Answer:
The environments impacting market opportunity of India can be summarized as following:
1) Political environment: India is considered politically stable, which is appropriate for market opportunity, helping firms avoid risks from protest, terrorism, etc. In addition, India has been trying to foster the privatization of enterprises in this country, which can help the business not be controlled too much by the government, as well as can easily improve efficiency.
2) Economic: India is an emerging economy, which would undoubtedly facilitate the operation of firms here, providing market opportunity for the market. However, there are several factors that should be considered:
+) Tax Policy: India's government has a lot of policies regarding to enterprise tax. This can impact the business decision as it would pose a high cost of establishment and operation of firms here.
+) Inflation: India is one of the company has quite high inflation rate at around 9%. This could affect the redistribution of income, particularly to the foreign firms investing in India.
3) Cultural
There are few social cultural factors that impacting the market in the India.
First is the demographic. India is known as an aging society with 63.1% is from 15 to 64. As it can be seen, the greatest part is also the working population.
Secondly, India's lifestyle is affected much by the religion here. For example, they are more connected to tea that coffee. They are of the countries with drinking habit with the nearly highest consumption of alcohol. They also have special eatery habits such as eating by hands, not using chopstick or spoon.
In addition to that as most of Indian is Hinduism - which has many strict rules. So that firms also has to considered these factors when exploiting market opportunity here.
