Investing on low cost computers in a country like India has its advantages. The country provides a large market for the product and considering that it is 21st century, everyone would want a laptop of their own. However considering India economy, it is best to do an economic analysis to determine whether the low cost computers are the best products to bring to the market. This is in regard to the world development indicators provided by the World Bank on issues such as economic policy, external debt, education and infrastructure. All these issues can affect the buying power of the people in India.
This is with regard to what the Indian government has been doing in terms of encouraging investors using favorable economic policies. According to the 2014 annual India review, economic policies such as relevant reforms suitable for business like the power reforms will help ease the strict investment environment that require power.
When a country owes a lot of debt; the citizens are usually over taxed so that the debt can be paid as quickly as possible. India has owed more than $400 billion according to the India times. This means that there is a very high rate of inflation which could be bad for business especially if it means lowering the value of their local currency; rupee. If inflation continues, then the low-cost computers will not be low-cost at all and this means reduction in the number of customers.
Education and infrastructure
According to World Bank, India had more than 100% people enrolled in schools in 2011. This is a positive thing since literacy will lead to learning and then buying of the computers. The infrastructure in India is however a problem and it has slowed down investors.
Considering the positive steps being taken by the Indian government on investment, it is therefore clear that investment rate will peak in India. This means that businesses will require the low-cost computers that shall be supplied, schools and individuals as well
- India Development Update: October 2013(Oct 16, 2013).worldbank.org. Retrieved 15 May 2014 from http://www.worldbank.org/
- India (n.d). Worldbank.org. Retrieved 15 may 2014 from http://data.worldbank.org/
- Rahul A. & Volodymyr T. (March 25 2014), India’s Investment Slowdown: The High Cost of Economic Policy Uncertainty, blog-imfdirect.imf.org. Retrieved May 2014 from http://blog-imfdirect.imf.org
- India’s external debt at $426 billion in December: Finance Ministry,(28 mar 2014). Retrieved 15 may 2014 from http://economictimes.indiatimes.com/