Thesis on "Business Report on the Nation of India"

Thesis 6 pages (1726 words) Sources: 5

[EXCERPT] . . . .

Business Report on the Nation of India

After an extensive Internet search on the current business climate in the nation of India, it appears that conditions are ripe for some type of expansion in India by C&C Industries. Thus, the following memorandum outlines the results of this search and offers some pertinent conclusions and recommendations for any future business expansion into an area of the world which some see as eclipsing the U.S. As the number one global economic giant sometime in the early 21st century.

To begin with, the nation of India has changed greatly since its days under the control of the British Empire in the early 20th century. At the "India in Business" website, the Indian government wishes for everyone to know that India has experienced a huge shift in its competitive stand in the world and despite the current economic downturn, is now experiencing a stable annual growth rate.

Some of the industries that have contributed to this growth include construction, service industries, financing, manufacturing, agriculture, real estate and a burgeoning high-tech manufacturing base. Also, the Indian government has gone to great lengths to open the door to foreign investment which it feels is directly linked to higher disposable incomes, an emerging middle-class, a low-cost competitive workforce and many progressive reforms, all of which "contribute towards India being an appropriate choice" for foreign investors like C&C Industries.

Some of the most important reasons why C&C Industries should consider establishing a new business entity in India are as follows. First, since C&C Industries is so heavily involved in the development and marketing of computer software, India would be an ideal location for expansion. At the "India in Business" website, there is an entire section devoted to India's fast-growing electronics and information technology industry, and the Indian government definitely wants to have foreign companies like C&C Industries come to India because the electronics and information technology sector "is not only attracting significant attention as an enormous market but also as a potential production base for international companies."

In fact, software development and engineering are now at the top of the Indian government's list of industries which it feels deserves priority status. As of today, there are almost two million software product development engineers in India, something that could serve as a pool for potential C&C Industries employees. The "India in Business" website also adds that India exported a huge number of software products which in 2009 have reached 15% of the total Indian export market to countries all over the globe, including the United States.

As compared to other countries, the process of starting a business in India is not that complicated. The first thing a potential business owner would have to do is obtain a director identification number (DIN) which takes about four weeks; second, a digital signature certificate which takes less than a week to obtain; third, reserve the company name with the Registrar of Companies which can be done electronically in less than three

days; and fourth, obtain a Certificate of Incorporation which takes less than a week ("Doing Business: Measuring Business Regulation," 2009, Internet).

Of course, a potential business owner would have to obtain other government-related documents and permissions, but overall, the entire process takes less than 30 days to complete and some of the procedures can be done simultaneously which helps lower the time expended and allows a quicker set-up of the business, especially if company products are offered for sale online, rather than through traditional brick and mortar enterprises.

As is the case with setting up a business in any foreign nation, a company such as C&C Industries and especially its American employees who end up working overseas must have some knowledge on the traditions and customs of the country in which they finds themselves acting as representatives of C&C Industries. For example, the country of India is very diverse and complex because of the existence of regionalism, different religions and languages and the caste system, a form of social position divided into classes with the wealthy at the top and the poor at the bottom.

The "Doing Business: Measuring Business Regulations in India" website, part of the World Bank Group, provides a wealth of information on Indian society and its components, all of which " need to be respected for a healthy and successful business relationship" in India. For instance, "There is a strong sense of tradition tied into daily business practices" and because of India's economic position as a major international country, its economy is now wide open to an "increased inflow of foreign investments" and businesses like C&C Industries.

There are a number of business-related behaviors which all foreign investors and company employees must understand and practice while working in India. Some of these include staying polite and honest "in order to prove that your objectives are sincere" and remaining non-aggressive in all business negotiations ("Doing Business: Measuring Business Regulation," 2009, Internet).

Not surprisingly, there are other practices related to proper etiquette in India which some American workers may find somewhat odd or strange, but since India is the host country, all employees should respect these practices and use them on a daily basis, especially when consulting with Indian nationals in a business environment.

The "Doing Business: Measuring Business Regulations in India" website also advises that all potential foreign businesses wishing to set up a business in India should find "good partners who have knowledge of local market and procedural issues" related to the type of business one wishes to create. One important sector is known as the U.S. Commercial Service of India which specializes in helping foreign companies to enter into and succeed in the Indian marketplace.

For example, this service helps companies to target the best markets, promote products and services to qualified buyers and locate "the best distributors and agents for products and services." Some of the best cities in India to create a new business enterprise include the capital of New Delhi, Mumbai, Banglagore and Calcutta. These thriving cities with populations well over 10 million people provide "indispensable local information and advice" and are very well-connected with local businesses that need products such as those created and sold by C&C Industries. There are also government-run market entry options for all foreign companies which includes "using a subsidiary relationship, a joint venture with an Indian partner or using a liaison, project, or branch office" ("Doing Business: Measuring Business Regulation," 2009, Internet).

Finally, as described at the Economist.com website, many American companies like C&C Industries often find it difficult to locate funds for the creation of a new business enterprise overseas, but in India, there are a number of "angel investors" who are willing to invest billions of dollars into new start-up companies and especially those that are well-established in the United States with a long track record of positive growth. Obviously, C&C Industries could benefit from these "angel investors" by keeping a large share of the company's working capital in the U.S.

CONCLUSIONS:

After reviewing all of the information available on the websites listed in the bibliography, it is clear that C&C Industries could profit quite well from creating a new business enterprise in India. One of the most compelling reasons for doing so is that India is now an expanding and thriving marketplace and will possibly overtake the United States as the number one economic system in the world sometime in the next ten years or perhaps even earlier. Also, the business climate in India is full of individuals with much experience related to creating and maintaining a new business, one that will make a profit and help to expand the economy of India even further in the near future.

RECOMMENDATIONS:

As to recommendations, the "Budget View: India Business News" website of Reuters India relates several developing stories about how the nation of India is currently trying to attract more foreign companies like C&C Industries into the burgeoning Indian economy despite the on-going economic global downturn. For instance, on the positive side of things, the Indian government plans on allowing companies to profit from their efficient use of energy, similar to what some call carbon credits. Also, the Indian government is likely in the near future to "substantially hike outlay for the market development fund to promote exports to Latin America and African countries," something which C&C Industries could profit from by exporting its products made in India to South America and the emerging capitalistic nations of Africa. In addition, the Indian government is planning on giving tax breaks to new companies beyond 2010 under the Software Technology Park of India Act.

However, because of the global economic downturn, a good recommendation would be for C&C Industries to adopt a "wait and see" attitude about creating a new company in India, despite the positive information discussed above. Exactly how long to wait is up to the decision of Mr. Williams as President of C&C Industries. A good estimate would be sometime early in 2010.

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