Country Risk

Analysis
•ANKIT SONTAKKE – 2020M080
•DINESH GUNJAL – 2020MO29
•MINAL PATIL – 2020MO63
•NIKKEY NARWAL – 2020MO57
 Market Opportunities
. The following sectors provide growth opportunities for U.S. companies to the Indian market

 Civil Aviation

 Defense

Market  Education
Opportunities
 Environmental Technologies
Economic Sociological Technological
 Food and Write
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 Market Challenges

 High Tariffs and Protectionist Policies

 Price sensitivity

 Infrastructure
Market
Challenges  Data Localization Requirements and E- Commerce Restrictions
Economic Technological Environmental
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 Power of States
 Economic Overview
.

Deep slump in 2020, slow recovery

 Vulnerable state of economy during pandemic

 Uncertainties about the sanitary situations is negatively impacting
 Expansion of tax holidays as well as the relaxation of credit conditions
channeled through banks
Economic
overview
Risk are on the downside
Sociological l
 RBI may be forced to tighten monetary policy in the coming year
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 However, trade and investment diversion in the medium to long run
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provide the opportunities
 Socio-Economic Factors that Affect India
.

 Uncertainties surrounding in the coming general election.

 Rising communal violence and terrorism incidents.

 Slow- down in government decisions due to political instability.

Socio-Economic  Labor unrest and industrial action.

Condition
 Corruption and bureaucratic inefficiency.
Legal Environmental
Write your  Unexpected delays and cost-overruns
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 Fluctuation in interest, inflation and currency rates.
 STRENGTHS & WEAKNESSES
Strengths
• Stable democracy
• Large Internal Market
• Expatriates’ remittances, jewelry,
garments, vehicles, and medicine
exports
• Moderate level of external debt and
adequate FX reserves
• Efficient private sector
• Strong foreign exchange reserves
Weaknesses
• Growing financial risk
• Potential conflict due to border dispute
• Political system tends to endanger
coalition governments
• Weak structural business environment
• Widespread poverty, inequality
• Vulnerable to natural disasters
 THREATS & OPPORTUNITIES
Threats Opportunities

• COVID-19 brought an 11-year bull market to an abrupt • Corruption can be rooted out - The cost of corruption in
developing countries like India has been estimated at $1.3
end.  trillion a year

• The coronavirus calls for wartime economic thinking

• The focus on technology based innovative methods to operate
• Despite the best efforts of lawmakers in India, several businesses will receive a thrust 
critical areas of economic stabilization are likely to remain
unaddressed • During the pandemic the overall, the largest single sector of
new business growth was Health Care (16%). 
• Even in a place like Vietnam that has done an admirable
job of containing the spread of the coronavirus, its
economic impact – potentially exacting a full percentage
point of GDP growth
CURRENT TRENDS
Recovery with existing
downside risks
Private consumption is likely to
recover slowly due to a weak
outlook, as income loss and the
increase in unemployment
induced by the lockdowns are
unlikely to be fully absorbed.
Public finances will
remain weak
The fiscal deficit is expected
to decrease but should
remain higher than pre-
COVID-19 levels in FY
2021-2022.
Increasing Nationalism
In light of the slow progress on
the economic front, worsened by
the pandemic, the BJP could opt
to intensify its nationalist
agenda, which would not please
foreign investors, who are keen
on secular policies.
 INDIA: RISK ASSESMENT
.

A
Country Risk
Rating

High

B
Business Climate
Rating

Mid