International business destination india


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Presented when we were called for a guest lecture by one of our professors for his undergrad class.

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  • India represents 17% of world’s populationMedian Age: 25.3 Years
  • In 2008, 95,000 students were enrolled
  • New businesses must address issues of sales channels, distribution and marketing practices, pricing and labeling and protection of intellectual property. Relationships and personal meetings with the potential agents are extremely important. Due diligence is strongly recommended* U.S. companies, particularly small and medium-sized enterprises, should consider approaching India’s market on a local level. Good localized information is a key to success in such a large and diverse country. U.S. Often multiple agents are required to serve each geographic market in the country* Options include using a subsidiary relationship, a joint venture with an Indian partner, or using a liaison, project, or branch office
  • International business destination india

    1. 1. International Business<br />Destination<br />India<br />Presented by:<br />Lovneet Singh<br />TaniyaBhowal<br />
    2. 2.
    3. 3. India<br />Capital- New Delhi<br />Financial capital- Mumbai<br />Borders:<br />West- Pakistan, Arabian Sea<br />North-China, Nepal, <br />East- Bangladesh, Bhutan, Bay of Bengal<br />South- Indian Ocean<br />
    5. 5. Historical place of India<br />World’s largest, oldest and continuous civilization<br />Fastest growing economy<br />Largest English speaking nation<br />Religion- Hinduism, Buddhism Jainism, and Sikhism<br />Education- World’s first University - 4th century BC<br />First medical school- 2500 years ago<br />Language- Sanskrit is mother of all European languages. English was derived from European languages.<br />Economy- Before invasion of British, India was the wealthiest country in world controlling around 35% of world’s economy<br />Math- “0”, Period of a year, calculus, pie, algebra, arithmetic, Trigonometry decimal and place value system<br />Others- Wireless communication, navigation system, Dam irrigation system, Surgery<br />3rd country in world to built supercomputer<br />Chess- name “ashtapada”<br />
    6. 6. THAR Desert: World’s 9th largest subtropical desert<br />
    7. 7. Geographical Facts<br />1.3 sq. million miles(US- 3.5 sq. million miles)<br />7th largest country in the world(US- number 3)<br />54% land is vulnerable to earthquakes<br />Coastline extends up-to 4,340 miles(US- 12,383).<br />
    8. 8.
    10. 10. Population<br />Age Structure<br />0-14: 5%<br />15-64: 64%<br />65+:31%<br />Work Force<br />516.4 Million<br />Unemployment rate: 7.2%<br />
    11. 11. Human capital<br />Largest English speaking population<br />2nd largest group of software developer<br />IT industry- $14 billion: growing at 50%/year<br />Sends more number of students to the US.<br />Strong scientific and technical manpower<br />100,000 IT professionals added every year<br />255 Fortune 500 getting services from India<br />100 Fortune 500 companies have R&D facilities in India<br />Job creation: 1 million direct and 2-3 million indirect<br />
    12. 12.
    13. 13. Diversity<br />8 major religions practiced in India<br />28 states<br />1,576 Mother-tongue languages(census 1991)<br />Official language : Hindi and English<br />
    14. 14. Political and Legal System<br /><ul><li>Unitary 3-tier judiciary
    15. 15. 1 supreme court
    16. 16. 21 high courts
    17. 17. Large no. of trial courts
    18. 18. Final word is of supreme court
    19. 19. Most important function of supreme court is of the ultimate interpreter of the constitution.</li></ul>Longest and most exhaustive constitution of independent world<br />Defined as socialist, secular and democratic country<br />Multi Party system<br />PM is head of government with most power<br />
    20. 20.
    21. 21. 4th fastest growing in the world and 2nd in Asia.<br />10th most industrialized economy<br />1st in prevalence of foreign technology licensing<br />2nd in scientists and engineers<br />9th in quality of management schools<br />1mong top 10 tourist spots<br />12th in firm level innovation<br />16th in technology absorption<br />32nd in company spending on R&D<br />Economy<br />
    22. 22. Indian Currency Rupees<br />
    23. 23. Globalization Index Rankings(2007)<br />
    24. 24.
    25. 25. Hofstede’s Cultural Dimensions<br />
    26. 26. WHY INDIA<br />English Speaking Country<br />Ideal for Outsourcing<br />Software developers and IT personnel<br />(2nd in world)<br />Ideal for FDI<br />Cheap Labor<br />Market<br />
    27. 27. Kanchenjunga 8,598m(3rd tallest in world) near borders of Nepal<br />
    28. 28. Hierarchy- to be respected<br />Protocols and manners are different for various positions<br />Call your superiors “sir”/”Madam”<br />Communication flow is downwards.<br />Indian corporate hierarchy<br />
    29. 29. Power of greeting<br />Shows that you are aware of culture and respect it.<br />Most common greeting is Namaste.<br />Different regions use different greetings.<br />Shaking hands is becoming more prevalent.<br />
    30. 30.
    31. 31. Patience- Indians take their time to pronounce their decisions<br />Impatience is considered discourteous<br />Don’t force to speed up<br />Never decline food/drink<br />Alcohol is usually not on the table<br />Never invite your male counterpart for a dinner<br />When in a meeting/Negotiation<br />
    32. 32. Movies<br />Cricket<br />Politics(general approach)<br />History<br />Current affairs<br />Family<br />NEVER DISCUSS RELATIONSHIPS WITH PAKISTAN<br />Common conversation topic<br />
    33. 33.
    34. 34. Pants and shirts for men<br />Light suit for women<br />Avoid short skirts, sleeveless blouse<br />Best bet is to wear a saree or a suit<br />Avoid leather clothes<br />Business Attire<br />
    35. 35. Gifts<br />Never present liquors to avoid any religious contingency<br />Offer and receive the gift with both hands with polite and warm smile<br />Bow a little bit while giving or receiving.<br />Don’t start unwrapping right there and then.<br />
    36. 36.
    37. 37. Food<br />Be aware of the religion of your counterpart.<br />Avoid non-veg<br />Never offer beef to a Hindu, or pork to a Muslim.<br />Fast food is acceptable, but for business dinners, find a sophisticated place<br />
    38. 38. Remember<br />Do use titles to address your Indian counterparts.<br />Do wait for a female business colleague to initiate a greeting whether it is verbal or physical.<br />Always remain polite and honest<br />Never be aggressive in negotiations.<br />Don’t take large/expensive gifts. Receive a gift with both hands.<br />Don’t refuse any food or drink offered.<br />“Your good name”.<br />Be punctual, but be ready to wait.<br />Learn tradition, culture, and family.<br />
    40. 40. Special Economic Zones(SEZ)<br /><ul><li>SEZ Act and its rules notified with effect from February 2006
    41. 41. An export oriented duty free enclave deemed to be outside the customs territory of India
    42. 42. 22 operational SEZ’s with over 200 SEZ’s in various stages
    43. 43. of approval and development
    44. 44. 100% tax deduction for 10 years
    45. 45. Exemption from dividend distribution tax
    46. 46. Sales tax exemption on purchases from domestic tariff area
    47. 47. Service tax exemption</li></li></ul><li>Best Areas for FDI<br />IT and ITES<br />SEZ<br />Biotechnology and Bioinformatics<br />Nanotechnology<br />Manufacturing( steel, chemicals and petrochemicals, consumer durables, IT hardware, Telecom, Transportation)<br />Retail Trading<br />Tourism<br />
    48. 48.
    49. 49. Market Entry Strategy <br />Finding partners and agents<br />Geographic diversity<br />Market entry options<br />
    50. 50. Important Regulatory Authorities for Foreign Investment<br /><ul><li>Secretariat for Industrial Assistance (SIA)
    51. 51. Foreign Investment Promotion Board (FIPB)
    52. 52. The Foreign Investment Implementation Authority (FIIA)
    53. 53. Reserve Bank of India (RBI)
    54. 54. Registrar of Companies (RoC)
    55. 55. Securities and Exchange Board of India (SEBI)
    56. 56. Central Board of Excise and Customs (CBEC)
    57. 57. Central Board of Direct Taxes (CBDT)
    58. 58. Authority for Advance Rulings (AAR)
    59. 59. Investment Commission (IC)</li></li></ul><li>Questions<br />