PRESENTED BY AAKANSHAPATHAK ANUPAMA SRIVASTAVA ABHINASH CHINTU MANI KUMARI SUSHMITA SARKAR

CONTENTS

India - a Brief Introduction Key facilitators of growth Indias growth story an Example Key growth driver Future growth drivers Why do business in India? Top ten tips of doing business in India Business Culture East vs. West Foreign investment guide Corporate information References

India - a Brief Introduction

28

states and 7 union territories Legal system - based on English common law; limited judicial review of legislative acts; accepts compulsory ICJ jurisdiction, with reservations. Economy - traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. Total population 1.1 billion - more than 60% of this falling in the productive age group of 20 to 45. 85% of this bracket are literate and living in the metros, cities and towns of India. English is the most important language for national, political, and commercial communication Approximately 225 million can read, write and speak English.

Key facilitators of growth

Democratic society
Vibrant capital markets Liberalization policies post 1991 Access to lower cost of funds Foreign direct investments open window

INDIAS GROWTH STORY EXAMPLE

Telecom Sector:
2002: 10 million mobile subscribers. Feb 2011: 750 million mobile subscribers

Second largest Telecom Network in the world

Average 10 million mobile subscribers added

monthly!!

The key growth driver

Indias biggest asset its people!!

1 Bln+ population, growing at 1.8% annually Middle class consumer market of 300Mln + About 150Mln people each estimated to have annual

income (PPP adjusted) of $20,000 or more Consumer market expected to grow at 5-10% annually Reduction in the poverty rate over the last decade Highly competitive labor costs Highly educated with a high level of comfort in the English language

Future growth drivers

Information Technology (IT) Export USD 60 Billion, around 6% of GDP Telecommunications Health Sciences and Health Care Medical Tourism Automotive Manufacturing Hub Retail Chains Estimated Market size of USD330 Billion Banking and Insurance Entertainment Large viewer base, expected to 50 Billion USD by 2013.

Why Do Business In India

Strategic location having access to the vast domestic and South Asian market. One of the largest pools of skilled English speaking manpower i.e. scientists, engineers, technicians and managers in the world available at highly competitive costs. Policy environment that provides freedom of entry, investment, location, choice of technology, production, import and export. A long history of stable parliamentary democracy. A large and rapidly growing consumer market.

Ten Top Tips for Doing Business in India

1.
2. 3.

4.

5. 6. 7. 8. 9. 10.

Research the market before you invest. Understand the size, potential and price dynamics - and how and where you want to enter it. Is your product or service right for the Indian markets? Make sure that you have top management commitment and adequate resources to manage a business relationship in India. Visit the market and take time to build personal relationships - be prepared to make follow up visits. Choose your partner with care - do thorough Due Diligence and take independent advice. Consider what kind of agreement you need and don't give away too much information in advance of finalizing any agreement. Allow plenty of time for meetings and traveling around the market. Don't be patronizing or under-estimate how quickly India is developing. Understand the business culture and do not be aggressive. Don't assume anything - find ways of checking progress without causing the other party to 'lose face'. Be patient - it always takes longer than you think! Talk to your local International Trade Adviser and find out what help is available.

BUSINESS CULTURE

In Business: English greeting are more acceptable than Namaste or Pranam. Low sensitivity towards Time, openness, value to relationship etc. Indians accept the differences and make the necessary adaptations. Misunderstanding Example: Indian host Invite a Finn exactly on time Finn: Indian Party Go 1hr later.. Result: Finn arrives late for the Indian Party. Suggestion: Discuss the common cultural differences and stereotypes with your counterpart.

CULTURE EAST VS WEST

WEST One life Culture Binary Logic Truth Standardized Absolute Linear Compliance
EAST Cyclical life culture Fuzzy Logic Opinion Contextual Relative Curvaceous Getting the job done by bending or breaking rules.

Foreign Investment Guidelines

Automatic Approval Route No government or RBI approval required for investment within specified sectoral caps. FIPB Approval Route Sector specific requirements Previous joint venture or technology transfer / trademark agreement in India

Corporate Information
Intellectual Property Rights
Intellectual Property Rights are protected under the TRIP Agreement

(Agreement on Trade Related Aspects of Intellectual Property Rights) of the WTO. India has well established the importance of intellectual property rights at all levels of Statutory, administrative and judicial.

Patent Rights Indian Patent Act is fully compliant with Indias obligation under TRIP
Agreement of WTO.

Incorporation of Business Entity

Foreign companies can incorporate under the Company Act of 1956 as

either Joint Venture or wholly owned subsidiaries. Unincorporated foreign companies can operate business through a representative or through a liaison office. This is permitted under the Foreign Exchange Management

Incorporation of a company
Under the Company Act of 1956 a company could registered as a Private

Limited Company or Public Limited

References
For Further Information: Doing Business in India, Ernst & Young, India http://www.indembassy.co.il/Additional%20files/Doing%2

0Business%20in%20India.pdf Doing Business in India: A Cultural Perspective http://www.stylusinc.com/business/india/business_india.h tm Cultural Dimensions of India http://wehner.tamu.edu/mgmt.www/B-Bachoo/India.ppt Devdutt Pattanaik: East vs. West -- the myths thatmystify http://www.ted.com/talks/lang/eng/devdutt_pattanaik.html