SWOT(Strength, Weakness, Opportunities, Threats) Analysis of India Economy

Indian industry has come a long way from the command, control style of functioning rooted in an inward looking Import substitution policy to an export orientation, globally competitive, quality driven style of functioning.  In short term, with improved investment, scenario coupled with government continual through and reforms, the industrial performance is expected to do better.  But in large run, the performance depends on how well the reform are initiated, the investment and growth in Infrastructure, the continued availability of natural resources avail of low-cost , high skill workforce and global market scenario.  For sure is that it will gain momentum on the wheel of growth has been set to motion.


Here is and SWOT(Strength, Weakness, Opportunities, Threats) Analysis of India Economy not to become an Super power but at least to become a Developed Country.

Strengths of India.

• Vast Industrial Presence in both Public and Private Sectors
• Huge demand for Domestic Industrial goods.
• Avail of Low-cost, Skilled Human Resources.
• Proactive government continued thrust on reforms- Further liberalization under process.
• Increasing investment in real assets (Capacity Expanding), Inflow of FDI(Foreign Direct Investment) across Industrial sector.

Weaknesses of India

• Presence of Vast Industrial sickness
• Outdated labor laws, and presence of too many political labor and trade union.
• Nascent Regulatory systems to check misuse of market power by firms.
• Dependency of Subsidies(SSI – Small scale industries)
• Inadequate and poor quality infrastructure cost and time delays.

Opportunities in India.

• Growing Competition of Indian industry due to focus on efficient and quality.
• Vast export marked to explore.
• Growing recognition of “Made in India” brand in global market
• Major growth through outscoring opportunities
• Presence of Deming award winning firms (Focus on quality)
• Growing number of overseas investment and acquisition by Indian Firms.

Threats to India

• Heavy competition in manufacturing field from china.
• Power crises and the virtuous growth cycling manufacturing sector.
• Large informal sector, Poor working condition and low wages.
• Inclusion of social (Labor) issues in trade dialogues could happens exports (e.g., Child labor)
• High corruption and inadequate environmental safety norms could affect sustainability.