1. INDIA Business & Culture

2. India Fun Facts The number system was invented by India. Aryabhatta was the scientist who invented the digit zero. Chess was invented in India. Algebra, Trigonometry and Calculus are studies which originated in India.

3. India Fun Facts (cont’d) The ‘place value system’ and the ‘decimal system’ were developed in 100 BC in India. India has the most post offices in the world. The largest employer in the world is the Indian railway system, employing over a million people. The current leadership of India is implementing sweeping changes to encourage international business in India, from privatization to the liberalization of trade.

4. Indian Workers in America 38% of Doctors in America are Indians. 12% of Scientists in America are Indians. 36% of NASA employees are Indians. 34% of MICROSOFT employees are Indians. 28% of IBM employees are Indians. 17% of INTEL employees are Indians. 13% of XEROX employees are Indians.

5. Indian Rules for Appearance Men are generally expected to wear a suit and tie for business, although the jacket may be removed in the summer. Women should wear conservative dresses or pantsuits. When dressing casual, short-sleeved shirts and long pants are preferred for men; shorts are acceptable only when exercising. Women must keep their upper arms, chest, back, and legs covered at all times. Women should wear long pants when exercising. The use of leather products including belts or handbags may be considered offensive, especially in temples. Hindus revere cows and do not use leather products.

7. Indian Rules for Behavior The head is considered the seat of the soul. Never touch someone else’s head, not even to pat the hair of a child. Beckoning someone with the palm up and wagging one finger can be construed as in insult. Standing with your hands on your hips will be interpreted as an aggressive posture. Whistling is impolite and winking may be interpreted as either an insult or a sexual proposition.

8. Indian Rules for Behavior (cont’d) Feet are considered unclean. If your shoes or feet touch another person, apologize. Gifts are not opened in the presence of the giver. If you receive a wrapped gift, set it aside until the giver leaves. Business lunches are preferred to dinners. Hindus do not eat beef and Muslims do not eat pork.

9. Indian Rules for Communications There are more than fourteen major and three hundred minor languages spoken in India. The official languages are English and Hindi. English is widely used in business, politics and education. The word "no" has harsh implications in India. Evasive refusals are more common, and are considered more polite. Never directly refuse an invitation, a vague "I’ll try" is an acceptable refusal. Titles are very important. Always use professional titles.

10. Geography Located in Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan Slightly more than one-third the size of the US Occupies only 2.4% of the world's land area Climate varies from tropical monsoon in south to temperate in north Terrain consists of upland plain (Deccan Plateau) in south, flat to rolling plain along the Ganges, deserts in west, and Himalayas in north Natural hazards: droughts, flash floods, severe thunderstorms, and earthquakes

12. Geography (cont’d) Some environmental issues include:  Deforestation and Overgrazing  Soil erosion  Desertification  Air pollution from industrial effluents and vehicle emissions  Water pollution from raw sewage and runoff of agricultural pesticides  Tap water is not potable throughout the country  Huge and growing population is overstraining natural resources

13. Demographics Supports over 15% of world’s population Current population of 1,065,070,607 (July 2004 est.) Ethnic groups:  Indo-Aryan 72%  Dravidian 25%  Mongoloid and other's 3% Religions:  Hindu 81.3%  Muslim 12%  Christian 2.3%  Sikh 1.9%  Other groups (Jain, Buddhist, Parsi) 2.5%

14. People English is the most important language for national, political, and commercial communication Hindi is the national language and primary tongue of 30% of the people The government has recognized 22 official languages

15. People (cont’d) The caste system reflects Indian occupational and socio-religiously defined hierarchies Four broad categories of castes, including a category of outcastes, referred to as "dalits." Source: http://www.indianchild.com/india_pictures.htm

16. Political System Form of government Parliamentary Legislature Parliament: Consists of President and the two Houses, known as Rajya Sabha (Council of States—6 year term) and Lok Sabha (House of the People—5 year term) Executive Consists of President (5 year term), Vice-President (5 year term) and Council of Ministers led by the Prime Minister Judiciary Independent of executive—judges are appointed by the president and remain in office until they reach the age of 65

17. Business Culture: How To.. It is advisable to schedule your appointment several months in advance. If you are making your appointments before coming to India, do emphasize that you will be in India for a short period of time, if this is the case. It is also useful to reconfirm your meeting a few days before the agreed upon date Though not essential, it often helps in getting an appointment if you have an Indian contact. There is a distinct difference in the cultures of the government departments and business organizations. Compared to a business organization, it is normally more difficult to get an appointment with officials in a government department. Also, in the government departments, there is a greater likelihood that your appointment may be rescheduled or that you may be kept waiting for as many as several hours before you actually meet the person. Do be prepared for last minute changes in the time and place of your meeting. It is useful to leave your contact details with the secretary of the person, so that, in case there are changes, you can be informed.

18. Business Culture: How To… It is advisable to make the effort to be early in order to keep your appointment. In most Indian cities, the roads are quite crowded, and during high-traffic hours, it can take you a long time to reach your destination. Normal office hours are 10:00 a.m. to 5:00 p.m. However, in some large cities [e.g., Mumbai], some places of business start working earlier to avoid congested traffic while commuting. Increasingly, among the business organizations, there is also a trend towards a longer working day, which can start as early as 7:30 a.m. and last till 8:00 p.m. Normally, lunch is for one hour, between 12:00 p.m. and 2:00 p.m. The work-week differs across organizations and sectors: Government offices work Monday-Saturday, with the second Saturday of the month as an additional holiday; most business organizations follow a five-and-a-half day work week; and, most IT and software companies have a five-day work-week, with Saturday and Sunday off.

19. Business Culture: How To… Like the rest of India, Indian business culture is also very diverse and heterogeneous. While the following points would help in negotiating a deal, it is important to be sensitive to, and appreciate, the diversity of Indian business culture, which varies across regions, sectors, and ownership patterns. English is the common language for conducting business, and therefore, it is not necessary to get your card translated into any Indian language. If you are not from an English-speaking country, then you must get your brochures and other promotional material prepared in English. In addition, the pronunciation varies widely across the country, which can sometimes make it difficult to understand spoken English. You can, however, request a person to repeat what s/he has said slowly. Such a request from a foreigner is not considered as a discourtesy. In general, Indians are cautious in accepting a new idea or proposal. Openness to a new idea depends not only on its quality, but also on its source and endorsement. That is, information about who else has implemented it or who has proposed it has a major influence on the decision about a new idea. In making a proposal, you must include such details accordingly.

20. Business Culture: When… The business and official work in India are done using the western 'Christian' calendar. The convention for writing dates is dd/mm/yy, e.g., December 25th, 2004 will be written as 25/12/04. Most Indians take vacations during the summers [April-June] and Mid- December to Mid-January. In addition, in Northern and Eastern India, a favorite time for taking vacations is around October, which coincides with Dussehra/ Pooja holidays [see below]. India has a long list of holidays. Since India is a culturally diverse country, different parts of the country also celebrate festivals which are regional in nature. Thus, each state also has its own list of holidays. You can get this list from the Tourism Departments of the particular states. Most of the companies pay their employees on a monthly basis. Hourly pay is not practiced.

21. Business Opportunities Energy Telecommunications Insurance and Financial Services Manufacturing Transportations Urban Development Other Areas of Infrastructure

22. Investment Risks Sovereign Risks Avoid investing in the extreme North Eastern parts of India because of terrorist threats. Commercial Risks Seen in any country; India has several market research firms that can study the demand/supply for any situation.

23. Investment Risks (cont’d) Risk of Foreign Sanctions Nuclear armed and seen as a threat to some countries such as the United States