Business Profile
Economy: India’s industrial economy, which has invested much in advanced technology initiatives such as digital communications and space research, contrasts with the poverty that persists, particularly in rural areas. The country ranks among the top dozen in the world by gross national product. Roughly two-thirds of the population are involved in agriculture, both subsistence – mainly cereals – and cash crops including tea, rubber, coffee, cotton, jute, sugar, oil seeds and tobacco. Growth in this sector has been steady despite frequent damage through drought and flooding.
India’s energy requirements are met by oil, most of which is imported despite the growth of indigenous production, and hydroelectric schemes, mostly based amid the powerful northern rivers. Mining is a relatively small sector, but does produce iron ore and cut diamonds for export. India’s main industrial development has been in engineering, especially transport equipment (a major export earner), iron and steel, chemicals, electronics and textiles. Economic reforms were put into effect throughout the 1990s, under which trade has been liberalised, the sprawling public sector cut back, and state-owned industries sold off. The plan was approved with the IMF, which supplied substantial credits to the Indian treasury.
After the hiatus following the 1997 Asian financial crisis, the economy has resumed its healthy growth rate, currently just over six per cent per annum, while inflation is just five per cent. Indian colleges and universities are turning out large numbers of graduates with advanced technology skills who are now the target of employers in Europe and North America (where there is a shortage of qualified IT workers): the Indian economy is as yet not sufficiently developed to absorb this resource. Further reforms, especially improvements to the national infrastructure and basic services, are now seen as the priority for central and regional governments. Foreign direct investment has reached an all-time peak of over $4 billion annually and is set to continue rising. Japan and Russia are India’s major trading partners, among a wide range of extensive bilateral economic relations stretching from Australia and the Pacific Basin through Western Europe to the USA, Canada and Brazil.
Business: English is widely used in commercial circles, so there is little need for interpreter and translation services. Business cards are usually exchanged and should be presented with both hands. When introduced to someone, wait to see if your host greets you with a Namaste, the traditional Indian greeting in which hands are clasped as if in prayer in front of the chest accompanied by a little bow, or offers the hand. When eating, visitors should wait to see if their host uses fingers or cutlery, and follow suit (it is essential that only the right hand is used for eating). All weights and measures should be expressed in metric terms. Indian businessmen welcome visitors and are very hospitable. Entertaining usually takes place in private clubs. The best months for business visits are October to March, and accommodation should be booked in advance. Office hours: Mon-Fri 0930-1700, Sat 0930-1300.
Commercial Information: The following organisations can offer advice: Ministry of External Affairs, South Block, New Delhi 110 011 (tel: (11) 2301 2318 or 2301 1165; fax: (11) 2379 3062) or Associated Chambers of Commerce and Industry of India (ASSOCHAM), 11 Community Centre, Zamrudpur, New Delhi 110 048 (tel: (11) 26292 310-21; fax: (11) 2645 1981 or 2629 2319; e-mail: assocham@sansad.nic.in; website: www.assocham.org); or Federation of Indian Chambers of Commerce and Industry (FICCI), Federation House, Tansen Marg, New Delhi 110 001 (tel: (11) 2373 8760-70; fax: (11) 2332 0714 or 2372 1504; e-mail: ficci@ficci.com; website: www.ficci.com).
Conferences/Conventions: The main congress and exhibition centres in the country are Delhi, Mumbai, Kolkata (Calcutta), Chennai, Agra, Jaipur, Udaipur, Varanasi, Bhubeneswar, Hyderabad, Bangalore and Panaji. In addition, top-class hotels and auditoria with convention and conference facilities are found throughout the country. Air India, Indian Airlines and leading hoteliers and travel agents are members of the International Congress and Conference Association (ICCA) and together they provide all the services required for an international event, including the organising of pre- and post-conference tours. There is a particularly useful booklet which gives information on India in general, and in particular on conference facilities, called India: A Convention Planner, available from India Tourism (see Contact Addresses section).
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