Economic Opportunities in India

Economic Opportunities in India 1 Economic Opportunities in the Country of India Sean P.

Horton International Business 260 Mr. Russell March 22, 2009 Economic Opportunities in India 2 Abstract While researching the economic opportunities in the country of India, we can see trends, such as that of calls being outsourced to India, signifying a vision of globalization, increased competition and market share. India is poised to become and remain a global competitor in International business with its diverse culture, immense population, and entrepreneurial spirit.With India advancing in technology, agriculture, and having some of the most basic functions of a free market-system, including a democratic government, private enterprises, and an evolving legal system, the country is transitioning economically at an unprecedented level. Proactive organizations should look, with a keen eye, for economic opportunities, increased market shares, and competitive and cultural advantages in this country which has immense potential for economic growth and development.

Economic Opportunities in India 3Economic Opportunities in the Country of India We were assigned particular countries to understand how they impact the business and cultural realms of the world. I had the privilege of learning how business transpires in the country of India. In addition, we studied how understanding culture, the political processes, and legal systems could impact businesses positively or negatively. Traditions play and important role in the daily affairs of Indians, thus it carries over into business practices.With a population of over one billion, India represents lucrative and diverse opportunities for global markets all around the world. In fact, in the year 2007, India totaled an estimated 41.

7 billion in imports and exports. Before you can do business in India, it’s important to understand their history and culture. Hindi and English are considered the official languages of India culture. Religion, one of the most important parts of Indian culture, is dominated by Hinduism and Buddhism the third and fourth largest religions in the world respectively.Additionally, Sikhism, Fainism, and Christianity can also be found as forms of worship in India culture.

Dress is another important part due to the Climate of India which can range from temperate to tropical. Women’s clothing consists of the Sari, which is the most common attire at most ceremonies and festivals. On the other hand, men’s traditional clothing include: The Sherwani, a coat like garment, the Kurta-Pyjama, and the Lungi. Business dress in India is for the most part of a conservative nature.Depending on what region and geography and your profession you should dress accordingly. Psychologist, Madhukar Shukia (2006) professor of Organisational Behavior & Strategic Management states: “Normal business dress for men is a suit and a tie.

However, since India is a very warm climate, often just a full sleeved shirt with a tie is also acceptable”. He continues with advice on what women should wear, Women should wear “pants suits or long skirts, which cover the knees, and are more acceptable to wear. The neckline of the blouse or top should be high”.Hospitality is a major concern if you travel abroad to India, and could have a profound effect of doing business in that country. Similar to that of China, you need to make and continually build a relationship and friendship.

Don’t be overly surprised if Indians ask Economic Opportunities in India 4 you intrusive questions about your family and personal life. This could be a sign of interest shown by another person trying to forge a friendship. The economy of India has drastically improved since the 1990’s, when it was once viewed as one of the world’s worst economies.In fact due to globalization and technology, India is now considered a major player in the global economy. John J.

Wild, Kenneth L. Wild and Jerry C. Y. Han (2006) suggest, “If India can achieve sustained economic growth similar to China’s it will become the first developing nation to advance economically by relying on the brainpower of its people. ” With the influence of Western civilization and companies from the west outsourcing jobs to India, small businesses and entrepreneurs seem to be growing trends to help business minded Indians stay competitive in the global economy.

In an observation by Wild et al. (2006) comparing India to China: Although China is growing very rapidly, some wonder if it lacks the skills needed to Take it to the next level of competitiveness-homegrown entrepreneurs that create new Products and processes, and western-style managerial skills that increase productivity. India, on the other hand, is blessed with large numbers of entrepreneurs processing Such talents. But India will need to prove that its economy can support such creativity And produce more world-class companies that can compete with the best of the west. p. 145) India had features in its economy similar to that of a communist or control and command dictatorship.

However, the country is now open to more multinationals and foreign direct investments in most industries, except for industries that possibly could hold strategic advantages. In addition, over the last twenty five years the economy has seen a upward trend in GDP without the boom and bust effect that other developing countries are effected by. India continues to impact the global economy in many areas.Shukla (2006) gives some examples of the products and services that India uses to remain a viable contributor to the global economy. “It is the largest producer of tea in the world, accounting for more than 30% of global production; India is the second-largest cement producer in the world; with more than 800 movies a year, India produces the largest number of movies in the world; India is the second largest fruit and vegetable producer.

” These are just some of avenues mentioned that makes India a potentially strong force to reckon with when it comes to international trade and globalization.The Information and Economic Opportunities in India 5 Technology field in India has emerged as a global competitor as well. In fact, many U. S. telecommunications companies continually outsource jobs to India companies for increased market share, and low cost wages.

Revenue is growing at a rapid rate in telecommunications in India. With technology continually advancing, competition on the increase, and demographics along with psychographics ever changing, companies with innovative and creative business minds could have unlimited potential to penetrate the Indian market.Senior analyst, Tom Bottle (2009), in an article entitled “ringing up big sales” comments about how cellular phones continue to grow in Asian markets, particular China and India, despite, the mercurial global economy. “The global economic crisis has reined in consumer spending around the world.

But it probably won’t significantly affect demand in developing countries for cellular phones, since they’re increasingly being seen as essential services. ” Yes! Like their Western counterparts, countries such as India view telecommunications as an essential and vital way to communicate and do business effectively.In fact, India’s Bharti airtel leads the nation in telecommunications services with an astonishing market share of 86 million customers. In addition to the increasing telecommunications service, agriculture also plays a vital role in the economy of India. It’s estimated that about 30% of India’s agriculture and other allied activities contribute to the Gross domestic product.

In terms of size, India ranks only second to the U. S. in land mass with approximately 168 million hectares. The agriculture plays a vital role in the livelihood, employment opportunities, and food, nutritional and ecological security.Some of the achievements of India agriculture include: being the largest producer of rice and tea in the world; coffee and cotton are also produced more in India than in other country in the world.

There are many other commodities that the Indians produce better than other global economies, but the important thing to focus on is how all these commodities combined can effect trade with other nations by having a comparative or competitive advantage. In an abstract article Deva E. Reddy (2004) defines how agriculture profoundly impacts the citizens and economy of India. Agriculture provides a livelihood for approximately 67% of the work force, contributes to nearly 33% of the gross domestic product, and accounts for 8. 5% of India’s exports. Economic Opportunities in India 6 Reddy also mentions, “About 4.

3% of India’s geographical area is used for agricultural activity. With it’s year round temperate to tropical weather, India has been said to be one of the world’s best places to grow and distribute crops. Furthermore, with such a vast population and urbanization playing a key component, agriculture is always in demand for the food and supply chain.Speaking of food, meals are another vehicle in which it’s intertwined with Indian culture. It allows families to keep close threads with each other unlike their American counterparts, which like to “grab and go.

” In India, meals are often sit-down affairs consisting of two or three main dishes characterized by sophisticated and subtle use of herbs and spices as integral part of the food preparation for such meals as Chicken, Lamb, Goat, Fish, and other meats. Spices are also used as appetizers before the main course and are an aid to help the digestive tract.Additionally, you can always find a bowl of rice to compliment your entree. Try eating with your hands instead of with utensils to experience true Indian culture. Yes, understanding Indian culture had it’s advantages; including penetrating into new markets, increasing profitability, and gaining a advantage over other countries as a whole. Strategic managers need to carefully plan and analyze the pros and cons of doing business in India.

Recently, their was a terror attack in the country of Maumbi where people where randomly shoot and killed and held hostage.Consumers may be more tentative about the countries security system, and the fear of other attacks may be on the countries mind. Although considered a peaceful nation, India has had its share of conflicts. One could reason that with India adapting to Western values and beliefs that it has been targeted by Anti-Western terrorist groups. Kiranmayi Bhushi (2009), a cultural sociologist at Indira Ghandi National Open University in New Delhi states: “You want all the materialism that the West has to offer, but at the same time, you want to say that you are a very cultured, which is partly a notion of what it means to be Indian. Yes, with all foreign investment, one must be extremely shrewd and educational about doing business abroad.

However, if the benefits outweigh the risk, then India could be an ideal place to grow and develop a company, or on the other hand, Economic Opportunities in India 7 Penetrating an existing market and reaping the benefits of a well informed, cultural savvy organization could be just the jolt one needs. Economic Opportunities in India 8 References Reddy, D. E. (2004). Indian Council of Agricultural Research (ICAR) Journal of Agriculture & Food Information, 6(2/3), 3-12.Retrieved March 23, 2009, from Academic Search Premier database.

Ringing up big sales. (2009). Canadian Business, Retrieved March 23, 2009, From Academic Search Premier database. Shukla M.

(2006). Your Guide to India, Retrieved March 23, 2009, from http://www. Executiveplanet. com Srivastava, M (2009).

Business Caught in Middle of India’s Culture War. Business Week Online, Retrieved March 23, 2009 from Academic Search Premier database. Wild, J. J. , K. L.

Wild, & J. C. Y. Han, (2006) International Business: The Challenges Of Globalization. New Jersey: Pearson-Prentice Hall