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DOING BUSINESS IN INDIA 2010

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Title: DOING BUSINESS IN INDIA 2010


1
DOING BUSINESS IN INDIA 2010
  • By Sikandar Singh
  • Raghbir Dhillon
  • Rakesh Khosla
  • Bruce MacLellan

2
India Facts
  • India is union of states with a parliamentary
    system of Government
  • Land Area 2.9 million Kilometers
  • Population Over 1 billion
  • Capital New Delhi
  • Financial Capital Mumbai

3
New Delhi
Kolkata
State of Orissa
Mumbai
Chennai
4
India Facts
  • Climate Mainly Tropical
  • Languages used Hindi, English
  • When doing business in India, English is the
    language of International commerce.
  • Main Religions Hinduism, Islam, Christianity,
    Sikhism, Buddhism and Jainism
  • Currency
  • Indian Rupee (1 Rupee has 100 Paisa)
  • 1 Canadian dollar 44 rupees (current exchange
    rate)
  • 1 Lakh One Hundred Thousand, 1 Crore Ten
    Million.

5
Transportation Hubs
  • International Airports
  • New Delhi
  • Mumbai
  • Chennai
  • Kolkata
  • International Sea Ports
  • Mumbai
  • Chennai
  • Haldia

6
Things to Note
  • Average annual growth Rate 7.5
  • Imports in 2007- 2008 grew 27 and Exports 25
  • GDP at current price (2007- 2008) 16 Trillion US
    dollar
  • 100 of the Fortune 500 companies have R and D
    facilities in India
  • India is Worlds second largest small car market
  • India occupies second place in the world of
    software development, after USA
  • India was the third country to make super
    computers
  • India ranks as the 4th largest economy based on
    the purchasing power
  • India was the sixth country to launch its own
    Satellites

7
Things to Note
  • There are 6,500 Indian companies listed on the
    Mumbai Stock Exchange, only New York Exchange has
    more
  • India sends more students to US Universities and
    Colleges than any other country in the world,
    approximately 100,000
  • Middle class is estimated at more than 300
    million with an income range of 75k-150,000
  • The worlds largest producer of milk and second
    largest producer of food, including fruits and
    vegetables
  • The pharmaceutical industry in India is second
    largest in the world
  • Second largest English speaking scientific,
    technical and executive manpower in the world
  • India has a legal system with English as a court
    language
  • The Government offers Tax incentives to the
    companies that set up business in Special
    Economic Zones it has set up.

8
Business/ Investment Climate
  • Highly Skilled Manpower
  • Liberal, attractive and friendly investment
    climate
  • Polices on investment and business are liberal
    and transparent
  • Under new rules, investors only have to inform
    the Reserve Bank of India of their investment
  • Profits and dividends from sales is fully
    repatriable
  • Rupee is fully convertible on current account.
    This gives freedom to foreign investors to
    repatriate foreign exchange at the existing
    market rate.
  • 25 of total receipts in foreign currency
    account from exports can be retained in a capital
    account.

9
Corporate Info
  • Intellectual Property Rights
  • Intellectual Property Rights are protected under
    the TRIP Agreement (Agreement on Trade Related
    Aspects of Intellectual Property Rights) of the
    WTO.
  • India has well established the importance of
    intellectual property rights at all levels of
    Statutory, administrative and judicial.
  • Patent Rights
  • Indian Patent Act is fully compliant with Indias
    obligation under TRIP Agreement of WTO.
  • Incorporation of Business Entity
  • Foreign companies can incorporate under the
    Company Act of 1956 as either Joint Venture or
    wholly owned subsidiaries.
  • Unincorporated foreign companies can operate
    business through a representative or through a
    liaison office. This is permitted under the
    Foreign Exchange Management
  • Incorporation of a company
  • Under the Company Act of 1956 a company could
    registered as a Private Limited Company or Public
    Limited

10
Taxation
  • Taxes are levied by Federal Government and State
    Governments
  • Revenue on foreign companies, including royalty
    and technical services fees providing services to
    industries like petroleum or natural gas, is
    subject to maximum tax on a deemed profit of 10
    of gross revenue.
  • Turnkey projects approved by the Government of
    India related to power sector are subject to
    maximum tax on a deem profit of 10 of gross
    revenue.
  • Income tax for domestic corporations is 35 while
    any branch of foreign company doing business in
    India pays 45.
  • There is a personal Income Tax and State
    Governments apply Sales Tax/VAT and other taxes
  • India and Canada has a reciprocal tax treaty in
    place. CRA can provide additional details.

11
Judiciary
  • India has independent Judiciary. The Supreme
    Court of India is the highest court and each
    State has High Courts and District Courts.
  • Special Courts and tribunals have also been set
    up to deal with issues like tax, debt recovery,
    consumers dispute etc.
  • It is suggested that with all international
    agreements/M.O.U.s a clear clause be included to
    specify where and under which jurisdiction a
    legal dispute would be settled. This applies not
    only to India but to all countries.

12
Brief History of Indo-Canadian Trade
  • Trade relations with India started in 1951 and
    India at one time, was the largest recipient of
    CIDA aid from Canada. India Canada relationship
    has now transformed into one based on trade
    rather than assistance.
  • Canadian International Agency does not maintain a
    bilateral program in India any more, however,
    CIDA INC. still provides financial contribution
    upon request and merit, mainly for feasibility
    studies and training activities to Canadian firms
    doing business in India.
  • Canadas opposition to Indian nuclear tests in
    May 1998 put a stain on the two countries
    political relations and they were put on hold.
    However, today trade continues to grow between
    the two countries.
  • In 1997 Canada identified India as the largest
    market in South East Asia region with economic
    scope for business collaboration.

13
Brief History of Indo-Canadian Trade
  • In 2008 Canada exports to India were C 2.4
    billion and imports from India were C 2.2
    billion. In comparison, Canada exported 10.3 US
    billion dollars of goods to China.
  • Major exports from Canada were fertilizer, pulses
    (grains), paper and paper board, machinery and
    wood and pulp etc.
  • Canadian investment in India is very modest. In
    2002 it was only 144 million Canadian dollars in
    five areas, power and energy, telecommunication,
    oil and gas, environment, products and services,
    information technology, and financial sector
    including insurance.
  • Imports were organic chemicals, precious stones,
    knit and woven apparel, machinery, iron ore and
    steel, cotton yarn, carpets, spices, footwear and
    leather goods etc.
  • Since 2001, India has direct investment of 18M
    Canadian dollars in Canada. On the other hand,
    Indias direct investment in USA is estimated at
    2 billion US dollars and there is a push to
    increase it substantially. Canada needs to take
    the opportunity to do the same.

14
Canada India 2010
  • A M.O.U. has been signed during Prime Minister
    Harpers visit in November 2009 and it covers
  • Free trade Agreements
  • Stronger corporation in the energy sector
  • Joint study group to established comprehensives
  • Economic partnership
  • Foreign Investment Protection and Promotion
    Agreement (FIPPA) between India and Canada will
    be operational soon to safe guard Investors
    rights.

15
Priority Sectors in India
  • Agriculture food and beverage
  • Service industries capital projects
  • Information and communication
  • Oil and gas equipment services
  • India has very large iron ore deposits and is one
    of the largest producers of iron and steel. Coal
    and Bauxite also fall in this category.
  • Electric power equipment services
  • Aerospace and defense industry sectors
  • Ports and Air Ports
  • Telecommunications

16
Transportation
  • Roads
  • India needs 100 billion dollars in this sector.
  • Indian villages do not have all weather roads,
    which means 30 percent of agriculture crop spoils
    before it reaches the market.
  • There are highways connecting Delhi, Kolkata,
    Mumbai and Chennai but most of the roads are two
    lanes or single lane.
  • To implement road projects India has created the
    National Highway Authority of India and National
    Highway Development Projects for Public and
    Private Investment.
  • This is an important step in that much of the
    planning has been taken over by young, educated
    federal bureaucrats aiming to reorganize the
    transportation system

17
Transportation
  • Railways
  • Railway has made steady progress in modernizing
    it infrastructure providing freight and passenger
    services by adding modern passenger and fright
    cars.
  • Canada has played a very key role in supplying
    rolling stock and Canadian expertise in freight
    management systems
  • Ports
  • There are 12 major ports and 140 minor ports.
  • This sector offers great opportunities for
    Canadian companies that have experience in the
    management, automation, training and upgrading of
    marine transportation, as well as the maintenance
    and construction of ports and harbors along with
    related technical support.
  • It is suggested that organized seminars and
    conferences be developed in collaboration with
    Indian Ports Association whose mandate is to
    develop and increase efficiency and productivity
    of Indian Ports.
  • Atlantic Canadian companies can play a key role
    assisting in supplying technology, equipment and
    expertise to overcome inefficiencies in the
    private sector of India dealing in Ports.

18
Transportation
  • Airports
  • Delhi and Mumbai handle about 75 of air
    traffic. India needs know-how in this sector to
    meet and handle the expected increase in air
    traffic.
  • It also needs air traffic controller systems,
    automated cargo handling and logistic systems to
    track air freight.
  • India has recently introduced private management
    system to manage some airports.
  • The expected investment in this sector is US --
    40 billion in roads, 15 billion in railways and
    20 billion in ports.

19
Environment Sector
  • India is fifth leading producer of carbon
    emission with annual increase of 3 .
  • With increasing of population and lack of city
    infrastructure, India is looking for technology
    and expertise in the areas of
  • air pollution control
  • water and waste management treatment
  • energy management
  • environmental monitoring.
  • Canada is a leader and well established in the
    world for offering these services. Canadian
    companies have great opportunities to do business
    with Federal and State Governments and the
    Private Sector.

20
Education
  • In 2007 India had an estimated 18,064 colleges
    and 379 universities and has the one of the best
    and largest higher education system in the world.
  • Both central government and state governments are
    responsible in formulating their own polices
    relating to higher education.
  • India has excellent instructors for higher
    education but cannot meet the ever growing demand
    for quality education. Canada can take the
    advantage of this situation has an opportunity
    to invite students from India, or provide
    services in India.
  • An example is the school set up in Chandigarh
    that encompasses the Indian curriculum and
    Canadian instruction techniques.
  • Canada holds 5th position in foreign students
    from India in spite of a very large Indo-Canadian
    population.

21
Education
  • USA receives the largest number of international
    students form India followed by UK and Australia.
    There is growing competition from countries like
    China, Singapore and New Zealand.
  • Canadian universities can increase their share of
    foreign students from India if it follows some of
    the polices and resource allocation like
    Australia, to attract students.
  • Australia allows foreign students to work while
    they are studying and give options to apply for
    permanent residence once they finish their
    degree. It is quick, simple and easy to get
    student visas for Australia as compared to
    Canada.
  • Due to Canadian visa rules and lack of marketing
    by the institutions on ground level in India only
    3,000 students were admitted in Canadian
    education institutions compared to 20,000 in
    Australia every year.

22
Education
  • Recently Canada has introduced a work permit for
    three years for post graduates which are a
    positive approach to attract more foreign
    students from India.
  • Canadian institutions can also plan to market
    training programs in the field of health,
    aviation, and telecommunications, in
    collaboration with technical colleges in India,
    some of whom developed direct links to major
    universities in the US, e.g. IIT.
  • Perhaps, the issue of increasing Canadas share
    of foreign students can be explored with the
    view of streamlining the application and
    acceptance rules Canadian Universities have in
    place.

23
Electric Power Equipment
  • To meet the demand of growing population,
    industrialization and rising per capita income,
    the government of India has introduced reforms
    and new polices to attract private investment to
    offer new technologies and management in this
    sector. 87 of install capacity is owned by the
    government.
  • India imports about 2 billion dollars worth power
    equipment annually. The main suppliers are USA,
    Japan, Germany and UK with US having the largest
    share.
  • The central government is responsible for
    formulating polices, planning, and implementing
    power projects. States are responsible in
    implementing their own polices and projects.

24
Electric Power Equipment
  • The Renewable Energy Sector includes small hydro
    projects up to 25 MGW, biomass and wind energy.
    India is forth largest producer of wind energy in
    the world. The government of India has planned to
    set up power projects each with a capacity of 400
    MW. Also in the plan is to set up thermal units
    with a capacity of 600 - 800 MW to improve the
    efficiency.
  • Canada has opportunities to export equipment for
    thermal units for large hydro and thermo plants,
    high capacity boilers and turbines, water
    treatment plants, cooling water system, ash
    handling, coal washing etc.
  • There are consulting opportunities for Canadian
    companies in the field of engineering and
    management also in RD and clean energy to
    control air pollution and climate change.

25
Oil and Gas Industry
  • Oil and gas industry is showing a rapid growth by
    contributing 15 of GDP.
  • India is emerging as global hub for refining oil
    due to a lower capital cost by nearly 25 to 50
    over the other Asian countries.
  • According to Investment Commission of India, the
    total opportunity in oil and gas sector by 2012
    will be 40 to 50 billion US dollars and in the
    next five years the investment is estimated to
    increase to between 120 to 150 billion US
    dollars.
  • To attract the foreign direct investment, the
    Government of India is allowing 100 direct
    investment in private refiners and 26 in the
    public sector.
  • 100 direct investment is also allowed in
    petroleum products, exploration, gas pipelines
    and for retail marketing of petroleum products.
  • Niko Resources of Calgary in association with
    Reliance Industries of Mumbai, is one of the most
    successful natural gas operators in India

26
Oil and Gas Industry
  • India is also looking into investment
    opportunities in the Canadian oil sands and the
    mining sector in Canada.
  • Coal constitutes 80 of Indias mining sector and
    other metals such as gold, copper, iron ore,
    lead, bauxite, zinc and uranium represent 20.
    The total value of mineral production excluding
    atomic minerals, during the year 2007-08 was
    estimated at rupees 9953.10 crore. Exports of ore
    and minerals in 2006-07 were 80,912 crore.
    Diamonds, mostly cut, contributed a large portion
    of the total exports.
  • The new mining policy introduced by the
    Government of India in 2008 allows 100 direct
    investment by the foreign companies. Canadian
    companies can take advantage to set up a joint
    venture with the private sector companies.
  • There are three Canadian companies operating in
    mining sector in India, Trans World Garnet of
    Canada, Meridian Peak Resources Corp. Canada and
    Pobble Creek Resources, Canada.
  • Canada is a leading global player in the mining
    sector and India has a lot of different natural
    resources, therefore Canada can be a natural
    partner in the Indian mining sector.

27
Aerospace Sector
  • In 2007, airlines carried 35 million domestic
    passengers and 22 million international
    passengers. By 2010 it is expected air lines will
    carry more than 60 million domestic and 40
    million international passengers. It is one the
    fastest growing sectors in the world.
  • There is great demand for air defense equipment,
    estimated at 5 billion annually. The rapid growth
    of civil aviation has put pressure on the
    existing infrastructure.
  • India needs to upgrade
  • Airports
  • Communications systems
  • Navigation systems
  • Surveillance system
  • Air traffic equipment
  • Air traffic management
  • Rader facilities
  • Training in all of the above
  • Canadian companies have great potential in this
    sector for joint ventures, selling equipment and
    offering consultancy and training services.
    Canada can help Indian companies with
    technologies that will create jobs in India and
    Canada.

28
Information Communication
  • The government of India is taking all necessary
    steps to make India a global information
    technology power.
  • Information and Communication Technology (ICT)
    sectors are growing fast in terms of production
    and export. Due to liberalization of rules in
    foreign investment and import export polices,
    this sector is attracting foreign investment not
    only because of the vast market but also because
    it offers a great potential in production for
    international companies.
  • ICT market is growing at a phenomenal pace. It is
    estimated that this market will grow at the rate
    25 annually.
  • The present market is estimated at 495 million
    US. This sector is expected to emerge as the
    single largest sector of Indian economy having 15
    share of the GDP and it is estimated that it
    will create 10.3 million jobs by 2015.
  • In 2005 Canadian companies were invited to
    participate in this growing market and to offer
    their experience in education, e- health, and RD
    research development and the take-up of this
    offer can be increased tremendously.

29
Telecommunication Sector
  • India is fifth largest country in the World
    having more than 300 million telephone
    connections and second largest in Asia.
  • Mobile subscriber base in India is growing at a
    very fast pace adding 6 million subscribers every
    month.
  • India now offers the cheapest mobile tariffs
    rates in the world due to deregulation and
    liberalization of the industry. Prominent
    international players like Vodafone of the UK,
    Telecom Malaysia and Max of Malaysia have taken
    advantage of these policies to enter in to this
    market though equity investment.
  • Companies like Cisco, Alcatel and Motorola have
    set up their R D facilities in India.
  • Canada is doing well in this sector with niche
    technologies. Prominent companies are Nortel,
    Research in Motion, Hummingbird, EION, TenXc,
    Redline, Celestial, March Networks and Mittel.
  • Canadian companies wanting to do business in
    India often look to establish joint ventures with
    established local firms, distributors and agents.

30
Beverage Food Processing
  • Indias food and beverage sector is estimated at
    117 billion US dollars. The government food
    processing policy is to increase production of
    processed food from 2 to 10 by 2010 and 25 in
    2025.
  • The Government has allowed 100 foreign direct
    investment in the processing sector and is
    encouraging foreign investors to set up cold
    storage facilities and processing units.
  • As well, It is offering financial assistance and
    grants for such projects. For technology
    upgrading of facilities and operations,
    establishment and modernization for food
    processing industries in all states and union
    territories the rate of aid is 25 of the cost
    of the plant, machinery and technical areas
    subject to maximum of rupees 50 lakh which equals
    100,000.00 US dollars.
  • India, in spite of being the largest producer of
    cereals, fruit and livestock, has a mere 1.5
    share in the international food trade and
    processed food it is a meager 8 of the total
    production.
  • There is untapped potential in this sector for
    Canadian companies to set up food processing
    facilities and to sell Canadian food processing
    technology, packaging, and food products in the
    Indian market.

31
Beverage Food Processing
  • It is estimated that this sector will attract 33
    billion US dollars over the next ten years and
    will generate employment for 9 million
    person-days.
  • Why invest in this sector?
  • Vast source of raw material
  • Conventional farming to commercial farming
  • Large upper middle class market
  • Low production cost
  • Change in consumption patterns
  • Government assistance
  • 100 foreign Direct Investment
  • Full repatriation of profits and capital
  • Expedited approval for foreign investment
  • Import duty could be zero for 100 export units
  • Reduction in customs duty on packaging machines

32
Beverage Food Processing
  • Alcoholic and beverage sector in India is also
    growing fast and offers great opportunities for
    Canadian companies to explore opportunities.
    India has started producing Wine and Champagne
    and alcohol is of growing interest for the upper
    and middle classes with high disposable incomes.
  • Beer sales are expected to grow at a compound
    annual growth rate of 17.2 by 2011.
  • It is estimated that at present India produces
    100 million cases annually. New players like
    Busch, Carlsberg and InBev are setting up
    production facilities in India. Heineken has
    reached an agreement with United Breweries Ltd of
    India that allows the Dutch company to brew and
    sell its own brand in India.

33
Service Sector
  • The service sector has witnessed a major boom and
    has contributed both employment and income over
    the years.
  • Major sectors which have contributed are trading,
    transportation, communication, financial,
    real-estate and business services.
  • The service sector now accounts more than half of
    the GDP.
  • One of the key service industries in India will
    be health and education - and it is in these
    fields that Canada can assist and develop
    effective trade and training footholds.
  • There are also opportunities in sectors like
    Media, Entertainment and Retailing.

34
Tips for Doing Business in India
  • Make your technology, management as a part your
    business proposal. Technology keeps on changing
    and implementing changes should be the part of
    the business proposal.
  • Training is the part of management and the
    business proposal must provide training
    opportunities in India and also in Canada
  • Public and private sectors need different
    approaches. Private sector takes quick and fast
    decision regarding a project. As in Canada, the
    public sector is slower in making a decision
    because a number of Ministries are involved in
    giving clearance and approval to a project.
  • Developing a proposal for the public sector needs
    a detailed analysis as how it will and how many
    people will benefit from your project or your
    service and how it will enhance the overall
    quality of life and economic situation of the
    people.

35
Tips for Doing Business in India
  • Establish a more co-operative approach at the
    centre and state government, highlighting the
    cost benefits in your proposal.
  • Try not to do every thing from Canada. Face to
    face meetings are crucial in developing business
    relationships and trust. Western concepts and
    off-the-shelf solutions do not work in India,
    targeted and client specific proposals and
    solutions do.
  • Opening up local offices is expensive. Qualified
    staff salaries are relatively high by Indian
    standards. It is suggested that to keep qualified
    staff one can offer a basic salary and profit
    sharing along with the medical coverage to the
    employees and their families.
  • Domestic market is flourishing therefore, while
    pricing your product do not ignore domestic
    competition.

36
Tips for Doing Business in India
  • Exporters need to have compatible partners or
    with know how and compatible distributors with
    experience and the infrastructure to make it
    work.
  • For example to export fresh and frozen food
    products your partner must have cold storage
    facilities along with the infrastructure to
    distribute your products to the food outlets,
    hotels and restaurants locally and to other
    cities.
  • Indian companies doing business internationally
    are sometimes looking for joint ventures to
    improve and upgrade their operations and increase
    their output and exports, in such cases Canadian
    technology and management can be offered to
    assist in their existing establishment or help in
    all phases of their operations.
  • Also, while bidding for internationally funded
    projects Canadian companies should be open for
    discussions and proposal for association with
    Indian counterpart.

37
Tips for Doing Business in India
  • During the recent visit by the King of Bhutan,
    India has signed bilateral trade agreement on
    sectors like Hydropower, civil aviation. Canadian
    companies can take advantage and bid jointly for
    such projects with Indian companies. Indian
    corporations are investing in agriculture land in
    East Africa to grow different crops, vegetables
    and fruits for local and for export markets.
    Canadian companies can supply equipment, training
    and setting up processing facilities with Indian
    companies.
  • Canadians must be willing to select market entry
    with options such as a subsidiary relationship,
    joint venture or partnership with an Indian
    partner. To select a partner one must qualify the
    partner by looking at his present activities
    locally and internationally and future plans and
    projections etc.

38
Tips for Doing Business in India
  • Prepare your projects to meet local challenges
    and marketing needs. Price, quality and the
    overall advantages of your product over the
    present products in the market should be part of
    your project proposal.
  • Patience, sincerity and commitment will forge
    strong and productive relationship.
  • During the meeting do not give impression that
    you are in hurry to close the deal.
  • Give your partner time to decide perhaps you can
    invite him to visit Canada to see your business
    operations. By doing so, you will establish your
    sincerity and commitment to do business with your
    partner.

39
Video Presentation
  • This is a video of a presentation made to a large
    group of businessmen and industrial investors
    from the US.
  • Pay particular attention to the cultural nuances
    and the examples of how social, economic, family
    responsibilities, professional and employment
    factors are closely intertwined in the make up of
    most Indians.
  • Look for the grey areas the speaker talks about
    perceptions, in India, are not as black and
    white as in the west.

40
Cultural Issues
  • Almost all civil servants, Indian officials and
    business people speak English.
  • Namaste is Hi and Namaskar is Hello, which is a
    formal way of greeting in India. You can greet
    your counterpart by saying Namaste or Namaskar.
    Hand shaking is also an established way of doing
    international business. I would however, suggest
    that while shaking hands you can say Namaste and
    this way you will observe both greeting
    traditions.
  • When greeting a female business colleague, out of
    respect, one does not shake hands unless she puts
    her hand out first, even though a handshake is
    not considered disrespectful.
  • During your first meeting, address your Indian
    counterpart with their title like Doctor or
    Mr./Mrs./Miss and last name, unless they suggest
    you call them by their first name. If you do not
    know their names, then sir or madam is acceptable.

41
Cultural Issues
  • Business cards are exchanged at the first
    meeting.
  • If you are invited for a business dinner then
    business is conducted during the drinks which are
    served before the dinner. In Canada it is other
    way around. It is suggested to take a small gift
    for the house if the dinner is at someones home.
  • Be polite when offered any drinks or food during
    the meeting. Most of the time tea, coffee or soft
    drinks are offered. If there are any dietary
    restrictions simply decline politely and
    normally optional items will be offered.
  • Avoid exchanging large gifts at the first
    meeting. However, pins of the Canadian flag or
    pens with the provincial logo, is a good gift to
    present after the first meeting is over.

42
Cultural Issues
  • While doing business in India one MUST understand
    that cultural nuances are a way of life and
    should be respected for a successful business
    relationship to be developed.
  • Before the business meeting try to set up cordial
    atmosphere using small talk like the weather and
    sports, for example cricket is national game for
    India and recently India has become number one in
    test cricket in the world. You can also discuss
    ice hockey as it is a national sport of Canada.
  • Try to avoid the criticism of India or their way
    of life and social structures or the political
    and economic climate at every stage of your
    business discussions and as well as during the
    informal and social gatherings. Avoid discussing
    issues related to poverty, religion, slums or any
    negative remarks.
  • Try to work on establishing that you are looking
    for a long term business relationship. Let them
    know that you would be willing to make more
    visits to do business with your Indian
    counterpart or invite them to Canada.
  • Be polite sincere and do not be aggressive in
    your business negotiations as it can be
    interpreted as sign of disrespect.

43
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.
  • 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 patronizing or under-estimate how
    quickly India is developing.
  • Understand the business culture and do not be
    aggressive.
  • Don't assume anything - find ways of checking
    progress without causing the other party to 'lose
    face'.
  • Be patient - it always takes longer than you
    think!
  • Talk to your local International Trade Adviser
    and find out what help is available.

44
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.
  • Communications Remember - 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.
  • Instructions Remember 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 business.

45
Basic Etiquette at Meetings
  • Dress Remember - 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 Cards Remember 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.

46
Basic Etiquette at Meetings
Contd
  • Negotiating Remember 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. 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.

47
Basic Etiquette at Meetings
Contd
  • Body Language Remember 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.
  • Dont whistle or wink this is seen as impolite.
  • Dont hug, hold hands or embrace in public, even
    at an airport, or with your partner!

48
Basic Etiquette at Meetings
Contd
  • Going for a meal Remember 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 honor 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
    favorably, 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 non-vegetarians.

49
Currency Indian Rupees (Rs. / INR)
Contd
  • 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.

50
Keep Healthy Be Safe
Contd
  • In Advance
  • Before 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 diarrhea
    and stomach problems.
  • Prevention
  • Use bottled water for drinking and cleaning your
    teeth. Avoid milk and raw foods. Eating
    vegetarian dishes, boiled rice and eggs are
    safest.
  • In an Emergency
  • Go to a private hospital or clinic recommended by
    the High Commission or your hotel.
  • Emergency Telephone Numbers
  • Police 100
  • Fire 101
  • Ambulance 102
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