...introduction Officially identified as the republic of India, India is the seventh largest country in tern of area and the currently the second most populous country with over a billion people residing in the region, as a democratic country after the British rule, the Indian culture plays a major role in the development and operational structure with regards to its economic development. Language, food, religion, architectural structure and the overall way of living is primarily influenced by their culture orientation which is made up of several culture from the Indian subcontinent over a long period of time implying their strong view of culture in every practice including business and commercial activities. The economic environment in India is fast paced in terms of development however its full potential is not met and the reform by the government has been limited, the institutional shortcomings continue to undermine the current level of development, therefore consideration of investment in India should not be limited to the overall outcome but critically valued. In recent decades India has been largely viewed as an outsourcing destination where companies from other countries mainly ones that has high cost of labour, move their businesses with the aim of cost reduction through the transfer of work, given the high population in the country the average level of graduates will be high, so the ability to transfer educated graduates who speak fluent English is in high supply and...
Words: 2636 - Pages: 11
...October 12, 2009 Doing Business in India The seventh largest country in the world and the second most populated country in the world is located in South Asia. This country is known as India. India consists of different states which speak different languages. Hindi is considered to be the official language by the government. India has different cultural beliefs, values, religions, and politics that allow it to stand out from its neighboring and surrounding countries. India also sets itself on different standards in regards to handling business. When handling business in India, English is the language used. More Americans are seeking to do business in India. This paper will explore the different values that India stands upon in the business world to include, proper greetings, gestures, and professionalism. Avoid scheduling meetings on or near a national holiday in India. Punctuality for meetings is not a priority of Indians. If you are fifteen minutes late, it will be hardly noticed. When entering a meeting, a handshake is appropriate for greeting a male business associate. Shaking hands with a woman is not recommended unless it is initiated by the woman. If you feel as if a handshake is improper, it is safe to use Namaste. This is a traditional Indian greeting where the palms are brought together at the chest with a slight bow of the head. The meetings should first start off with some type of conversation. Do not expect to get straight into business. Indians like to take...
Words: 698 - Pages: 3
...Background Information of India India is a country located in South Asia with a total area of 3,287,263 square km. It has a total population of 1.241 billion. Hindi is the official language of the country with 14 other official regional languages. However, English has become the second language and often used in business. New Delhi is the capital city of the country. The Gross Domestic Product (GDP) per capita for India is $1,592. Population growth in India is decreasing, however, it is predicted that its population will reach 1.4 billion by 2025. Life expectancy in India has also increased from 66 years old for men and 71 years old for women. However, the population is still living in rural area with almost 60% of the population living in slumps and villages. However, the shift from rural to urban is also increasing. Literacy rates in India have surged to 74.04%. With a GDP per capita (PPP) of $3,649.53, the economy of India is made up of agriculture, mining, industry, construction and services. Services are the major economic driver for India and the best-performing. The biggest and most crucial market for India is U.S for IT. PESTE Factors 1. Political Factors * Stability of Government India is a federal republic with 28 states and seven union territories with Mr Pranab Mukherjee being the president of India since he was elected in July 2012. As of today, there are 13 political organizations with Indian National Congress and Bharatiya Janata Party (BJP). In...
Words: 4892 - Pages: 20
...Doing Business in India India is a richly diverse and complex country. Regionalism, religion, language and status are all factors that need to be taken into account when doing business in India. Behaviour, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed. By tailoring your behaviour and approach to doing business in India you maximise the potential of your visit. Indian Society and Culture Language Different states in India each have different official languages. Central government only recognises Hindi as the official language of India. However, when doing business in India, English is the language of international commerce. Hierarchy * Indians are always conscious of social order and their status relative to other people, be they family, friends, or strangers. * All relationships involve hierarchies. The boss is seen as the source of ultimate responsibility in business. Every relationship has a clear- cut hierarchy that must be observed for the social order to be maintained. The Role of the Family * People typically define themselves by the groups to which they belong rather than by their status as individuals. Someone is deemed to be affiliated to a specific state, region, city, family, career path, religion, etc. * Indians maintain very close family relationships. The extended family creates countless interrelationships, rules, and structures. Along with these mutual...
Words: 1381 - Pages: 6
...Country Evaluation: India Describe the country of investment. Include the following: Economic structure, indicators and risk Throughout India the economic structure differs greatly from state to state. India is known for having one of the fasting growing economies in the world. This has a lot to do with the huge population in India. Capital, labor, and productivity growth have been the main contributors to the economic growth in the country. In recent years the Indian government has made great strides in strengthening the economy. Despite this push by the government there are still several very poor areas and the country still has a lot of uneven economic stability and because of this there is still a lot of room for improvement. The widespread poverty throughout India is one of the biggest challenges the country faces (Dasgupta & Chakraborty, 2005). For many years the Indian government had several rigid policies to discourage foreign investments but in recent years these policies have been under reform. Most of the growth that the economy of India has seen in recent years has been due to internal growth. The country depends very little on exports and this has been an advantage for their stability. When foreign countries have economic problems and in recent years when there are been global economic crisis, the effects are not felt as much on the Indian economy. India has a very good education system which is great for their economic growth. Unfortunately...
Words: 2189 - Pages: 9
...No business in India gives returns like politics in India, said ADR. Obviously, politics has turned into very lucrative business in India. Does this augur good or bad for India, its economy and the markets, especially BRICs country? Explain your position. From the facts of the case, it can be clearly seen that politicians thrive in India irrespective of rising inflation and slowing economy. Emerging countries will account for a large chunk of the world’s growth. These countries promise new and unexplored markets to the world with their rising levels of consumption and cheap labor. However, markets such as India pose unique risks for the businesses and hence impact its economy. Business risks are provoked because of influence of government in transactions which are expected to be purely commercial in the developed countries. State plays a very important role in planning of its economy and if the resources are used by the politicians for their “business” then economy is bound to fall flat. Financial crises are attributed to misbehavior of some kind, greed, fraud and cronyism. As is widely known, political influence is very essential to start a business in India. This is a key concern for the Indian markets. Corruption has serious repercussions on India’s businesses and political environment. Every time a scandal occurs it damages the credibility of the government. The following are the implications of corruption on India’s economy and markets: Corruption reduces competition...
Words: 712 - Pages: 3
...M E M O R A N D U M To: Majora Carter From: Date: 12/1/12 Subject: Cultural Information on Conducting Business in India. As we expand our consulting firm overseas, there are aspects of business etiquette and intercultural communications that need to be addressed. As a female business person in India; greetings, attire, gift giving, formality, business meals, attitudes towards time, communication styles, gender perceptions, and black-out days will be essential in your business relations. I have conducted web analysis form exeutiveplanet.com, Amritt, Inc., and timeanddate.com, to enhance my report. They are all well-known and credible sources for international business conduct. Acceptance As a foreign woman, you will have some difficulty being accepted in an Indian organization, especially if you will be in the middle or higher management. The Indian society relates heavily to the inequalities of the powerful and wealthy members of society compared to the more social equality of our nation. The rank of the individual supersedes and notions of gender inequality are generally accepted. Also, there is a need to be sensitive to the cultural values that lend more to the value of a group as compared to our more individualistic society. Acceptable Public Behavior ‘Namaste’ is the traditional greeting accepted among all communities in India. It is the safest way to greet and is appreciated to be a gesture of friendliness. Holding your palms together in a prayer...
Words: 995 - Pages: 4
...Abstract India is a complex nation with a rich history and years of diversity. With the rise of the global economy over the last century, it is safe to say that the country has become a major multi-national player. Although outsourcing to India has been a trend since the early 90’s, the country also has a growing local economy that is primed for investment should the right opportunity arise. However, not just any company can invest in or partner with India. Because India is rich in tradition and very slow to change its views, it will take a savvy, experienced investor with a team of managers willing to take on the task of creating a successful partnership with a country whose past has been riveted with corruption and a caste system that tends to hold its citizens back from improvement. A Multi National Corporation (MNC), with the right resources, will be able to benefit from the positive attributes of the developing country while at the same time contributing to the reduction of poverty and improved lifestyle of local citizens. Q#1. What are the major elements and dimensions of culture in this region? Communication The dimensions of culture can be summed up in a few points: communication, religion, ethics, values and attitudes, manners, customs, social structures and organizations, and education. Beginning with communication is perhaps the most important aspect of culture for a business manager to address. In Cross Border Commerce, author Brian Satterlee quotes John...
Words: 8171 - Pages: 33
...Business in Asia Country Based Business Opportunities Project Housing Opportunities in India Entering the Indian Housing Market ASIAM 2005 Due: 16th September 2005 Submitted: 10th September 2005 Submitted by: Please return graded assignment to: Brendan O’Farrell – 15 Tandanya Street Deakin Uni - S/N 201027576 Mansfield QLD 4122 TABLE OF CONTENTS 1. Executive Summary 3 2. Introduction 4 3. Country Profile 5 3.1 Population & Demographics 5 3.2 Raw Materials and Infrastructure 6 4. Socio-culture 7 4.1 Religion and Language 7 4.2 Indian Housing 7 4.3 Regional Development 8 4.4 Business Environment 9 5. Political, Security and Legal 10 6. Current and Future Environmental Factors now and as at 2008 11 6.1 Economical 11 7. Industry and Competitor Analysis 13 8. Strategy and Planning 14 8.1 Product Description 14 8.2 Product Manufacturing 14 8.3 Product Distribution Channel 15 8.4 Resource Delivery and Labourer Relations 16 8.5 Product Advantage 16 9. Mode of Entry 17 9.1 Options for Mode of Entry 17 9.2 Recommended Mode of Entry 18 9.3 Organisational Structure and Compensation 20 10. Monitoring and Control 21 10.1 Product Monitoring 21 10.2 Performance Measurement 21 11. Future and Exit Strategy 22 12. Conclusion 23 13. References 24 14. Appendices 27 1. Executive Summary This report was commissioned to examine and analyse environmental information on India to produce...
Words: 5852 - Pages: 24
...In the article, The India Way: Lessons for the U.S., Peter Cappelli and colleagues contrast the business strategy and structure of India and the United states. The article describes India business model as being characterized by companies’ dedication to social missions while engaging and utilizing employees’ capabilities to fulfill those missions; therefore, providing intrinsic rewards to said employees and making the society better off. On the other hand, the U.S. business model is portrayed as being characterized by companies’ most important mission is to maximize shareholders’ wealth. Which of these two models is better? The answer is both. In schools, textbook after textbook defines the goal of a corporation is the maximize shareholders wealth; while this is the true, there are other stakeholders in the corporation as well. The economic value that corporation provides for the society is not just enough. An organization is a product of the environment that it exists in, therefore has an ethical obligation to the society. The article quotes “Corporate social responsibility and governance are the state of the development of the country.” (Peter, pg 12). Maximizing shareholders’ wealth is just not enough. The author of the article is absolutely correct in stating that it leads to many unethical practices as we see in the case of the unethical conducts of big companies such Enron and WorldCom. Top executives’ compensations are tied into stock options; therefore, they have more...
Words: 343 - Pages: 2
...Global Business Cultural Analysis of India BUSI 604: International Business The nation that I have chosen for this Global Business Cultural Analysis research project is India. India has one of the fastest growing and largest economies despite being one of the poorest countries. “India has emerged as the world's third largest economy, in terms of Purchasing Power Parity (PPP), just behind the U.S. and China, according to a report from the World Bank” (Bawaba, 2014). The academic reason in which I chose India is that it is very interesting in how one of the poorest countries in the world has developed to be in the position of third largest economy. There are five learning objectives I will research in addition to the required four research questions. First of all, I want to explore the overall business culture of India. There are different perceptions of ethical business practices throughout the world. Second, I will research the role the Indian government plays in conducting business. Third, the differences in the United States labor market and India’s labor market. Next, I will determine if India is going to be of any threat to the US economy in future. Last of all, I will explore the business laws and regulations of the Indian economy. What are the major elements and dimensions of culture in India? Communication, relationships, culture and hierarchy are the major elements of culture within the nation of India. “While English...
Words: 763 - Pages: 4
...window to implement sourcing rules * India says the time period is "too long": source * IKEA plans to invest 1.5 euros billion in India By Matthias Williams and Niklas Pollard NEW DELHI/STOCKHOLM, July 6 (Reuters) - India has rebuffed a request by IKEA to relax rules on buying goods locally, a government source said on Friday, raising the prospect of a delay in the world's largest furniture maker entering the Indian retail market, IKEA, famous for its self-build flatpacks and huge stores, said last month it would invest $1.5 billion euros ($1.86 billion) and open 25 outlets, throwing a lifeline to the government in India where economic growth has slowed sharply. But the Swedish company sought a 10-year window to comply with rules that foreign retailers source 30 percent from local small and medium-sized firms, a requirement which overseas companies say discourages investment. When contacted by Reuters, IKEA said a short delay in its formal application to enter the Indian market would not affect its decision to open stores, and hoped to start operations soon. The stakes are high for both sides. India offers IKEA a huge new market while the government is battling heavy criticism over its management of Asia's third-largest economy where growth has slipped to its weakest pace in nine years. Prime Minister Manmohan Singh said on Friday that IKEA's planned entry was proof that investors still had confidence in India. WINDOW A government source involved...
Words: 331 - Pages: 2
...Economy Profile: India © 2012 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail pubrights@worldbank.org. Copies of Doing Business 2012: Doing Business...
Words: 27341 - Pages: 110
...International Business Environment in India | Brief Analysis | * Sankeerth Reddy * Suveer Neelam * S Kishore | Introduction India is the largest democracy in the world and geographically 7th largest in the world. It is also one of the best countries for international trade. India is developing at a great pace and also has a proud and rich culture. The Census Bureau of USA projected that by 2025 India will be the largest populated country surpassing China. With majority of the population being in the age group of 20-30 years, India has good educated and highly productive work force which enables a significant edge over the rest of the developing countries India relatively has lower percentage of senior citizens than its competitors like U.S and China further reducing the social expenditure for the elderly. India has a lot of natural resources. Iron ore, manganese, titanium ore, mica, petroleum, natural gas, diamond and limestone are some of the abundant natural resources. The coal reserves in India are the fourth largest in the world. 48% of India’s land is arable. Hindi is the most spoken and English is the official language facilitating transactions with other countries. Culture of India India considers religion as important part of its culture. It is to be respected and given importance to succeed in conducting businesses in India. The Indians talk about punctuality but not everyone practices. It is better if appointments are made in advance...
Words: 2146 - Pages: 9
...Article Assignment #4 Article Summary: The automotive market in India is not doing as well as the expectation they set for themselves, compared to China. Two years ago, India sold over 2 million vehicles, now their sales started to slow down and it is predicted to remain slow. This decrease in sales rate in combination with over production in merchandise is likely to increase export by Indian automakers and boost domestic makers to overcome foreign markets. The Indian car markets, as well as their competition the Chinese automakers, have always set their goal to expand their business worldwide. Although China started exporting their products only 8 years prior, India’s low base price has already made the production type very popular. Being close to a few of the fastest expanding markets in Southeast Asia has helped, although Africa had a very successful market. According to a statement from South Africa’s Standard Bank, car sales in the area have increased to 160% since 2008 to roughly half of South Korea’s numbers and 3 times China’s sales. Overall, exports of Indian vehicles reached almost 3 million in the year to April 2012; although almost 2 and a half million of these were 2 and 3 wheeler type vehicles used for motor cross bikes. Tata Motors has been a persistent exporter to the less particular and picky emerging markets. In 2011, they also began selling the Nano in foregin markets, aiming in on parts of South Aferica and Asia. The Nano is one of the world’s most...
Words: 1632 - Pages: 7
