SEPT. 2014
PESTLE ANALYSIS: INDIA

POLITICAL ANALYSIS

Democracy is the focal point of the Indian political system, but is often constrained by social tensions due to religious, caste and linguistic differences. Some of the communal flare-ups—such as Babri Masjid in 1992, Godhra in 2002, and the large exodus of India’s northeastern migrants from the southern cities in 2012 due to fear of attacks by Muslims— have rocked the whole country in the past. In 2013, the country again witnessed communal riots between Jat Hindus and Muslims in the town of Muzaffarnagar (located in the state of Uttar Pradesh), which has been deemed as ―the worst instance of political violence in the country in the last decade‖. In addition, the government’s assent to the creation of a new state of Telangana in southern India has brought intensified demands for new states in other parts of the country, either on ethnic lines or for better administration.
Current strengths

Strong democratic setup
India is the largest democratic nation in the world and principles of democracy are deeply entrenched in the Indian political system. Indian diversity is reflected in the federal political structure of government, where power is shared between states and the center. There are national level elections, state level elections, municipal elections and panchayat (village) level elections, all of which require citizens to exercise their vote. As per the World Bank’s Worldwide governance Indicators, India ranked in the 58.29 percentile in voice and accountability in 2012. Voice and accountability measures the extent to which a country's citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association and freedom of the media. India ranks high due to its deep-rooted democratic principles and respect for freedom of expression and the media. In