The PESTEL Model of International Business Macro-environment is hinged around the political factor in most of the countries and in most of the occasions. Comment with reference to India.

The PESTEL model is the basic model of Environmental scanning for any business entity. Actually in majority of countries, including India, all other environment factors (Macro) like Economic, Socio-cultural, Technological, Ecological and Legal follow the political environment. All economic policies are governed through the political environment. Political factors determine the extent to which a government may influence the economy or a certain industry. For example, a government may impose a new tax or duty due to which entire revenue generating structures of organizations might change. It includes tax policies, fiscal policy, trade tariffs, etc. that a government may levy around the fiscal year and it may affect the business environment (economic environment) to a great extent.