Ranjini Manian

Article / Updated 03-26-2016

Religion is a way of life in India, and religious business ceremonies are common occurrences. Everything a Hindu does is an act offered up to God, and emphasis is placed on the acts themselves, not rewards for the acts. So each new beginning is dedicated to the Gods to seek their blessings, and new beginnings associated with business in India are no exception. Two of the most common business events that include religious ceremonies are the opening of new offices and the breaking of ground for new facilities. These ceremonies are very important and can be quite lengthy. Indians appreciate your participation, but don't feel that you have to be present for the whole show. Indians don't take offense at being asked for the time of the muhurat, or finale, of a business-related religious ceremony. Show up for just that portion of the ceremony and you can satisfy your colleagues without conceding a large chunk of your time. Food is always served after any ceremony, so expect plenty to eat. Office prayer ceremonies Another common religious business ceremony is an office puja, or prayer ceremony. At a puja, stand with your palms folded in front of your chest. If lighted camphor is brought to you, hold your hands palms down over the flame for an instant and then gesture as if you're touching your closed eyes. Watch how others do the action before you, or ask for help if you're unsure. Indians take your interest as a compliment. Holy water or fruit may be offered at a puja, and if it is, keep in mind that refusing it would be rude. Sprinkle a few drops of the spoonful of holy water on your head, letting most of it run to the ground discreetly. Raise the food in your cupped palm (right hand only or right hand supported by your left below) toward your closed eyes in a gesture of reverence before you eat. If you don't want to eat it, put it away discreetly after the gesture of reverence. Remembering a goddess On special occasions such as Ayudha Puja, which is celebrated with verve and style in southern India around September, Indians show respect to tools of trade with a unique religious business ceremony. At such a ceremony, it's customary to place an auspicious dot of sandalwood paste and/or kumkum powder on doors, computers, and other equipment as a sign of respect for the Goddess Saraswati, the muse of learning. Respect this tradition but remember that it's okay to ask your Indian staff to go easy on the placement of the dots. If necessary, the next morning you can quietly ask your maintenance staff to do a thorough clean-up job.

Article / Updated 03-26-2016

India can lay claim to one of the world's oldest civilizations, and its economic history is truly long and complicated. India's beginnings and pre-colonial times The Indus Valley civilization, an urbanized society that thrived between 2800 BC and 1800 BC, was economically very sound. The city-states of Mohenjo, Daro, and Harappa were well-planned and apparently carried on a flourishing trade with other civilizations, such as the Mesopotamians, Sumerians, and Egyptians. Doing business with foreign countries is nothing new to India. Throughout India's early history, a number of empires and dynasties rose and fell. Economically speaking, the most notable dynasty was the Mauryas. They united most of the subcontinent between 321 and 185 BC. The Mauryas established a common currency, and trade flourished. The Maurya dynasty owes its existence to a scholar-politician named Chanakya, who wrote Arthasasthra, a renowned book on the science of material gain. This early economic whiz is still talked about today. The Mauryas introduced the world to Indian products like muslin, calico, pashmina shawls, and exotic spices. These commodities continue to be hot-ticket items in the world of trade more than 2,000 years later. After centuries of rule by various groups, India was visited by Portuguese explorer Vasco de Gama in 1498. An influx of Europeans, including the Dutch, French, and British, continued until the 17th century, when the British East India Company established itself in the country, setting in motion a chain of events that resulted in India's inclusion in the British Empire. Colonial India: Under the Union Jack From the self-sustaining, village-centric economy it had followed in ancient times, the land had gradually moved to new and different market systems. Many rulers minted their own currency, and no common monetary system existed in the subcontinent. Trade was based on barter or on the exchange of goods for precious metals. The British soon changed things. When the British came to India, they found a traditional rural economy driven by a strong commercial network, but it was hampered by poor technology. So they introduced infrastructure — including road and rail networks — set up factories and communication systems to facilitate trade and commerce, and created a uniform currency. Trade prospered, but the balance was decidedly skewed. The assets of the British East India Company became so huge that the British government decided to step in. India was made a colony, and Queen Victoria was named Empress of India. From a small trading outpost, India became the jewel in the British crown. But the focus of the British was on exploiting the resources of India for its own material gain; India itself was unable to benefit from the many opportunities that opened up in the changing world order. The country remained economically backward, fettered by poverty, illiteracy, and disease. The partition of the land into the two nations of Pakistan and India added to the burdens of an already impoverished country. When India gained its independence in 1947, it was one of the world's poorest economies. Sixty years after independence, all that is history.

Article / Updated 03-26-2016

If you want to do business in India, it is important to recognize some essential economic laws in India. These include laws framed as early as 1872 (which are still applicable) as well as those framed just a few years ago. Broadly speaking, you need to be familiar with 20 essential economic laws, listed here in chronological order. They form the overall legal framework of the Indian business environment. The Indian Contract Act (1872): Established the framework within which contracts can be executed and enforced.Negotiable Instruments Act (1881): Set rules for promissory notes, bills of exchange, and checks.Workmen's Compensation Act (1923): Set the compensation to be paid by employers to injured workers. Sale of Goods Act (1930): A mercantile law that complemented the Contract Act (see above). Payment of Wages Act (1936): Established a minimum monthly salary for industrial and factory workers. Industrial Disputes Act (1947): Provided for the investigation and settlement of industrial disputes. Minimum Wages Act (1948): Fixed minimum pay rates for certain jobs. Factories Act (1948): Regulated labor in factories. Employees Provident Fund and Miscellaneous Provisions Act (1952): Established provident funds, family pensions, and other monetary benefits for factory employees. Maternity Benefits Act (1961): Regulated post-childbirth time off for female employees. Payment of Bonus Act (1965): Regulated bonus payments to be made to certain categories of employees on the basis of production, profit, or productivity. Monopolies and Restrictive Trade Practices Act (1969): Established rules to prevent unfair concentrations of economic power. Indian Patents Act (1970): Set rules for patent protection in India. Payment of Gratuity Act (1972): Provided for payment of gratuities to Indian employees in certain industries. Copyright Act (1975): Helped establish copyright protection in India. Arbitration and Conciliation Act (1996): Set up to govern arbitration issues. Geographical Indications of Goods Act (1999): Provided legal protection for goods originated in a particular area or region within India (examples include Darjeeling tea and Basmati rice). Trademarks Act (1999): Helped establish trademark protection in India. Designs Act (2000): Helped establish protection of designs. Competition Act (2002): Provided for the establishment of a commission that promotes competition, protects consumers, and ensures freedom of trade. In addition to the above acts, you need to take note of Indian Company Law, which gives details of how to function as a corporate entity in India. By and large, the economic legal system provides a fair, equitable, and transparent framework for both employers and employees. The Indian Contract Act and the Negotiable Instruments Act are both considered top of the legal charts. A fair understanding of at least these two laws is essential for doing business in India. Find books that explain the details of the Indian Contract Act and the Negotiable Instruments Act. Treat them like twin Bibles while doing business in India. You can ask your Indian contacts to get copies for you, or you can just browse some online bookstores.

Article / Updated 03-26-2016

First impressions are important wherever you go, and business etiquette can change quickly as you move from country to country. The good news is that Indians welcome the opportunity to work with foreigners, making your adjustment much easier. Remember a few crucial points, and you can easily roll with the cultural punches and conduct your business smoothly. Greeting colleagues A gracious greeting shows your new Indian acquaintances that you're committed to being respectful and courteous. The traditional Indian form of greeting is the namaste, which literally means, "I bow to the divine in you." The namaste is used for greeting, for taking leave, and also to seek forgiveness. To greet someone with a namaste, bring your hands together with palms touching in front of your chest in a graceful fashion. Different languages may have different names for the namaste, but the gesture remains the same throughout India. Greeting your Indian business colleagues with a namaste is considered a compliment. It sets the right tone for the rest of your meeting and shows that you've taken time to understand Indian exchanges. But offering a handshake isn't looked down upon. In fact, many Indian businesspeople offer a handshake to show that they're familiar and comfortable with greeting foreigners. However, if you're greeted with a namaste and don't reciprocate, Indian colleagues take that as the equivalent of a "cold fish" handshake! If you offer a firm handshake, don't always expect to receive the same grip in return. Not all Indians give firm handshakes because a limp handshake is a sign of respect, not of weakness. Swapping business cards Contacts and networking are very important in India, so Indians like to give out and receive business cards. If you don't hand one over of your own accord when you meet someone, you may be asked for it. Your business card should list your Name Company name Title E-mail address Other information such as your company mailing address and Web site as well as a reference to any higher degrees that you hold Think twice about including your cell phone number on your business card. If you give an Indian your cell number, the lucky recipient will use it freely! Indians handle this by writing out their mobile numbers on the cards they give to a select few. And don't worry, English cards are fine, whichever corner of India you're in. When it comes to their own business cards, Indians believe the more titles, the merrier; the business title on the card is of great significance to Indians. And don't be surprised to see educational qualifications on many Indian business cards. The longer the string of acronyms behind an already lengthy Indian name, the better! Most young professional or older, well-traveled Indians don't fill up their cards with acronyms, and you can follow their lead. But Indians place a great deal of emphasis on academia, so if you hold a doctorate or similar degree, note it on your card.

Article / Updated 03-26-2016

Discovering the best methods for procuring information from the Indian government makes life much easier for you as you set up and grow your business. Lucky for you, a recent legislative development has greatly simplified the process — the Right To Information (RTI) Act. The RTI Act was passed in June 2005 and went into effect in October of that year. It superseded the Official Secrets Act and other special laws that had until then guarded government information in independent India. Put simply, the act gives all Indians the right to ask for information from any public body, which, in turn, is required to respond within 30 days. As a foreigner, you may not be able to take advantage of the act directly, but you can always get your Indian contacts to submit information requests on your behalf. And you (or your Indian contacts) don't even have to say why you need the requested information — you just have to provide your contact details. The RTI Act empowers Indians to Request any information (defined as any material in any form, including records, documents, memos, e-mails, opinions, advices, press releases, contracts, reports, papers, models, data material held in any electronic form, and information relating to any private body that can be accessed by a public authority under any other law for the time being in force) Make and take copies of documents Inspect documents Inspect the progress of works Take samples of materials used at work sites Information sought via the RTI Act is provided by designated Public Information Officers (PIOs) or Assistant Public Information Officers (APIOs). The information doesn't come free. Fees are involved, and each department is different. Don't worry; they won't set your bank balance back too much. The rules of payment vary from state to state, and so do the application formats. The RTI Act leaves the state of Jammu and Kashmir out of its purview. If you're particularly keen on getting some information out of that state, don't throw this law in the faces of the officials there. They'll throw it right back at you. Some corollaries to the RTI Act exist. For example, if information is deemed crucial to India's sovereignty and security or of strategic scientific or economic interest, or if disclosure of the information would constitute a breach of privilege of legislatures, it can't be procured. You also can't get information that can harm the competitive position of a third party, including commercial confidence, trade secrets, or intellectual property, unless the authorities are satisfied that larger public interest is served by disclosing this information. Many other restrictions exist as well. Get the full scoop at www.rtiindia.org. Make a copy of any RTI Act applications your business submits and keep them on file for your records.

Article / Updated 03-26-2016

Many Westerners have heard of India's caste system, but a thorough understanding of its ins and outs is still relatively uncommon. The following sections reveal the nitty-gritty of the caste system. What's the caste system? Broadly speaking, a caste system is a process of placing people in occupational groups. It has pervaded several aspects of Indian society for centuries. Rooted in religion and based on a division of labor, the caste system, among other things, dictates the type of occupations a person can pursue and the social interactions that she may have. Castes are an aspect of Hindu religion. Other religions in India do not follow this system. Castes are ranked in hierarchical order (originally, the system wasn't to have a hierarchy based on occupation or birth but purely on personality; this has been skewed somehow over time), which determines the behavior of one member of society over another. Even in a modern business setting, where caste isn't openly acknowledged, there may be subtle observances of village or family-style ranking. For instance, a young official may address a senior person, not necessarily his superior, as chachaji, a respectful term for a paternal uncle. How it's structured India's caste system has four main classes (also called varnas) based originally on personality, profession, and birth. In descending order, the classes are as follows: Brahmana (now more commonly spelled Brahmin): Consist of those engaged in scriptural education and teaching, essential for the continuation of knowledge. Kshatriya: Take on all forms of public service, including administration, maintenance of law and order, and defense. Vaishya: Engage in commercial activity as businessmen. Shudra: Work as semi-skilled and unskilled laborers. The most obvious problem with this system was that under its rigidity, the lower castes were prevented from aspiring to climb higher, and, therefore, economic progress was restricted. Mahatma Gandhi, the father of modern India, made the lower castes and untouchables a fifth, lowly class with the name Harijan, or "children of God." You see many references to SC and ST in India, in newspapers, government notifications, and so on. These initials refer to Scheduled Castes and Scheduled Tribes — scheduled is what Harijan is translated into today. The government is sensitive about reserving seats in colleges and job opportunities for them. But the government has legislation to make up for the past suppression and oppression of the lower castes. How it works Castes still rarely intermarry and are definitely not changeable. In urban India, though, people of all castes meet socially or for business. Discriminating against anyone because of their caste for things like club memberships and so on is against the law. Though caste and community are facts of Indian life, foreigners are not expected to behave differently toward any caste.