Economical factors that impact Bkash for emerging markets in India

India has been enjoying a stable economy within the past two decades. The economy of a country
can attract or repel many investors. In 1991, the government introduced the famous Industrial
Reform Policy (IRP) in order to transform India’s economy. The country’s GDP has increased
within the past one decade. If we look at the graph, the rising economic growth of the India in the
last 10 years, it cannot also be denied that along with the rising economic condition, the factors that
affects the economy like Corruption rate, rise of competition, insufficient power supply, poor
infrastructure, slow implementation of economic reforms works as big hindrances. Moreover,
because of the current situation in the Russia Ukraine war it has been forecasted by the economists
that the world economy may soon experience a recession where India will have a great fall of
economy. As this situation is totally unpredictable and has gone beyond control, it can be estimated
that the world economy will fall eventually and all the industries will decline for the time being.
There are some economic factors to look over for Bkash:

- Fiscal and Monetary Policies – The India government tax break culture has increased the deficit
and it can lead to fiscal trouble for the economy in coming years.

- Consumer Disposable Income – The household income of the country has increased constantly in
the last decade and half, compared to the USA market where household income is still below 2007
levels and has not increased in real terms since the early 1980’s. bkash mfs can leverage this trend
to expand the market beyond its traditional customers by employing a differentiated marketing
campaign.

- Foreign Exchange Rate – Number of companies have incurred losses in past few years because of
forex risk in – Venezuela, Brazil, and Argentina. bkash mfs should be careful about the history of
forex risk before entering a new market. Many US companies have incurred losses in Mexico
during the regular forex crisis in that country. So Bkash should be careful.

- Inflation Rate – The inflation rate can impact on the demand of bkash mfs products. Higher
inflation may require bkash mfs to continuously increase prices in line of inflation which could lead
to lower levels of brand loyalty and constant endeavors to manage costs. Cost Based Pricing could
be a bad strategy under such conditions. India's inflation rate is moderately high now which is
beneficial for India.

- WorkForce Productivity – India labour Productivity improved by 3.54 % YoY in Dec 2021,
compared with a growth of 2.04 % in the previous year even though the salaries are not reflecting
those gains. It can enable Bkash mfs to hire a skilled workforce at competitive salaries.

- Employment Rate – If the employment rate is high then it will impact bkash mfs strategies in two
ways it will provide enough customers for bkash mfs products, and secondly it will make it
expensive for bkash mfs to hire talented & skillful employees. Currently India's employment rate is
increasing in a good manner.
 Legal factors that impact Bkash for emerging markets in India
Legal dimensions frequently intersect with the political variables of India's PESTEL research.
These include issues such as equal opportunity, advertising, discrimination law, copyright law,
consumer rights, and others. These are feasible options, particularly for international firms looking
for a trade opportunity in India. Companies must follow the regulations and laws that are specific to
the country or region in which they operate. Recent changes in recycling, employment, and
discrimination legislation may have an impact on the company's pricing and labor costs. Foreign
brands can benefit from the country's flexible policies surrounding foreign trade. Bkash will need to
examine India's legal environment, including payment regulations, data protection and privacy
laws, and intellectual property law.

There are some legal factors to look over for Bkash :

- Securities Law – What are the securities laws in the country and what are the conditions to list the
company on national or regional stock exchange.

- Data Protection Laws – Bkash mfs needs to assess what are the data laws in India and what it
needs to do to comply with them. For example, most EU countries now want the EU citizen data to
be saved in EU countries only.

- Intellectual Property Rights Protection – Bkash mfs should assess the level of protection that
intellectual property rights get under the legal system of India.

- Consumer Protection Laws – Bkash mfs needs to know what the consumer laws are, what is the
rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what
is the role activist groups in enforcement of consumer protection laws o

- Time Taken for Court Proceedings – Even if India has the best of the laws, it doesn’t mean much
if they can’t be enforced in a timely manner. Bkash mfs should do primary research regarding how
much time it often takes to conclude a court case in the country given the sort of legal challenges
bkash mfs can face.

- Employment Laws – What are the employment laws in India and are they consistent with the
business model of bkash mfs. For example, Uber's employment system is not consistent with
French laws, and it is facing challenges in the country.

- Independence of Judiciary and Relative Influence of Government – Judiciary independence often

reflects both strength and credibility of the institutions in the country.