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INDIA By Diana Berger and Larry Cenotto
Relevant History Birthplace of the Hindu religion Caste system sprang from this Meeting Ground between East and West Invaded Many times Persians, Greeks, Chinese nomads, Arabs, Portuguese, British Too vast for one group to dominate for long Each invading culture left a mark on India Won Independence in 1947 Liberalization of Laws Encourages Foreign Investment
Geographic Setting Geography Southern Asia, between Burma and Pakistan 2.97 million sq. km (1/3 the size of the U.S.) Divided into three main geological regions Indo-Gangetic Plain The Himalayas The Peninsula region  Climate Very diverse and extreme Topography Himalayan Mountain Range in the north Relatively flat where majority of population lives
Geographical Map
Physical Map
Family and Family Roles Parents usually desire sons and wont stop having kids until they have at least 2 sons The most traditional residential unit is the joint family Usually 3 or 4 patrilineally related generations, all living together Women’s roles are starting to change as they now have more career opportunities, especially in urban settings
Education Preprimary Primary Age 6-11  [Grades 1-5] Middle or Intermediate Age 11-14  [Grades 6-8] Secondary or High School Age 14-17  [Grades 9-12] Higher Levels Includes Technical Schools, Colleges, and Universities   English taught primarily in secondary schools
Education Gap Between Public and Private Schooling Rising Literacy Rate 1981: 43.7% 1991: 52.2% 2004: 64.8% Added 182 million literate people from 1991-2004 More than population of Brazil
Politics A “ Sovereign Socialist Secular Democratic Republic ”  Patterned after the British Parliamentary system 25 States and 7 Union territories Each with own government Stable Government: No major coups since 1947 Checks and Balances
Politics (Executive Branch) President Constitutional head of the Union Executive  Elected via electoral college of Parliament and State Governments Council of Ministers and the Prime Minister Advise and aid the President, who must follow their advice Prime Minister is vocal leader of Council
Politics (Legislative Branch) President convenes Parliament Council of the States (“Rajya Sabha”) 233 represent States, 12 appointed by President House of the People (“Lok Sabha”) 543 elected, 2 appointed by President Duties Approve and remove members of the Council of Ministers Amend Constitution Approve central government finances
Legal System (Judicial Branch) Supreme Court is highest body in India’s judicial system Judges appointed by the President  Settle disputes involving Constitution Decisions binding on all courts in India “Panchayats” rule disputes at the village level  Trademark Protection Joining WTO brought standard International Property Right (IPR) protection laws  The Trade Marks Act of 1999  Differentiates between well-known and general trademarks
Social Organization Ethnic Groups Indo-Aryan (Caucasoid):72%, Dravidians:25%, Mongloids:3% Languages 22 languages recognized by Constitution Hindi is the official national language of the government and primary tongue of 30% of the people  English has associate status Most important language for national, political, and commercial communication
Social Organization Caste system Embedded in Indian culture for the past 1,500 years, the caste system follows a basic precept, that people are created  un equal  The ranks in Hindu society come from a legend in which the 5 main groupings, or “varnas”, emerge from a primordial being.  There are 160 million “Untouchables” Make up 90% of poor and 95% of illiterate Discrimination is technically illegal More prominent in rural areas
Business Customs Lack of Punctuality Timing away from Religious Holidays Meeting someone Light handshake if meeting a male, “Namaste" if female No first names After meeting Exchange of gifts (chocolate, perfume, flowers) Don’t open in front of person Sensitivity to religious beliefs No alcohol No animal products
Religion India is a land of many different religions Hinduism is the predominant religion Hindus make up 81% 820 million in India Other Major Religions Muslim 12.1% Christian 2.3% Although Muslims make up only 13% of population, there are still over 130 million living in India, the 2 nd  largest Muslim population in the world
Work and Leisure Cricket is by far the most popular sport in India Outranks all other sports played in India combined, in terms of viewership, media coverage and money involved Billion $ industry Major promotional opportunity in India
Work and Leisure “Bollywood” Indian film industry based in former Bombay Immensely Popular Most video output in world Cheap cost of tickets ($0.20/ticket average) Another viable promotional opportunity
Population Current Population: 2005: 1.098 billion Future Projections: 2015: 1.35 billion 2025: 1.40 billion 2050: 1.65 billion The average Indian is only 26 years old 1.06 Males per Female The areas with the highest population density  Indo-Gangetic Plain along the Ganges River  Mumbai (formerly Bombay)
Economic Statistics India’s GDP is estimated at $3.319 trillion in 2004 6% of the world’s total,  4th highest in the world $3,100 per capita GDP (U.S. $40,100) India’s GDP growth rate is 8.4% 2 nd  highest in the world (2004) High Distribution of Wealth The Richest 10% hold 33% of India’s wealth The Poorest 10% only hold 3% of India’s wealth 29% of the population lives below the poverty line 86% of the population lives under $2 per day  44% lives under $1 per day
Natural Resources and Industries Natural Resources Top resource is coal (4 th  highest producer in world) Others include iron ore, manganese, mica, bauxite, titanium ore, chromites, natural gas, diamonds, petroleum, and limestone Industries Principle industries are textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, and software  India's oil reserves meet 25% of the country's demand
Available Infrastructure Transportation There are 2,525,989 km of highways and 63,230 km of railways  Railways are the principle mode for both freight and passengers  There are also 333 airports in India  Communication 48.9 million phone lines in operation  Exploding cell phone market 5.6 million in 2000 to 55 million in 2005 Over 18.5 million internet users  One of the world's largest domestic satellite systems Financial Mumbai has the national banks and stock markets located there
Labor Force India’s labor force is over 482 million  2 nd  largest in the world (China 761 million) Unemployment rate is 9.2% Labor force by sector: Agriculture  60%,  Industry    17% Services    23% By 2050, India is expected to have 1.6 billion people, and have 220 million more workers than China
International Trade Statistics Imports $69.18 billion in 2004 Textile goods, gems and jewelry, engineering goods, chemicals, and leather manufactures  Exports $89.33 billion in 2004 Crude oil, machinery, gems, fertilizer, and chemicals  The U.S. is India’s leading importer and exporter National currency is the Rupee Exchange rate: 43.94 rupees per $1 Gaining strength in relation to the dollar in recent years
International Trade Statistics Foreign Direct Investment (FDI) is permitted under:  Financial collaborations Joint ventures Capital markets via Euro issues Private placements or preferential allotments  FDI isn’t allowed in the industries of: arms and ammunition atomic energy railway transport mining  The government restricts the amount of equity that a FDI can have, depending upon the industry
Trade Restrictions on U.S. Products Must get an IEC # along with a BIN # from the Regional Licensing Authority  Tariffs Import Taxes Customs Fees Standards on packaging must show: Name and address of the importer Generic name of the commodity  Net quantity in terms of weights and measures Month and year of packing  Maximum retail sales price (MRP)
Developments in Science and Technology Liberalization of Telecommunications Laws  Local and long-distance service provided throughout all regions of the country  Booming cell phone market 5.6 million in 2000 to 55 million in 2005 High demand for the latest technology Tech giants using Indian teams to devise software to be used in telecommunications Indian companies are showing a flair for producing high quality goods and services at ridiculously low rates “Like Silicon Valley in 1999” -Business Week

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India Part 1

  • 1. INDIA By Diana Berger and Larry Cenotto
  • 2. Relevant History Birthplace of the Hindu religion Caste system sprang from this Meeting Ground between East and West Invaded Many times Persians, Greeks, Chinese nomads, Arabs, Portuguese, British Too vast for one group to dominate for long Each invading culture left a mark on India Won Independence in 1947 Liberalization of Laws Encourages Foreign Investment
  • 3. Geographic Setting Geography Southern Asia, between Burma and Pakistan 2.97 million sq. km (1/3 the size of the U.S.) Divided into three main geological regions Indo-Gangetic Plain The Himalayas The Peninsula region Climate Very diverse and extreme Topography Himalayan Mountain Range in the north Relatively flat where majority of population lives
  • 6. Family and Family Roles Parents usually desire sons and wont stop having kids until they have at least 2 sons The most traditional residential unit is the joint family Usually 3 or 4 patrilineally related generations, all living together Women’s roles are starting to change as they now have more career opportunities, especially in urban settings
  • 7. Education Preprimary Primary Age 6-11 [Grades 1-5] Middle or Intermediate Age 11-14 [Grades 6-8] Secondary or High School Age 14-17 [Grades 9-12] Higher Levels Includes Technical Schools, Colleges, and Universities English taught primarily in secondary schools
  • 8. Education Gap Between Public and Private Schooling Rising Literacy Rate 1981: 43.7% 1991: 52.2% 2004: 64.8% Added 182 million literate people from 1991-2004 More than population of Brazil
  • 9. Politics A “ Sovereign Socialist Secular Democratic Republic ” Patterned after the British Parliamentary system 25 States and 7 Union territories Each with own government Stable Government: No major coups since 1947 Checks and Balances
  • 10. Politics (Executive Branch) President Constitutional head of the Union Executive Elected via electoral college of Parliament and State Governments Council of Ministers and the Prime Minister Advise and aid the President, who must follow their advice Prime Minister is vocal leader of Council
  • 11. Politics (Legislative Branch) President convenes Parliament Council of the States (“Rajya Sabha”) 233 represent States, 12 appointed by President House of the People (“Lok Sabha”) 543 elected, 2 appointed by President Duties Approve and remove members of the Council of Ministers Amend Constitution Approve central government finances
  • 12. Legal System (Judicial Branch) Supreme Court is highest body in India’s judicial system Judges appointed by the President Settle disputes involving Constitution Decisions binding on all courts in India “Panchayats” rule disputes at the village level Trademark Protection Joining WTO brought standard International Property Right (IPR) protection laws The Trade Marks Act of 1999 Differentiates between well-known and general trademarks
  • 13. Social Organization Ethnic Groups Indo-Aryan (Caucasoid):72%, Dravidians:25%, Mongloids:3% Languages 22 languages recognized by Constitution Hindi is the official national language of the government and primary tongue of 30% of the people English has associate status Most important language for national, political, and commercial communication
  • 14. Social Organization Caste system Embedded in Indian culture for the past 1,500 years, the caste system follows a basic precept, that people are created un equal The ranks in Hindu society come from a legend in which the 5 main groupings, or “varnas”, emerge from a primordial being. There are 160 million “Untouchables” Make up 90% of poor and 95% of illiterate Discrimination is technically illegal More prominent in rural areas
  • 15. Business Customs Lack of Punctuality Timing away from Religious Holidays Meeting someone Light handshake if meeting a male, “Namaste" if female No first names After meeting Exchange of gifts (chocolate, perfume, flowers) Don’t open in front of person Sensitivity to religious beliefs No alcohol No animal products
  • 16. Religion India is a land of many different religions Hinduism is the predominant religion Hindus make up 81% 820 million in India Other Major Religions Muslim 12.1% Christian 2.3% Although Muslims make up only 13% of population, there are still over 130 million living in India, the 2 nd largest Muslim population in the world
  • 17. Work and Leisure Cricket is by far the most popular sport in India Outranks all other sports played in India combined, in terms of viewership, media coverage and money involved Billion $ industry Major promotional opportunity in India
  • 18. Work and Leisure “Bollywood” Indian film industry based in former Bombay Immensely Popular Most video output in world Cheap cost of tickets ($0.20/ticket average) Another viable promotional opportunity
  • 19. Population Current Population: 2005: 1.098 billion Future Projections: 2015: 1.35 billion 2025: 1.40 billion 2050: 1.65 billion The average Indian is only 26 years old 1.06 Males per Female The areas with the highest population density Indo-Gangetic Plain along the Ganges River Mumbai (formerly Bombay)
  • 20. Economic Statistics India’s GDP is estimated at $3.319 trillion in 2004 6% of the world’s total, 4th highest in the world $3,100 per capita GDP (U.S. $40,100) India’s GDP growth rate is 8.4% 2 nd highest in the world (2004) High Distribution of Wealth The Richest 10% hold 33% of India’s wealth The Poorest 10% only hold 3% of India’s wealth 29% of the population lives below the poverty line 86% of the population lives under $2 per day 44% lives under $1 per day
  • 21. Natural Resources and Industries Natural Resources Top resource is coal (4 th highest producer in world) Others include iron ore, manganese, mica, bauxite, titanium ore, chromites, natural gas, diamonds, petroleum, and limestone Industries Principle industries are textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, and software India's oil reserves meet 25% of the country's demand
  • 22. Available Infrastructure Transportation There are 2,525,989 km of highways and 63,230 km of railways Railways are the principle mode for both freight and passengers There are also 333 airports in India Communication 48.9 million phone lines in operation Exploding cell phone market 5.6 million in 2000 to 55 million in 2005 Over 18.5 million internet users One of the world's largest domestic satellite systems Financial Mumbai has the national banks and stock markets located there
  • 23. Labor Force India’s labor force is over 482 million 2 nd largest in the world (China 761 million) Unemployment rate is 9.2% Labor force by sector: Agriculture 60%, Industry 17% Services 23% By 2050, India is expected to have 1.6 billion people, and have 220 million more workers than China
  • 24. International Trade Statistics Imports $69.18 billion in 2004 Textile goods, gems and jewelry, engineering goods, chemicals, and leather manufactures Exports $89.33 billion in 2004 Crude oil, machinery, gems, fertilizer, and chemicals The U.S. is India’s leading importer and exporter National currency is the Rupee Exchange rate: 43.94 rupees per $1 Gaining strength in relation to the dollar in recent years
  • 25. International Trade Statistics Foreign Direct Investment (FDI) is permitted under: Financial collaborations Joint ventures Capital markets via Euro issues Private placements or preferential allotments FDI isn’t allowed in the industries of: arms and ammunition atomic energy railway transport mining The government restricts the amount of equity that a FDI can have, depending upon the industry
  • 26. Trade Restrictions on U.S. Products Must get an IEC # along with a BIN # from the Regional Licensing Authority Tariffs Import Taxes Customs Fees Standards on packaging must show: Name and address of the importer Generic name of the commodity Net quantity in terms of weights and measures Month and year of packing Maximum retail sales price (MRP)
  • 27. Developments in Science and Technology Liberalization of Telecommunications Laws Local and long-distance service provided throughout all regions of the country Booming cell phone market 5.6 million in 2000 to 55 million in 2005 High demand for the latest technology Tech giants using Indian teams to devise software to be used in telecommunications Indian companies are showing a flair for producing high quality goods and services at ridiculously low rates “Like Silicon Valley in 1999” -Business Week