GLOBALIZATION PROJECT

INDIA

COUNTRY
Size: 1,269,346sq.
BACKGROUND
Motto: The truth
miles (7th largest
country in the world
by land area)

alone triumphs

GDP: $2.05 Trillion

(10th largest)

Population: 1,282,390,303
(17.5% of the Worlds
Population; Worlds largest
Democracy)

Exports: $142 Billion last year

Imports: $235 Billion last year

Population Density: 987.9/sq.mile
(6th most densely populated
country in the world)
Secular country
State has no religion

Currency: Indian
Rupee ($1 = 62)
Very Young
Country: 50% of
population below
age 25

Political System:
Parliamentary Democracy
House of Commons and
House of Lords

INSTITUTIONAL ENVIRONMENT
ECONOMIC DEVELOPMENT

India is the worlds 12th largest economy

and 4th largest in terms of purchasing
power
In need of more market liberalization for

With regards to
outsourcing, largely a
service-based economy.

Rising inflation and

budget deficits (higher
fiscal and trade) are key
issues stalling growth.

economic growth in labor, agriculture, and

education. Strict government control still prevalent
in many areas of the economy

Not a highly developed country but growing rapidly

Recent changes to calculation of GDP
make India the fastest growing major
economy in the World.

During the past three

decades, economy has
grown at an average
annual rate of 6.4%

Indias FDI policy towards foreign companys: If

you want to sell in India, first make in India
Priority on creating jobs in India, not just
dumping foreign-made goods.

INSTITUTIONAL ENVIRONMENT
POLITICAL-LEGAL SYSTEM
Sovereign, secular, democratic
republic, consisting of 28 states and
7 union territories. President is
the Head of the Union.

The state is divided into 3 branches

Executive, Legislature, Judiciary
(Similar to the United States)

According to the Constitution, the Executive

is directly accountable to the Legislature.

Union Cabinet
which is headed
by Prime
Minister (PM).

The Constitution of India is the supreme

law of India.

Supreme Court
(New Delhi)

High Courts
(State Level)

Two houses of Parliament Lok Sabha

(Assembly of the People) & Rajya Sabha
(Council of States).
Members of the Lok Sabha are elected
directly by the people, whereas members of
the Rajya Sabha are elected by the State
Legislatures

JUDICIAL
SYSTEM

At the State-level, there is a

Governor who is the nominal
head, whereas the real power lies
with the Chief Minister of the
State, who in turn appoints his
Council of Ministers.

District Courts
(City/District
Level)

Magistrates
of Second
Class

Civil Judge
(Junior
Division)

INSTITUTIONAL ENVIRONMENT
PHYSICAL INFRASTRUCTURE

- World economic forums Global competitiveness

report ranked India 89th out of 142 countries for
infrastructure development

Power: Overstressed
power grid due to
population increase.
Expected daily power
failures.

Driving To drive

Labor Migration

Main hubs include

Delhi, Calcutta,
Bangalore and Mumbai.
More than 50
Estimated labor cost in
airports. Largest
Delhi is (200 dollars/ per
Airport is Delhis
month)
India Gandhi
International
Airport built to
accommodate 12.5
million passengers,
currently caters to
16.2 million.

here you need 3

things: A good horn,
good brakes and good
luck. - In other
Security Predominantly safe due to so many
words Lots of traffic. people in the streets, although crimes against
women and children are on the rise. Terrorist
Water Estimated severe shortage of fresh
attacks by external non-state actors and internal
water in the next ten years. Can affect steel
Insurgencies by rebel groups to be expected.
and chemical manufacturing industries.

COUNTRY CULTURE
1. POWER DISTANCE

The extent to which the less powerful

members of institutions and organizations
within a country expect and accept that
power is distributed unequally.

- India scores high on this dimension, 77 As a sign of respect, one is expected to stand
while addressing a panelist/speaker/teacher
(USA: 40)
- Control is
- Indicates acceptance
familiar, even a
of hierarchy & toppsychological
down structure in
security, and
organizations
attitude towards
- Inequality in power is managers are
formal even if one
seen as normal and
is on first name
acceptable reality
basis.

COUNTRY CULTURE

2. UNCERTAINTY AVOIDANCE
The way that a society deals with the
fact that the future can never be known;
should we try to control the future or
just let it happen?

This ambiguity brings

with it anxiety and
different cultures
have learnt to deal
with this anxiety in
different ways.

- India scores 40 (USA: 46) on this dimension and

thus has a medium-to-low preference for avoiding
uncertainty
- In India, there is acceptance of imperfection;
nothing has to be perfect nor has to go exactly as
planned.
- There is a saying
- India is traditionally a patient
that nothing is
country where tolerance for the
impossible in
unexpected is high ; even welcomed
India
as a break from monotony.

COUNTRY CULTURE

3. INDIVIDUALISM/COLLECTIVISM
The degree of interdependence a society
maintains among its members. It has to
do with whether peoples self-image is
defined in terms of I or We

- For Indians, to be rejected by

ones peers or to be thought
lowly of by ones extended and
immediate in-groups, leaves
him or her rudderless and
with a sense of intense
emptiness.

- India, with an
intermediate score of
48 (USA: 91), is a
society with both
individualistic and - The employer/employee
relationship is one of
collectivistic traits
expectations based on
expectations Loyalty by the
employee and almost familial
protection by the Employer

In some Indian
cultures, people are
believed to be
individually
responsible for the
way they lead their
lives and the impact it
will have upon their
rebirth

COUNTRY CULTURE
4. GENDER FOCUS

A high score (masculine) on this dimension

indicates that the society will be driven by
competition, achievement and success. A low
score (feminine) on the dimension means
that the dominant values in society are
caring for others and quality of life.

- In terms of visual
display of power,
India is very
masculine.
Displaying ones
success with flash
and ostentation is
widely practiced.

- However, India is also a

spiritual country with various
- India scores 56 (USA:
religious philosophies.
62) on this dimension and It is also an ancient country with one of the
longest surviving cultures which gives it ample
is thus considered a
lessons in the value of humility and caring.
relatively masculine

society.

Source of data: The Hofstede Centre (By Geert

INTERESTING FACTS ABOUT INDIA

Indian housewives hold 11% of the
Worlds gold. That is more than the
reserves of USA, IMF, Switzerland and
Germany put together.

India is the world's

largest English
speaking country
Chess was invented in India

India has the worlds

largest movie
industry, based in
the city of Mumbai
(known as the City
of Dreams).

India has
the largest
number of
Post Offices
in the world

There are 300,000 active

mosques in India, more
than in any other
country, including the
Arab world

India is the worlds largest

tea producer, and tea (chai)
is its most popular
beverage.
Snakes and Ladders originated in
India. The game was initially
India never invaded
invented as a moral lesson
any country in its
aboutkarmato be taught to
last 10,000 years of
children. It was later
history
commercialized and has become
one of the most popular board
The 'Place Value System' and the 'Decimal System'
games in the world.
were developed in India in 100 B.C