INDIA Business

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INDIABusiness Culture
Megan Raines Nora Freeman Sarah
Shelton Satchithanandam Sukumar
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India Fun Facts

• The number system was invented by India.
  Aryabhatta was the scientist who invented the
  digit zero.
• Chess was invented in India.
• Algebra, Trigonometry and Calculus are studies
  which originated in India.

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India Fun Facts (contd)

• The place value system and the decimal system
  were developed in 100 BC in India.
• India has the most post offices in the world.
• The largest employer in the world is the Indian
  railway system, employing over a million people.
• The current leadership of India is implementing
  sweeping changes to encourage international
  business in India, from privatization to the
  liberalization of trade.

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Indian Workers in America

• 38 of Doctors in America are Indians.
• 12 of Scientists in America are Indians.
• 36 of NASA employees are Indians.
• 34 of MICROSOFT employees are Indians.
• 28 of IBM employees are Indians.
• 17 of INTEL employees are Indians.
• 13 of XEROX employees are Indians.

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Indian Rules for Appearance

• Men are generally expected to wear a suit and tie
  for business, although the jacket may be removed
  in the summer. Women should wear conservative
  dresses or pantsuits.
• When dressing casual, short-sleeved shirts and
  long pants are preferred for men shorts are
  acceptable only when exercising. Women must keep
  their upper arms, chest, back, and legs covered
  at all times.
• Women should wear long pants when exercising.
• The use of leather products including belts or
  handbags may be considered offensive, especially
  in temples. Hindus revere cows and do not use
  leather products.

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Indian Rules for Behavior 

• The head is considered the seat of the soul.
  Never touch someone elses head, not even to pat
  the hair of a child.
• Beckoning someone with the palm up and wagging
  one finger can be construed as in insult.
  Standing with your hands on your hips will be
  interpreted as an aggressive posture.
• Whistling is impolite and winking may be
  interpreted as either an insult or a sexual
  proposition.

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Indian Rules for Behavior (contd)

• Feet are considered unclean. If your shoes or
  feet touch another person, apologize.
• Gifts are not opened in the presence of the
  giver. If you receive a wrapped gift, set it
  aside until the giver leaves.
• Business lunches are preferred to dinners. Hindus
  do not eat beef and Muslims do not eat pork.

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Indian Rules for Communications

• There are more than fourteen major and three
  hundred minor languages spoken in India. The
  official languages are English and Hindi. English
  is widely used in business, politics and
  education.
• The word "no" has harsh implications in India.
  Evasive refusals are more common, and are
  considered more polite. Never directly refuse an
  invitation, a vague "Ill try" is an acceptable
  refusal.
• Titles are very important. Always use
  professional titles.

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Geography

• Located in Southern Asia, bordering the Arabian
  Sea and the Bay of Bengal, between Burma and
  Pakistan
• Slightly more than one-third the size of the US
• Occupies only 2.4 of the world's land area
• Climate varies from tropical monsoon in south to
  temperate in north
• Terrain consists of upland plain (Deccan Plateau)
  in south, flat to rolling plain along the Ganges,
  deserts in west, and Himalayas in north
• Natural hazards droughts, flash floods, severe
  thunderstorms, and earthquakes

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Geography (contd)

• Some environmental issues include
• Deforestation and Overgrazing
• Soil erosion
• Desertification
• Air pollution from industrial effluents and
  vehicle emissions
• Water pollution from raw sewage and runoff of
  agricultural pesticides
• Tap water is not potable throughout the country
• Huge and growing population is overstraining
  natural resources

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Demographics

• Supports over 15 of worlds population
• Current population of 1,065,070,607 (July 2004
  est.)
• Ethnic groups
• Indo-Aryan 72
• Dravidian 25
• Mongoloid and other's 3

• Religions
• Hindu 81.3
• Muslim 12
• Christian 2.3
• Sikh 1.9
• Other groups (Jain, Buddhist, Parsi) 2.5

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People

• English is the most important language for
  national, political, and commercial communication
• Hindi is the national language and primary tongue
  of 30 of the people
• The government has recognized 22 official
  languages

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People (contd)

• The caste system reflects Indian occupational and
  socio-religiously defined hierarchies
• Four broad categories of castes, including a
  category of outcastes, referred to as "dalits."

Source http//www.indianchild.com/india_pictures.
htm
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Political System

• Form of government
• Parliamentary
• Legislature
• Parliament Consists of President and the two
  Houses, known as Rajya Sabha (Council of States6
  year term) and Lok Sabha (House of the People5
  year term)
• Executive
• Consists of President (5 year term),
  Vice-President (5 year term) and Council of
  Ministers led by the Prime Minister
• Judiciary
• Independent of executivejudges are appointed by
  the president and remain in office until they
  reach the age of 65

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Business Culture How To..

• It is advisable to schedule your appointment
  several months in advance. If you are making your
  appointments before coming to India, do emphasize
  that you will be in India for a short period of
  time, if this is the case. It is also useful to
  reconfirm your meeting a few days before the
  agreed upon date
• Though not essential, it often helps in getting
  an appointment if you have an Indian contact.
• There is a distinct difference in the cultures of
  the government departments and business
  organizations. Compared to a business
  organization, it is normally more difficult to
  get an appointment with officials in a government
  department. Also, in the government departments,
  there is a greater likelihood that your
  appointment may be rescheduled or that you may be
  kept waiting for as many as several hours before
  you actually meet the person.
• Do be prepared for last minute changes in the
  time and place of your meeting. It is useful to
  leave your contact details with the secretary of
  the person, so that, in case there are changes,
  you can be informed.

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Business Culture How To

• It is advisable to make the effort to be early in
  order to keep your appointment. In most Indian
  cities, the roads are quite crowded, and during
  high-traffic hours, it can take you a long time
  to reach your destination.
• Normal office hours are 1000 a.m. to 500 p.m.
  However, in some large cities e.g., Mumbai,
  some places of business start working earlier to
  avoid congested traffic while commuting.
  Increasingly, among the business organizations,
  there is also a trend towards a longer working
  day, which can start as early as 730 a.m. and
  last till 800 p.m.
• Normally, lunch is for one hour, between 1200
  p.m. and 200 p.m.
• The work-week differs across organizations and
  sectors Government offices work Monday-Saturday,
  with the second Saturday of the month as an
  additional holiday most business organizations
  follow a five-and-a-half day work week and, most
  IT and software companies have a five-day
  work-week, with Saturday and Sunday off.

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Business Culture How To

• Like the rest of India, Indian business culture
  is also very diverse and heterogeneous. While the
  following points would help in negotiating a
  deal, it is important to be sensitive to, and
  appreciate, the diversity of Indian business
  culture, which varies across regions, sectors,
  and ownership patterns.
• English is the common language for conducting
  business, and therefore, it is not necessary to
  get your card translated into any Indian
  language. If you are not from an English-speaking
  country, then you must get your brochures and
  other promotional material prepared in English.
• In addition, the pronunciation varies widely
  across the country, which can sometimes make it
  difficult to understand spoken English. You can,
  however, request a person to repeat what s/he has
  said slowly. Such a request from a foreigner is
  not considered as a discourtesy.
• In general, Indians are cautious in accepting a
  new idea or proposal. Openness to a new idea
  depends not only on its quality, but also on its
  source and endorsement. That is, information
  about who else has implemented it or who has
  proposed it has a major influence on the decision
  about a new idea. In making a proposal, you must
  include such details accordingly.

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Business Culture When

• The business and official work in India are done
  using the western 'Christian' calendar. The
  convention for writing dates is dd/mm/yy, e.g.,
  December 25th, 2004 will be written as 25/12/04.
  
• Most Indians take vacations during the summers
  April-June and Mid-December to Mid-January. In
  addition, in Northern and Eastern India, a
  favorite time for taking vacations is around
  October, which coincides with Dussehra/ Pooja
  holidays see below.
• India has a long list of holidays. Since India is
  a culturally diverse country, different parts of
  the country also celebrate festivals which are
  regional in nature. Thus, each state also has its
  own list of holidays. You can get this list from
  the Tourism Departments of the particular states.
  
• Most of the companies pay their employees on a
  monthly basis. Hourly pay is not practiced.

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Business Opportunities

• Energy
• Telecommunications
• Insurance and Financial Services
• Manufacturing
• Transportations
• Urban Development
• Other Areas of Infrastructure

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Investment Risks

• Sovereign Risks
• Avoid investing in the extreme North Eastern
  parts of India because of terrorist threats.
• Commercial Risks
• Seen in any country India has several market
  research firms that can study the demand/supply
  for any situation.

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Investment Risks (contd)

• Risk of Foreign Sanctions
• Nuclear armed and seen as a threat to some
  countries such as the United States

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References

• http//www.indianchild.com/amazing_facts_of_India.
  htm
• http//www.tourismofindia.com/fs/interestingfacts.
  htm
• http//www.cyborlink.com/besite/india.htm
• http//www.photius.com/wfb2000/countries/india/ind
  ia_government.html
• http//en.wikipedia.org/wiki/Demographics_of_India
  
• http//www.indiaserver.com/biz/india-political-sys
  tem.html
• http//www.indianchild.com/india_pictures.htm

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References (contd)

• http//www.kmike.com/country/indemog.htm
• http//www.iloveindia.com/population-of-india/
• http//www.cia.gov/cia/publications/factbook/geos/
  in.html
• http//www.indiaserver.com/biz/government-india.ht
  ml
• http//www.executiveplanet.com/business-etiquette/
  India.html
• http//www.morebusiness.com/running_your_business/
  management/d930585271.brc