A short report of India's market for the UK Electrical Goods Trade Essay

A short report of India's market for the UK Electrical Goods Trade Association - Essay Example nomic performance prompted a change in the trade policy of the country; consequently, India introduced a new policy of deregulation, globalization, as well as privatization of its economy. India is a member of several multinational and regional trade organizations, which play a major role in her international trade. Some of these organizations include WTO, Asian-Pacific Economic Community (APEC), and the association of South-East Asia Nations (ASEAN) (Chan et al. 2006). In the past few years, the electronic industry in India has recorded high returns like never before. There are various factors, which have contributed to the demand of electronics in India. These factors include the improvement of the standards of living among the middle class in the country, and the fact that their disposable income has also increased considerably (Hill 2011). Moreover, the country has in the recent years taken some liberalization steps for instance reducing tariffs on imports, relaxing equity regulations as well as foreign exchange regulations, and last but not the list the banking policies have been refined to meet the needs of foreign and local market. The role of the Indian government cannot be ignored in boosting the electronic industry to where it is now (Banga 2006). More foreign investors have ventured in the electronic business in India following the increase in the demand for electronic in the country and the liberalization steps taken by the country has further created a conducive environment that is capable of sustaining an enduring high growth for the electronic industry. Several factors must be assessed prior to importing electronics to India. Before venturing into exporting electronic to India there is a need to carry out a PEST analysis to determine the factors that may affect an organization. The initials PEST is used to mean the social, economic, and Technological factors that might affect the business (Baruch & Budhwar 2006). Political environment: In the