Introduction. This report is based on the assessment of the Indian fashion industry, so that a France-based company opens a production facility in India. To analyze whether the opportunity is profitable, you need to look at a PESTEL analysis (political, economic, social, technological, environmental and legal factors). These are the factors that influence the way of doing business in a foreign country. To ensure that the potential opening of the French factory in India will be profitable, you need to conduct an industry analysis, known as Porter's Five Force. The French company must also know that there are cultural differences which can influence the reason for doing business in the foreign market, it is important to analyze these questions via the theory of the cultural dimension of Geert Hofstede. If these theoretical frameworks are not analyzed, it can cost the French company millions of dollars because they will not know who to market their products to and will offend Indian culture without even realizing it.1.1 PESTEL Analysis (macro- environment)PESTEL analysis (political -, economic, social, technological, environmental and legal factors) are all factors in the external environment that can affect the operations of a company in a foreign country/market. These factors are mostly beyond the control of the organization, so it is important for the organization to properly plan its strategy and develop its products. 1.1.1 Political factors. For the fashion industry, India's political structure is stable, but India has seen political volatility for a few years due to the disappointment of any party that failed to gain full traction in Parliament. This has stabilized since the previous general elections;...... middle of paper ......and the cultural environment they enter into. The attitude towards the fashion industry in India is very optimistic and it is most certainly expected that the fashion industry in India will continue to grow. Therefore, we recommend that it is viable for the France-based fashion company to open its factory to manufacture products in India. Bibliography1. Forum11, members and Indian fashion. Indian Fashion Forum 2011. 02/17/2011. www.indianfashionforum.co.in/ (accessed 02/24/2011).2. Foundation, Indian Brand Equaty. India at a glance. December 1, 2010. www.ibef.org/artdispview (accessed February 24, 2011).3. Hofstede, Geert. Geert Hofstede™ Cultural Dimensions. December 1, 1967-2009. www.geert-hofstede.com/hofstede india.stml (accessed 2011 24, 1).4. Network card. Sectors: Science and technology. 02 12, 2005. http://india.gov.in/sectors/science (accessed 02 23, 2011).