Sunday, December 24, 2006

Business in India??

As per Dun & Bradstreet India, the Composite Business Optimism Index of the Indian economy looking optimistic on growth prospects and for Q1 2006 improved by 21.1% over the same quarter of the previous year. The Composite Business Optimism Index stood at 167.7 points in Q1 2006 as compared with 138.4 points during the same quarter of 2005. However, the index registered a negative growth of 10.3% as compared with Q4 2005. In Q1 2006, all six optimism indices, namely, volume of sales, net profits, selling prices, new orders, inventory levels and employees, have registered increases as compared with the same quarter, last year. A summary of the BRIC report prepared by Goldman Sachs states that over the next 50 years Brazil, Russia, India and China - the BRIC economies- could become a much larger force in the world economy and if the things go right in less than 40 years, the BRIC economies together could be larger than the G 6 in US $ terms. By 2025 they can account for over half the size of G 6. Currently, they are less than 15%. Growth for BRIC economies is likely to slow significantly towards the end of the period with only India seeing growth rates significantly above 3% by 2050 .

India's economic policies are designed to attract significant capital inflows into India on a sustained basics and to encourage technology calibration agreements between Indian and foreign firms. Policy initiatives taken over the last few years have resulted in significant inflows of foreign investment in all areas of the economy, except those reserved for the public sector. Today, India is one of the most exciting emerging markets in the world. Skilled managerial and technical manpower that match the best available in the world and a middle class whose size exceeds the population of the USA or the European Union, provide India with a distinct cutting edge in global competition.

Indian Culture in Business and Business Opportunities

Understanding the culture in India is a key to successful business relationships. India has great potential in the global economy, yet it presents unique challenges. The Indian culture and way of doing business is often different from most Western countries therefore some orientation is often helpful. Understanding on the basics of office rent, housing, medical services, phone, Internet access, utilities and travel can ease your entry into the Indian business.
There are plenty of exciting business opportunities in India majority in IT and ITES. Some of them are listed for a reference.

  • Online Customer Support From India
  • E-Commerce Export Opportunities In India
  • Export Animations, multimedia, Graphics Or Other Content Products
  • Export Data Services
  • Start A Software Company
  • E-Commerce Business Opportunities Within India

Is India right place to Invest?

One of the most striking features about India, which any foreign traveler must appreciate, is the size and diversity of this country. Given its vastness and variety, there is no single way to understand India. In fact, one observer once commented that 'India as a nation exists only in the minds of its population.' Many travelers find India unpredictable and confusing because they fail to grasp this point. The following paragraphs will give a perspective to understand one's experience of India.

India used to be a closed control-and-command economy until the early '90s. Since then it has opened its economy, and allows foreign investments in most industries except a few strategic ones.
Over the last 25 years, the Indian economy has enjoyed an average annual GDP growth of around 6%, without any of the boom-and-bust cycles that are found in many other developing economies.
India's main stock exchange, the Bombay Stock Exchange, has around 6,500 listed companies, which is second only to NYSE. A total number of 9,600 companies are listed across India's 21 stock exchanges. It has the third largest investor base in the world.
The national currency is the Indian Rupee, and is denoted as 'Rs.' Prior to the 90s, the value of the Rupee was controlled through government intervention. Since the liberalization of the Indian economy in the 90s, the Rupee has become a floating currency.
Starting as one of the least-developed countries, India has emerged as a global player in many industries. Some examples:

  • It is the largest producer of tea in the world, accounting for more than 30% of global production
  • India is the second-largest cement producing country in the world
  • The Indian pharmaceutical industry ranks 4th in the world in terms of volume
  • Aside from the USA and Japan, India is the only country to develop its own supercomputer
  • India is among only six countries in the world to develop its own satellite-launch technology
  • With more than 800 movies a year, India produces the largest number of movies in the world
  • India is the world's largest center for diamond cutting and polishing
  • Since 2001-02, the Indian auto-component industry has grown very fast, and has emerged as the sourcing hub for almost all global automobile companies
  • India is the world's 2nd largest fruit and vegetable producer
  • In recent years, India has also emerged as a global player in Information Technology, and ITES [IT Enabled Services]
An abundance of low-cost labor and a reputation for high-quality work will, for the next several years, continue to make India one of the top outsourcing destinations for U.S. companies looking to cut IT development and maintenance costs. But a lack of industry-specific consulting skills and market presence in the U.S. could limit the appeal of Indian vendors for upstream IT consulting work in the future, observers say