Working with IndiaImportant Information for Conducting        Business with India             Amanda Little
Welcome to The Republic of India
Geography3,287,263 sq kmClimate varies from tropical monsoonto temperate in the NorthOccupies 2.4% of world land areaN...
GovernmentFederal Republic with 28 statesIndia has been a functioning Democracy since 1947Adapted a British parliamenta...
EconomyDeveloping open market economy1990’s economic liberation hasdramatically increased economicsuccess7.8% average y...
The People                                                 Religion in India Population of 1.21 billionGrowing at a rate...
Why India?Why should aircraft companies market in India?  Large population of potential consumers  Recent economic succ...
Marketing in India Foreign businesspersons marketing in India must focus on establishing relationshipswith Indian consume...
Specifics of working in IndiaU.S. Trade Policies                              Indian Trade PoliciesLaws concerning export...
Specifics of working in IndiaLetters of Credit   Necessary for all imports into India   Act as security for consumer an...
References•   Central Intelligence Agency. (2011, December 30). CIA. doi: https://www.cia.gov/library/publications/the-   ...
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Indian business

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Amanda Little
May 31, 2012

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Indian business

  1. 1. Working with IndiaImportant Information for Conducting Business with India Amanda Little
  2. 2. Welcome to The Republic of India
  3. 3. Geography3,287,263 sq kmClimate varies from tropical monsoonto temperate in the NorthOccupies 2.4% of world land areaNear Indian Ocean shipping routs(important for importing/exporting)Borders Pakistan Nepal Himalayas (North) The Arabian sea (West) Bay of Bengal (East) Indian Ocean (South)
  4. 4. GovernmentFederal Republic with 28 statesIndia has been a functioning Democracy since 1947Adapted a British parliamentary systemPresident: Pratibha D. PatilPrime Minister: Manmohan SinghLarge population and size interferes with governmentalcontrolPolitical corruption runs rampant and often interferes withgovernmental and economic reformsOperates under the common law system, influenced byEnglish model
  5. 5. EconomyDeveloping open market economy1990’s economic liberation hasdramatically increased economicsuccess7.8% average yearly growth in GDPsince 1997Indian currency (Rupee)  Exchange rate of 44.6 rupees to the U.S. dollar Fully convertible Formally the Rupee has a market determined exchange rate but the government takes part in a “dirty float” to keep exchange rates steady
  6. 6. The People Religion in India Population of 1.21 billionGrowing at a rate of 2.8% yearlyHolds 15% of the worlds populationDiverse cultures and religionsLanguages Hindi Hundu English Muslim 16 other official languages Christian SikhCulture Other Collectivist society Unspecific Relationship based culture Value tradition, family strength, distinct social status lines Strong belief in Karma
  7. 7. Why India?Why should aircraft companies market in India? Large population of potential consumers Recent economic success and growing GDP has increased the middle class population ( currently approximately 3 million) Indias middle class purchasing power is nearly equal to Europe Air traffic in India has increased by 15.3% in the last nine years Increased air travel has set a demand for more aircrafts Aircraft and aircraft products account for 13.1% of all Indian imports As of 2009 India imported 2.2 billion dollars worth of aircraft products from the U.S. Trade liberalizations have made exporting products from the U.S. to India easier
  8. 8. Marketing in India Foreign businesspersons marketing in India must focus on establishing relationshipswith Indian consumers Face-to-face meetings with business partners is seen as mandatory in India Business in India revolves around trade groups and taking the time to form relationships in India will provide access to more consumers and opportunities Networking in India is more efficient then marketing via direct sale contracts Local sales representatives are helpful in establishing relationships with companies like Air India, Indian Airlines, and Blue Dart Aviation, all looking for replacement aircrafts Technological knowledge and information on the marketed product is important toIndian consumers Marketers should be prepared for technically specific questions by consumers Being technologically competent can make the difference of making or losing a sale in IndiaNegotiations and compromise is part of Indian business  5% price reduction is the norm Negotiations are expected by Indian consumers
  9. 9. Specifics of working in IndiaU.S. Trade Policies Indian Trade PoliciesLaws concerning exporting out of the Tariff barriersU.S. revolve around what you are Recent tariff reduction on non-exporting, and where you are shipping agricultural goods from 12.5% tothat product to 10%Can you export to India? Duty is collected on all imports Exporting to India is legal as it is All imports must be accompanied by not considered to support terrorism a letter of credit and import declarationDoes your product need a license? in bill of entry format Exporting civil aircraft to India Indian Country Commercial Guide requires no license and is shipped states all trade requirements from under No License Required (NLR) 2009-2014State Foreign Representatives can beenlisted to assist with legal, logistical, andfinancial issues.
  10. 10. Specifics of working in IndiaLetters of Credit Necessary for all imports into India Act as security for consumer and distributer Ease the lack of trust between consumer and distributerManaging inventory Electronic data interchange allows for flexible communication between distributer and consumers. Technological tracking information makes it easy for companies to know when their product has arrived at its destinationBeware of corruption Businesses in India are constantly paying bribes to bureaucrats to ensure applications are expedited and not obstructed Corruption is normal in India but by the U.S. Foreign Corrupt Practices Act, it is illegal for American firms to take part in bribery of any foreign government official
  11. 11. References• Central Intelligence Agency. (2011, December 30). CIA. doi: https://www.cia.gov/library/publications/the- world-factbook/geos/in.html• ExchangeRate.com - Currency Information Indian Rupee. (2012). ExchangeRate.com - Currency Information Indian Rupee. doi: http://www.exchangerate.com/currency-information/indian-rupee.html• Export Licenses, Standards and Economic Sanctions. (2011, May 23). Regulations / Licenses. doi: http://export.gov/regulation/index.asp• Export your products. (2010). Choose Washington. doi: http://www.choosewashington.com/business/export/Pages/default.aspx• How To Sell Your Products in India. ( April 30, 2007). Articlesbase. doi: http://www.articlesbase.com/sales- articles/how-to-sell-your-products-in-india-140287.html• Grihault, Nicki (2009) India: Culture smart. New York, NY: Kuperard• Hill W. L. Charles, (2011) Global business today. New York, NY: The McGraw-Irwin Inc.• Introduction to Commerce Department Export Controls. (2010, August). Export Control Basics (Exporting 101). doi: http://www.bis.doc.gov/licensing/exportingbasics.htm• Misra, Marina (2009) India: A comprehensive introduction to the world’s fastest growing country. London: Constable & Robinson• Lustig, W. Myron, & Jolene Koester (2003) Intercultural Competence: Interpersonal Communication across Cultures. Boston: Allyn and Bacon• Shan, S. (2009, May 28). Indias Demographics Challenge. Bloomberg Businessweek. doi: http://www.businessweek.com/managing/content/may2009/ca20090529_892000.htm• Welcome to India in Business : Know India. (n.d.). Welcome to India in Business : Know India. doi: http://www.indiainbusiness.nic.in/know-india/india-at-a-glance.htm• Workman, D. (2011, March 31). India Trade Statistics 2009. Suite101.com. doi: http://daniel- workman.suite101.com/india-trade-statistics-2009-a220375

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