Porter’s Diamond Model

 Exporting Industries:
• Mineral Fuels
• Gems & Precious Metals,
• Pharmaceuticals
Hofstede’s Cultural
 Factor Endowment
• Robust IT Structure Dimensions  India’s Regional Economic
• High Mineral Fuels  Power Distance Integration
• Favourable Location for Precious • Score: 77 • India-Sri Lanka Free Trade Agreement

•
Metals
Cheap Labour in India

 Relating & Supporting Industries

• Availability of Capable Suppliers in
India
 Firm Strategy, Structure & Rivalry
• Investment in R&D and Changing
•
Locations for Expansion (Strategy)
Assembling a Huge Number of
Talented Workforce (Structure)
• • India boasts the world's second-
Using Innovations and Maintaining
Brand Value (Rivalry)
 Demand Conditions
• Expectation of Growing Demand for
Mineral Fuels
• Increased Demand of Gems and
Precious Metals
• High Demand in the Pharmaceutical
Industry
•
•
High Power Distance
Power Distance present in
Workplace
 Individuality VS Collectivism
• Score: 48
• Religion/Philosophy
Individualism
• Social & Workplace Collectivism
 Masculinity VS Femininity
• Score: 56
• Masculine Society
• Gender Bias in India
• Sexual Harassment in Workplace
 Uncertainty Avoidance
• Score: 40
• Low UAI
• Low Preferences
• Not Compelled to Take Actions
Against Errors
•
•
•
•
India-Bhutan Free Trade Agreement
India-Maldives Free Trade Agreement
South African Customs Union (SACU)
Global System of Trade Preferences
INDIA
•
(GSTP)
SAARC Preferential Trading
INB 372
Arrangement (SAPTA)
SECTION 17
 5 Interesting Facts about India
• India was the world's first diamond- GROUP 3
mining country.
largest number of English Speakers.
• India is the greatest producer and
exporter of spices in the world.
• Sugar was refined and consumed for
the first time in India.
• In Switzerland, there is a day
dedicated to Dr. A.P.J. Abdul Kalam
known as Science Day.
 Political Benefits Economic Benefits
• Policy Support to encourage FDI • Huge Market Size
Political Risks • Increased Future Wealth
• Conflict with the Neighbouring Economic Risks
Countries • Massive Debt Issues Due to
• Media Oppression Covid-19
Political Costs • Declining Living Standards Due to Consumer Price Index
• India’s Low Political Stability Covid-19 India is placed 86th in the 2020
Index Economic Costs Corruption Perception Index.  
Geographical Location • World Trade Organisation (WTO) • Economic Loss Due to Covid-19
• Population Disputes • High Costs of Doing Business in Negative Impact of Corruption
1,400,000,000 (approx., 2021) India on FDI | Barrier
• Area • Unhealthy CPI
Technological Benefits Social Benefits •
3.287 million km² High levels of corruption deter FDI by
• 3rd Most Technologically • Huge Consumer Market 
• Surrounding Countries imposing additional costs on investors
Advanced Country • Increasing Standards of Living and creating uncertainty about future
Afghanistan, Pakistan, China, • Leading IT Product Exporter Social Risks costs and revenues
Bhutan, Nepal, Myanmar, Technological Risks f
• Tensions in Communal • India's high percentage of corruption
Bangladesh, Maldives, and Sri • Cyber Risk has a detrimental influence on foreign
Harmony
Lanka Near to Sea/River • Information Privacy Risk
• Poverty direct investment.
India is bordered on the south by Technological Costs
Social Costs
the Indian Ocean, the Arabian Sea • Low App Development Costs Advantages of Economic
• Low Outsourcing Costs
• Rise in Pension Costs
on the west, the Lakshadweep Sea Integration
on the southwest, the Bay of • Nation Branding
Bengal on the east, and the Indian Key Local Companies Key Resources • Establishment of Alliances
Ocean on the south itself. • Reliance Industries • Minerals • Copper • Rise in Government Income
• TATA Consultancy Services • Coal • Marble • Fall in Unemployment due to Trading
• HDFC Bank • Gas • Diamond Companies
• Rise in Quality-of-Life Index
• Infosys • Gold • Oil • Improvement in Domestic
• ICICI Bank • Iron Ore Goods/Services