Doing Business In India Essay

2285 words - 10 pages

Doing Business in India

By Group 2
Aditya Kaushik
Balajee Varradan
Mansi Chawla
Priyanka Deshmukh
Sraddhanjali Jena
Vikram Pratap Singh

DOING BUSINESS IN INDIA
Introduction
According to the World Bank and the IFC, India is at 132nd rank among the 185 economies in the world in the ease of doing business. In spite of improved regulations and a number of favourable policies for trading across borders, India still continues to prove tough for starting and running an enterprise in the country. Moreover, India is also the lowest ranked among the BRIC nations. Because of its strategic geographical location in the Asia pacific, India has a huge potential to be the hub not only for IT ...view middle of the document...

The current UPA Government has become associated with corruption and scams and the political and social risks associated with a particular locality, or state are also influencing doing business in India. The key challenges with regard to the political environment are lack of transparency and accountability. This affects the time required for many regulatory clearances and also makes these processes a complex one. India’s economic growth has been affected by uncertainties in the domestic policies, concerns about governance, slack external demands and poor monsoons in the very recent months. India is currently going through a phase of lowest growth at 6.8%. Inflation is affecting the disposable income levels of households which ultimately influence the slowdown of the economy. On the socio cultural front, India’s growing population and diversity makes it a great market for businesses to grow and thrive. More than 50% of the country’s population is young at below 35 years of age. Although rural population is higher at 70% compared with Urban, rapid urbanization in the country is being fuelled by financial inclusion policies, infrastructure projects, and the growing emphasis on education and health by the government. India is ranked 134th out of 187 countries in terms of human development as per the Human Development Report 2011, which was lower than some of the poor African nations. There is less penetration of economic development to the rural mass, high illiteracy rate, low healthcare and sanitation in the rural areas despite Central government spend on social services rising from 7.9% of total expenditure in 2004–05 to 14% in 2010–11.
India’s focus has also been directed at technological innovation and growth. The Government has declared 2010-20 as the “Decade of Innovation”. The new STI policy of the country encourages a strong and viable science, research and innovation systems. The present level of investment in India for R&D in science and technology sector is 0.88% of GDP. However, the private investment in R&D is only 0.23% which is quite low compared with other developed nations and emerging economies. The digital revolution has been continually helping growth in IT-BPO sector and the telecom industry. The growth in the urban infrastructure is one of the critical advantages favourable to starting businesses.
While, the socio-economic factors attract entrepreneurs and investors, the legal framework of the country is still lagging in its rigorousness. From doing business point of view, labour laws, company laws and taxation laws in the country are of particular importance. The main issue is that, majority of the population is employed in the unorganized sector where labour laws do not apply. Even where the labour laws apply, there is a problem of enforcement and avoidance. Moreover, the laws are not contemporary and are extremely archaic. For the corporate too, there are comprehensive reforms required in the Companies act in...

Other Essays Like Doing Business in India

Travel Intermediaries Business in India Essay

523 words - 3 pages 21stOctober, 2016 – Navi Mumbai, India: Market Report on India present the latest report on “Travel Intermediaries Business in India”, the report also details out Market Value by Product - Accommodation Only, Travel Only, Car Rental Only, Tourism Packages and Other Products & Services. Summary Travel Intermediaries (part of a business that assists in selling travel products and services to customers, which may include airline tickets, car

A REPORT ON SUCCESSFULLY DOING BUSINESS IN CHINA

1543 words - 7 pages INTRODUCTIONTo do business in China successfully, a sincere willingness to learn and a new way to communicate in business is what one needs. To succeed, one must have an understanding of their counterpart's country, culture and ethics. This report will provide a general overview of China. It will also provide detailed information on doing business with China in relation to power, role and status, business decision making, social behaviour, work

The Cost of Doing Business in America and Japan

1388 words - 6 pages The Cost of Doing Business in America and Japan A manager or company has many factors to consider when deciding to conduct business internationally. Besides being sensitive and respectful to the foreign country’s culture, one must also be cognizant of how the culture influences the cost of doing business. To illustrate this point, consider the following scenario of countries A and B: Both countries [A and B] are characterized by low labor

Cultural Differences in Doing Business Between the Netherlands and Uk

2159 words - 9 pages Cultural differences in doing business A comparison between The Netherlands and The United Kingdom Introduction. Facts and figures. 2 Business structure 3 Meetings 5 Team work 7 Communication styles 8 Dress code 10 Introduction. Facts and figures. The purpose of this research is to find the differences in business culture and behavior of The Netherlands and The United Kingdom. The similarities are much more numerous than

Multinational Corporation Based Outside Africa Have to Become More Socially Aware When Doing Business in Sub-Saharan Africa

517 words - 3 pages {text:bookmark-start} {text:bookmark-end} *“Multinational Corporations based outside Africa have to become more ‘socially aware’ when doing business in sub-Saharan Africa*”. “From the very beginning of critical thought, we find the distinction between topics susceptible of certain knowledge and topics about which uncertain opinions are available. The dawn of this distinction, explicitly entertained, is the dawn of modern mentality. It

Jsb Market Research : India Oil Markets, 2013

2491 words - 10 pages industry. Information on the top companies in the India including business description, strategic analysis, and financial information. Product and brand updates, strategy changes, R&D projects, corporate expansions and contractions and regulatory changes. Key mergers and acquisitions, partnerships, private equity and venture capital investments, and IPOs. Reasons to buy Gain a strong understanding of the country’s energy market

China and India Racing Forward

1532 words - 7 pages . The car market is closely tied in with the larger picture of the economy, which has had a brighter outlook recently for China and India as their GDP has been rising. As the economy continues to grow in these countries, people that live there are beginning to enjoy luxuries and improve their quality of living. Buying cars is one way they are doing this, so the rising economy has caused a rise in vehicle demand. Lastly, China and especially India

Times of India

4742 words - 19 pages • A strongly dedicated and innovative product development team. • Largest infrastructure for advertising and circulation sales. • A strong sales team. • Dedicated employees. • Strong business strategies. • The Times of India has wide range of brands in different regional languages which cover large range of audiences or readers. • Today TOI is India’s national newspaper with editions spread across

Starbucks to India

1371 words - 6 pages stable power supply source. The concept of quality electric power, telecommunications and also roads are a hurdle which has not been really addressed yet in India. Due to these infrastructure problems which exist, this has caused some hesitance from certain countries when it comes to doing business in India. It is a unspoken fact that pretty much any country who decides to pursue opening a business in India will be responsible for the cost of

Comparative Attractiveness of China and India

2374 words - 10 pages , suggesting Australian companies to develop more details for its business contracts and business plans in doing business in the two countries (Hofstede Website, 2013).  Long-term orientation (LTO) in China is highest among all, whilst the LTO in India is much higher than that in Australia, showing that the ways of dealing with traditions and relationship being important in China, and somehow important in India as well. 3.3 Legal Conditions As

Chindia or India Versus China ?

1007 words - 5 pages to function in India effectively. Moreover, India is still a protectionist country and the foreign direct investment is restricted in many states in India. The foreign investment is about 50 million dollars per year for China against 40 million dollars for India. In addition, both governments are wasting money on unproductive endeavours, instead of reforming the economy to make doing business easier and in turn attracting more investment and

Related Papers

Doing Business In New Zealand Essay

2599 words - 11 pages Doing Business in Denmark TABLE OF CONTENTS PHYSICAL FORCES…………………………………………………………………………………………………………3 SOCIOCULTURAL FORCES……………………………………………………………………………………………..4 ECONOMIC AND SOCIOECONOMIC FORCES…………………………………………………………………6 COMPETATIVE AND DISTRIBUTIVE FORCES………………………………………………………………….7 MARKETING MANAGEMENT ASSESSMENT………………………………………………………………….8 APPENDICES APPENDIX A – PHYSICAL MAP OF DENMARK……………………………………………………………….9 APPENDIX B – GROSS DOMESTIC

Foreign Business In India Essay

2667 words - 11 pages are a major issue and contradictions with their cultural and social believe will have an adverse effect in the overall success of the company intending to invest in their region according to an article published in CNN by team Hume implied that foreign executives doing business for the first time in India can be a bewildering experience, with different customs imbibed in their business, bureaucracy and the level of population, however, because

Cultural Aspects Of Doing Business In Brazil

1093 words - 5 pages Cultural Aspects of Doing Business in Brazil When doing business in global environment, being aware of impact of cultural differences is one of the keys to international business success. Since cultural differences will affect you and your business success directly. Accordingly, knowing the cultural differences between target country where to startup business and home country is a significance factor to sustain the business. Here are some

Cultural Changes In Doing Business Oversees

1735 words - 7 pages integrity. The US companies are defined by a few basic characteristics. They have a willingness to take on challenges and explore new ideas; they have the drive to excel and the determination to perform their best. The embrace hands on mentoring and dedication to the success of the people. These are all examples of how the culture and values are governed in the US business environment. If Steve Kafka, has these same values and principles doing