which has high percentage. But, in case of employment,
productivity, and asset purchasing survey it is less compared to that of south Asia and all
other countries of the world.