India presents one of the strategic growth areas for e-commerce companies all over the world. In fact, this has so much been the case that various international brands such as Amazon and Alibaba are seeking to find investment opportunities in the Indian market. This paper considers highlights in Indian culture, historical events that could lead to venture success or failure, as well as various descriptive events in the business environment of India.
In the last three decades India’s economy has been marked as one of the fastest growing economies in the world. This has made it an attractive investment destination in the world. With the introduction of foreign direct investment (FDI) in several sectors, India has become an eye-catching destination for overseas investors. The relaxation of norms by the government has also created a vast opportunity for foreign players, who are competing for a greater role in the Indian market. Sectors projected to do well in the coming years include automotive, technology, life sciences and consumer products (Pekkanen, 2014).
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A large proportion of the population is located in rural areas. This makes farming the largest source of employment. In most parts of the country, some farmers produce cash crops for sale in urban markets while in other areas, plantation crops such as tea, coffee, cardamom and rubber are produced for export. Many countries import their food stuffs and raw materials from India, due to its rich agricultural production.
Culture and Beliefs in Business
India is a large country and the second most populous nation in the world. It’s a diverse nation rich in different identities, languages, cultures and religions. Hinduism is the prevalent faith in the country. It is very difficult to make generalizations about Indian culture. 80 percent of the businesses in India are family owned. This is because family is a critical part of the Indian culture. English is widely spoken in business and is one of India’s official languages (Kwik Essential, 2015). Business with Indians is based on personal relationships, thereby stressing the need to have third party interactions with locals when conducting business with Indians.
Significant historical events affecting the business success in India
With the event of so many economic reforms, India has been through ups and down. These reforms and policies have greatly affected the Indian economy both positively and negatively. Demonetization has led to mixed success. Last year, Prime Minister Modi declared that India’s highest-denomination banknotes accounts for 86% of cash, but will be banned to reduce black money. This has proven to have long-term benefits as it has increased the number of digital transactions being conducted within India’s economy, making it easier to track and to tax. The government issued new Rs 500 and introduced Rs 2,000 note as replacement.
India Economic Survey describes the Goods and Service Tax as a bold new experiment in the governance of India’s economy. This could push India’s GDP growth to between 8% and 10% which is very beneficial (Gilmartin, 2009). Establishment of a public sector asset rehabilitation agency (PARA) is a smart move for India. This will take control of the largest, most difficult cases, and take politically tough decisions to reduce non-performing assets at Indian banks. (Gilmartin, 2009). These and other changes have made the Indian economy a very attractive investment area for willing buyers and sellers.
References
Gilmartin, D. (2009). Empire, Identity, and India: Peasants, Political Economy and Law. Chicago: The Historian.
Kwik Essential. (2015). Guide to India - Etiquette, Customs, Culture & Business . Retrieved from Kwik Essential: http://www.kwintessential.co.uk/resources/guide-to-india-etiquette-customs-culture-business/
Pekkanen, S. M. (2014). Oxford handbook of the international relations of Asia. Oxford: Oxford University Press.
Rasure, K. A., & Hungund, S. M. (2018). Demonetization: an effective strategy to reduce black money. Delhi, India: Manglam Publications.
