Business in India

India is the largest democracy of the world always advancing and forward-moving towards delicensing and deregulation. India achieved GDP growth rate of 8.9 percent in the first quarter of 2006-07. With a vast population of skilled labour force, cost effective production facilities and a large domestic market, India can prove to be your good business destination. Progressive tax reforms and Progressive opening of the economy to FDI makes India a preferred business destination.

[caption id="attachment_644" align="alignleft" width="294" caption="Cyber Towers the software landmark of Hyderabad. Located at Madhapur surrounded by many software majors like Wipro, IBM and Accenture, the building is a huge tourist attraction."]Cyber Towers Madhapur Hyderabad[/caption]

On technology collaboration, a liberal policy is being followed and the Portfolio investment regime has also been liberalized. Investor friendly policies are being carried and followed. Restructuring of public enterprises are in full swing and privatization process is being accelerated. India has a good network of research and development.

You can find business opportunities in almost all Indian states and union territories as the availability of raw materials and natural resources is near proximity. The development opportunities are further being expanded in all states of the country. There is a magnitude of diversified investment opportunities across the whole of India and the respective state governments are taking advanced measures, such as development of the infrastructure, powerful and conducive policy formulation and stable to take advantage of it. The state governments have drawn up some of the finest and favorable policies for investors from around the globe in terms of incentives and concessions offered by various sectors such as biotechnology, infrastructure and information technology among others, to promote Foreign Direct Investment (FDI) in their respective states. Serious efforts are being made to attract greater inflow of FDI by taking several actions both on policy and implementation front. Every state is now attracting and luring foreigners for direct investment in their states and this has proved to be beneficial for the potential investor. Over the years, FDI inflow is increasing in the country and India has huge potential for absorbing greater flow of FDI in future also.

Investments in all sectors have risen. Agriculture, which contributes for 18.5 % of GDP is an important and vital sector of the Indian economy. India has emerged as the highest producer of milk, largest exporter of cashews and spices and the second largest producer of fruits and vegetables in the world. In the manufacturing sector also, India has seen impressive growth with the number of multi national corporations like the Coca-cola, Hyundai, Ford, Suzuki etc. sustaining and thriving in the Indian market . A number of popular stores, brands and corporate have established their business offices and more growth in terms of personnel is being carried out every now and then giving in monetary returns. Businesses have witnessed higher profits and sales, increased turnovers over the years and this is largely responsible for the businesses inducing and injecting more capital in their already running successful businesses. Services sector has also experienced great turnovers with the hotel, transport and communication services. Financial services like banking, insurance and real estate are also witnessing growth.

Economic and political stability in the country is also there. India is now in the advent of the second generation of reforms aimed at greater and faster integration of the Indian economy with the world economy. As a result of the various policy initiatives and measures taken, India has been changing rapidly from a restrictive regime to a liberal one, and encouraging foreign direct investment in almost all economic activities.

India has surprised the world with its stunning economic growth and all investments have been rewarded. According to figures, 25% of the people in the whole world under the age of 25 are in India, and a full 80% of the Indian population is under 45 years old. That can also be good news as for economic growth, youth population is necessary leaving no doubt that India will be one of the largest economies of the world in the year 2050.

Business Customs in India

Each and every country is distinguished by its unique culture, customs or traditions. Business customs of India would definitely be different from other countries. While entering into a business relation with India it is necessary that one have an insight into the business etiquette in India or the prevalent business culture in India.

A familiarity with the business customs of India not only demonstrates a respect for the country but also creates a feel good factor. Greeting in the form of ‘namaste’ is an important part of Indian etiquette. Similarly, the Indian custom teaches us that guests are treated with infinite respect and courtesy. Among other positive factors nourishing business culture of India is the fact that majority of Indians are extremely proficient in English and have good communication skills.

But there are also certain hurdles, big and small, while carrying out business propositions within and with India. Business customs of India often give very little or no importance to time management and adherence to punctuality. Moreover, the Indians find it very difficult to give ‘no’ for an answer, which might pose as a bit of a hitch in closing business deals.

When it comes to business dealings involving government agencies, bureaucratic interference and lack of professionalism might cause temporary delays in processing. Hierarchy plays a very important role in major decision making policies. In the Indian business culture, the decision making authority usually sits high up in the chain.

Business Oppurtunities in India

Business opportunities in India have opened up plenty of exciting venues in the recent times. The available options have been noticed to have widened in the recent past. Healthy domestic economy and easy access to capital have fueled many new business opportunities in India. These opportunities have catered to the various segments of the Indian business scenario. The most popular categories of business ventures are Internet related services, outsourcing technology, e-commerce and software development.

There are several factors influencing business opportunities in India such as socio economic changes and their effects on the retail sector, factors influencing durable goods purchases, brand preferences of young consumers, media influence on consumer choice, cultural influences, traditions, regional tastes, etc. India’s commercial climate have always helped foreign companies setting up operations here and have also helped these companies to streamline their investing options in tandem with their ever evolving conditions.

Some business opportunities in India that have been known to excel are online customer support due to the huge qualified labor pool of good English speakers; e-commerce export opportunities because of the availability of indigenous herbs, spices, etc.; exporting multimedia, animation, graphics and other content related products due to plenty of skilled creative labor; export data services due to its global demand and easy availability of skilled labor; and last but not least, starting a software company because of the existing pool of high quality software programmers.

Doing Business in India

For doing business in India you have to first decide on the industry and its location, select technology and equipment and decide on the source of raw materials. It is mandatory that you do a cost benefit analysis and think of ways to minimize cost of production and maximize profit margins.

The major challenges for starting and doing business in India are related to dealing with construction permits, obtaining necessary licenses, completing required notifications and inspections, employing work force or hiring and firing laborers, registering property, getting credits, paying taxes, enforcing contracts, trading across borders and closing business deals.

The cost involved in registering property in India and also the percentage of income that entrepreneurs have to pay as taxes is a bit on the higher side compared to other countries. On the other hand, the costs and time involved in importing and exporting shipment of goods are comparatively less in India. There are also flaws in India’s existing bankruptcy laws and the entrepreneurs who are seriously thinking of doing business in India should be aware of the procedural and administrative flaws in bankruptcy processes in India.

Starting a business in India requires a lot of formalities to be completed. These formalities range from filing a proposed name of the company to the Registrar of Companies to obtaining company seal, and tax account number, procuring a certificate of incorporation, registering under the shops and establishment act and so on and so forth.

Small Business in India

The importance of small business in India is increasing day by day from the economic perspective of the country because small business now encompasses almost 95% of the country’s industrial units. Small business in India is bound to be in the limelight as it makes the greatest contribution to India’s economy.

Small business in India produces thousands of varied products and in the process employs approximately half of the total private sector work force. The giant workforce that this sector is supporting exceeds three lakhs and the product value from small business in India has surpassed an astonishing Rs. 587.19 crores.

India is a major hub of business possibilities and innovation. Even then small business in India has seen minor setbacks due to the lack of a systematic approach and sustainable long-term plans. On one hand it is filling the niche markets and on the other hand it is being subjected to increased competition from all corners.

The economy of India has been booming with explosion of entrepreneurial opportunities and free enterprises. But sadly enough, the invaluable contributions being made by small business in India is being overshadowed by the growing importance of India in the global scenario as a major industrial hub. A case in point is where many small retailers are losing their existence with the infiltration of organized retail in a major way into the country’s economy.

Home business in India

With the advent of Internet, home business opportunities in India have increased manifold. There are innumerable websites with scores of advertisements catering to various types of home business. Home business can be categorized into the following popular types: work from home for moms and housewives; work from a specific city, state or part of the world; home business for retired or experienced personnel; business opportunities for handicapped; business related to articles and content writing, accounting; data entry, catering and more.

While going though the various websites promoting home business, one needs to be very careful. If you have a computer at home and an Internet connection you have the options of taking up the business of sending bulk SMSs or launch your own blog and start earning money through blogging online.

While choosing a home business, you need choose one that fits your requirement best and at the same time generates maximum profit with minimum investment. Do a bit of research and make sure that the company you have chosen is running a legitimate business.

It has been found out through surveys that working form home or running a home business boosts job satisfaction greatly. Trends show that people engaged in home business have increased almost 100% since 1990. Home business gives people with specific qualification or aptitude the much needed flexibility. Home business trends show a high popularity and demand for home renovation services, pet-based products, catering services and cleaning services.