India, considered one of the biggest emerging markets in the world, is a country located in southern Asia with a population of over a billion people and its capital city being New Delhi (http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html.) The current leadership in India is implementing extensive changes to encourage international business in India, from privatization to the liberalization of trade (http://www.cyborlink.com/besite/india.html). India has more than fourteen major and three hundred minor languages, but the official language is English and Hindi. The Indo-Aryan ethnic group makes up seventy-two percent of India’s population, with 25 percent Dravidian and 3 percent Mongoloid and/or other (“Country Profile: India”). The market opportunity’s this country brings is enormous; the majority of this country is surrounded by water, thus making trade an appealing aspect. Furthermore, the country itself has a very abundant supply of raw materials with an improving rail system and India holds a very stable parliamentary government (“Country Profile: India”). In the following summary, I will provide you with greater understanding on how India’s business environment works and the benefits this country can bring to a company wanting to expand their foreign operations. The country of India has common laws with a written constitution ensuring the rights of individuals and property. Invasion of privacy by people is not spoken of in the constitution, but illegal attacks can quickly turn into criminal law. In the area of data protection, India currently does not have any existing laws, but follows a set of provisions and is protected by the Public Financial Institutions Act of 1993. This act protects the confidentiality for banks and their transactions. The Telecom Regulatory Authority of India (TRAI) regulates the privacy of telecommunications. In the year 2000, the Information Technology Act was passed setting laws on the environment of electric commerce. Major bodies of law such as The Foreign Trade Act of 1992, the Industries Act of 1956, and the Monopolies and Restrictive Trade Practices Act of 1969 are a few of the most important statutes governing foreign investment in the country of India (“Country Profile: India”). In relation to intellectual property, India has continued to strengthen its laws and have passed important legislation to protect the intellectual property rights of individuals and companies, which include: The Patents (Amendment) Act in 1999, The Trade Marks Bill in 1999, The Copyright (Amendment) Act in 1999, The Industrial Designs Bill, in 1999, The Patents (Second Amendment) Bill in 1999 (http://www.indianindustry.com/intellectual-property-rights/).
India has many types of business entities for doing business there. Joint venture companies are the most preferred form of entity and there are no separate laws for them; they are treated like a domestic company. Foreign investment is more than welcomed in areas such as power, steel, coal washeries, railways, and telecommunications. If a company chooses not to do a joint venture then options such as liaison, project, or branch offices are available. Government approval is required for any foreign investment to take place and there are two ways approval can be granted. Automatic approvals are granted by the Reserve Bank of India where percentages of foreign equity are allowed. The second approval is a special approval. This type of approval is granted by the Foreign Investment Promotion Board in New Delhi (http://madaan.com/indiabusiness.html#joint). The technological and communications market in India is expected to continue to expand. Seeing growth in areas like telecommunications, banking and financial services, manufacturing, and retail have created an expanding market in areas such as computers and peripherals. Since there is such a high demand for these products, India has seen prices drop drastically. Computer companies, such as Hewlett Packard and Dell, have a strong manufacturing presence in India. The telephone network, both land line and cellular, in India has some 190 million lines, which ranks them in the top 10 networks in the world and second largest emerging network behind China. E-mail, Internet services, frame relay services, video conferencing, electronic data interchange, and voice mail are all areas that have been growing phenomenally in the business world. India is a country that is just now in its prime for technological advancements and communications (http://business.mapsofindia.com/communications-industry/).
As I have mentioned before, English is one of the official languages of India and is standard in government, business, science, education, and national communication (http://www.cyborlink.com/besite/india.html). Religion within the country of India is very broad being mostly made up of Hinduism, with Muslim being the second denomination (“Country Profile: India”). Differences between these two religions and other small ones can be traced back to historical influences. The people of India do not see Hinduism as a religion; they see it as a “way of life.” The people who practice Hindu believe in reincarnation and adoration for trees and animals because they all may be symbols of gods. One thing that makes Hindus stand out from the rest is the caste system they believe in. Here, the entire society is divided into four groups and each is assigned a certain class of work. In addition, religion and family are very important to the Indian people and can be seen throughout their lands. The people of India have the attitudes that life is what it is and to accept it no matter what (Gorrill, Jodie R).
One of the biggest concerns in India is the education system. While the education offered is free for children, most schools are deficient in their teachings. Having an enrollment percentage of 100 percent in grade schools the drop-out rate is 40 percent (“Country Profile: India). The result is a poor education system that can present obstacles for companies who are doing business in India in areas like finding qualified applicants. An area where education is incorporated into an important component to the Indian culture is Ancient Sanskrit poems. Through their cultures, Indians have been taught to appreciate a wide variety of dance and music performances, which is why these poems are incorporated into each of these areas. Indians have much respect for their arts too, which can be found in their paintings, jewelry, textiles, and pottery. It is said that many of India’s arts are placed in harmony with nature to bring good fortune in the business world (http://www.pbs.org/thestoryofindia/gallery/photos/10.html). When entering a foreign market you cannot go in making decisions based upon on how you operate in your home country. Geert Hofstede came up with a five level analysis so that we can be more effective when interacting with people in other countries. Hofstede’s Dimensions of Culture analysis showed India having a large power distance society. In most cases this would mean the country may be in for a change of some sort. Having a high power distance means that India has a high level of inequality of power and wealth. If you are bringing a business into the Indian market you must let the people know who is in charge and make sure they know their deadlines. When conducting business with this high power distance you must be more authoritarian in your management. India’s individualism rank is 42, which is exactly what the world average is. With a middle score it is hard to judge whether Indians depend more on themselves and only take care of their immediate family or whether they are cohesive in groups and stick together. Since they are ranked a little lower on Hofstede’s scale it may be safe to say that the people will have much more priority for their families than business. It would be a good idea not to award or praise one person in India either; do it to the whole team if at all possible. Masculinity refers to the distribution of roles between the genders. India’s ranking on the masculinity is 56; this score is slightly higher than the rest of the world. According to Hofstede analysis the higher a country ranks in this dimension the more a gap lies between men and women’s values. In the sense of doing business in India, people should consider the fact that women in the country may be more competitive and assertive than in other countries. In my opinion, that can only create endless possibilities for those wanting to bring in new businesses. Long term orientation deals with the values of a country and India comes in with a score of 61, compared to the world average of 48. Hofstede’s analysis states that this may indicate India’s culture is perseverant and parsimonious. India’s lowest ranking dimension is uncertainty avoidance with a score of 40. Well below the world average, the culture of this country is more than likely open to unstructured ideas and situations. Businesses doing business in India must keep in mind that the people most likely take a different approach to life than what they might; space might be needed for employees to complete their tasks (http://www.cyborlink.com/besite/india.html). When working in India there are several working practices that an individual or company must know before entering this foreign market. The Indian people like punctuality, but your must be aware they may not respond in the same manner back. Therefore, business appointments should be made for late morning or early afternoon. Also, the Indian culture is slow when it comes to making business decisions, therefore deadlines should not be rushed. Within the system of hierarchy in the Indian work place, discussions and final decisions are almost always done by the most senior person, so it is important to establish relationships with these individuals (Lothar Katz). Meetings in India generally begin with friendly small talk, which include personal questions about family. Since the Indian culture rarely expresses disagreements in a direct manner the word “no” is commonly replaced with indirect communications. When it comes to negotiations a well-established relationship with a high level of trust will need to be put in place before business can take place. When doing business in India there are a few things to remember and are considered Indian business etiquette: (1) one should use titles whenever possible, (2) when dealing with a female counterpart wait for her to initiate the greeting and if a female is conducting business with an Indian male there is no shaking of hands, (3) remain polite and honest at all times in order to prove that your objectives are sincere, (4) don’ be aggressive in our business negotiation because it is considered as disrespectful, (5) large and expensive gifts may cause embarrassment, and (6) during business meetings do not refuse any food or drink offered (Gorrill, Jodie R). India has three main countries with whom they do most of their trading with; Japan, United States, and the European Union. Major imports into the country consist of petroleum products, capital goods, and machinery. Products made in India that are exported may include textile goods, jewelry, steel, chemicals, and leather. India is one of the founding members of the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). Their idea of getting into these organizations would create more stability and it did lead to more trade and prosperity. The Ministry of External Affairs is a government body in India that is responsible for making and implementing foreign policy. Other organizations that India is members of: African Development Bank, Colombo Plan, Food and Agriculture Organization of the United Nations, Group of 77, International Confederation of Free Trade Unions, and International Federation of Red Cross (“Country Profile: India”). Through my research I have found that India is a very diverse nation with many differences from other countries, but it is this diversity that can bring new and exciting challenges to a company with opportunities that can be innovative. India’s market is exploding and therefore presents itself as a huge investment for those looking to expand globally. To achieve success, especially in this foreign market, it is important to do your homework and establish relationships with the Indian people.

Works Cited
“Country Profile: India.” December 2004. Library of Congress – Federal Research Division. 19 November 2010.
Gorrill, Jodie R. “Doing Business in India”. Communicaid Group Ltd. 2004. 19 November 2010.
“India Business.” Madaan. 19 November 2010. http://madaan.com/indiabusiness.html.
Katz, Lothar. “Negotiating International Business – India. March 2009. 19 November 2010. http://www.cyborlink.com/besite/india.html. 19 November 2010 http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html. 19 November 2010. http://www.pbs.org/thestoryofindia/gallery/. 19 November 2010. http://business.mapsofindia.com/communications-industry/. 19 November 2010. http://www.indianindustry.com/intellectual-property-rights/. 05 December 2010.