What are economic factors?

Economic factors- the second component of the PESTEL framework- are

multidimensional elements that have a direct impact on a business's capacity to fulfil
its economic objectives. The Indian dairy industry must obtain a thorough awareness
of these aspects to forecast short- and long-term company growth in the selected
sector. Some of the most important economic aspects are discussed below:

The efficiency of financial markets: High financial market efficiency has a strong
positive association with overall economic growth, making capital accumulation and
goods/service output simpler. As a result, Dairy Industry in India the Dark Side of a
Growth Story must select nations with highly efficient financial markets to readily
amass financial and human resources. By keeping an eye on financial market
efficiency, the Indian dairy industry may effectively stay ahead of the competition.

Economic growth rate : In India, there is a dairy industry. When deciding on

worldwide expansion, The Dark Side of a Growth Story should consider each
country's economic growth rate. Countries with strong economic growth rates have
greater opportunity to achieve long-term growth goals. A slower pace of economic
growth leads to more cautious consumer spending, which can have a direct impact
on revenue growth in the Dairy Industry in India.

Inflation : The rising inflation rate can have a negative impact on the revenue
growth of Dairy Industry in India .The Dark Side of a Growth Story as its decreases
the purchasing power of money and discourages consumer spending on goods and
services.

Exchange and interest rate : Exchange rate fluctuations can have a negative
impact on corporate profitability. The Indian dairy industry should monitor exchange
rate variations in order to create accurate forecasts and prevent unfavourable trade
and business performance implications. A high interest rate indicates that India's
dairy industry would suffer. The Dark Side of a Growth Story will need high-interest
payments, and loans will cost more in the long term.

Industry lifecycle stage : Entering in mature industries that are approaching

saturation point can achieve growth objectives more challenging for Dairy Industry
in India. Therefore, the industry lifecycle stage must be considered while choosing
the countries for international expansion.

Demand and supply of labour : The performance of India's dairy industry The Dark
Side of a Growth Story is strongly reliant on the workforce's abilities and
competences. The timely availability of competent people is critical for the Indian
dairy industry. To keep ahead of the competition, read The Dark Side of a Growth
Story. In India, there is a dairy industry. The Dark Side of a Growth Story should
examine labour demand and supply patterns to determine how people with the
requisite skill set may be effectively recruited. A tight labour market with robust
worker unions might generate a slew of issues for India's dairy industry.