GLOBALIZATION PROJECTINDIA

COUNTRY BACKGROUND

Population: 1,282,390,303 (17.5% of the World’s Population;

World’s largest Democracy)

Motto: “The truth alone triumphs”

Size: 1,269,346 sq. miles (7th largest country in the world by land area)

Population Density: 987.9/sq. mile (6th most

densely populated country in the world)

GDP: $2.05 Trillion (10th

largest) Political System: Parliamentary

Democracy – House of Commons and House of

Lords

Imports: $235 Billion last year

Exports: $142 Billion last year

Secular country – State has no

religionCurrency: Indian

Rupee ($1 = 62)

Very Young Country: 50% of population below

age 25

INSTITUTIONAL ENVIRONMENTECONOMIC DEVELOPMENTIndia is the world’s 12th largest economy and 4th largest in terms of purchasing power

Not a highly developed country but growing rapidly

During the past three decades, economy has grown at an average annual rate of 6.4%

Rising inflation and budget deficits (higher fiscal and trade) are key issues stalling growth.

India’s FDI policy towards foreign company’s: “If you want to sell in India, first make in India” – Priority on creating jobs in India, not just dumping foreign-made goods.

With regards to outsourcing, largely a service-based economy.

Recent changes to calculation of GDP make India the fastest growing major economy in the World.

In need of more market liberalization for economic growth – in labor, agriculture, and education. Strict government control still prevalent in many areas of the economy

INSTITUTIONAL ENVIRONMENTPOLITICAL-LEGAL SYSTEMSovereign, secular, democratic republic, consisting of 28 states and 7 union territories. President is the Head of the Union.Union Cabinet which is headed by Prime Minister (PM). Two houses of Parliament – ‘Lok Sabha’ (Assembly of the People) & ‘Rajya Sabha’ (Council of States).

Members of the Lok Sabha are elected directly by the people, whereas members of the Rajya Sabha are elected by the State Legislatures

The Constitution of India is the supreme law of India.

The state is divided into 3 branches – Executive, Legislature, Judiciary (Similar to the United States)According to the Constitution, the

Executive is directly accountable to the Legislature.

Supreme Court (New Delhi)

High Courts (State Level)

District Courts (City/District

Level)

Magistrates of Second

Class

Civil Judge (Junior

Division)

JUDICIAL SYSTEM

At the State-level, there is a Governor who is the nominal head, whereas the real power lies with the Chief Minister of the State, who in turn appoints his Council of Ministers.

INSTITUTIONAL ENVIRONMENTPHYSICAL INFRASTRUCTURE- World economic forum’s Global competitiveness report ranked India 89th out of 142 countries for infrastructure developmentPower: Overstressed power grid due to population increase. Expected daily power failures.

Water – Estimated severe shortage of fresh water in the next ten years. Can affect steel and chemical manufacturing industries.

Labor Migration – Main hubs include Delhi, Calcutta, Bangalore and Mumbai. Estimated labor cost in Delhi is (200 dollars/ per month)

Security – Predominantly safe due to so many people in the streets, although crimes against women and children are on the rise. Terrorist attacks by external non-state actors and internal Insurgencies by rebel groups to be expected.

Driving – To drive here you need 3 things: “A good horn, good brakes and good luck.” - In other words Lots’ of traffic.

More than 50 airports. Largest Airport is Delhi’s India Gandhi International Airport built to accommodate 12.5 million passengers, currently caters to 16.2 million.

COUNTRY CULTURE1. POWER DISTANCE“The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.”

As a sign of respect, one is expected to stand while addressing a panelist/speaker/teacher

- India scores high on this dimension, 77 (USA: 40)- Indicates acceptance of hierarchy & top-down structure in organizations

- Inequality in power is seen as normal and acceptable reality

- Control is familiar, even a psychological security, and attitude towards managers are formal even if one is on first name basis.

2. UNCERTAINTY AVOIDANCE

COUNTRY CULTURE

“The way that a society deals with the fact that the future can never be known; should we try to control the future or just let it happen?”

- India scores 40 (USA: 46) on this dimension and thus has a medium-to-low preference for avoiding uncertainty

This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways.

- In India, there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned.

- India is traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony.

- There is a saying that “nothing is impossible” in India

COUNTRY CULTURE3. INDIVIDUALISM/COLLECTIVISMThe degree of interdependence a society maintains among its members. It has to do with whether people’s self-image is defined in terms of “I” or “We”

- India, with an intermediate score of 48 (USA: 91), is a society with both individualistic and collectivistic traits

- For Indians, to be rejected by one’s peers or to be thought lowly of by one’s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptiness.

- The employer/employee relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer

In some Indian cultures, people are believed to be individually responsible for the way they lead their lives and the impact it will have upon their rebirth

COUNTRY CULTURE4. GENDER FOCUS

- India scores 56 (USA: 62) on this dimension and is thus considered a relatively masculine society.

A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life.

- In terms of visual display of power, India is very masculine. Displaying one’s success with flash and ostentation is widely practiced.

- However, India is also a spiritual country with various religious philosophies. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and caring.

Source of data: The Hofstede Centre (By Geert Hofstede)

INTERESTING FACTS ABOUT INDIAIndia is the world's largest English speaking country

Chess was invented in India

India never invaded any country in its last 10,000 years of history

India has the largest number of Post Offices in the world

Indian housewives hold 11% of the World’s gold. That is more than the reserves of USA, IMF, Switzerland and Germany put together.

India is the world’s largest tea producer, and tea (chai) is its most popular beverage.

India has the world’s largest movie industry, based in the city of Mumbai (known as the “City of Dreams”).

The 'Place Value System' and the 'Decimal System' were developed in India in 100 B.C

There are 300,000 active mosques in India, more than in any other country, including the Arab world

Snakes and Ladders originated in India. The game was initially invented as a moral lesson about karma to be taught to children. It was later commercialized and has become one of the most popular board games in the world.