WELCOME TO INDIA - PowerPoint PPT Presentation

1 / 38
About This Presentation



WELCOME TO INDIA The Land of Opportunities. 1 Basic Etiquette at Meetings The following information will help guide you through a first meeting at an appointment with ... – PowerPoint PPT presentation

Number of Views:795
Avg rating:3.0/5.0
Slides: 39
Provided by: cantradem
Tags: india | welcome


Transcript and Presenter's Notes


  • The Land of Opportunities.

Doing Business In India
  • Preface-
  • This overview provides from companies
    decisions of doing business in and with India, a
    birds eye view on the investment climate,
    taxation, forms of business organizations,
    business, regulatory, cultural and accounting
    practice in India. The complex decision - making
    process involved in undertaking foreign
    operations requires an intimate knowledge of a
    countrys commercial climate, along with a
    realization that the climate is constantly
    evolving. Companies doing business in India, or
    planning to commence business in India, are well
    advised to obtain current and detailed
    information from experienced professionals.

Basic Statistics
  • Geographical Location Between latitudes 804
    and 3706 North and longitudes 6807 and 97025
  • Land Area 3.29 Million Square Kilometers.
  • Climate Mainly tropical with temperatures
    ranging from 100C 400C in most parts of the
  • Capital New Delhi.
  • Population 1.147 Billion (estimated as at March
  • Population growth rate 1.606 per annum.
  • Population density 348 persons / square
    kilometer. (Population / land area in sqkm)
  • Life expectancy at birth 66.28 years, male
    71.17 years, female.
  • Literacy rate 65.47 (as per 2001 Census).

  • Topography
  • Spread over 3 million square kilometers and
    located entirely in the northern hemisphere,
    India is the seventh largest country in
  • the world in terms of geographical size. The
    Himalayas in the North, the Indian Ocean in the
    South, the Bay of Bengal in the east
  • and the Arabian Sea in the west form natural
    boundaries for the country. Indias neighbours
    are Bangladesh and Myanmar in the
  • east Bhutan, China and Nepal in the North
    Pakistan in the west and Sri Lanka in the south.
  • Climate
  • India has a tropical monsoon climate with the
    following seasons winter, spring, summer and
    monsoon. The intensity of the
  • weather varies depending on the region one is in.
    In general, the northern and central parts of the
    country experience extreme
  • temperatures during summer (above 40oC) and
    winter (below 5oC), while the southern and the
    coastal regions enjoy relatively
  • milder weather.
  • People
  • As per the last census, India has a population of
    approx 1.217 billion, and the country is expected
    to overtake China and become
  • the most populous nation by 2045. The cities
    having a population of more than 5 million are
    Greater Mumbai (16.4million),
  • Kolkata (13.2 million), Delhi (12.8 million)
    Chennai (6.4 million), Bangalore (5.7 million)
    and Hyderabad (5.5 million). The
  • countrys population presents a kaleidoscope of
    rich and diverse culture.
  • Language
  • Given its cultural diversity, scores of languages
    and dialects are spoken in the country. Of these,
    22 languages are recognized

  • Cost of Living
  • India offers the advantage of a low cost of
    living, relative to American and European
    countries. The cost of living varies by the
  • type of location (urban / rural), size of
    location (small / large / metro), etc. The
    standard of living is comfortable in urban areas,
  • with the availability of well developed
    residential areas equipped with all utilities.
  • Recreation
  • India offers a wide repertoire of avenues for
    recreation and entertainment. Metropolitan and
    large cities have five star hotels,
  • clubs, pubs, restaurants, discotheques, cinema
    theatres, art galleries and drama theatres.
    Hotels and clubs offer facilities for a
  • wide range of sports including bowling, squash,
    tennis, snooker and swimming. Most large cities
    also have golf courses.
  • India has a highly developed print media which
    publishes numerous books and magazines to suit
    diverse tastes. Electronic
  • media offers a variety of national and
    international channels like the Door Darshan,
    BBC, CNN, CNBC, Discovery, HBO, AXN,
  • National Geographic, and ESPN. Cities also have
    FM music channels and the satellite radio
    organization Worldspace too.
  • Indian cuisine is known and loved the world over
    for its rich and spicy taste. Most large cities
    have restaurants that specialize in
  • French, Italian, Greek, Mexican, Thai, Japanese,
    Chinese and Lebanese cuisines. Multinational fast
    food chains such as
  • McDonalds, Subway, Dominos Pizza and Pizza Hut
    are present in the country.
  • Shopping
  • India is a veritable paradise for shoppers.
    Leading global players such as Coca Cola, Pepsi,
    Kelloggs, P G, Unilever, Colgate
  • Palmolive, Gillette, Garnier, Sony, Panasonic,
    LG, Samsung, Rolex, Mont Blanc, Armani, Nokia,
    Luis Vuitton, Mercedes Benz,

Indian Economy Overview
  • 1). India's Gross Domestic Product (GDP) in
    purchasing power parity (PPP) is 4.726 trillion
    in January 2008 and is ranked 3 in the world.
  • 2). India has joined the elite club of 12
    countries with a trillion dollar economy.
  • 3). Propellers of GDP growth
  • Trade, hotels, transport communications -12.1
  • Construction - 12 .
  • Services 10.5
  • Electricity, gas and water supply - 8.3
  • Banking Insurance Sector 13.9
  • Passenger growth in civil aviation - 32.2 .
  • Information technology 30.7 .
  • 4). Estimates of Gross Domestic Product (GDP)
    growth in 2007-08 is at 8.7 .
  • 5). FDI flow of US 20.137 billion in 2007 08
    (against US 11.8 billion in 2006 07).
  • 6). FIIs net inflows - US 31 billion (compared
    with outflows of US 9.33 billion in the
    corresponding period of 2006-07)

  • Continued
  • 11). Foreign exchange reserves - US 301.2
    billion as at March 31, 2008 (against US 173
    billion in 2006 -2007)
  • 12). India among 5 countries sharing 50 of the
    World Production.
  • 13). The annual inflation rate in terms of WPI
    6.68 as of March 31, 2008 (against 5.74 a
    year ago).
  • 14). Indian Rupee Value against US is Rs.
    39.97 / Dollar in March 31, 2008 (against Rs.
    43.59 / Dollar as at March 31, 2007).
  • 15). Number of Indian millionaires rose by 20.5
    per cent from 83,000 in 2005 to 100,015 in 2007
    -- making India the world's second fastest
    growing nation in terms of millionaires after
  • 16). 4 Indians have featured in the top 10
    worlds wealthiest CEOs according to Forbes.
  • 17). 7 Indian Micro Finance Companies in the top
    50s Forbes List.
  • 18). India has highest number of billionaires in
    Asia and fourth highest in the world - 36 (next
    only to US, Russia and Germany).
  • 19). Merchandise exports increase for 2007 -
    2008 at a rate of 22.9 to touch US 138.4

Foreign Direct Investment In Specified Industries
  • Restricted Sectors (FDI disallowed)
  • Gambling and Betting
  • Lottery Business
  • Atomic Energy
  • Retail Trading (except single branded product
  • Agriculture
  • Sectoral Caps on FDI in Certain Industries
    (illustrative list)
  • Defense Production (26)
  • Insurance (26)
  • Telecommunication (49)
  • Print Media (26) i.e. publishing of newspapers
    and magazines dealing with news and current
  • Civil Aviation Domestic Airlines Sector (49)
  • Trading (51)
  • Banking (74)

FIPB Foreign Investment Promotion Board. RBI
Reserve Bank Of India IT Income Tax
Authorities RoC Registrar of Companies.
  • 1 plus surcharge at 2.5 for foreign companies
    if income exceeds INR 10, 000, 000 (USD 222,000
    approx) and education cess of 3
  • 2 plus surcharge at 10 for domestic companies
    if income exceeds INR 10, 000, 000 (USD 222,000
    approx) and education cess of 3
  • Businesses need to determine their annual tax
    payment and ensure deposit under an installment
    plan referred as ADVANCE TAX by June
  • 15th (15), September 15th (45), December 15th
    (75) and March 15th (100).
  • Businesses having cross border dealing with
    related concerns fall within ambit of Indian
    Transfer Pricing regulations, which requires

  • Surcharge at 10 on income exceeding INR
    1,000,000 (USD 25,000 approx)
  • An employer is required to contribute and comply
    with a social tax namely Provident Fund. There is
    also an Employee State
  • Insurance cost. Both of these primarily focus on
    blue collared staff.
  • Foreign nationals deputed to work in India will
    be taxed on the basis of tax residential status,
    which is linked to the number of
  • days stayed in India. An employment / business
    visa is necessary, as is registration with the
    Foreigners Regional Registration
  • Officer (FRRO).
  • There are certain state specific regulations e.g.
    Professional Tax and Shop and Establishment Act,
    which apply in Indian states

  • India aims to adopt a comprehensive Goods
    Service Tax (GTS) by 2010. In the meanwhile,
    the following indirect taxes apply
  • Manufacturing units need to pay an excise duty on
    goods produced in India. The duty varies between
    products and the unit is
  • required to periodically deposit the duty on
    removal of products. Furthermore, these units are
    to maintain detailed stock records
  • and accounts in respect of duty payable on final
    goods, credit claimed on inputs etc and submit
    annual returns. Submission
  • dates are linked to level of operations.
  • Movement of goods across borders would need
    compliance to customs duty regulations. This duty
    varies between products. The
  • compliance requirement includes determination and
    deposit of duty prior to clearance of goods by
    the customs authority.
  • Businesses rendering specified services are
    liable to a Service Tax at 12 percent plus
    education cess on the billable value. They
  • are required to monthly deposit the tax
  • Businesses trading in goods between states are
    liable to charge CST whereas those trading within
    the same state are subject to

  • Two main forms Private Limited Company (PVT)
    and Public Limited Company (LTD). PVT is the
    most common form for an
  • international subsidiary.
  • Audited accounts are filed annually on public
    record with the Registrar of Companies (RoC),
    in a format set out under the Indian
  • law and Indian Accounting Standards, within a set
    time scale. Companies also file an Annual Return
    which gives detail of
  • shareholders and directors.
  • Businesses are required to follow fiscal year
    i.e. April 1st to March 31st, for compliance
    under the Indian Income tax laws.

Dreaming With BRICs The Path to 2050
  • Over the next 50 years, Brazil, Russia, India and
    Chinathe BRICs economiescould become a much
    larger force in the world economy. Using the
    latest demographic projections and a model of
    capital accumulation and productivity growth,
    Goldman Sachs has mapped out GDP growth, income
    per capita and currency movements in BRICs
    economies until 2050.
  • The results are startling. If things go right, in
    less than 40 years, the BRICs economies together
    could be larger than the G6 in US dollar terms.
    By 2025 they could account for over half the size
    of the G6. Currently they are worth less than
    15. Of the current G6, only the US and Japan may
    be among the six largest economies in US dollar
    terms in 2050.
  • About two-thirds of the increase in US dollar GDP
    from the BRICs should come from higher real
    growth, with the balance through currency
    appreciation. The BRICs real exchange rates
    could appreciate by up to 300 over the next 50
    years (an average of 2.5 a year).
  • The shift in GDP relative to the G6 is expected
    to take place steadily over the period, but is
    most dramatic in the first 30 years. Growth for
    the BRICs is likely to slow significantly toward
    the end of the period, with only India seeing
    growth rates significantly above 3 by 2050. And
    individuals in the BRICs are still likely to be
    poorer on average than individuals in the G6
    economies, with the exception of Russia. Chinas
    per capita income could be roughly what the
    developed economies are now (about US30,000 per
  • The key assumption underlying Goldman Sachs
    projections is that the BRICs maintain policies
    and develop institutions that are growth
    supportive. Each of the BRICs faces significant
    challenges in keeping development on track. This
    means that there is a good chance that the
    projections are not met, either through bad
    policy or bad luck. But if BRICs come anywhere
    close to meeting the projections set out here,
    the implications for the pattern of growth and
    economic activity could be large.
  • The relative importance of the BRICs as an engine
    of new demand growth and spending power may shift
    more dramatically and quickly than expected.
    Higher growth in these economies could offset the
    impact of greying populations and slower growth
    in the advanced economies. Higher growth may lead
    to higher returns and increased demand for
    capital. The weight of the BRICs in investment
    portfolios could rise sharply. Capital flows
    might move further in their favour, prompting
    major currency realignments.
  • Rising incomes may also see these economies move
    through the sweet spot of growth for different
    kinds of products, as local spending patterns
    change. This could be an important determinant of
    demand and pricing patterns for a range of
  • As todays advanced economies become a shrinking
    part of the world economy, the accompanying
    shifts in spending could provide significant
    opportunities for global companies. Being
    invested in and involved in the right
    marketsparticularly the right emerging
    marketsmay become an increasingly important
    strategic choice.
  • The list of the worlds ten largest economies may
    look quite different in 2050. The largest
    economies in the world (by GDP) may no longer be
    the richest (by income per capita), making
    strategic choices for firms more complex.

Rankings selected by region - South Asia
IndiaRegion South AsiaIncome category Low
incomePopulation 1,109,811,147GNI per capita
(US) 820.00
Note Doing Business 2007 rankings have been
recalculated to reflect changes to the
methodology and the addition of three new
Starting a Business The challenges of launching a
business are shown below. Included are the
number of steps entrepreneurs can expect to go
through to launch, the time it takes on average,
and the cost and minimum capital required as a
percentage of gross national income (GNI) per
Dealing with Licenses Shown below are the
procedures, time, and costs to build a warehouse,
including obtaining necessary licenses and
permits, completing required notifications and
inspections, and obtaining utility connections.
Employing Workers The difficulties that employers
face in hiring and firing workers are shown
below. Each index assigns values between 0 and
100, with higher values representing more rigid
regulations. The Rigidity of Employment Index is
an average of the three indices.
Registering Property The ease with which
businesses can secure rights to property is shown
below. Included are the number of steps, time,
and cost involved in registering property.
Getting Credit Measures on credit information
sharing and the legal rights of borrowers and
lenders are shown below. The Legal Rights Index
ranges from 0-10, with higher scores indicating
that those laws are better designed to expand
access to credit. The Credit Information Index
measures the scope, access and quality of credit
information available through public registries
or private bureaus. It ranges from 0-6, with
higher values indicating that more credit
information is available from a public registry
or private bureau.
Protecting Investors The indicators below
describe three dimensions of investor protection
transparency of transactions (Extent of
Disclosure Index), liability for self-dealing
(Extent of Director Liability Index),
shareholders ability to sue officers and
directors for misconduct (Ease of Shareholder
Suits Index) and Strength of Investor Protection
Index. The indexes vary between 0 and 10, with
higher values indicating greater disclosure,
greater liability of directors, greater powers of
shareholders to challenge the transaction, and
better investor protection.
Paying Taxes The data below shows the tax that a
medium-size company must pay or withhold in a
given year, as well as measures of the
administrative burden in paying taxes. These
measures include the number of payments an
entrepreneur must make the number of hours spent
preparing, filing, and paying and the percentage
of their profits they must pay in taxes.
Trading Across Borders The costs and procedures
involved in importing and exporting a
standardized shipment of goods are detailed under
this topic. Every official procedure involved is
recorded - starting from the final contractual
agreement between the two parties, and ending
with the delivery of the goods.
Enforcing Contracts The ease or difficulty of
enforcing commercial contracts in is measured
below. This is determined by following the
evolution of a payment dispute and tracking the
time, cost, and number of procedures involved
from the moment a plaintiff files the lawsuit
until actual payment.
Closing a Business The time and cost required to
resolve bankruptcies is shown below. The data
identifies weaknesses in existing bankruptcy law
and the main procedural and administrative
bottlenecks in the bankruptcy process. The
recovery rate, expressed in terms of how many
cents on the dollar claimants recover from the
insolvent firm, is also shown.
Comparison Charts
Ten Top Tips for Doing Business in India
  • 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.
  • 3. 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 patronising or under-estimate how
    quickly India is developing.
  • Understand the business culture and do not be
  • Don't assume anything - find ways of checking
    progress without causing the other party to 'lose
  • Be patient - it always takes longer than you
  • 10. Talk to your local International Trade
    Adviser and find out what help is available.
    OR Talk to WealthTree Partners.

Basic Etiquette at Meetings
The following information will help guide you
through a first meeting at an appointment with
business contacts you may not have met in person.
  • CommunicationsRemember - Be flexible! Make
    appointments in advance and confirm one week
    before arriving and once you have arrived.
    Arrive on time. Businessmen appreciate
    punctuality though they may not always be
    punctual themselves. Be prepared to spend
    time getting to know each other before talking
    business. Send any agendas and back up
    materials in advance. Follow up the meeting
    with an overview of what was discussed and the
    next steps.
  • DressRemember - Be modest! Business wear is
    conservative for men and women. Men should
    wear a dark suit and tie. Women should wear
    a suit or dress and not show too much skin!
  • Business CardsRemember Take plenty!
    Exchange these after the initial handshake.
    Put your title and any qualifications on your
    card. Present it formally and with your name
    towards the recipient so they can read it when it
    is handed over.

  • InstructionsRemember Talk to the most senior
    person first often the oldest one there!
    Handshakes are normal between men. Wait for
    women to put out their hand before offering a
    handshake. English is the common language of
  • NegotiatingRemember Be patient!Use this as a
    chance to build good relationships. Be punctual
    and expect seating to be hierarchical. Be
    prepared for time to be spent on general
    conversation at the start of the meeting. People
    may tell you what you want to hear and dont
    assume a smiling face means acceptance. Stress
    your common aims. The most senior person
    will make the decisions. If he is not at the
    meeting, you are at the early stage of
    negotiation. Decision making can be a slow
    process. Dont lose your temper as that
    means you lose face and are seen as
    untrustworthy. Concessions are expected in
    price and terms. Expect them in return.
    Concentrate on building rapport. Do not be
    confrontational or forceful. Dont disagree
    in public with other people on your team.
    Politeness, praise and respect are important and
    dont make people feel hurried.

  • Body LanguageRemember A smile may not mean
    YES!A gesture you will notice is a distinctive
    rotational move of the head. When done with a
    smile it can mean yes or I understand. A
    direct No can be seen as rude, so silence or
    We will try may be used instead. Dont
    Point with your finger, that is rude.
    Whistle or wink this is seen as impolite.
    Hug, hold hands or embrace in public, even at an
    airport, or with your partner!
  • Going for a mealRemember Take this time to
    learn about your hosts!If you are going out for
    a meal, ask about the dress code. Table manners
    can also be formal and food may eaten with the
    fingers, or you may be provided with a spoon and
    fork. Be prepared to be invited to wash your
    hands before and after a meal. Bottled water,
    soft drinks or beer are normally drunk with
    food.Indians eat late. Wait to be told where to
    sit. Guests may be served in a particular order,
    with the guest of honour served first. If you
    uncertain about anything, ask your host how you
    should behave.Normally the person who gave the
    invitation will pay for everyone. Offering to pay
    will be seen favourably, but expect to be turned
    down. To reciprocate and show appreciation,
    invite your host out another time.Dietary
    restrictions are affected by religion,
    Hindus do not eat beef and many are vegetarians.
    Muslims do not eat pork or drink alcohol.
    Sikhs do not eat beef. Lamb, chicken and
    fish are the common main courses for

  • Currency Indian Rupees (Rs. / INR)Remember
    Carry some small change!Type of Currency and
    Denominations available are Paper currency
    One, Two, Five, Ten, Twenty, Fifty, Hundred,
    Five Hundred and One Thousand. Coin currency
    Ten paisa, Twenty five paisa, Fifty paisa, One
    rupee, Two Rupees and Five Rupees. Some
    uniquely used Indian terms 1 Lakh One Hundred
    Thousand, 1 Crore Ten Million.
  • Keep Healthy Be SafeIn AdvanceBefore you
    leave your country, check with your GP if you
    need any immunization and make sure you take a
    supply of any regular medication. A small First
    Aid Kit is a good idea. Include some disposable
    needles in case of an emergency, sun cream,
    malaria tablets, treatment for diarrhoea and
    stomach problems.PreventionUse bottled water
    for drinking and cleaning your teeth. Avoid milk
    and raw foods. Eating vegetarian dishes, boiled
    rice and eggs are safest.In an EmergencyGo to
    a private hospital or clinic recommended by the
    High Commission or your hotel.Emergency
    Telephone Numbers Police 100 Fire
    101 Ambulance 102

Thank You
  • S. Venkataraman
  • (Director)
  • venkat_at_wealthtree.in
  • Mobile- 91 9821152537
  • Bhavesh Kothari
  • (Vice President)
  • bhavesh_at_wealthtree.in
  • Mobile- 91 9820436076

Write a Comment
User Comments (0)
About PowerShow.com