India – open for business

India – open for business

India is a country in South Asia. It is the 7th largest country by area and the second most populous country with over 1.2 billion people. It shares land borders with Pakistan, China, Nepal, Burma and Bangladesh. Four world religions (Hinduism, Buddhism, Jainism and Sikhism) originated here.

India gained independence from the British in 1947 after Mahatma Gandhi led his struggle using non-violent resistance. For the last couple of decades the country has largely been viewed as an outsourcing destination where organisations from many countries could reduce their cost-base by transferring work to a country with a large number of highly educated graduates who spoke good English but whose wage demands were considerably lower than in the West.

This approach is rapidly changing and the country is increasingly recognised for what it will soon become – the world’s largest potential market for goods and services. With a rapidly growing middle class comes the need for all those commodities that have been lacking in India in the past – not only consumer goods but also infrastructure development and financial and legal services.



India, therefore, represents a huge business opportunity but there are also risks and barriers to entry. Whilst the government is trying to open up the country to foreign investment, many sectors remain stubbornly closed and there is considerable internal pressure to keep these entry barriers strong. Combined with a complex web of central and states-based governmental systems and it is understandable why many organisations are wary of entering the India market space.

Cultural differences can also be an obstacle. Indian business culture and etiquette is the product of thousands of years of the influence of Hinduism with an overlay of Islam, the British Raj and more recent Western business systems. Understanding the impact of a hierarchical mindset, the complex communication patterns and a myriad of other subtleties can help you refine your approach and hugely improve your chances of success.


Share your Indian business experiences

Sources: Wikipedia, World Business Culture