India Brand Equity Foundation

There are primarily 4 macro-economic aspects that are analysed to assess their effect on the economy. The PEST analysis or Broad Factor Analysis is the method deployed to assess the macro-environmental factors of an economy.  The four macro-economic aspects are: •    Economic •    Political •    Socio-demographic •    Technological These four major macro-economic factors affect the economy overall and have a major impact on the business environment, opportunities and the threats prevailing in the industry for all the players. The aforementioned aspects are used in the analysis of the effect on the economy.  We will study the impact of each of these factors that affect the economy in a broad way. Effect of the Macro-Economic Aspects of the Economy We perform the PEST analysis on the basis of 4 primary economic aspects. Below are the effects that each macro-economic aspect has on the economy. Economic:...

India is an agriculture centric economy . Since 70% of the country’s population lives in rural areas, agriculture has historically been their primary source of income. It forms the basis of livelihood for a major fraction of the entire rural population. Although the sheer size of the agricultural economy is fascinating, the sector has only contributed about 16% of India’s GDP, as per an economic survey conducted in 2017-2018. The YoY growth in the agricultural sector stands at a mere 2.1%-2.3%, which is relatively lower than other sectors operating in the economy. Factors Resulting in the Low GDP of the Agricultural Economy The state and central government apathies and their lax economic policies have severely affected the output of the agricultural sector of our nation. Along with the disparity in an uneven monsoon season, and the pressure on farmers to sell their crops at a lower price point, the situation couldn’t be better.  Let’s have a look at the various...