IntroductionIndia is the second most populated country in the world with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were relatively closed to the world. The economic reforms of 1991 brought about a change that made India an attractive and huge market for multinationals from around the world (Joshi 8). Retail industry in a globalized world is one of the thriving and profitable sectors. In the case of India, the retail sector is witnessing unprecedented growth and transformation (Malini 161). Organized retailing is becoming a norm as opposed to unorganized retailing which was dominant in the past. For a direct investor from the United States of America, interested in investing in consumer goods retailing and electronic retailing in India, it is important to understand the macro-environmental factors that can have a serious impact on the success or failure of a 'business. According to Musgrave (38) India is the world's fourth largest economy and is expected to become the most populous country in the world by 2050. After the initial easing of barriers and encouragement of foreign direct investment in 1991, retailers began to make inroads into Indian markets. Using PEST analysis, this article will explore the macro-environmental factors that include the political, economic, social and technological environments for investing in consumer goods retail and electronic retailing. Political Factors Since its independence in 1947, political stability has been a key factor that has ensured that India is now the largest democracy in the world. Although...... half of the paper......r. 2012. Print.Mishra, Sita. “A Paradigm Shift from Pyramid to New Multifaceted Consumer Class in India and Its Impact on Organized Retail.” Journal of Marketing and Communications 5.2 (2009). PrintMishra, Sita and Mathew, Priya. “Analysis of Perceived Risks and Website Attributes in Electronic Retailing: A Study from India.” Journal of Internet Banking & Commerce 18.2 (2013). PrintMusgrave, E. Targeting India, the next big thing. Drapers. October 1, 2005: 38-40. PrintSubramanian, Arvind. Is the Indian economy stumbling? The New York Times. August 31, 2013: A19. Press.The Indian Express. India ranked 94th in the Corruption Perception Index ranking, says Transparency International. The Indian espresso. 5 December 2012. Web. Available at: http://archive.indianexpress.com/news/india-ranked-94th-in-corruption-perception-index-ratings-says-transparency-international/1040857/