Last updated: 14 Mar 2013
Doing business
Current business situation
The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to India. This is regularly updated, and should be checked before planning travel.
Business culture
Though a traditional society at heart, when it comes to business dealings most internationally accepted practices are widely followed in the country. Indians, for the most part, possess all the required skills such as language (English is widely used in written and oral communication), managerial and technical, and are able to negotiate competently.
Any entertaining of business partners or clients is mostly done outside of the home.
In a business meeting using a formal manner of addressing a person eg. ‘Mr. Smith’, is safer than using their first name.
Business cards are expected to be exchanged at most business meeting.
Punctuality is not a strong point of most Indians, but that is more a cultural thing than a professional shortcoming.
A multicultural and multi-religious society, India celebrates numerous religious and secular holidays. In certain parts of the country, some of the religious occasions are celebrated many days, such as Durga Puja in West Bengal and neighbouring states, and Ganesh Chaturthi in Maharashtra. Dussehra and Diwali are also widely celebrated. It is advisable to avoid scheduling a meeting around major holidays.
Setting up in India
On account of the geographical dispersion of India, it is recommended that Australian companies consider a regional plan, focusing on multiple locations and markets within India and finding appropriate partners within each region.
There are varying options for in-market representation, ranging from appointing agents and distributors, to setting up branch/liaison offices, to setting up joint ventures and local subsidiaries.
Austrade has a presence across India with 11 offices in New Delhi, Mumbai, Chennai, Kolkata, Chandigarh, Jaipur, Pune, Ahmedabad, Bangalore, Hyderabad and Kochi to support Australian exporters.
Banking and finance
India has an extensive banking network. The banking system has three tiers:
- The scheduled commercial banks
- The regional rural banks, which operate in rural areas, not covered by the scheduled banks
- The cooperative and special purpose rural banks
The Reserve Bank of India is the central banking institution. It is the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government's monetary policy.
Indian banking financial statements conforms to internationally recognised standards, but, in some cases, are modified to suit Indian conditions.
Links and resources
Government, business and trade
Confederation of Indian Industry - www.cii.in
Federation of Indian Chambers of Commerce & Industry - www.ficci.com
The Associated Chambers of Commerce and Industry of India - www.assocham.org
Foreign Investment Promotion Board - www.fipbindia.com
Central Board of Customs and Excise - www.customs.gov.in
Ministry of Commerce and Industry - www.commerce.nic.in
Ministry of Finance - www.finmin.nic.in
News and media
Press Information Bureau - www.pib.nic.in
The Times of India - http://timesofindia.indiatimes.com/
Economic Times - www.economictimes.indiatimes.com
The Mint - www.livemint.com
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.