Download - Doing Business in India
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India
Country StatisticsCountry Statistics
Capital – New Delhi.
Geographical Size – slightly more than one-third the size of the United States.
Population – 1.14 Billion (2nd most on the planet). 63% between ages of 15 and 64.
Government – Federal Republic.
Administrative Divisions – 28 States and Seven Union Territories.
Legal System – Based on English Common Law. Separate law applies to Muslims, Christians, and Hindus.
Economic ConditionsEconomic Conditions
Diverse economy – farming and agriculture, modern industry, variety of services.
Service industry accounts for more than half of country output with less than one-third of labor.
Agriculture accounts for three-fifths of work force.
Current GDP - $3.319 Trillion. By sector: agriculture 17.2%, industry 29.1%, services 53.7%. Labor force: 523.5 Million.
EnvironmentEnvironment
Climate – ranges from tropical monsoon in the south to temperate in the north.
Natural Hazards – droughts, flash floods, flooding from monsoonal rains, severe thunderstorms, earthquakes.
Environmental Issues – deforestation, soil erosion, overgrazing, air pollution, water pollution.
CultureCulture
HISTORY India’s culture has been shaped by
their long history and unique geography, customs and traditions over the past five millennia.
Ancient India is one of the world’s earliest urban civilizations.
CultureCulture
India is the birthplace of several different religious systems: Hinduism- is the predominant religion in India with more than
80% following it. Buddhism- basic teachings involve the Four Noble Truths and
the Eightfold Path. Sikhism- teaches the pursuit of salvation through disciplines,
personal meditation on the name and message of God. Practice of Islam- is a monotheistic religion which originated
with the teaching of the Islamic prophet Muhammad.
CultureCulture
Language:
There are 415 living languages in India (different dialects).
Society:
Caste System- represents the social stratifications in India, where social classes are defined by an inherited social status.
Family and Arranged Marriages Arranged marriages have been a tradition in Indian culture for
centuries. Low divorce rates.
CultureCulture
Bollywood- the Mumbai based film industry
Bollywood is the largest film producer in India and one of the largest in the world.
ResourcesResources
Land area 3,287,263 sq km; 2.4% of the world’s surface
57% is agricultural land
Education 17% of the world's population, but some 40% of the world's illiterates.
India also possesses a large pool of highly educated and vocationally qualified people, although they make up a small fraction of the population.
ResourcesResources
GDP - real growth rate: 9.2% (2007 est.)
Population: 1,147,995,904 (2008 est.)
Population growth rate: 1.578% (2008 est.)
Population Below Poverty Line: 25% (2007 est.)
ResourcesResources
Agriculture sector employs about 60% of the country's workforce but accounts for
less than one-fifth of GDP.
Mining Mining contributed 2.7% of GDP in 2006/07
Titanium reserves are estimated to account for 30% of global reserves of the metal.
ResourcesResources
Energy: 5th largest power producer in the world
More than 700bn kwh
Shortages are substantial- occurring 8% during normal hours 15% during peak
Majority of the power is dirty
Sources: Coal is the dominant power source at 62% Hydroelectric 25% Nuclear only 3%
ResourcesResources
Water Supply
86% of the population has access to improved water
Only 30% treated
Does not meet international standards
No city has continuous water supply
PoliticsPolitics
Founding: January 26, 1950
Type: Sovereign, socialist, secular, democratic republic.
Constitution: Legal Rights, Not fundamental rights
Rivals: Pakistan
Two Main Parties: -
Hindu Nationalist Bharatiya Janata Party
- The Congress Party
Current Political Current Political ClimateClimate
Who’s in power: The Congress Party
Pres. Devisingh Patil
Dr. Manmohan Singh
New BusinessNew Business
Regulatory Agencies Companies Act of 1956
Companies Bill 2008 Various environmental agencies
New Business Steps
Special Economic Zones
Developing Developing EntrepreneurshipEntrepreneurship
Foreign outsourcing of labor to India
China vs. India Entrepreneurial Culture
Chinese communism Business Icons Entrepreneurship-oriented bodies
I.e. TiE Network Muslim Minority
Why They WonWhy They Won
Current Administration Should have lost because:
Mumbai attacks Rampant corruption
Won because Economic growth Muslim Minority
Overview of IndustriesOverview of Industries
Marketplace for Indian business is quite varied.
Agriculture, Automobiles, Business Services, Computers, Education, Information Technology, Travel and Tourism.
Major IT Companies – Tata, Wipro, Infosys, Satyam Computer Services.
Large Indian Business – Tata Group, Birla Group, Reliance Ambani Group.
Recent News Recent News HeadlinesHeadlines
Scandal at Satyam. Chairman admits to creating fictitious cash balance of over $1
billion. Board of Directors replaced by Indian Government and founders
jailed and awaiting trial. PWC partners arrest on charges of criminal conspiracy and
cheating in connection with a fraud investigation.
Cut Backs at Infosys. Cutting employee bonuses and compensation packages. Cuts revenue forecasts for current fiscal year. Warns of struggles leading to year 2010.
World Bank – Wipro and Megasoft. Indian firms blacklisted from new contracts with World Bank.
Trade RelationsTrade Relations
India accounts for $525 billion in trade
2008: Accounts for nearly 1.5% of world trade
Introduced the “Foreign Trade Policy” in 2004
India should achieve 5% world trade by 2020
Major trading partners: U.S., China, EU, Russia, Japan
India – U.S. TradeIndia – U.S. Trade
The United states is India’s largest trading partner
Bilateral merchandise trade in 2007 was $41.6 billion
Formed The United States-India Trade Policy Forum (TPF) in 2005
In April 2007, created the Private Sector Advisory Group (PSAG)
India Trade India Trade AgreementsAgreements
Free trade agreements exist with India and Sri Lanka, Afghanistan, Chile, and Mercosur
Trade agreements exist with 18 other countries including China, Japan, Korea and others.
India – EU Strategic Partnership Joint Action Plan was formed during the Summit of 7 in September 2005.
FDIFDI
Total FDI in 2008 estimate: $142.9 billion, 23rd in the world (CIA factbook) China 7th, Brazil 16th
2007 – $95.96, 27th
2006 – $67.72, 31st
FDIFDI
Sector availability to FDI Automatic entry – does not mean 100% equity Approval from Government Prohibited Sectors
Atomic energy Lottery business Gambling and Betting Retail trading, except Single Brand Product
retailing
FDIFDI
Sample sector entry route and FDI caps Atomic Minerals: 74% cap and Government
approval Cable Networks: 49% cap and Government
approval Insurance: 26% cap and automatic entry Petroleum & Natural Gas: 100% cap and
automatic entry Publishing a newspaper: 26% cap and
government approval Cellular service: 74% cap and automatic up to
49%, government approval beyond 49%
Intellectual PropertyIntellectual Property
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) - 1995 Negotiated during the Uruguay round of GATT Tries to close the gaps in intellectual property
rights in different countries Incorporates the Paris Convention (patents) and
the Berne Convention (copyright) rules India had 10 years to comply with TRIPS
Intellectual PropertyIntellectual Property
Patents Indian Patents Act 1970, Amended 2005 In compliance with TRIPS Patents are good for 20 years, previously 14 Uses first to file system of granting patents Expanded what can be patented In 2006-2007 – 28940 patents filed, 7539 granted
US in 2007 – 484955 filed, 182901 granted China in 2007 – 245161 filed, 67948 granted
In 2005-2006 – 24505 patents filed, 4320 granted In 2004-2005 – 17466 patents filed, 1911 granted
Intellectual PropertyIntellectual Property
Copyrights The Indian Copyright Act,1957 Based on Berne Convention 1952 Brought into compliance with TRIPS in 2000 Copyrights now last 50 years after the death of
author, previously only 25 years Expands what can be copyrighted – computer
programs Getting a copyright has been made easier, can apply
online Still cumbersome to get a copyright – example a CD