This 11 page paper is written as a report for the Board of Directors of a large hypothetical, UK multinational company evaluating the macro and task environment of the construction industry in India and assesses the suitability for the development of trading and investment relations. The paper also includes a SWOT analysis. The bibliography cites 8 sources.
Name of Research Paper File: TS14_TEconstructinds.rtf
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can assess this as a potential destination for a company supplying construction goods or undertaking construction projects by looking at the macro and task environment and performing a SWOT analysis.
The country of India was once very isolationist with high levels of protectionism in place. Following the gaining of independence governments sought to help the nation develop with measures
such as only allowing foreign investment where the majority shareholding was held by a domestic partner. However, the development in the country has seen the economy adapt and change, with
many rules relaxed to allow for economic development. This increases the potential for international companies to enter the country. The issue then becomes one of the circumstances for investment and
the potential of the sector. One of the main problems faced by India, which impacts of economic and social conditions is the over population. With 25% of the
population unable to even afford a satisfactory diet, this can be seen as handicapping the economy (CIA, 2004). However, the economy is improving as the GDP has averaged 6% per
annum growth between 1990 and 2003 (CIA, 2004). This has had the impact of reducing poverty by ten points since 1990 (CIA, 2004).
The relaxation of controls has also enabled greater imports to take place bringing in essential equipment and goods and allowing an increased influx of direct foreign investment which has
also resulted in a high level of knowledge transfer, especially in the more technological sectors. The development of the economy in this
manner has also seen the educational system expand and produce a high level of well educated English speaking Indian nationals. There has always been a strong educational system in this