The Rise of India

India, one of four great ancient civilizations, has a splendid history, and it also has an important influence and effect on the development of world civilization. India's societal development was lost during the period of British colonialism. However this indomitable nation is now rapidly developing. Since the 21st century when globalization swept the world, India has gotten the chance to move. India is rising. The paper will use PEST political environment, economic environment, sociocultural environment and technological environment analysis to examine whether International Business activities have increased or decreased in the past 10 years in India. The summaries will study International Business contributed or not to the economic development of the India.

First of all, let us focus on the political environment. India had a very long period of the Nehru-Gandhi dynasty, and then became the colony of the British for nearly 100 years. In 1947, India was independent, and became a republic country. Due to British influence, India's political structure is similar to Britain. India has a parliamentary system and a party system. There are more than eight national and two dozen regional parties in India. Among these parties, the Congress Party is the most influential party in the country. It had uninterrupted control of the government for 33 of the 44 years following independence. The Congress Party played a really importance role in India's economic reform. For example, the aged P.V. Narasimha Rao led the Congress Party from 1991-1996 and was responsible for much of India's free market reform in the early to mid-1990s. Comparing with other Asian countries, India's parliamentary system and party system makes the political environment relatively free and open. At the same time, the influence and authority of the Congress Party also makes India's political environment relatively stable. However there are also lots of issues impacting India's stable political environment. For example, the disputes about Kashmiri between India and Pakistan and the border issue between India and China are destabilizing factors. These issues have serious impact on the stable political environment of India.

The paper will move into an analysis of the economic environment. As the world's second-largest population, India has a large domestic market. This huge market includes agriculture, manufacturing, service industry and information technology industry. With the huge market and number of industries, India's economic environment became more and more attractive to the world since the 1990's. The collapse of the Soviet Union in 1991 gave India a heavy blow, India lost of its major trading partner and faced tremendous political and social instability in 1990. Under the trend of globalization, India has undertaken a series economic reform. The "Washington Consensus" has played an important role on India's policy. The government embarked upon a plan of gradual liberalization toward a more market-oriented economy. Therefore India removed almost all import- and capacity-licensing restrictions. Subsidies were restricted, and tariffs were simplified and lowered. This series economic reform has made the India's economic environment more liberal and open. The restriction of subsidies and the lowering of tariffs have attracted more Foreign Direct Investment into India's market. The huge market and the open and free market policies make India's economic environment attracting and competitive.

In third part of this analysis, the paper focuses on sociocultural environment. In 2010, India's population was