DOING BUSINESS IN INDIA 2010

DOING BUSINESS IN INDIA2010 By: Sikandar Singh Raghbir Dhillon Rakesh Khosla Bruce MacLellan

India Facts • India is union of states with a parliamentary system of Government • Land Area 2.9 million Kilometers • Population: Over 1 billion • Capital: New Delhi • Financial Capital: Mumbai

New Delhi Kolkata State of Orissa Mumbai Chennai

India Facts • Climate: Mainly Tropical • Languages used: Hindi, English • When doing business in India, English is the language of International commerce. • Main Religions: Hinduism, Islam, Christianity, Sikhism, Buddhism and Jainism • Currency: • Indian Rupee (1 Rupee has 100 Paisa) • 1 Canadian dollar = 44 rupees (current exchange rate) • 1 Lakh = One Hundred Thousand, 1 Crore = Ten Million.

Transportation Hubs • International Airports • New Delhi • Mumbai • Chennai • Kolkata • International Sea Ports • Mumbai • Chennai • Haldia

Things to Note • Average annual growth Rate: 7.5% • Imports in 2007- 2008 grew 27% and Exports 25% • GDP at current price (2007- 2008) $16 Trillion US dollar • 100 of the Fortune 500 companies have R and D facilities in India • India is World‘s second largest small car market • India occupies second place in the world of software development, after USA • India was the third country to make super computers • India ranks as the 4th largest economy based on the purchasing power • India was the sixth country to launch its own Satellites

Things to Note • There are 6,500 Indian companies listed on the Mumbai Stock Exchange, only New York Exchange has more • India sends more students to US Universities and Colleges than any other country in the world, approximately 100,000 • Middle class is estimated at more than 300 million with an income range of $75k-150,000 • The world’s largest producer of milk and second largest producer of food, including fruits and vegetables • The pharmaceutical industry in India is second largest in the world • Second largest English speaking scientific, technical and executive manpower in the world • India has a legal system with English as a court language • The Government offers Tax incentives to the companies that set up business in Special Economic Zones it has set up.

Business/ Investment Climate • Highly Skilled Manpower • Liberal, attractive and friendly investment climate • Polices on investment and business are liberal and transparent • Under new rules, investors only have to inform the Reserve Bank of India of their investment • Profits and dividends from sales is fully repatriable • Rupee is fully convertible on current account. This gives freedom to foreign investors to repatriate foreign exchange at the existing market rate. • 25% of total receipts in foreign currency account from exports can be retained in a capital account.

Corporate Info • Intellectual Property Rights • Intellectual Property Rights are protected under the TRIP Agreement (Agreement on Trade Related Aspects of Intellectual Property Rights) of the WTO. • India has well established the importance of intellectual property rights at all levels of Statutory, administrative and judicial. • Patent Rights • Indian Patent Act is fully compliant with India’s obligation under TRIP Agreement of WTO. • Incorporation of Business Entity • Foreign companies can incorporate under the Company Act of 1956 as either Joint Venture or wholly owned subsidiaries. • Unincorporated foreign companies can operate business through a representative or through a liaison office. This is permitted under the Foreign Exchange Management • Incorporation of a company • Under the Company Act of 1956 a company could registered as a Private Limited Company or Public Limited

Taxation • Taxes are levied by Federal Government and State Governments • Revenue on foreign companies, including royalty and technical services fees providing services to industries like petroleum or natural gas, is subject to maximum tax on a deemed profit of 10% of gross revenue. • Turnkey projects approved by the Government of India related to power sector are subject to maximum tax on a deem profit of 10 % of gross revenue. • Income tax for domestic corporations is 35% while any branch of foreign company doing business in India pays 45%. • There is a personal Income Tax and State Governments apply Sales Tax/VAT and other taxes • India and Canada has a reciprocal tax treaty in place. CRA can provide additional details.

Judiciary • India has independent Judiciary. The Supreme Court of India is the highest court and each State has High Courts and District Courts. • Special Courts and tribunals have also been set up to deal with issues like tax, debt recovery, consumer’s dispute etc. • It is suggested that with all international agreements/M.O.U.s a clear clause be included to specify where and under which jurisdiction a legal dispute would be settled. This applies not only to India but to all countries.

Brief History of Indo-Canadian Trade • Trade relations with India started in 1951 and India at one time, was the largest recipient of CIDA aid from Canada. India Canada relationship has now transformed into one based on trade rather than assistance. • Canadian International Agency does not maintain a bilateral program in India any more, however, CIDA INC. still provides financial contribution upon request and merit, mainly for feasibility studies and training activities to Canadian firms doing business in India. • Canada’s opposition to Indian nuclear tests in May 1998 put a stain on the two countries political relations and they were put on hold. However, today trade continues to grow between the two countries. • In 1997 Canada identified India as the largest market in South East Asia region with economic scope for business collaboration.

Brief History of Indo-Canadian Trade • In 2008 Canada exports to India were C $2.4 billion and imports from India were C $2.2 billion. In comparison, Canada exported 10.3 US billion dollars of goods to China. • Major exports from Canada were fertilizer, pulses (grains), paper and paper board, machinery and wood and pulp etc. • Canadian investment in India is very modest. In 2002 it was only 144 million Canadian dollars in five areas, power and energy, telecommunication, oil and gas, environment, products and services, information technology, and financial sector including insurance. • Imports were organic chemicals, precious stones, knit and woven apparel, machinery, iron ore and steel, cotton yarn, carpets, spices, footwear and leather goods etc. • Since 2001, India has direct investment of $18M Canadian dollars in Canada. On the other hand, India’s direct investment in USA is estimated at 2 billion US dollars and there is a push to increase it substantially. Canada needs to take the opportunity to do the same.

Canada – India 2010 • A M.O.U. has been signed during Prime Minister Harper’s visit in November 2009 and it covers: • Free trade Agreements • Stronger corporation in the energy sector • Joint study group to established comprehensives • Economic partnership • Foreign Investment Protection and Promotion Agreement (FIPPA) between India and Canada will be operational soon to safe guard Investor’s rights.

Priority Sectors in India • Agriculture food and beverage • Service industries’ capital projects • Information and communication • Oil and gas equipment services • India has very large iron ore deposits and is one of the largest producers of iron and steel. Coal and Bauxite also fall in this category. • Electric power equipment services • Aerospace and defense industry sectors • Ports and Air Ports • Telecommunications

Transportation • Roads • India needs $100 billion dollars in this sector. • Indian villages do not have all weather roads, which means 30 percent of agriculture crop spoils before it reaches the market. • There are highways connecting Delhi, Kolkata, Mumbai and Chennai but most of the roads are two lanes or single lane. • To implement road projects India has created the National Highway Authority of India and National Highway Development Projects for Public and Private Investment. • This is an important step in that much of the planning has been taken over by young, educated federal bureaucrats aiming to reorganize the transportation system

Transportation • Railways • Railway has made steady progress in modernizing it infrastructure providing freight and passenger services by adding modern passenger and fright cars. • Canada has played a very key role in supplying rolling stock and Canadian expertise in freight management systems • Ports • There are 12 major ports and 140 minor ports. • This sector offers great opportunities for Canadian companies that have experience in the management, automation, training and upgrading of marine transportation, as well as the maintenance and construction of ports and harbors along with related technical support. • It is suggested that organized seminars and conferences be developed in collaboration with Indian Ports Association whose mandate is to develop and increase efficiency and productivity of Indian Ports. • Atlantic Canadian companies can play a key role assisting in supplying technology, equipment and expertise to overcome inefficiencies in the private sector of India dealing in Ports.

Transportation • Airports • Delhi and Mumbai handle about 75 % of air traffic. India needs know-how in this sector to meet and handle the expected increase in air traffic. • It also needs air traffic controller systems, automated cargo handling and logistic systems to track air freight. • India has recently introduced private management system to manage some airports. • The expected investment in this sector is US -- $40 billion in roads, $15 billion in railways and $20 billion in ports.

Environment Sector • India is fifth leading producer of carbon emission with annual increase of 3 %. • With increasing of population and lack of city infrastructure, India is looking for technology and expertise in the areas of: • air pollution control • water and waste management treatment • energy management • environmental monitoring. • Canada is a leader and well established in the world for offering these services. Canadian companies have great opportunities to do business with Federal and State Governments and the Private Sector.

Education • In 2007 India had an estimated 18,064 colleges and 379 universities and has the one of the best and largest higher education system in the world. • Both central government and state governments are responsible in formulating their own polices relating to higher education. • India has excellent instructors for higher education but cannot meet the ever growing demand for quality education. Canada can take the advantage of this situation has an opportunity to invite students from India, or provide services in India. • An example is the school set up in Chandigarh that encompasses the Indian curriculum and Canadian instruction techniques. • Canada holds 5th position in foreign students from India in spite of a very large Indo-Canadian population.

Education • USA receives the largest number of international students form India followed by UK and Australia. There is growing competition from countries like China, Singapore and New Zealand. • Canadian universities can increase their share of foreign students from India if it follows some of the polices and resource allocation like Australia, to attract students. • Australia allows foreign students to work while they are studying and give options to apply for permanent residence once they finish their degree. It is quick, simple and easy to get student visas for Australia as compared to Canada. • Due to Canadian visa rules and lack of marketing by the institutions on ground level in India only 3,000 students were admitted in Canadian education institutions compared to 20,000 in Australia every year.

Education • Recently Canada has introduced a work permit for three years for post graduates which are a positive approach to attract more foreign students from India. • Canadian institutions can also plan to market training programs in the field of health, aviation, and telecommunications, in collaboration with technical colleges in India, some of whom developed direct links to major universities in the US, e.g. IIT. • Perhaps, the issue of increasing Canada’s share of foreign students can be explored with the view of streamlining the application and acceptance rules Canadian Universities have in place.

Electric Power & Equipment • To meet the demand of growing population, industrialization and rising per capita income, the government of India has introduced reforms and new polices to attract private investment to offer new technologies and management in this sector. 87% of install capacity is owned by the government. • India imports about 2 billion dollars worth power equipment annually. The main suppliers are USA, Japan, Germany and UK with US having the largest share. • The central government is responsible for formulating polices, planning, and implementing power projects. States are responsible in implementing their own polices and projects.

Electric Power & Equipment • The Renewable Energy Sector includes small hydro projects up to 25 MGW, biomass and wind energy. India is forth largest producer of wind energy in the world. The government of India has planned to set up power projects each with a capacity of 400 MW. Also in the plan is to set up thermal units with a capacity of 600 - 800 MW to improve the efficiency. • Canada has opportunities to export equipment for thermal units for large hydro and thermo plants, high capacity boilers and turbines, water treatment plants, cooling water system, ash handling, coal washing etc. • There are consulting opportunities for Canadian companies in the field of engineering and management also in R&D and clean energy to control air pollution and climate change.

Oil and Gas Industry • Oil and gas industry is showing a rapid growth by contributing 15 % of GDP. • India is emerging as global hub for refining oil due to a lower capital cost by nearly 25 to 50 % over the other Asian countries. • According to Investment Commission of India, the total opportunity in oil and gas sector by 2012 will be 40 to 50 billion US dollars and in the next five years the investment is estimated to increase to between 120 to 150 billion US dollars. • To attract the foreign direct investment, the Government of India is allowing 100 % direct investment in private refiners and 26 % in the public sector. • 100 % direct investment is also allowed in petroleum products, exploration, gas pipelines and for retail marketing of petroleum products. • Niko Resources of Calgary in association with Reliance Industries of Mumbai, is one of the most successful natural gas operators in India

Oil and Gas Industry • India is also looking into investment opportunities in the Canadian oil sands and the mining sector in Canada. • Coal constitutes 80% of India’s mining sector and other metals such as gold, copper, iron ore, lead, bauxite, zinc and uranium represent 20%. The total value of mineral production excluding atomic minerals, during the year 2007-08 was estimated at rupees 9953.10 crore. Exports of ore and minerals in 2006-07 were 80,912 crore. Diamonds, mostly cut, contributed a large portion of the total exports. • The new mining policy introduced by the Government of India in 2008 allows 100% direct investment by the foreign companies. Canadian companies can take advantage to set up a joint venture with the private sector companies. • There are three Canadian companies operating in mining sector in India, Trans World Garnet of Canada, Meridian Peak Resources Corp. Canada and Pobble Creek Resources, Canada. • Canada is a leading global player in the mining sector and India has a lot of different natural resources, therefore Canada can be a natural partner in the Indian mining sector.

Aerospace Sector • In 2007, airlines carried 35 million domestic passengers and 22 million international passengers. By 2010 it is expected air lines will carry more than 60 million domestic and 40 million international passengers. It is one the fastest growing sectors in the world. • There is great demand for air defense equipment, estimated at 5 billion annually. The rapid growth of civil aviation has put pressure on the existing infrastructure. • India needs to upgrade: • Airports • Communications systems • Navigation systems • Surveillance system • Air traffic equipment • Air traffic management • Rader facilities • Training in all of the above • Canadian companies have great potential in this sector for joint ventures, selling equipment and offering consultancy and training services. Canada can help Indian companies with technologies that will create jobs in India and Canada.

Information & Communication • The government of India is taking all necessary steps to make India a global information technology power. • Information and Communication Technology (ICT) sectors are growing fast in terms of production and export. Due to liberalization of rules in foreign investment and import export polices, this sector is attracting foreign investment not only because of the vast market but also because it offers a great potential in production for international companies. • ICT market is growing at a phenomenal pace. It is estimated that this market will grow at the rate 25 % annually. • The present market is estimated at $495 million US. This sector is expected to emerge as the single largest sector of Indian economy having 15 % share of the GDP and it is estimated that it will create 10.3 million jobs by 2015. • In 2005 Canadian companies were invited to participate in this growing market and to offer their experience in education, e- health, and R&D research development and the take-up of this offer can be increased tremendously.

Telecommunication Sector • India is fifth largest country in the World having more than 300 million telephone connections and second largest in Asia. • Mobile subscriber base in India is growing at a very fast pace adding 6 million subscribers every month. • India now offers the cheapest mobile tariffs rates in the world due to deregulation and liberalization of the industry. Prominent international players like Vodafone of the UK, Telecom Malaysia and Max of Malaysia have taken advantage of these policies to enter in to this market though equity investment. • Companies like Cisco, Alcatel and Motorola have set up their R & D facilities in India. • Canada is doing well in this sector with niche technologies. Prominent companies are Nortel, Research in Motion, Hummingbird, EION, TenXc, Redline, Celestial, March Networks and Mittel. • Canadian companies wanting to do business in India often look to establish joint ventures with established local firms, distributors and agents.

Beverage & Food Processing • India’s food and beverage sector is estimated at $117 billion US dollars. The government food processing policy is to increase production of processed food from 2% to 10% by 2010 and 25% in 2025. • The Government has allowed 100% foreign direct investment in the processing sector and is encouraging foreign investors to set up cold storage facilities and processing units. • As well, It is offering financial assistance and grants for such projects. For technology upgrading of facilities and operations, establishment and modernization for food processing industries in all states and union territories the rate of aid is 25 % of the cost of the plant, machinery and technical areas subject to maximum of rupees 50 lakh which equals 100,000.00 US dollars. • India, in spite of being the largest producer of cereals, fruit and livestock, has a mere 1.5% share in the international food trade and processed food it is a meager 8% of the total production. • There is untapped potential in this sector for Canadian companies to set up food processing facilities and to sell Canadian food processing technology, packaging, and food products in the Indian market.

Beverage & Food Processing • It is estimated that this sector will attract $33 billion US dollars over the next ten years and will generate employment for 9 million person-days. • Why invest in this sector? • Vast source of raw material • Conventional farming to commercial farming • Large upper middle class market • Low production cost • Change in consumption patterns • Government assistance • 100% foreign Direct Investment • Full repatriation of profits and capital • Expedited approval for foreign investment • Import duty could be zero for 100 % export units • Reduction in customs duty on packaging machines

Beverage & Food Processing • Alcoholic and beverage sector in India is also growing fast and offers great opportunities for Canadian companies to explore opportunities. India has started producing Wine and Champagne and alcohol is of growing interest for the upper and middle classes with high disposable incomes. • Beer sales are expected to grow at a compound annual growth rate of 17.2 % by 2011. • It is estimated that at present India produces 100 million cases annually. New players like Busch, Carlsberg and InBev are setting up production facilities in India. Heineken has reached an agreement with United Breweries Ltd of India that allows the Dutch company to brew and sell its own brand in India.

Service Sector • The service sector has witnessed a major boom and has contributed both employment and income over the years. • Major sectors which have contributed are trading, transportation, communication, financial, real-estate and business services. • The service sector now accounts more than half of the GDP. • One of the key service industries in India will be health and education - and it is in these fields that Canada can assist and develop effective trade and training footholds. • There are also opportunities in sectors like Media, Entertainment and Retailing.

Tips for Doing Business in India • Make your technology, management as a part your business proposal. Technology keeps on changing and implementing changes should be the part of the business proposal. • Training is the part of management and the business proposal must provide training opportunities in India and also in Canada • Public and private sectors need different approaches. Private sector takes quick and fast decision regarding a project. As in Canada, the public sector is slower in making a decision because a number of Ministries are involved in giving clearance and approval to a project. • Developing a proposal for the public sector needs a detailed analysis as how it will and how many people will benefit from your project or your service and how it will enhance the overall quality of life and economic situation of the people.

Tips for Doing Business in India • Establish a more co-operative approach at the centre and state government, highlighting the cost benefits in your proposal. • Try not to do every thing from Canada. Face to face meetings are crucial in developing business relationships and trust. Western concepts and off-the-shelf solutions do not work in India, targeted and client specific proposals and solutions do. • Opening up local offices is expensive. Qualified staff salaries are relatively high by Indian standards. It is suggested that to keep qualified staff one can offer a basic salary and profit sharing along with the medical coverage to the employees and their families. • Domestic market is flourishing therefore, while pricing your product do not ignore domestic competition.

Tips for Doing Business in India • Exporters need to have compatible partners or with know how and compatible distributors with experience and the infrastructure to make it work. • For example to export fresh and frozen food products your partner must have cold storage facilities along with the infrastructure to distribute your products to the food outlets, hotels and restaurants locally and to other cities. • Indian companies doing business internationally are sometimes looking for joint ventures to improve and upgrade their operations and increase their output and exports, in such cases Canadian technology and management can be offered to assist in their existing establishment or help in all phases of their operations. • Also, while bidding for internationally funded projects Canadian companies should be open for discussions and proposal for association with Indian counterpart.

Tips for Doing Business in India • During the recent visit by the King of Bhutan, India has signed bilateral trade agreement on sectors like Hydropower, civil aviation. Canadian companies can take advantage and bid jointly for such projects with Indian companies. Indian corporations are investing in agriculture land in East Africa to grow different crops, vegetables and fruits for local and for export markets. Canadian companies can supply equipment, training and setting up processing facilities with Indian companies. • Canadians must be willing to select market entry with options such as a subsidiary relationship, joint venture or partnership with an Indian partner. To select a partner one must qualify the partner by looking at his present activities locally and internationally and future plans and projections etc.

Tips for Doing Business in India • Prepare your projects to meet local challenges and marketing needs. Price, quality and the overall advantages of your product over the present products in the market should be part of your project proposal. • Patience, sincerity and commitment will forge strong and productive relationship. • During the meeting do not give impression that you are in hurry to close the deal. • Give your partner time to decide perhaps you can invite him to visit Canada to see your business operations. By doing so, you will establish your sincerity and commitment to do business with your partner.

Video Presentation • This is a video of a presentation made to a large group of businessmen and industrial investors from the US. • Pay particular attention to the cultural nuances and the examples of how social, economic, family responsibilities, professional and employment factors are closely intertwined in the make up of most Indians. • Look for the “grey areas” the speaker talks about – perceptions, in India, are not as black and white as in the west.

Cultural Issues • Almost all civil servants, Indian officials and business people speak English. • Namaste is Hi and Namaskar is Hello, which is a formal way of greeting in India. You can greet your counterpart by saying Namaste or Namaskar. Hand shaking is also an established way of doing international business. I would however, suggest that while shaking hands you can say Namaste and this way you will observe both greeting traditions. • When greeting a female business colleague, out of respect, one does not shake hands unless she puts her hand out first, even though a handshake is not considered disrespectful. • During your first meeting, address your Indian counterpart with their title like Doctor or Mr./Mrs./Miss and last name, unless they suggest you call them by their first name. If you do not know their names, then sir or madam is acceptable.

Cultural Issues • Business cards are exchanged at the first meeting. • If you are invited for a business dinner then business is conducted during the drinks which are served before the dinner. In Canada it is other way around. It is suggested to take a small gift for the house if the dinner is at someone’s home. • Be polite when offered any drinks or food during the meeting. Most of the time tea, coffee or soft drinks are offered. If there are any dietary restrictions simply decline politely – and normally optional items will be offered. • Avoid exchanging large gifts at the first meeting. However, pins of the Canadian flag or pens with the provincial logo, is a good gift to present after the first meeting is over.

Cultural Issues • While doing business in India one MUST understand that cultural nuances are a way of life and should be respected for a successful business relationship to be developed. • Before the business meeting try to set up cordial atmosphere using small talk like the weather and sports, for example cricket is national game for India and recently India has become number one in test cricket in the world. You can also discuss ice hockey as it is a national sport of Canada. • Try to avoid the criticism of India or their way of life and social structures or the political and economic climate at every stage of your business discussions and as well as during the informal and social gatherings. Avoid discussing issues related to poverty, religion, slums or any negative remarks. • Try to work on establishing that you are looking for a long term business relationship. Let them know that you would be willing to make more visits to do business with your Indian counterpart or invite them to Canada. • Be polite & sincere and do not be aggressive in your business negotiations as it can be interpreted as sign of disrespect.

Ten Top Tips for Doing Business in India Research the market before you invest. Understand the size, potential and price dynamics - and how and where you want to enter it. Is your product or service right for the Indian markets? Make sure that you have top management commitment and adequate resources to manage a business relationship in India. Visit the market and take time to build personal relationships - be prepared to make follow up visits. Choose your partner with care - do thorough Due Diligence and take independent advice. Consider what kind of agreement you need – and don't give away too much information in advance of finalizing any agreement. Allow plenty of time for meetings and traveling around the market. Don't be patronizing or under-estimate how quickly India is developing. Understand the business culture and do not be aggressive. Don't assume anything - find ways of checking progress without causing the other party to 'lose face'. Be patient - it always takes longer than you think! Talk to your local International Trade Adviser and find out what help is available.

Basic Etiquette at Meetings • The following information will help guide you through a first meeting at an appointment with business contacts you may not have met in person. • Communications: Remember - Be flexible! • Make appointments in advance and confirm one week before arriving and once you have arrived. • Arrive on time. Businessmen appreciate punctuality though they may not always be punctual themselves. • Be prepared to spend time getting to know each other before talking business. • Send any agendas and back up materials in advance. • Follow up the meeting with an overview of what was discussed and the next steps. • Instructions: Remember – Talk to the most senior person first – often the oldest one there! • Handshakes are normal between men. • Wait for women to put out their hand before offering a handshake. • English is the common language of business.

Basic Etiquette at Meetings • Dress: Remember - Be modest! • Business wear is conservative for men and women. Men should wear a dark suit and tie. • Women should wear a suit or dress and not show too much skin! • Business Cards: Remember – Take plenty! • Exchange these after the initial handshake. • Put your title and any qualifications on your card. • Present it formally and with your name towards the recipient so they can read it when it is handed over.

Contd… Basic Etiquette at Meetings • Negotiating: Remember – Be patient! • Use this as a chance to build good relationships. Be punctual and expect seating to be hierarchical. Be prepared for time to be spent on general conversation at the start of the meeting. • People may tell you what you want to hear. Don’t assume a smiling face means acceptance. Stress your common aims. • The most senior person will make the decisions. If he is not at the meeting, you are at the early stage of negotiation. • Decision making can be a slow process. • Don’t lose your temper as that means you lose face and are seen as untrustworthy. • Concessions are expected in price and terms. Expect them in return. • Concentrate on building rapport. Do not be confrontational or forceful. • Don’t disagree in public with other people on your team. • Politeness, praise and respect are important and don’t make people feel hurried.

Contd… Basic Etiquette at Meetings • Body Language: Remember – A smile may not mean YES! • A gesture you will notice is a distinctive rotational move of the head. When done with a smile it can mean “yes” or “I understand”. A direct ‘No” can be seen as rude, so silence or “We will try” may be used instead. • Don’t point with your finger, that is rude. • Don’t whistle or wink; this is seen as impolite. • Don’t hug, hold hands or embrace in public, even at an airport, or with your partner!

Contd… Basic Etiquette at Meetings • Going for a meal: Remember – Take this time to learn about your hosts! • If you are going out for a meal, ask about the dress code. Table manners can also be formal and food may eaten with the fingers, or you may be provided with a spoon and fork. Be prepared to be invited to wash your hands before and after a meal. Bottled water, soft drinks or beer are normally drunk with food. • Indians eat late. Wait to be told where to sit. Guests may be served in a particular order, with the guest of honor served first. If you uncertain about anything, ask your host how you should behave. • Normally the person who gave the invitation will pay for everyone. Offering to pay will be seen favorably, but expect to be turned down. To reciprocate and show appreciation, invite your host out another time. • Dietary restrictions are affected by religion: • Hindus do not eat beef and many are vegetarians. • Muslims do not eat pork or drink alcohol. • Sikhs do not eat beef. • Lamb, chicken and fish are the common main courses for non-vegetarians.

Contd… Currency – Indian Rupees (Rs. / INR) Remember – Carry some small change! • Type of Currency and Denominations available are: • Paper currency – One, Two, Five, Ten, Twenty, Fifty, Hundred, Five Hundred and One Thousand. • Coin currency – Ten paisa, Twenty five paisa, Fifty paisa, One rupee, Two Rupees and Five Rupees. • Some uniquely used Indian terms – 1 Lakh = One Hundred Thousand, 1 Crore = Ten Million.

Contd… Keep Healthy – Be Safe In Advance • Before you leave your country, check with your GP if you need any immunization and make sure you take a supply of any regular medication. A small First Aid Kit is a good idea. Include some disposable needles in case of an emergency, sun cream, malaria tablets, treatment for diarrhea and stomach problems. Prevention • Use bottled water for drinking and cleaning your teeth. Avoid milk and raw foods. Eating vegetarian dishes, boiled rice and eggs are safest. In an Emergency • Go to a private hospital or clinic recommended by the High Commission or your hotel. Emergency Telephone Numbers • Police: 100 • Fire: 101 • Ambulance: 102

DOING BUSINESS IN INDIA 2010