OFFSHORING
|
Brief Profile and Key Economic Indicators
Official Name: Republic of India
Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan
Population: 1.13 billion
Languages: Hindi (national language primary tongue of 30% of population); English enjoys associate status but is the most important language for national, political, and commercial communications
Currency: Indian Rupee (Rs)
Capital City: New Delhi
Financial Center: Mumbai (formerly known as Bombay)
GDP: $1.16 trillion
Per Capita (PPP): $4,139 (2007-08)
U.S.—India Trade
Total Trade (2007): $41.6 billion
U.S. Exports to India (2007): $17.5 billion, a 75% increase from the previous year
Imports from India (2007): $24.1 billion, a 10% increase from the previous year
Business Etiquette
- Do use titles to address your Indian counterparts, such as “Professor” or “Doctor”. If he/she does not have a title, use “Mr.,” “Mrs.,” or “Miss.”
- Do wait for a female business colleague to initiate a greeting whether it is verbal or physical. Indian men do not generally shake hands with women out of respect.
- Do remain polite and honest at all times in order to prove that your objectives are sincere.
- Don’t be aggressive in your business negotiations—it can be interpreted as a sign of disrespect.
- Don’t take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands.
- Don’t refuse any food or drink offered to you during business meetings as this may cause offense (sample small portions at least). In addition, it is useful to keep in mind that traditionally, and religiously, majority of Indians are vegetarians and do not drink alcohol or smoke.
Market Entry
Key factors to doing business successfully in India include: finding good partners who have knowledge of the local market and procedural issues; good planning; aggressive due diligence and follow up; and patience and commitment.
The U.S. Commercial Service in India offers customized solutions to help your business enter and succeed in the Indian market. Its India-wide network of trade specialists will work one-on-one with you through every step of the exporting process, helping you to:
- Target the best markets
- Promote your products and services to qualified buyers
- Meet the best distributors and agents for your products and services
Market Entry Strategy
Finding partners and agents: New businesses must address issues of sales channels, distribution and marketing practices, pricing and labeling, and protection of intellectual property. Relationships and personal meetings with the potential agents are extremely important. Due diligence is strongly recommended.
Geographic diversity: U.S. companies, particularly small and medium-sized enterprises, should consider approaching India’s market on a local level. Good localized information is a key to success in such a large and diverse country. U.S. Commercial Service posts in New Delhi, Mumbai, Chennai, Ahmedabad, Bangalore, Hyderabad, and Kolkata provide indispensable local information and advice and are well plugged in with local business and economic leaders. Often multiple agents are required to serve each geographic market in the country.
Market entry options: Options include using a subsidiary relationship, a joint venture with an Indian partner, or using a liaison, project, or branch office.
Source: U.S. Dept. of Commerce, International Trade Administration
For more information, go to http://export.gov/india/doc_eg_india.asp
