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Indian Market

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INDIAN MARKET

M. More morejbplee@aol.com They are big importers of gold, because they don’t produce gold.
Careful with the caste and beliefs when you open your business in India, and they will want to know personal information about you.
29 states (provinces) in India, with its own language, created during the English period
Indian’s People Party (BJP)

Official Languages: English and Hindi
Culturally, people are very different from one to another. In India, everyone is a minority.

Gandhi: independence but not relevant for the economy
Nehru (socialist) created a good economic system

Indian market is going to be a barrier for the foreign investors because they are not sue of what Indians will do with their money for example

Oil, armaments and gold (800 tons per year imported): buy a lot

India is a member of the G20, Prime Minister: Mr. Modi

India is a federal state (like USA)
Central government is located in Delhi, there is a parliament in Delhi, and every state elects a number of members elected for 5 years. There is an assembly in each province, elected by the people living in the state.
The powers are divided between the central government (taxes collection, etc.) and the state government (controls lands, education, etc.)

One judicial structure: Supreme Court, which is in Delhi. Every state has a high court
The court is the same for all problems
Since 1991, foreign investments are growing.

If a company wants to start an industry: 3 sorts of offices that can be established in India:
- Liaison Office: no revenue can be dealt by the company, going with a parent company, information center for export/import; very basic company
- Branch Office: More elaborate office because it is the parent company that has to spend the money to open the office. The company can only deal in its sector (i.e.: L’Oreal  cosmetics)
- Project Office: when an Indian company enters in a contract with a foreign company, in that case it can be established by the parent company in India

Contact INVEST INDIA and they will give all the advices in order to set up the business or industry

Laws and regulations, when you want to establish a company in India (2 types: Private Limited Company

They have divided each city with grades:
Grade I: Mumbai, Delhi, Bangalore
Grade II: Pune, Mysore, Hyderabad (real estate value is a bit low)
Grade III

Import/ Export in India

Finance Ministry
Directorate General of Foreign Trade (has to issue the export contracts)
Non-prohibited materials must be used.

2010: Food Safety authority  Green Dot, Brown Dot

IT

India became well-known in IT because they are very good in technology
They don’t lack skill labors on this sector, but they do in the others
LABOR
In the late 1980s-1990s, what happened is that the US economy was trying to find way to make more profit. Since the labor cost was very high in the US, they put their back office (accounting, phone service, etc.) in India
 Business Process Outsourcing (BPO)
They became famous because of the Call Center Operations – they would go in Bangalore

 Information Technology Enabled Services (ITES) similar to BPO but the collection of data is very vast
These bring a lot of foreign outsourcing, investment

PRICE OF CALLS – very expensive 20 years ago (before 1991)

They created institutes of technology: starting to create many engineers in India
Silicon Valley people have seen many Indian coming

IT sector of India: BANGALORE
It became IT sector in India because there are defense, space and technology, and they needed computers

Car market is exploding, every year; thousands of cars are coming into India (mostly foreign). But there are 3 main car brands in India: Tata, Mahindra and Maruti (from Suzuki) (Chennai)

Bangalore has a very good position in IT throughout the world; IT field is opening so the market is really growing

India is very good for software but not for hardware, they have good operators
700 million Indians use cellphones (Samsung, Ericsson, Chinese companies)

The Red corridor (connected to Nepal) with many mineral resources, but the tribal populations occupies it.

The real estate prices have gone up a lot in the big cities!

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