India business travel information

Doing business in India

India is a land of economic growth and opportunity. India’s sustained growth of around 8% in 2008 and growing dynamism in several of its regional markets have created wide and diverse business prospects for exporters and investors. Multinationals are sold on India and are expanding and deepening their market penetration. Multiple firms with advanced and niche-market products and services are entering the market for the first time, or are replacing legacy distributors appointed in the slow-growth past with more capable and aggressive representatives.

Many smaller companies have begun to view India as a top anchor market for their products and services as well. The marked rise of import into India, the daily business press announcements, the rapidly expanding demand for Commercial Service India matchmaking programs and due diligence services, and the many business development trade missions visiting India all point to India being open for business.

Economic expansion in India today is being rewritten by India’s highly entrepreneurial and rapidly globalizing private sector. Indian firms are investing in infrastructure projects, growing their advanced manufacturing capabilities, and inventing in new volume-based business models that results into rising incomes and consumption in towns and rural economies across the country. Whether it is consumer goods and services, high technology and industrial goods, healthcare, r infrastructure development, Indian firms are commanding about their economy and are eager for commercial and joint venture partnerships, technologies, brands, services, and know-how.

In fact, the pace of the foreign trade and investment relationship with India is accelerating. Advanced technologies, including aerospace, specialized materials, information and communications technologies, electronics and flexible manufacturing systems underpinned this growth.

In terms of long-range economic forecasts, some major consultancies project that more than 400 million people, a full 40% of the population, will enter India’s middle class over the next 15 to 20 years. One noted firm expects India to have and sustain the fastest growth rate in the world by 2011. Another well-known consultancy believes that India will become the 3rd largest economy in the world in 2032. India’s "demographic dividend" (71% of the population is under the age of 35, and the avarage age is 25) will ensure that that India retains strong production and knowledge-based competitiveness for many years to come.

Though these numbers are impressive, barriers to trade and investment remain in India. Thanks to economic reforms introduced in the early 1990’s, Indian tariffs have been progressively reduced. However, additional reform is widely recognized as necessary for continued economic growth at recent levels in India, and it is anticipated. While poor infrastructure and high tariffs present the biggest obstacles to foreign investment and growth, India’s infrastructure requirements also present trade and investment opportunities for American companies. Strategic planning, due diligence, consistent follow-up, and perhaps most importantly, patience and commitment are all prerequisites to successful business. The Indian sub-continent necessitates multiple marketing efforts that address differing regional opportunities, standards, languages, cultural differences, and levels of economic development. Gaining access to India’s markets requires careful analysis of consumer preferences, existing sales channels, and changes in distribution and marketing practices, all of which are continually evolving.

Product tip: When you love to read, consider an e-reader! When you love to read, you should consider buying an e-reader. The main advantages of these devices are portability, readability of their screens in bright sunlight, and long battery life. An e-book can be purchased, downloaded and used immediately, whereas when one buys a book one has to go to a bookshop, or wait for a delivery.

Business etiquette and protocol

If your are planning a business trip to India it is a good idea to know at least a little about the culture and etiquette in India. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in India to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  The official language of India is Hindi with English as a secondary official language. Most of the schools have English as medium of instruction.
  The Indians are very hierarchical, so greet the eldest or most senior person first. Use formal names, professional and academic titles.
  Indians are not direct, they prefer subtlety to directness. Also they don’t like the word "no". When you get an affirmative answer but they stay vague about the specific details, the result be a "no".
  Never interrupt somebody.
  Dress formal and conservative.
  


• Meetings and negotiations:
  When making appointments use the 24-hour clock time format to avoid misunderstandings.
  Be very punctual, if you suspect you will late, call and explain the situation.
  Never cancel a meeting at the last minute. But except that your meeting can be cancelled or postponed at the last minute.
  Shake hands with everyone of the same gender upon arriving at the meeting and leaving.
  Remain standing until invited to sit down or others do so.
  Agenda’s are strictly followed.
  Agenda’s are not strictly followed and a meeting can take much longer then planned.
  First appointments are mainly socially oriented, Indians would like to know you a bit better at first. A third party introduction could be good to get trust.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate.
  Follow up a meeting with a letter or an e-mail with all agreements outlined.
  


• Table manners:
  If unsure on how to behave, mimic the behavior of others.
  Wait until you are appointed a seat.
  Avoid alcohol if possible, otherwise drink little. Remember that muslims do not drink alcohol.
  If making a toast, stand up.
  Keep your hands above the table when eating.
  There is a possibility that you have to eat with your hands. You always eat with your right hand, with or without utensils.
  After finishing eating, leave some food on your plate to indicate that you are full.
  Thank your host at the end of the meal.
  

Visa information for India

All visitors to India need to obtain visa for India, prior to arrival. The only exceptions are citizens from the neighbouring countries Nepal and Bhutan.

For a business visa the requirements are:

• Guarantee letter from company registered in your country.
• Invitation letters from registered Indian Companies located in India.

The fees for the visa is in Euros:

• € 50 (6 months validity)
• € 80 (1 year validity)
• € 160 (5 years validity)