Business Facts About India

In this article I’ll tell you about Business Facts About India. Lately, India has become one of the best destinations for foreigners and even moviemakers. This is of course because of good reason and success stories coming from this Asian country.

Business Facts About India

Some of the business facts about this ancient country are,

– India has a stable political system based on parliamentary democracy

– India is emerging as one of the best preferred investing destination

– India is a vibrant and flourishing capital market.

– India’s Bollywood comes second after US Hollywood

– India has a highly developed stock market system with over 9000 listed companies

– India has the most expansive and rail and road network in the world

– India has an abundant supply of raw materials that satisfies the economy

– India has an estimated 350 million middle class out of the 1 billion plus population

– India comes fourth in the whole world based on purchasing power parity (PPP)

– India has a developed modern banking system, with state of the art online banking opportunities and great internet banking services for businesses.

Business etiquettes of doing business in India

– In India, professional terms are highly valued. Advanced education levels like Masters, PhD etc are listed on business cards and mentioned in all formalities and introductions.

– one’s status in the society is determined by age, level of education and professional

– when it comes to business matters, it is personal and it is done in one own time

– appointments are only scheduled during morning hours or early afternoons only

– you cannot schedule a meeting during their holidays especially religious holidays

– one should always remember that most Indians are vegetarians

– Hindus do not eat beef and food is eaten using the right hand


In India, the major kinds of offshore outsourcing are as follows,

– direct offshore

– indirect offshore

– captive


A special comprehensive service agreement between the parties and they should be agreed upon and complied with.

Seven steps are followed when entering in an outsourcing agreement.

– Memorandum of Understanding

– Outsourcing Agreement

– Agreement Negotiations

– Service Improvement

– Renewal or Termination

– Service Commencement


There are only five types of business practiced in

India today and they are,

Sole proprietorship- has one member with no limited liability

– Partnership- consists of two or more members with no limited liability

– Unlimited company- this one does not restrict its shareholders liability

– Public limited company- this is open to the public and ha s7 or more shareholders and at least 3 directors whose liability is limited

– Private limited Company- this is not open to the public and it has from 2 to 50 shareholders whose liability is limited

For a foreigner, the following business entities are available

– Liaison Office

– Project Office

– Branch Office

– Stand Alone Branch Offices in Special Economic Zones(SEZ’s)

– Agency

In India, you will be permitted foreign direct investment (FDI) or collaborations in almost all business sectors apart from,

– Atomic Energy

– Mining of minerals like iron, gold, diamonds

– Coal and Ignite

– Railway transport

– Arms and ammunition

Special Economic Zones

These are duty free foreign territory for trade operations and duties and tariffs. The benefits of SEZ’s are that they provide internationally competitive free environment for exports. They also come with a 100% income tax exemption for a period of five years. There is also a reimbursement of Central sales Tax paid on all domestic purchases.

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