Doing Business in India Essay -- essays research papers

We believe the single greatest risk of doing concern in India is its bureaucracy. The Indian bureaucracy is often referred to as babudom. An Indian administrative official is often referred to as a babu. Today, babu may also symbolize Sir or Mr. The babudom was formed after India gained independence from Britain. It employs m both much mess than necessary and it is highly unproductive. Each geographic region of the babudom requires specific regime permissions and taxes. Making progress in the babudom with limited local support is a difficult task, especially for a small U.S. firm with limited capital.The babudom wastes your conjunctions cartridge holder. It exit cause delays in the completion of your goals. It may posit years before your caller is approved to sell your products or operate in India. Instead of selling your products and services, your employees will be spending succession trying to get them approved. The babu do not have a vested interest in your company and often do not aid how long it sustains to cite progress. For example, the bureaucracy in India can be comp bed to acquiring a drivers license at the DMV in the U.S. it parcel outs an uppity amount of m get the license, the employees are not friendly to the customers or to each other, and there is an array of forms to fill out before any progress can be made.Dealing with the babudom will add cost to your companys investment in India. These costs may be attributed to various taxes, consulting fees, and permits, among other things. These costs may not be lucid to someone who is not familiar with line practices in India. A company may not have architectural planned for these added costs and may be jamd to back out of a project if it exceeds its budget. These costs force companies to spend money that could have been used in more effectual ways. For example, students are not always prepared for the many different fees that they will be charged for attending San Jose State. B esides tuition, students pay fees for books, the health center, action mechanism cards, labs, and parking.India is a collective culture, meaning that individuals decisions must be in harmony with family, group and social structures. This is not a harmful thing, but it can add to the risk of an American dealing with the babudom. American culture typically values individualism and often business is deemed more important than family life... ...ve Indian that you can trust. This way, he or she can give the sack you on your decisions when dealing with the babudom or other Indian companies. It will take time to establish these relationships, but it will help you save time and money in the future.An Indian will have to trust you as a friend before he or she will make a deal with you. Be patient with Indian natives and make an move to get to know them before doing business with them. Tell them about your family and your background. When negotiating a business deal, focus on more than j ust legalities. Natives will drowse off respect for someone that is only trying to establish a business relationship with them.When doing business in India, you must be patient. Aggression is not appreciated and it is considered to be negative. However, you must also set realistic time frames. Try to fix most of your appointments before you leave, and do not plan a trip close to a major holiday, such as Diwali or Republic Day, when business slows down for days. If you cannot get a verification that something will be done or if you believe that someone is stalling, take this as a sign that the company or person you are negotiating with is not interested.