Doing Business in India The Mystic and the
Doing Business in India: The Mystic and the Magic Presented to BAHREC June 17, 2009 Nina E. Woodard Photography ©Ruchita Madhok, 2009
Discussion Points • • • Demographics Economics Environment Business Culture Key Success Factors
Demographics Key point Youthfulness Education English
Economics • 3 rd Largest in World (pp) – – – Village farming Modern agriculture Handicrafts Modern industry Services (major growth area) • Exchange Rate 49. 55 Rupee/Dollar May 2009 – Avg. 2008 43. 319
Economics • 7% average growth rage 1997 to 2007 and 7. 3% in 2008 • GDP by sector – 17. 2% Agriculture – 29. 1% Industry – 53. 7% Services
Communications • Telephones – main lines in use 37. 75 million • Mobile Cellular – 362. 3 million • Internet hosts – 2. 707 million (2008) • Internet users – 80 million (2007) • Airports: paved 251 unpaved 2, 438 • Railways: 63, 221 km • Roadways: 3, 316, 452 km • Waterways: 14, 500 km 5, 200 km are major rivers
Environment
Environment
Politics • A federal republic – integrates United Kingdom and US constitutional systems • Three branches: Executive, Judiciary and Parliament • Many Parties – requires coalition to win • There is an active communist party • Newly affirmed Congress party lead by Sonia Gandhi (Rahul and Priyanka) • President Pratibha Patil (female) • Prime Minister Manmohan Singh
Business • • • Organized Unorganized Agriculture 18% of GDP Industry 27% of GDP Services and Transportation 55% of GDP
Culture • Steeped in history • Interwoven with religious influences • Diverse • The Indian Context • Deeply rooted in all Indians
Culture • Guests are god • Respect for elders • Respect for one another • Democracy • Past, present and future • Caste, Women, Religious beliefs
Amazing Facts • • • World’s largest, oldest, continuous civilization NEVER invaded any country World’s largest democracy Varanasi visited by Buddha in 500 BC is oldest, continuously inhabited city in the world Invented the numbering system – “pi” – Algebra, Trigonometry and Calculus – the place value system, decimal system was developed in India in 100 BC Astronomy – calculated time taken by earth to orbit the sun hundred’s of years before the astronomer W M Smart. • • Sanskrit is the mother of all European Languages Ayurveda is the earliest school of medicine India WAS the richest country on earth until the time of the British invasion in the 17 th century. Prof. J. Bose pioneered wireless communications before Marconi Chess was invented in India Sushruta is the father of surgery 2600 y ears ago India has the second largest pool of Scientists and Engineers in the World Only country other than US and Japan that built a super computer indigenously
Amazing Facts • • • Dharavi is the largest slum in India and is in the middle of Mumbai – Have electricity – Have color TV – Rent 185 rupees a month about $3. 50 300 Universities, 45, 000 colleges – only 61% literacy 1. 4 billion living o less than $1. 25 a day
Amazing Facts • • 38% of Doctors in US are Indian 12% of Scientists in American are Indians 36% of NASA employees are Indians 34% of Microsoft employees are Indian 17% of Intel employees are Indian 28% of IBM employees are Indian 13% of Xerox employees are India
Great Quotes • Albert Einstein • We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made • Mark Twain • So far as I am able to judge, nothing has been left undone, either by man or nature, to make India the most extraordinary country that the sun visits on his rounds. Nothing seems to have been forgotten nothing overlooked
Key for Success • No one size fits all • Only 10% population in cities • Takes time to build a brand • Not all things foreign are accepted as good • Large population and even market does not insure immediate market share • Most markets are very price sensitive • Every question has three right answers
Keys to Success • Thrive on the adventure and the challenge • Build organizational India expertise • Be sure you have organizational infrastructure in place to support international business
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