Importance of India to the World Economy Essay Example

style="text-align: justify">
Since gaining freedom from British rule, India has made remarkable strides in tackling its economic hurdles and revamping its monetary framework. What distinguishes the cultural differences between the Republic of India and the United States? How might these contrasting aspects influence business operations? Essentially, a nation's culture reflects crucial values pertaining to social roles, modes of communication, and growth of relationships. This includes components such as religion, convictions, customs, languages, ceremonies, arts, moral standards, lifestyles habits and demographic profiles.

When planning to do business in a particular nation, it's crucial to comprehend and show respect for their cultural norms and trading customs. For instance, if you're contemplating doing business in India, which aspects of Indian society should be part of your preparation? First and foremost, acknowledge that India is an extraordinarily vast country with an estimated population of 1.17 billion people demonstrating immense diversity - a feature similar to the United States. The cultural dimensions such as languages, faiths, dance genres, music styles, architectural patterns, food conventions or native practices differ significantly from one region to another within India.

According to the U.S. State Department, approximately 2,000 distinct ethnic groups reside in India. Data from the 2001 census reveals that Hindus make up the majority of this population at 80.5%, followed by Muslims (13.4%), Christians (2.3%), and Sikhs (1.9%). Smaller sections follow Buddhism, Jainism, Parsi religions along with some other undefined faiths (Department of State, 2012). Regardless of this religious variation, religion remains a crucial part of life for many Indian citizens. An interesting fact is that India's vast population of nearly 1.17 billion has an average age around twenty-five years old

which reflects its youthfulness compared to other nations' demographics. In comparison to India's diverse culture, American culture primarily comprises elements borrowed from various cultures.

Often portrayed as a "melting pot," the ongoing evolution of India mirrors this description, with multiple migration waves contributing to and diversifying its rich culture. This cultural variety is older than most other societies; some traditions in India have roots that date back to 8000 BC, making it significantly more ancient than American culture. This broad array of cultural influences are visible in the multitude of architectural feats including temples, mosques, churches, monasteries, and gurudwaras. Even amidst this diversity, there exists a palpable sense of unity across India that stems from shared ancestry.

The sentiment, "One's primary identity is Indian before identifying as a Sikh, Hindu, Muslim, Punjabi, Bengali or Sindhi," encapsulates the affection towards India. Each region of India contributes to its overall character while preserving their unique attributes. Being the world's largest democracy, India fiercely protects freedoms related with freedom of speech, media autonomy, rule of law, religious liberty, minority protection and human rights. Despite having a considerable portion of its population in poverty it also exhibits significant wealth. Women are often celebrated as symbols of strength or "Shakti," which explains why women like the President of India commonly hold high-ranking positions.

Within the confines of domestic life, women often hold sway whereas men predominantly govern the external world. The presence of a red dot on numerous women's foreheads is indicative of their marital status. Arranged marriages are still quite prevalent and divorces are not common. Communication among individuals stands out as it relies fundamentally on

existing and assumed relationships. Generally, a daughter is addressed as 'Mother' while a son is called 'Father'. Using first names typically applies to equals, siblings around similar age or younger people. It's customary for Indians to exhibit reverence towards their seniors by standing up when they enter into a room. Social norms discourage consumption of alcohol and vegetarianism is widely practiced.

The concept of privacy greatly varies in India compared to America. The less emphasis on privacy amongst Indians can be attributed to their deep-rooted joint-family system, limited space in residential apartments, and the country's hot climate. It's quite normal for individuals to arrive unannounced, receive a warm welcome, be offered food, and sometimes even be invited to stay overnight. An intriguing difference is that Indians don't use toilet paper or other form of paper tissue for personal cleanliness. Americans doing business in India need to understand that the business ethics substantially differ and the journey to prosperity may encounter numerous challenges.

The corporate culture in India highly values favors, friendships, and clan relationships. Indian business professionals may view assertiveness, even when warranted in a work setting, as potentially disrespectful. Indians typically require time to establish professional trust. It's a frequent practice to engage in personal chats or invite partners to their residence for trust and rapport building when conducting business. A deep reverence for family is prevalent, often placing it above work necessities. While open criticism might be standard behavior in American workplaces, in India this must happen constructively so as not to infringe upon individual self-worth.

In India, it's crucial for working women to be mindful of their attire

and strive for a more modest appearance. Despite this necessity, they are treated with respect and can experience a sense of safety and ease. In professional gatherings or group discussions, the norm is that only the person with the highest rank talks - this isn't necessarily an indication of consensus among all participants, but rather viewed as a demonstration of respect. Owing to India's deep-rooted cultural and spiritual legacy, decision-making tends to favor intuition over the analytical strategies often employed by American managers. While India upholds liberal democracy, its business environment shows indications of expanding bureaucracy.

Question 5: Could you, Walter Halfmann, suggest any measures to enhance the efficiency of global trade between the specified country and the United States? India has been a significant player in international commerce throughout history. Despite experiencing setbacks during the medieval period and British rule (which concluded in 1947), India maintained its status as a prosperous country ("History" 2008). This wealth, coupled with its long-standing business relationships, makes India an appealing trading collaborator for America.

Over the years, both countries have endeavored to mend their relations following a prolonged period of strained interactions (Martin ; Kronstadt 2007). The bilateral trade between the USA and India has seen rapid growth over the last decade. In 1990, the trade value stood at $6 billion and surged to $33 billion in 2006 (Martin ; Kronstadt 2007). Following this, the value nearly doubled reaching $60 billion in 2009 with exports contributing $26 billion and imports representing $34 billion (“India”). However, despite this significant increase in trade ties, there exist potential obstacles that could hinder further development and cast uncertainty on future

prospects.

The trade dilemmas present between America and India namely involve India's inadequate infrastructure, limited market access, intellectual property rights concerns, and, from India's perspective, issues with the US's H-1B visa program expansion (Martin & Kronstadt 2007). These are four primary areas of contention. Beyond these issues, there exist other problems and related sub-problems. India, a country with a rich history and having faced significant hardships during its time under British influence, suffers from insufficient infrastructure. The absence of well-developed roads, a robust power grid, dependable water and sanitation systems deter US businesses from initiating or expanding their operations.

American construction firms could seize this as a promising market prospect if they manage to propose and secure massive projects aimed at enhancing India's infrastructure. This would result in India attaining a more contemporary infrastructure while US businesses would profit from increased business dealings with India, given the dependability of the infrastructure. Companies across both India and the US are requesting aid in facilitating market entry into the other country. This perceived market inaccessibility may be partly due to protectionist policies and governing regulations of each country. There is a call from businesses in both nations for easier business start-up and operation processes.

There is an evident need for enhanced cooperation between the two countries to pinpoint and tackle the hurdles encountered by businesses functioning in each nation. Although technology companies have had a presence in India for some time, there is also rapid growth in the generic drug market (Martin ; Kronstadt 2007). In all sectors, but especially in technology and pharmaceuticals, issues concerning patent infringement and intellectual property protection are

significant worries. US firms express anxiety over the safeguarding of their data with Indian enterprises.

The growing concern about protecting private technology during international business ventures calls for a global solution, ensuring that multinational corporations can secure their technology against theft. Moreover, India has shown interest in the expansion of the H-1B visa scheme offered by the US. This program allows American companies to hire foreign workers holding at least a bachelor's degree on a temporary basis (Martin & Kronstadt 2007). Despite a yearly cap on visa issuance, India remains hopeful about creating more employment opportunities for its citizens in the United States. Similarly, there is an upward trend among us firms to leverage a broader pool of overseas labor.

The problem under discussion pertains to the offshoring of American employment to Indian labor force. It's essential to maintain a balance between employing temporary international workers and recruiting permanent US-based personnel. Several joint groups have been formed between the two nations to tackle these issues. Notable examples include the US-India Trade policy forum, Private sector advisory group, US-India Economic Dialogue and CEO forum, and the Bilateral Investment Treaty. Through these and similar groups, it's anticipated that the US and India will sustain a strong commercial relationship with minor difficulties.