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India's Economic Juggernaut
India is the fastest growing free market in the world with a GDP rate of 8.5 percent in 2006. India now ranks third, after China and the U.S. as a preferred destination for foreign direct investment. Prosperity has helped India's large middle class to swell to over 250 million fueling demand for consumer products.
New service industries are emerging. With its large pool of educated, English speaking professionals, the U.S and other countries are outsourcing huge numbers of customer service and technical support jobs to India. Other new growth areas include; biotechnology, nanotechnology, telecommunication, shipbuilding and aviation.
Some analysts believe India's economic momentum will continue for the first half of the 21st century. If so, India's GDP could pass Japan's in 2032. And by 2050, India would become the second largest economy in the world, just behind China and ahead of the U.S.!
Indian Culture
To take advantage of the business opportunities in India, you should be familiar with Indian culture and customs. For example, when meeting foreigners, Indian men will shake hands. Indian men do not generally shake hands with or touch women (as a gesture of respect). Indian women may offer their hands to foreigners as a courtesy.
Appointments should ideally be made for late morning or early afternoon. Business discussions are almost always lead by the most senior person. Making decisions is often a slow and thoughtful process in Indian culture. Deadlines should not be rushed as impatience is seen as aggressive and rude.
Respect is an essential part of Indian culture, therefore any individual criticism must be done carefully. Disagreement is rarely expressed in a direct manner in business negotiations and may be viewed as a sign of disrespect.
History
The history of India can be traced back nearly 10,000 years. Aryan tribes entered Indian lands about 1500 B.C. and their merger with the earlier inhabitants created the classical Indian culture. By the sixteenth century, robust trade with Europe helped India to become one of the wealthiest nations in the world. British colonization followed in the seventeenth century.
During the early part of the twentieth century, a nationalist fervor emerged and Mohandas ('Mahatma') Gandhi became leader of the non-violent movement for independence. The British were eventually driven out of India in 1947.
The recent economic boom began when India opened up its markets and reduced controls on private enterprise in 1991. The government welcomed foreign investment and lowered tariff rates to encourage trade. The pro business attitude and huge number of ambitious and educated professionals will help propel India to become a leading economic power in the 21st century.
