Social And Cultural Factors Of Business In India - 1612 Words

Business in India History and Background Located in southwestern Asia, India created 28 state boundaries and became an independent nation in 1947 (Morrison and Conaway, 2012). The currency is the Indian Rupee (INR) which has a conversion rate of 64.152 to 1 U.S. Dollar (UNCTAstat, 2015). Approximately 80 percent of India’s population are Hindus, although, Islam is also a prominent religion in India (Morrison and Conaway, 2006). Hindi and English are recognized as the official languages of India. However, each state has the right to establish â€Å"schedule† languages such as Bodo, Kannada, Oriya and Tamil (Morrison and Conaway, 2012). The government of India is the largest democracy in the world and power is divided between national and†¦show more content†¦Barriers to Entry When accessing the business potential in India, certain barriers should be examined. The infrastructure is underdeveloped in electrical power, streets and highways and telecommunications (Sridhar, 2014). The Trade Union Act of 1926, The industrial Disputes Act of 1947 and The Contract Labor (Regulation Abolition) Act, 1970 are three of the labor enactments which hinder capabilities of Indian Organizations. For example, for a company that employs over 100 people, The Industrial Labor Law requires the employer to seek approval from state officials to lay off staff members. Furthermore, the corporate tax rate for foreign corporation’s averages 40%, while for domestic corporation’s averages 35%. Tariff regulations in India are complicated. The attempts to introduce improvement sometimes leads to inconsistent enforcement from members of the tariff authority (Sridhar, 2014). Competitive Advantages Global connectedness has given India local advantage due to elements such as 9 months of sunshine each year and lower cost for farm labor. Other competitive advantages are skilled English-speaking workers, differences in developed nations salaries and salaries in India and a history of entrepreneurship and administrative experience (Contractor, Kumar Show MoreRelatedIntroduction Of Tip Top Ice Cream Company Essay1656 Words   |  7 PagesThese countries are USA and India. As USA is the country which is very developed country than others on the other hand, India is a developing country. USA has high economic value and has vast variety of industries which are working successfully and it gives other companies to set up a business bond with them. Although India has high cultural heritage and democratic country so it also appreciate the companies of other countries to work with them and set a good business relation altogether. 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