To conduct business in India, it is necessary to gain an in-depth understanding of the culture, economic status, and environmental factors that affect the entry strategy into the Indian market. India is the world’s largest democracy, and is referred to as the sub-continent of India; the government is Federal Republic, and is currently governed by the Hindu Nationalist party. One of the most attractive factors to entering the Indian market is the large size of its population, and its rapid growth rate; there are 1.2 billion people in India, with a 1.3% growth rate. Approximately 30% of the population is located in urban areas. Among the largest cities in India are Bombay and New Delhi. The culture in India is heavily influenced by Hinduism, and revolves around a caste, or hierarchical system. There are several different languages spoken in India; although Hindi is the most spoken language, English is the most commonly used language for commercial communications. According to the CIA World Factbook, over 100 million homes have access to privately-owned television stations. They are number six in the world in number of internet users, and number two in the world in cell phones. The quickly growing population presents infrastructure challenges, especially in the urban areas, but is being addressed by the Indian government. Despite challenges including poor infrastructure and recent protectionist policies, India’s economy has experienced a steady growth over the past three years, and is transitioning into an open-market economy. The poverty rate has decreased by 10% since 1997, and in 2011, the workers in India received a 15% wage increase, which helped to increase expendable income. India is number 26th in the world, with a real GDP of 7.2%. According to the 2012 Doing Business in India: 2012 Country Commercial Guide for U.S. Companies report conducted by the U.S. Department of Commerce, it is projected by consulting firms that... [continues]
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