Nooga Oriental Sweets

Nooga
oriental sweets in india
By:
Esraa Karam
Ahmed Taher
Marwa Qotb
Engy Ramadan
Aya Ghonim
Supervised By: Dr. Ahmed Elcamadicy
Nooga oriental desserts 1

Preface
Sweets are part of any Indian celebration or festivity of any kind. They are prepared
in Indian households not only for special feasts and occasions, but also for simple
celebrations like birthdays, anniversaries, graduations or even any other concocted
reason. Every event big or small, calls for the sharing sweets with the whole
neighborhood even simply because he/she is the proud owner of a new car.
This is good news because ours is a Company whose product shall stand for
something every Indian craves for. Product is the most important part of our marketing
mix. It signifies what you are going to sell to the consumer.
A comprehensive analysis of the Industry and our market survey has given us a
platform on which our product can be built. Our product will be built for the masses,
and expansion shall be gradual, to cater to the entire country’s needs. Oriental sweets
are products, which need three important things: Taste, Quality and Variation. In the
same order of significance, we will be providing all three to our consumers.

Table of Contents
1. Business Introduction ................................................................................................................................. 9
1.1. Nooga Oriental Desserts ..................................................................................................................... 9
1.2. Our Menu: ......................................................................................................................................... 10
1.3. Business Type ................................................................................................................................... 15
1.4. Target Market .................................................................................................................................... 15
2. Company Background .............................................................................................................................. 15
3. Vision & Mission ....................................................................................................................................... 15
3.1. Vision ................................................................................................................................................ 15
3.2. Mission .............................................................................................................................................. 15
4. Business key objectives............................................................................................................................ 15
4.1. Current business key objectives: ....................................................................................................... 15
4.2. Future business key objectives: ......................................................................................................... 16
5. foreign market decision ............................................................................................................................ 17
5.1. Why we went for foreign market penetration. ..................................................................................... 17
5.2. How we selected india to be our market and why .................................................................................. 17
5.2. The relative merits of exchange rate in India ..................................................................................... 18
6. GEOGRAPHICAL SETTING........................................................................................................................ 19
6.1. Geographic Factor ............................................................................................................................. 19
6.1.1. The physical features ............................................................................................................... 19
6.1.2. Climate ...................................................................................................................................... 21
7. Social institutions ...................................................................................................................................... 22
8. EDUCATION SYSTEM IN INDIA .............................................................................................................. 25
9. Political system......................................................................................................................................... 29
9.1. Introduction ....................................................................................................................................... 29
9.2. Structure of Indian polity .................................................................................................................... 29
9.3. Political Parties .................................................................................................................................. 30
9.4. Stability of Institutions ........................................................................................................................ 31
10. taxes IN INDIA ...................................................................................................................................... 32
10.1. What is Direct Tax? ............................................................................................................................. 32
11. Role of local government ...................................................................................................................... 36
11.1. Functions of Local Government of India ......................................................................................... 36
11.2. Legal system.................................................................................................................................. 37
12. Social organizations .............................................................................................................................. 39
13. Business customs and practices ........................................................................................................... 41
13.2. Greetings and titles ........................................................................................................................ 42
13.3. Body language ............................................................................................................................... 42
13.4. Business cards .............................................................................................................................. 43

13.5. Corporate culture ........................................................................................................................... 43
13.6. Dress code..................................................................................................................................... 44
13.7. BUILDING RELATIONSHIPS WITH INDIANS ............................................................................... 44
13.8. General knowledge of India ........................................................................................................... 45
13.9. Formal introduction ........................................................................................................................ 45
13.10. Conscious effort ............................................................................................................................. 45
13.11. Gifts ............................................................................................................................................... 45
13.12. Dining and entertainment ............................................................................................................... 46
13.13. Business partners Building trust. .................................................................................................... 46
14.1. Hinduism in India ........................................................................................................................... 47
14.2. Islam in India.................................................................................................................................. 48
14.3. Sikhism in India .............................................................................................................................. 49
14.4. Buddhism in India .......................................................................................................................... 49
14.5. Jainism in India .............................................................................................................................. 49
14.6. Christianity in India......................................................................................................................... 49
15. Aesthetics ............................................................................................................................................. 50
15.1. Visual Arts & Literature .................................................................................................................. 50
15.1.1. Folk and Tribal Art .................................................................................................................... 50
15.1.2. Tanjore Art ................................................................................................................................ 50
15.1.3. Madhubani Painting ................................................................................................................. 51
15.1.4. Warli Folk Painting ................................................................................................................... 51
15.1.5. Pattachitra Painting .................................................................................................................. 51
15.1.6. Rajasthani Miniature Painting ................................................................................................. 51
15.1.7. Kalamezhuthu ........................................................................................................................... 52
15.2. Performing Arts .............................................................................................................................. 52
15.2.1. Music ......................................................................................................................................... 52
15.2.2. Dance ........................................................................................................................................ 52
15.2.3. Theatre ...................................................................................................................................... 52
16. Living conditions ................................................................................................................................... 53
16.1. Diet and nutrition ............................................................................................................................ 53
16.1.1. Bengali Food ............................................................................................................................ 54
16.1.2. Gujarati Food ............................................................................................................................ 54
16.1.3. Kashmiri Food .......................................................................................................................... 54
16.1.4. Mughlai Cuisine ........................................................................................................................ 54
16.1.5. Punjabi Food ............................................................................................................................ 55
16.1.6. Rajasthani Food ....................................................................................................................... 55
16.1.7. South Indian Cuisine ................................................................................................................ 55
16.2. Housing ............................................................................................................................................... 55

16.2.1. Mumbai ........................................................................................................................................ 56
16.2.2. Delhi............................................................................................................................................. 56
16.2.3. Bangalore .................................................................................................................................... 56
16.2.4. Kolkata (Calcutta) ....................................................................................................................... 56
16.2.5. Hyderabad ................................................................................................................................... 56
16.3. Clothing ............................................................................................................................................... 57
16.4. Recreation, sports, and other leisure activities .................................................................................... 57
16.5. Shopping and other leisure activities ................................................................................................... 57
16.6. Social security ..................................................................................................................................... 58
16.7. Healthcare System In India ................................................................................................................. 58
17.1. Official Languages ......................................................................................................................... 60
18. A Briefing on Negotiation Style (ours and theirs) ................................................................................... 60
18.1. Indian Negotiation Tactics .............................................................................................................. 60
18.2. NEGOTIATING WITH INDIANS... ....................................................................................................... 60
Summary ..................................................................................................................................................... 61
19. MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS ................................................................ 62
19.1 Product ................................................................................................................................................ 62
19.1.1. Relative advantages and computability .................................................................................. 62
19.1.1.1. SUGAR FREE- SUGAR SUBSTITUTE – LOW SUGAR: ....................................................... 62
19.1.1.2. INTRODUCING NEW FLAVORS AND VARIETY: ................................................................. 62
19.1.1.3. LOW FAT: .............................................................................................................................. 63
19.1.1.4. HEALTHIER INGREDIENTS: ................................................................................................. 63
19.1.1.5. PRODUCTION RELATED: ..................................................................................................... 63
19.3. Potential competitors ..................................................................................................................... 64
19.3.1. Traditional sweets in India ....................................................................................................... 65
19.3.2. Multinational corporates .......................................................................................................... 65
19.4. Innovation, Marketing, and distribution strategies:.......................................................................... 65
19.5. Government laws and policies ....................................................................................................... 66
19.6.1. Lockdown and curfew effect ................................................................................................... 67
19.6.2. Growing demand for products perceiving to be healthier..................................................... 67
19.6.3. Manufactures working to adapt ............................................................................................... 67
Summary ..................................................................................................................................................... 67
20. Indian Economy .................................................................................................................................... 69
20.1. Introduction .................................................................................................................................... 69
20.2. Population ...................................................................................................................................... 69
20.2.1. Age structure .............................................................................................................................. 69
20.2.2. Population growth rate ............................................................................................................... 70
20.2.3. Literacy rate ................................................................................................................................ 70

20.2.4. Per cent of population below poverty line .............................................................................. 70
20.2.5. Unemployment rate .................................................................................................................... 70
20.2.6. Net migration rate ....................................................................................................................... 70
20.2.7. Sex ratio ...................................................................................................................................... 70
20.2.8. Life expectancy at birth .............................................................................................................. 70
20.2.9. Total fertility rate......................................................................................................................... 71
20.3. Religious Composition: .................................................................................................................. 71
20.3.1. Ethnic groups ............................................................................................................................. 71
20.4. Current Economic Conditions ........................................................................................................ 72
20.5. India Economic Growth .................................................................................................................. 72
The economy is projected to decline in FY 2020 (April 2020–March 2021) as Covid-19 containment
measures hamper domestic activity and external demand. Moreover, the ongoing spread of the virus and
potential snap-back of lockdown measures, coupled with fiscal stimulus measures falling well short of the
mark, continue to pose a downside risk to the outlook. Focus Economics panelists project GDP to fall 9.3%
in FY 2020, which is down 0.2 percentage points from last month’s forecast and increase 9.2% in FY 2021.
.................................................................................................................................................................... 72
20.6. India Economy Data....................................................................................................................... 73
20.7. India Wealth Distribution ................................................................................................................ 75
20.8. Transportation................................................................................................................................ 75
20.8.1. ROADS ........................................................................................................................................ 75
20.8.2. AIRPORTS ................................................................................................................................... 76
20.8.3. SHIPPING .................................................................................................................................... 76
20.8.4. RAIL........................................................................................................................................... 76
20.9. Communication system .................................................................................................................. 76
20.9.1. Postal Services ........................................................................................................................... 77
20.9.2. Telegraph services ..................................................................................................................... 77
20.9.3. Telecommunications .................................................................................................................. 77
20.9.4. Electronic Method .................................................................................................................... 77
20.10. Working conditions......................................................................................................................... 78
20.11. Work practices in India ................................................................................................................... 78
20.12. Salaries in India ............................................................................................................................. 78
20.13. Industry in India ............................................................................................................................. 79
20.14. Foreign Investment ........................................................................................................................ 82
20.14.1. International Foreign Statistics................................................................................................ 83
20.15. Major Export Products ................................................................................................................... 84
20.16. Trade Restrictions .......................................................................................................................... 85
20.17. Negative List .................................................................................................................................. 85
20.18. Entry Requirements ....................................................................................................................... 85
20.19. Testing, Labeling and Certification ................................................................................................. 86

20.20. Anti-dumping and Countervailing Measures ................................................................................... 86
20.20.1. Export Subsidies and Domestic Support ................................................................................ 86
20.20.2. Implementation of Policies....................................................................................................... 87
20.20.3. Service Barriers ........................................................................................................................ 87
20.20.4. Other Barriers ....................................................................................................................... 87
20.21. Labor Force ................................................................................................................................... 88
Labor force, total in India was reported at 471688990 in 2020, according to the World Bank collection of
development indicators, compiled from officially recognized sources. India - Labor force, total - actual values,
historical data, forecasts, and projections were sourced from the World Bank in July of 2021...................... 88
20.22. Developments/Investments in India................................................................................................ 88
20.22.1. Recent developments ............................................................................................................... 88
20.23. Distribution and Sales Channels .................................................................................................... 89
20.23.1. Using an Agent or Distributor .................................................................................................. 90
20.23.2. Online marketplace and eCommerce .................................................................................. 91
20.23.3. Due diligence checks ........................................................................................................... 91
20.23.4. Establishing an Office .......................................................................................................... 92
20.23.5. Limited company .................................................................................................................. 93
20.23.6. Direct Marketing .................................................................................................................... 93
20.24. Media in India ................................................................................................................................ 94
Summary ..................................................................................................................................................... 94
21. PRELIMINARY MARKETING PLAN ..................................................................................................... 96
21.1. Market entry strategy .......................................................................................................................... 96
21.1.1. Country/Market Selection........................................................................................................... 96
21.1.2. Indian Market Opportunities .................................................................................................... 96
21.1.3. Indian market Challenges ........................................................................................................ 97
21.1.4. PESTEL ANALYSIS FOR INDIA ............................................................................................... 98
21.1.6. PORTER’S FIVE FORCES ........................................................................................................ 99
21.1.7. Food & Beverages market Opportunities ............................................................................... 99
21.1.8. food & beverages market Challenges ................................................................................... 100
21.2. Mode of Entry .............................................................................................................................. 100
21.3. Market size in India ...................................................................................................................... 103
21.4. Nooga Marketing Mix (4Ps) Strategy............................................................................................ 103
21.4.1. Nooga Product Strategy ........................................................................................................... 103
21.4.2. Nooga Price/Pricing Strategy: ............................................................................................... 104
21.4.3. Nooga Place & Distribution Strategy .................................................................................... 104
21.4.4. Nooga Promotion & Advertising Strategy ............................................................................ 105
21.5. Governmental regulations and licensing ...................................................................................... 105
22. conclusion ........................................................................................................................................... 107

22.1. Winning in India ........................................................................................................................... 107
22.2. Why do so many multinational corporations fail in India? ............................................................. 108
22.3. What can be learned from the successes and failures of market entrants? .................................. 108
22.3.2. Localization - Business Model and Product Offerings ........................................................ 109
22.3.3. Have the right local partner ................................................................................................... 110
22.3.4. Leadership .............................................................................................................................. 110
References .................................................................................................................................................... 111

1. BUSINESS INTRODUCTION
When holidays, employee anniversaries and other recognitions roll around, why not make a unique
statement with tasty, out-of-the-ordinary treats?
If you are stuck for business gift ideas that go beyond that standard wine and cheese basket, why not
recognize valued employees or loyal clients with delicious corporate food gifts from Oriental Middle
Eastern Pastry Delight?
If you are looking for an alternative to generic gourmet food

baskets, try a tray that includes a selection of perennial
favorite Oriental Middle Eastern desserts you would expect
to find at a Mideast bakery, plus a number of delightful
surprises your recipients will go crazy for. You can buy a tray
of your favorite or mix and match several for your next
company meeting, seminar, or personal gathering.
In addition to trays for special occasion gifting, we also carry

everyday assortment trays. These collections of goodies are ideal for dressing up a business or
personal affair with something extraordinary that your guests will remember.
Pastries and assortment trays are wonderful ways to send the message to others that their presence
is special and calls for superior fare. Is not this what opulent desserts are all about?!
1.1. Nooga Oriental Desserts

One of the most popular delicacies to come from the Middle East – and one that is most public known
dessert – is baklava pastry. However, you may be surprised at how many other delectable options there
are.
There is a huge variety of Middle Eastern desserts from which to choose, from traditional maamoul
(pastries filled with rich dates and nuts) and namoura (a creamy coconut and buttermilk bar) to karebej
(stuffed date and pistachio cookies) and intensely flavored ballouria cake.
At Nooga Oriental Desserts, our primary focus is on providing pastry aficionados with the finest
Mideastern pastries available anywhere in the world. Every cookie, cake and baklava pastry that comes
with our promise of freshness, quick delivery, and unbeatable personal customer service. From sweet
honey syrups and pistachio flavored ice creams to crust-less pumpkin pies.

1.2. Our Menu:
1. UMM ALI
Umm Ali is an Egyptian sweet pastry pudding. Umm Ali, is A purely

Egyptian dessert and perhaps one of Egypt’s most favored desserts.
Easy-to-make and economical. This Egyptian dessert is made of phyllo
pastry, milk, double cream, nuts and is sometimes topped with raisins,
powdered sugar, and coconut flakes.
2. BASBOUSA
A sweet cake made of semolina, soaked in simple sweet syrup;

sometimes the syrup is flavored with coconut or rose water.
Basbousa can be served with nuts, heavy cream or plain.
It is known as Basbousa in Egypt, Revani in Turkey or Namoura in

Syria, this delicious well-known dish can be found in all the east of
Middle East.
3. KUNAFEH
Sweet, rich, crunchy, and creamy, Kunafeh or Knafeh can be found in

regions that used to be occupied by the Ottoman Empire. This sweet
pastry is the Middle Eastern version of the cheesecake.
Kunafeh is made of semolina dough and thin noodle-like phyllo pastry.

It is stuffed with a soft white cheese such as Nabulsi cheese. Kunafeh
is crunchy on the outside and is soaked in simple sweet syrup. It can
also be served with heavy cream and mangos.
4. BAKLAVA
Like many Middle Eastern dishes, baklava is said to have

developed during the Ottoman Empire. However, this tasty dessert
can be found in Albania, Bulgaria, Greece, Armenia, Azerbaijan,
Cyprus and Georgia too.
Another popular sweet phyllo pastry made of several layers of

phyllo, chopped nuts, and drizzled with sweet syrup or honey.
Baklava is a crunchy pastry that is usually served in small gateaux
sizes.

5. AISH EL-SARAYA
Literally the bread of the royal palace, Aish El-Saraya is a delectable dessert
eaten in special occasions. The origin of this dish is unknown, yet some have
attributed this dish to the Lebanese cuisine.
It is sweetened bread and often drizzled with very sweet syrup and covered with
cream on top. Sometimes, Aish El-Saraya is garnished with nuts.
6. ASABE’E ZAINAB
Asabe zainab, which translates to "Zainab's fingers", is a traditional

Middle Eastern dessert that is crunchy on the outside and soft from
inside. A dough is prepared by mixing (flour, semolina, sugar, yeast,
salt, ghee) then fried and dipped in honey. It is said that Zainab
fingers date back to 100 years when a woman called Zainab made
this beautiful dish.
7. RICE PUDDING
Rice pudding, roz bel laban in Arabic, can be found in many

cuisines. It is said that rice pudding originated in the Middle East in
medical texts rather than cookbooks. It has long been associated
with good nutrition and good digestion. It was often recommended
to people of all ages for stomach illness.
This appetizing easy to make dish is made of a mixture of rice and

milk. It is sweetened with the addition of sugar and can be topped
with nuts and garnished with cinnamon. It can also be served with
ice cream.
8. QATAYEF
Qatayef is an Arab dessert commonly eaten during Ramadan. It

is said that Qatayef is of Fatimid origin.
Qatayef is sweet a dumpling often filled with Akkawi cheese, or

any unsalted cheese. It can also be filled with nuts. It is commonly
fried, yet some cultures bake it. Qatayef are drizzled with honey,
sweet sugar syrup or powdered sugar.

9. FETEER
Feteer or Feteer Meshaltet is originally known as feteer

maltout. In Ancient Egypt, Egyptians served feteer as an
offering to the gods. It has since become a popular pastry
among Egyptians and the Middle East.
In its original form feteer is baked in an earth oven (pizza

oven) and is baked in huge quantities. The plain feteer
pastry can be eaten with honey, cheese, jam, sugar,
molasses, and many other options. However, variations of
this pastry have included different ingredient and toppings.
Today, feteer can be served with all kinds of meat and all
kinds of dessert additions such as custard.
10. HALAWAT EL JIBN
A finger-licking dish, halawat el jibn is a cheese dessert drizzled with either

rose water or a sweet simple syrup. It is often garnished with nuts, especially
pistachios and can be topped with cherries.
Halawat el Jibn, means the sweetness of cheese, it is a very popular

Lebanese dish. This dish is made of a thin layer of phyllo pastry rolled with
cheese and a custard like heavy cream.
11. GHORAYEBA
Ghorayeba can be described as the shortbread of the Middle

East without the crunch. Barely sweet, with a pleasant ghee
flavor, ever-so-slight bite and a delicate texture that melts
away in the mouth. Ghorayeba is a celebration cookie
around these parts.
Ghorayeba is most known for its distinctive fine crumb,

smooth finish with a fuzzy outer layer and angelic off-white
color. It has a cloud-like mouthfeel that disintegrates to the
bite and a rich lightness like no cookie I know of.
12. FABULOUS KAHK (EID COOKIES)
Kahk is believed to date back in Egypt to the 10th century, when

palace kitchens made special cookies stuffed with gold coins and
distributed them to the poor. Things have gone downhill ever since
and we have been getting nuts and gooey honey filling instead of
gold coins, but whatever…they are still great!
Of course, every household has its own unique recipe that they
treasure, but the basics remain the same. Kahk is a type of buttery
sugar cookie with a sandy texture and mildly aromatic flavor. The

cookies themselves are barely sweet, making way for more sweetness in the form of fillings and
powdered sugar coating.
13. Maamoul Cookies (Date Filled Cookies)
Maamoul are buttery date filled middle eastern cookies that

will melt in your mouth and are utterly scrumptious. Naturally
sweetened with dates these have minimal added sugar. They
are popular at Eid, Christmas, and other holidays.
Maamoul cookie can be made with semolina, farina, plain

flour or a combination. It can be filled with dates or nuts, but
the most famous filling is the dates.
14. LAYALI LUBNAN
Layali Lubnan, meaning Lebanese nights, is a Lebanese semolina

pudding often flavored with orange blossom, rose and vanilla. A simple
syrup often used in Basbousa and Qatayef is poured on top.
Layali Lubnan is topped with a thick layer of whipped cream and

crunchy pistachios. It can be garnished with fruits such as cherries and
strawberries.
15. QARA’ ‘ASALI (Pumpkin delight)
Qara’ ‘Asali is a middle eastern pumpkin pie. It is not clear where

this dessert originated. Unlike pumpkin pies, this one is very
different because it does not contain elements of a pie. It is a
mixture of pumpkin, butter, milk, flour, and sugar.
This pumpkin delight is baked to total sweetness. This pie has no

crust. It is sometimes eaten with heavy cream and garnished with
pistachios.
16. MSHABAK
Mshabak is a Lebanese sweet often eaten during Ramadan or the Virgin

Mary’s day. Mshabak is another fried dough dish shaped in interesting
circular shapes. It is soaked in sweet syrup.

17. HALAWEH
Halva or Halaweh is a Middle East staple. Made from sesame

seed paste, this deliciously sweet confection has spread to
various cultures. Most commonly, Halva is made of sweetened
sesame seed paste.
Halva can be eaten in many ways. It is often spread on bread

and eaten for breakfast. It is said that Halva is beneficial to the
reproductive organs and for women who breastfeed.
18. TURKISH DELIGHT
Turkish delight is a family of confections that originated in Turkey. It

is made of gel based on starch and sugar. Originally this dish was
sweetened with honey and molasses.
Turkish delights are a Middle Eastern favorite and come in all colors.
They are especially sweet and covered in silky powdered sugar. They
are often flavored with rose water, orange blossom, lemon, or mastic.
19. SWEET DATES:
A staple among Middle Eastern desserts, dates are often eaten in

Futur during Ramadan or Suhur. It is also eaten to break the fast of
Muslims. Dates are religiously affiliated and are often eaten as a
‘sunnah’ to the Prophet Mohamed.
Scrumptious and very sweet, sweetened dates are often called

“Tamr.” They can be eaten plain or can be stuffed with goat cheese
and nuts.
20. FAKHFAKHINA
Fakhfakhina is a glorious fruit salad with several additions and toppings. It is

basically referred to as the “mother of all fruit salads.”
This fruit salad includes seasonal fruits, juice cocktails and ice cream!
Beautifully blended fruit flavors all add to the glory of this dish. Today, the
Middle East makes water pipes flavored with fakhfakhina.

1.3. Business Type
We will be manufacturing all our products.
1.4. Target Market
Our target market to start is India because of:

1. High volume population.
2. Individual income variability.
3. India familiar with similar products as Jalebi and Chikki.
2. COMPANY BACKGROUND
We are a newly established company specialized in middle eastern desserts, NOOGA Oriental
dessert is proudly a 100% Egyptian owned and operated family business that was established as a
specialist manufacturer of Eastern desserts in India. From humble beginnings, we will become the
largest Egyptian owned manufacturer of KUNAFEH, BASBOUSA and AMM ALI. Supporting this is a
supply chain that distributes significant volumes of shelf stable, ambient, and frozen products nation-
wide to all major customers.
3. VISION & MISSION
3.1. Vision
To be customer first choice through Taste, Quality, and variation and to maintain Innovation by
through keen sensing of consumer insights and different traditional tastes.
3.2. Mission
To nourish the world for a unique & more entertaining options.
4. BUSINESS KEY OBJECTIVES
4.1. Current business key objectives:

1. Introduce ourselves as a unique option.
2. Offering wholesome, fairly priced, and high-quality desserts.
3. Diverse dessert options

4.2. Future business key objectives:
1. Increase market share.

2. Develop and customize more dessert options.
3. Expand our brand for regional nearby.

5. FOREIGN MARKET DECISION
5.1. Why we went for foreign market penetration.
➢ High volume population.

➢ Income variability.
➢ India familiar with similar products as Jalebi and Chikki
➢ Increasing sales as saturation level was reached at ourown domestic market.
➢ Improving profits, lower their costs, resources, or materials at the lowest price and Due to
the increased revenue.
➢ Increased innovative capacity, a wider range of direct feedback about our products.
➢ Economies of scale, the more you produce - the greater are your chances for lowering the
unit cost of a product.
➢ Government incentives, when a company enters international markets, the government will
subsidize its operations in order to provide some sort of support.
5.2. How we selected india to be our market and why
Here is the process we used in determining our target market, India for the reasons mentioned at the
end of part 1 of this report.

The boundary condition analysis as shown in the following figure will be discussed in detail in the
following chapters.
5.2. The relative merits of exchange rate in India
1992 – 2018
There was a two-step devaluation of Rupee in 1991 by the RBI which ended the pegged exchange
rate system and marked the beginning of the market determined exchange rate system. The
Liberalized Exchange Rate Management System (LERMS) was introduced to ease the transition from
one system to another. LERMS began from March 1, 1992. Under this system, Rupee was made
partially convertible. This partial convertibility of Rupee is known as the dual exchange system. Since
India was going through a period of deficit, it was risky to impose full convertibility of the Rupee. LERMS
was set up to boost the foreign exchange earnings to improve the Bop. The RBI made foreign exchange
available at a low price and hence it was used for essential imports like crude oil. All other imports were
financed at the market-based exchange rate.
Since LERMS was only a transitional mechanism, it was removed in 1993 and the market exchange
rate system was introduced. That means that the 60:40 ratio was removed and 100% of the foreign
exchange receipt was now converted at the market-based exchange rate. Also, in 1994, the current
account was made fully convertible. Thus, when Rupee became a floating currency, the current
account of India was made fully convertible, but the capital account was only partially convertible. This
was done to protect the domestic market from foreign competition. Since, most of the developed
countries have fully convertible capital accounts, India is also planning to move towards it. There is an

ongoing discussion on the pros and cons of moving towards full capital account convertibility to ensure
that India benefits from this move.
5.3. Features of the Current Regime (2019 – 2020):
The principal features of the current exchange rate regime in India can be briefly stated as follows:
1. The rates of exchange are determined in the market.
2. The freely floating exchange rate regime continues to operate within the framework of exchange
control.
3. Current receipts are surrendered (or deposited) to the banking system, which in turn, meets the
demand for foreign exchange.
4. RBI can intervene in the market to modulate the volatility and sharp depreciation of the rupee.
Its effects transactions at a rate of exchange, which could change within a margin of 5 per cent
of the prevailing market rate.
5. The US dollar is the principal currency for the RBI transactions.
6. The RBI also announces a Reference Rate based on the quotations of select banks on Bombay
at twelve noon every day. The Reference Rate is applicable to SDR transactions and
transactions routed through the Asia Clearing Union.
1 USD = 72 Indian Rupee
6. GEOGRAPHICAL SETTING
India has 24% of the total surface area of the world and about 0.57% area of the earth. As per rough
estimate of Census Commission, out of total land area
10.7% is Mountainous.18.6% are Hilly area, 27.7% is
Plateau and 43.0% is Plain area.
6.1. Geographic Factor
India is a land of diversity in all manners. From culture,

economy and even the landscape of India has a diverse
element, all on one landmass. The wide range of
physical features of India makes the country a complete
geographical study.
6.1.1. THE PHYSICAL FEATURES

The physical features of India can be divided into six
broad categories according to their physiographic forms:

Himalayan Mountains
The northernmost landscape of the country highlights the fold mountains of the Himalayas. Though
geologically young, the Himalayan Mountains are the loftiest and the most rugged of the world. Since they
stretch across 2500 KM from Kashmir in the north, through Arunachal Pradesh in the Northeast, these
mountains form an arc. This helps keep the cold arctic winds from reaching the tropical landmass.
One of the most significant of all the physical features of India, the Himalayas vary in width between 400
Km to 150 KM. Furthermore, the entire mountain belt is divided into three main sections:
➢ The Greater Himalayas or the Himadri, with average peaks reaching up to 6000 meters above the
sea-level.
➢ The Lesser Himalayas with average peaks rising as high as 4000 meters.
➢ The Outer Himalayas or the Shiwalik Range
➢ The Eastern Hills or the Purvanchal covering North Bengal, and northernmost parts of the Northeastern
states.
Northern Plains
The three major river systems of India- Indus, Ganga, and the Brahmaputra along with their tributaries
have fed the foothills of the Himalayas. Since these river basins had a huge number of alluvial deposits
from these glacial rivers, these regions grew fertile over hundreds of years and led to the Northern Plains.
Furthermore, the Northern Plains can again be divided into three significant parts:
➢ The Punjab Plains- The Indus River and its tributaries lead to the formation of these vast plains, a
major part of which now lies in Pakistan.
➢ The Ganga Plains- These spreads across the states of North India, Haryana, Uttar Pradesh, Bihar,
Jharkhand, Delhi and West Bengal.
➢ The Brahmaputra Plains- This covers major parts of Assam and the other Northeastern States.
Peninsular Plateau
The oldest landmass of India, the Peninsular Plateau was the result of the tectonic shifts of the Gondwana
Land. This massive plateau area is further divided as:
➢ The Central Highlands
➢ The Deccan Plateau- a triangular landmass lying on the south of the Narmada River. The Eastern
Ghats and the Western Ghats border the Deccan plateau on its eastern and western sides,
respectively.
Indian Desert
The undulating sandy plains covered with sand dunes on the western fringes of the Aravali Hills comprise
the Indian Desert. With rainfall as low as 150 mm per annum, this region is the aridest in the country and
thus, low on greenery. The states of Rajasthan and northwestern parts of Gujarat collectively form the
desert region.

Coastal Plains
Right on the outer edges of the Indian peninsula, lies the narrow strips of the coastal plains. These seas
fed regions cover the shores of the Bay of Bengal in the East and the Arabian Sea on the West. The
western coast along the Arabian Sea can again be divided into three sections.
➢ The Konkan Coast- covering coastal Maharashtra and Goa.
➢ The Kannada Plains- covering coasts of Karnataka.
➢ The Malabar Coast- covering Kerala.
Islands
The Lakshadweep, which lies closer to the Malabar Coast. And these consist of clusters of coral islands
collectively named Lakshadweep.
The Andaman & Nicobar Islands which are off the Bay of Bengal and lie on the Indian Ocean. These
groups of islands are larger in size than their western counterparts and have rich biodiversity. Because
the Andaman & Nicobar Islands are closer to the equator, the region also experiences equatorial climate.
Rivers
All major rivers of India originate from one of the three main watersheds. They are:
1. The Himalaya and the Karakoram ranges
2. Vindhya and Satpura range in central India
3. Sahyadri or Western Ghats in western India
The Himalayan River networks are snow-fed and have a continuous flow throughout the year. Twelve of
India's rivers are classified as major, with the total catchment area exceeding 2,528,000 km² (976,000-
mile²). Himalayan rivers or the northern rivers that flow westward into Pakistan are the Indus, Beas,
Chenab, Ravi, Sutlej, and Jhelum.
6.1.2. CLIMATE
India's climate is strongly influenced by the Himalayas and the
Thar Desert. The Himalayas, along with the Hindu Kush Mountains
in Pakistan, provide a barrier to the cold winds from central Asia.
It is difficult to generalize India's climate. India's huge size sees
climatic conditions in Kashmir having little relation to that in the
extreme south. In addition to this, the varied topography of the land
sees many regions having their own microclimates. Climate in
India ranges from tropical in the south to a temperate climate in
the north. Parts of India in the Himalayas have a polar climate.
Summer lasts between March and June in most parts of India. Temperatures exceed 40 °C (104 °F)
during the day. The coastal regions exceed 30 °C (86 °F) coupled with high levels of humidity. In the Thar
desert area temperatures can exceed 45 °C (113 °F).

The monsoons start retreating by August from northern India and by October from Kerala. This short
period after the retreat is known as the retreat of the monsoons and is characterized by still weather. By
November, winter starts setting in the northern areas.
The highest temperature recoded in India was 50.6 °C (123.08 °F) in Alwar in 1955. The lowest was −45
°C (−49 °F) in Kashmir. Recent claims of temperatures touching 55 °C (131 °F) in Orissa have been met
with some skepticism by the Indian Meteorological Department, largely on the method of recording of
such data.
7. SOCIAL INSTITUTIONS
A functionalist view understands social institutions as a complex set of social norms, beliefs, values, and
role relationship that arise in response to the needs of society. Social institutions exist to satisfy social
needs. Accordingly, we find informal and formal social institutions in societies. Institutions such as family
and religion are examples of informal social institutions while law and (formal) education are formal social
institutions.
A conflict view holds that all individuals are not placed equally in society. All social institutions whether
familial, religious, political, economic, legal, or educational will operate in the interest of the dominant
sections of society be it class, caste, tribe or gender. The dominant social section not only dominates
political and economic institutions but also ensures that the ruling class ideas become the ruling ideas of
a society. This is very different from the idea that there are general needs of a society.
Society is the combination of individuals. These individuals have their various needs which they want to
be satisfied. For this purpose, people behave in a customary way which is controlled by norms. This
participation of people for the attainment of their various needs develops social institutions. It is formed
by the group activities controlled by an interrelated set of norms while the group activities have inherent
purpose of action that is to satisfy human needs. The examples are schools and madrassas, offices,
masjids, churches, family, economy and politics When we talk of societal processes we take society in
action, while we discuss norms individuals are not taken into consideration, but their shared expectations
are given priority. When such norms are interrelated and crystallized pertaining to relatively limited
activities of mankind at one time and a given space it becomes a social institution.
Theoretically these institutions are simple but are quite complex in practice. The functions of social
institutions with slight variations are universal. The structure of an institution can be understood by
understanding the force of human relationships. It is these forces which keeps the functioning and the
body itself normal, stabilized and maintains equilibrium. The structure helps the individuals in shaping
their behavior reliable and predictable. The structure is both means and an end in itself. It can be defined
as the mechanism to perform particular functions in time and space.
Family
It is the lowest unit of social organization. Every human society has adopted the family system. A family
can be defined as a small group characterized by face-to-face relations and the members, are inter-related
by kinship or marriage. Family exists within the society. It can be considered as a social system which

exerts influence over the society. A society cannot survive without family. The family system is found in
all societies. Family bonds and type of family differs from one society to another. E.g.: In India, the family
bonds are very strong. It is a common practice for families to have a “nomenclature”. Every family is
identified with a particular name. It is difficult to trace the origin of family as such. But it is in existence
since time immemorial. Even the Indus Valley Civilization, one of the oldest civilizations, speaks about
family system.
Family is a small group characterized by face-to-face relations. The members of a family closely identify
themselves with the family. Nature of the family depends on the head of the family. There may be
patriarchal or matriarchal family. In case of patriarchal family, father is the head of the family. In case of
matriarchal family, mother is the head of the family.
Joint family is unique feature of Indian society. It is a system in which several generations of kinsmen live
together in common residence and share property. According to K.M. Kapadia Joint family is a group
which consists of a couple, their children and other relations from father’s side or mother’s side (in case
of matriarchal families). Joint family is common among the Hindus. In Kerala two systems of Joint families
are found via: ‘Illom’ and “Tarwad”. “Illom” is a family system which is prevalent among the “Nambudaris”
Community. In this system only the eldest son marries from within the same community other sons may
marry Hair women. The eldest son enjoys absolute power of control over family property.
Marriage
Arranged marriages were normal in Indian society from the historical Vedic era and it is still viewed in
maximum Indian families. Parents take an important role for their marriage ready son or daughter. They
choose prospective bride or groom for their son or daughter to marry. Some peoples are against of this
marriage system. According to them marriage is a system of completions of a girl’s and boy’s mind fillings
to each other. They provide value of love marriage and offer freedom of their child to choose their life
partner.
The tradition of arranged marriage is still continuing today in India but some changes are noticed in this
marriage process. Today, parents are anxious about the life of their child and take the consent of their
kid, before deciding the marriage. Over the time, people have understood that marriages can only be
successful when the parents or family do not force their children to marry someone he or she does not
want to marry.
Excellent arranged marriage happen when the parents help their children to find their life partners
according to their own choice. Parents organize for marriage-ready sons and daughters to meet with
multiple potential spouses with an accepted right of refusal. When older family members begin a
discussion on the matter of their son or daughter approaches and express the desire to be married. This
relative effectively acts as a sponsor, taking responsibility to get the boy or girl married to a good partner.
After independence India become more economically strong, as a result some social changes and female
liberation are found today in India.
Some Modern Indian people are in favor of love marriage where the first contact with prospective spouses
does not involve the parents or family members. We all knew the story- boy meets girl, boy falls in love

with girl, boy and girl gets married. But it is important to realize that while India is much modernized in
some aspects, they still keep to the tradition of arranged marriages. So, the couple (boy and girl) has to
inform their parents about their own choice to fulfillment of their love through the process of an arranged
marriage. These marriages are often referred to as love-cum-arranged marriages. Some time, in case of
love marriage, parent or other family members create an obstruction. They enforced to their child from
away of love marriage. It is very pathetic for the lover couple. So, they choose a way of escape, and they
get married in a temple without their parent or family. After the marriage they fall into serious situation
nobody supports them. Their parent or family does not accept this marriage and collar out them from their
family.
As the law of Indian government, the legal age of marriage at 21 years for men and 18 years for women
and after those age they touch the maturity age. So, both the girl’s family and the boy’s family cannot take
any lawful step to them if the marriage couple is matured, and their family has to accept their child’s choice
after a long clash.
Kinship
Kinship system is essentially a ‘cultural system.’ There is no universal kinship pattern in the world. It varies
according to varying cultural systems. By way of illustration, we may refer to differences in kinship patterns
obtaining in European and Indian societies.
In the former a very clear-cut distinction is drawn between consanguineous kin and affinal kin—the two
are poles apart. Kinship terminologies used in these societies bring out the distinction very boldly. A
married man and a married woman refer to the relatives of their spouses as in-laws. Usage determines
the relationships with in-laws.
The very use of the term “in-law” sets them apart from blood kins. Again, in Western society a married
woman has the status of an affinal kin in her husband’s family. In Indian society, on the other hand, the
distinction between blood kins and affinal kins is not so sharply drawn. Sometimes the distinction is so
blurred that it is difficult to tell one from the other. After marriage, the wife enjoys the status of a blood kin
in her husband’s family, enjoying all the rights and discharging all the obligations of her husband’s blood
kins.
In Indian society, apart from blood kins and affinal kins, even the Active kins are looked upon as. one’s
own people. That is, among one’s own people are included persons related by blood, by marriage, by
living together in the same house, neighborhood, and village, by being members of the same class in
school, by working together in the same office, by being initiated by the same Guru, and so forth.
The difference in kinship patterns obtaining in Western society and Indian society owes its origin to a deep
and basic difference in the underlying principles of social organization in these two types of societies. Our
society extends beyond family only to the limits of a village, and no farther.
The defining characteristics of such a narrow society, including rights and obligations of all groups of
people in such a society, are shaped by the demands of the collective life of the family and the village.

Naturally, a very close-knit relationship among members of a village develops. On the other hand, a
Western society extends far beyond family and village. As a result, formal ties replace informal ties of
relationship, and a sharp distinction between blood kins and affinal kins is the natural off-shoot.
We cannot also speak of a uniform kinship pattern for the whole of India so long as different social
conditions continue to persist in different parts of the country and influence norms and institutions in those
regions. But we may broadly delineate a picture of kinship pattern which prevails all over India with minor
variations from region to region.
Female/male roles
Gender inequality in India refers to the health, education, economic and political inequalities between men
and women in India. Various international gender inequality indices rank India differently on each of these
factors, as well as on a composite basis, and these indices are controversial.
Gender inequalities, and their social causes, impact India's sex ratio, women's health over their lifetimes,
their educational attainment, and economic conditions. It also prevents the institution of equal rape laws
for men.
Gender inequality in India is a multifaceted issue that concerns men and women. Some argue that various
gender equality indices place men at a disadvantage. However, when India's population is examined as
a whole, women are at a disadvantage in several important ways. In India, discriminatory attitudes towards
either sex have existed for generations and affect the lives of both sexes. Although the constitution of
India grants men and women equal rights, gender disparities remain.
Research shows gender discrimination mostly in favor of men in many realms including the workplace.
Discrimination affects many aspects in the lives of women from career development and progress to
mental health disorders. While Indian laws on rape, dowry and adultery have women's safety at heart,
these highly discriminatory practices are still taking place at an alarming rate, affecting the lives of many
today.
8. EDUCATION SYSTEM IN INDIA

In ancient times, India had the Gurukula system of education in which anyone who wished to study went
to a teacher's (Guru) house and requested to be taught. If accepted as a student by the guru, he would
then stay at the guru's place and help in all activities at home. This not only created a strong tie between
the teacher and the student, but also taught the student everything about running a house. The guru
taught everything the child wanted to learn, from Sanskrit to the holy scriptures and from Mathematics to
Metaphysics. The student stayed as long as she wished or until the guru felt that he had taught everything
he could teach. All learning was closely linked to nature and to life, and not confined to memorizing some
information.
The modern school system was brought to India, including the English language, originally by Lord
Thomas Babington Macaulay in the 1830s. The curriculum was confined to “modern” subjects such as

science and mathematics, and subjects like metaphysics and philosophy were considered unnecessary.
Teaching was confined to classrooms and the link with nature was broken, as also the close relationship
between the teacher and the student.
The Uttar Pradesh (a state in India) Board of High School and Intermediate Education was the first Board
set up in India in the year 1921 with jurisdiction over Rajputana, Central India and Gwalior. In 1929, the
Board of High School and Intermediate Education, Rajputana, was established. Later, boards were
established in some of the states. But eventually, in 1952, the constitution of the board was amended,
and it was renamed Central Board of Secondary Education (CBSE). All schools in Delhi and some other
regions came under the Board. It was the function of the Board to decide on things like curriculum,
textbooks and examination system for all schools affiliated to it. Today there are thousands of schools
affiliated to the Board, both within India and in many other countries from Afghanistan to Zimbabwe.
Universal and compulsory education for all children in the age group of 6-14 was a cherished dream of
the new government of the Republic of India. This is evident from the fact that it is incorporated as a
directive policy in article 45 of the constitution. But this objective remains far away even more than half a
century later. However, in the recent past, the government appears to have taken a serious note of this
lapse and has made primary education a Fundamental Right of every Indian citizen. The pressures of
economic growth and the acute scarcity of skilled and trained manpower must certainly have played a
role to make the government take such a step. The expenditure by the Government of India on school
education in recent years comes to around 3% of the GDP, which is recognized to be very low.
Education School/Level Grades Age Years Notes
Elementary 6–
Primary 1–8 8
School 14
Includes Standards X and XII -

Secondary 9– 14–
Secondary 4 Secondary School or Senior
School 12 18
Secondary School
First University
12–
Tertiary Degree 3
15
(Bachelor's)
First University
Degree 12–
Tertiary 4
(Engineering & 16
Technology)
Second
15–
Tertiary University Degree 2
17
(Master's)
17–
Tertiary Doctoral Degree 5
22

“In recent times, several major announcements were made for developing the poor state of affairs in
education sector in India, the most notable ones being the National Common Minimum Programmed
(NCMP) of the United Progressive Alliance (UPA) government. The announcements are;
a. To progressively increase expenditure on education to around 6 percent of GDP.
b. To support this increase in expenditure on education, and to increase the quality of education,
there would be an imposition of an education cess over all central government taxes.
c. To ensure that no one is denied of education due to economic backwardness and poverty.
d. To make right to education a fundamental right for all children in the age group 6–14 years.
Primary Education
Primary and Middle (lower primary (Standards I to V) and upper primary (Standards VI to VIII)) education
is compulsory and free in India. Primary education begins at age 6 with Middle/Upper Primary school
education ending at age 14. Schooling is offered at state-run and private schools, however, private
schools often have poorer facilities and infrastructure than government schools. The regional language is
the medium of instruction for most primary schools and English as a second language generally begins
by grade 3.
Secondary Education
Secondary education begins in grade 9 and lasts until grade 12. The secondary stage is broken into two,
two-year cycles, generally referred to as General/Lower Secondary School, or ‘Standard X’, and
Upper/Senior Secondary School, or ‘Standard XII’. Education continues to be free at government schools,
although private education is more common at the secondary level. Public examinations are held at the
end of both cycles and grant access to grade 11 and university level study, respectively. General
curriculum for lower secondary school in India consists of three languages (including the regional
language, an elective, and English language), Mathematics, Science and Technology, Social Sciences,
Work/Pre-Vocational Education, Art, and Physical Education. Secondary schools are affiliated with
Central or State boards which administer the Secondary School Certificate at the end of grade 10.
Based upon performance in the first two years of secondary school, and upon the SSC results, students
may enter Senior/Upper Secondary School. Upper Secondary School offers the students a chance to
select a ‘stream’ or concentration of study, offering science, commerce, and arts/humanities. Education
is administered both in schools or two-year junior colleges which are often affiliated with degree granting
universities or colleges. Curriculum for the Higher Secondary Certificate Examination is determined by
the boards of secondary education of which there are 31. Although the HSCE is the most common
Standard XII examination, the All-India Senior School Certificate (CBSE), Indian School Certificate,
Certificate of Vocational Education (CISCE), Senior Secondary Certification (NIOS), Intermediate
Certificate and the Pre-University Certificate are also offered.

Vocational Education
Young people who do not wish to go on to tertiary education, or who fail to complete secondary school
often enroll at privately-owned vocational schools that specialize in just one or only a few courses. Unlike
in the United States, vocational and technical education is not highly specialized and is rather a broad
overview of knowledge applicable to employment. The curriculum offered is composed up of a language
course, foundation courses, and electives, of which half of electives are practical in nature. Examinations
at the end of vocational education are conducted by the All India and State Boards of Vocational
Education.
Tertiary Education
India’s higher education system is highly centralized and undergoing large changes since its inception in
1947. Largely based upon the British system of education, educational policy is ever developing.
University education is overseen by the University Grants Commission (UGC), which is responsible for
the development of higher education, allocating funds, and recognition of institutions in India. The National
Accreditation and Assessment Council (NAAC) was established by the UGC to assess universities and
college based upon an alphabetical ranking system ranging from A++ to C. The assessment and
Accreditation are broadly used for understanding the Quality Status of an institution and indicates that the
particular institution meets the standards of quality as set by the NAAC. Participation in the accreditation
process of NAAC is voluntary.
The All-India Council of Technical Education (AICTE) was also established to oversee quality control of
technical education and regulate establishment of new private professional colleges. All recognized
universities are members of the Association of Indian Universities (AIU), which is integral to the
dissemination of information and serves as an advisor to the government, UGC, and the institutions
themselves.
There are various types of tertiary institutions in India, namely Universities (Central, State, Open),
Universities of National Importance, and Deemed universities. Instruction of the majority of students,
almost 80%, is completed at affiliated colleges with the curriculum, examinations, and final degree being
designed and granted by the university. Constituent and Autonomous colleges also exist, though less
common although they do enjoy greater autonomy in regards to curriculum development and assessment.
Admission to undergraduate courses generally requires completion of the Standard XII years of schooling
and admittance to university depends almost exclusively upon performance on the examination.
Bachelor’s degrees in the fields of arts, science, social studies, and commerce are almost exclusively
three-year programs. Diploma programs exist and range from 2 – 3 years in length and are provided at
polytechnics, usually in a specialized engineering or technological field, and culminating in an Advanced
or Post Diploma. Professional Bachelor’s degrees, in the fields of Medicine, Architecture, Law, etc., vary
from 4 – 5.5 years depending upon the discipline.
Admission to graduate (Master, Post Graduate Diplomas, MBA, etc.) programs is dependent upon
completion of a bachelor’s degree (3 or 4 years, depending upon the subject) with a Second-Class pass

or higher. Non-university education in Management is popular in India, with many institutions offering Post
Graduate Diplomas in Management, lasting 2 years and generally equivalent to an MBA. Doctoral level
degrees require a minimum of two or three years and consist of research and a thesis or dissertation.
At the beginning of 2015, the Choice Based Credit System (CBCS) was introduced by the UGC in attempts
to encourage a more interdisciplinary approach to education and offer more flexibility and choice to
students. The reform also introduced a standardized assessment and grading plan based upon a 10-point
scale. Since its inception, the system has faced scrutiny by students and administrators, noting that
although the system promises choice and flexibility, the infrastructure of the educational system now may
be too weak yet to support the overhaul.
Literacy rates
For the purpose of census 2011, a person aged seven and above, who can both read and write with
understanding in any language, is treated as literate. A person, who can only read but cannot write, is not
literate. In the censuses prior to 1991, children below five years of age were necessarily treated as
illiterates.
The results of 2011 census reveal that there has been an increase in literacy in the country. The literacy
rate in the country is 74.04 per cent, 82.14 for males and 65.46 for females. Kerala retained its position
by being on top with a 93.91 per cent literacy rate, closely followed by Lakshadweep (92.28 per cent) and
Mizoram (91.58 per cent).
9. POLITICAL SYSTEM
9.1. Introduction
India is a diverse country with rich political history. The Constitution of India, adopted in 1950, turned India
into a parliamentary form of government which is federal in structure. The executive power of the union
government is vested with the President of India (as per Art.53(1) of the Constitution). The Prime Minister
in practice has the real executive power who heads the Council of Ministers in the parliament. The Prime
Minister of India and the Council of Ministers provide assistance to the President of India.
Mr. Narendra Modi took oath as the 15th Prime Minister of India on 26th May 2014. Mr. Modi was earlier
the Chief Minister (head of state) of Gujarat from 2001 to 2014. Dr Manmohan Singh was the 14th Prime
Minister and the third longest Prime Minister in office from 2004 to 2014. Prior to this, Mr. Jawaharlal
Nehru was India’s longest serving Prime Minister (1947-1964).
9.2. Structure of Indian polity
Legislature, executive and judiciary are three main organs of the Indian Government. They together
perform the functions of the government, maintain law, and order and look after the welfare of the people.
The Constitution enables them to work in coordination with each other.

The executive government consists of the President, Vice-President, and the Cabinet of Ministers. The
President has the right to all constitutional powers and acts only the advice of the head of the government
(The Prime Minister) and the Council of Ministers. In the absence of the President due to impeachment
or resignation, the Vice-President (second highest constitutional post) of the country takes over. The
Prime Minister is formally appointed by the President, and he/she picks the Council of Ministers. The term
for the Prime Minister is a 5-year term and can get re-elected if the party comes back to power.
Parliament at the Centre follows a bicameral system consisting of the Lok Sabha (Lower House) and
Rajya Sabha (Upper House). The party or coalition with a majority in the Lok Sabha forms Union (Central)
government. Members of Lok Sabha are elected for a term of five years. At present the Lok Sabha is
composed of representatives from 543 constituencies, elected by the voting population of India and two
Anglo Indians are elected by the President of India.
Rajya Sabha or the Upper House (indirectly elected body) represents the States of India. People from all
states elect members to State Legislative Assembly who in turn elect members of Rajya Sabha. Members
of Rajya Sabha are elected for a term of six years. Currently the Rajya Sabha consists of 238 members.
Indian Judiciary system comprises Supreme Court, 21 High courts and several family and civil courts at
the district level. Judiciary is an important organ of the government.
9.3. Political Parties
In India, political parties are either a national party or a state party. For any party to become a national
party either as opposition or as a ruling party they have to be recognized in at least four or more states.
Two important national parties that have played a predominant role in Indian political domain are INC-led
UPA (left coalition) and BJP-led NDA (right central alliance). Some other major political parties in India
can be categorized as follows.
Indian National Congress (INC)
The Indian National Congress was established in the year 1885. They have had strong dominance in
different states since the time of India’s Independence. INC (left coalition with other parties known as
United Progressive Alliance (UPA)) was the ruling party from 1999-2004 and from 2009-2014. Currently,
the party holds 9.1% or 48 seats out of 543 seats in the Lok Sabha. During the party’s regime few of the
major contributions to the economic development of Indian state were the 1991 LPG reforms, MGNREGA
program, RTI and other development-related schemes. The main ideology of the INC party is related to
social democracy and Gandhian secularism.
Bhartiya Janata Party (BJP)
The Bhartiya Janata Party (Indian People’s Association) came into existence in April,1980 as a result of
the spilt between Bhartiya Jan Sangh and the Janata Party. The Bhartiya Janata Party (BJP) is a hard-
core member of the Sangh Parivar and is nurtured by RSS ideology of serving the nation. The BJP-led
National Democratic Alliance advocates itself with a pro-development agenda and as a champion of the
socio-religious values of the country’s Hindu majority. They had earlier formed the government between

1998-2004. As of 2014, National Democratic Alliance coalition (NDA) led by the BJP is the ruling coalition
in the Parliament with majority in 13 states. The party’s representation of members in the Lok Sabha is
nearly 51.2% or 273 seats out of 543 seats.
Bahujan Samaj Party (BSP)
The Bahujan Samaj Party or the Majority People’s Party is an important national party in India. The main
ideology of the BSP is social transformation and economic emancipation of the Bahujan Samaj or the
Other Backward Castes, scheduled castes, Scheduled tribes and other minorities in India. It was formed
in 1984 mainly to represent the voice of those other than the majority Hindus. With Mayawati coming to
power, the party has had a significant number in the parliament, but over the years the BSP in the eyes
of the public have been charged with many corruption charges, financial scandals and misuse of power.
Samajwadi Party (SP)
The party of the socialist society (Samajwadi Party) is based in Uttar Pradesh and is the largest state
party in India. It was established in 1992 with an aim of creating a socialist society which works based on
the principle of equality. The origin of the party goes back to when Mr. Yadav spilt from the Janata Party
in 1992. The support from minorities such as the Muslim Community and other lower castes helped the
party come to power. The leaders from the party belong to the Yadav family. The party gained a majority
in the state during the 2002 state assembly elections and again in 2012. They are known to be very corrupt
in the eyes of the public. In the recent state assembly elections held in 2017, the BJP took over the SP
party which had been ruling party in the state.
Communist Party of India (Marxist) (CPI-M)
The Communist Party of India Marxist was established in the year 1964. The main ideology of the party
is centered on socialism, communism and establishment of full power to the working class. The principles
of Marx and Lenin are the main guiding forces of the party’s activities. The party is currently concentrated
in the state of Kerala.
All India Trinamool Congress (AITC)
The All-India Trinamool Congress was established in the year 1998 by Mamata Banerjee. Since 2014,
they are the fourth largest national party in India. Currently, AITC is the ruling party in the state of West
Bengal. The party mainly aims to make all round development of India in the political, economic and social
dimensions with the use of the principles of Socialism, Secularism and Democracy.
9.4. Stability of Institutions
Overall, democratic institutions in India perform their functions in an effective manner. However, tensions
between institutions at different levels often lead to counterproductive friction. The BJP-led government
with its stable majority has a much greater room to maneuver to promote reforms as compared to the
previous coalition governments, even though it lacks a majority in the Rajya Sabha, the upper house of
Parliament.

While vertical coordination between the national and the state level is often chaotic, the Modi government
has tried to improve it under the label “cooperative federalism,” in part by including the chief ministers of
all states in the NITI Aayog (National Institution for Transforming India), the institution that has replaced
the Planning Commission. At the same time, it has promoted “competitive federalism,” for example by
ranking states’ business environments to induce them to work harder to attract foreign investors. However,
the conflict over the role of the governor continues since the central government may interfere in state
affairs through the governor. Recently, central rule was imposed in Jammu and Kashmir, after the BJP
withdrew its support to the PDP government in the state. The chief minister of the state of Delhi has
approached the Supreme Court of India to clarify the constitutional position on the powers of the lieutenant
governor, who the chief minister complained had been obstructing governmental functioning.
Among the problems most seriously hampering the efficient working of the public administration are
corruption and a lack of incentives for officials.
Democracy is well-established in India. There are no actors able to effectively challenge the democratic
nature of the state. The army has been effectively kept under civilian control since independence and only
small armed groups, especially the Naxalites, aim to overturn the democratic credentials of the Indian
state. An exception (though minor) are various insurgent groups in the state’s periphery, including Maoist
rebel groups and ethno-nationalist armed groups in the Northeast and Kashmir.
10. TAXES IN INDIA

India raises tax revenue in two ways: direct taxes and indirect taxes. The Indian government’s Department
of Revenue is the central authority that exercises control in matters relating to all the direct and indirect
taxes through two statutory boards: the Central Board of Direct Taxes (CBDT) and the Central Board of
Indirect Taxes and Customs (CBIC).
10.1. What is Direct Tax?
A direct tax is a tax paid directly by an individual to the government. Matters relating to the levy and
collection of all Direct Taxes are looked after by the CBDT.
Some of the important taxes that fall under direct tax include:
Income Tax as Direct Tax
The income tax is one of the most prominent taxes that impact an individual. Income of an Indian resident
arising out of their professional activity, business proceeds, owning real estate and investments in the
stock market all is taxed under Income Tax.
Income Tax is filed at the end of the financial year in India. The Government of India re-evaluates income
tax individuals have to pay each year in the Annual Financial Budget.
The latest Income Tax figures according to the Income Tax Department include:

Income Tax for Individuals
Wealth Tax as Direct Tax
The Wealth Tax is taxation related to the net wealth of an individual or a company.
This tax levies a 2% surcharge on the super-rich. Individuals who earn more than INR 1 crore per annum
have to pay a wealth tax. This tax also applies to companies that have a revenue of over INR 10 crore
per annum.
Gift Tax as Direct Tax
The Gift Tax is levied on gifts given by people other than direct family or relatives such mother, father,
spouse, brothers, and sisters in the form of cash, draft, check or others.
Under the latest revision made in the Income Tax Act 1961, the monetary value of the gift given has to
exceed INR 50,000 for it to be taxed opposed to the INR 25,000 value that was tax before 1988. In
between the years, the Gift Tax was abolished and reintroduced in 2004 and continues till date.
It is noteworthy for consumers to understand Gift Tax is applicable on the entire value of the gift and not
just on the excess beyond the threshold limit of INR 50,000.
The Gift Tax has long been used as a way to earn tax-free interest on investments made by a spouse,
parent or sibling on the gift given. This is now not possible since the last two years given the reinstatement
of India’s Long Term Capital Gains (LTCG) Tax that taxes gains earned on long-term capital investments.
Capital Gains Tax as Direct Tax
The Capital Gains Tax is a kind of tax that individuals have to pay on benefit or gain arising from the sale
of capital assets such as investments in the stock market and real estate.
In India, the Capital Gain Tax is divided into Short-term Capital Gains (STCG) and Long-term Capital
Gains (LTCG), which refer to capital gains from assets held for less than 36 months and capital gains
from assets held for longer than 36 months, respectively.
The two primary differences in the way STCG and LTCG in India are that STCG is calculated based on
the income bracket that an individual falls in whereas LTCG is taxed at a flat 20% and second is that
indexation does not apply to STCG.
Indexation is a benefit granted to adjust the capital asset’s value keeping inflationary rise in prices in mind.
For LTCG, indexation is done using the Cost Inflation Index which allows you to calculate your revised
capital gains by inflating the cost of your purchase to the present day using a cost inflation index number

fixed by the government each year. This allows you to pay tax only on the indexed capital gains, thereby,
reducing your tax levy significantly.
Property Tax as Direct Tax
Property tax, also called the house tax, is a local tax that state municipal corporations levy on the owners
of immovable properties such as buildings and houses for the upkeep of the local surrounding of the
property in a specific area. Each city of an Indian state may have varied rules on property tax depending
on the municipal corporation entrusted with the maintenance of certain areas.
In general, property tax is charged based on the annual ratable value (ARV) or area-based rating. Owner-
occupied and other properties not producing rent are assessed on cost and then converted into ARV by
applying a percentage of cost, usually 6%.
No property tax is levied on vacant land and that occupied by the government.
Corporation Tax as Direct Tax
Corporations including business organizations and companies have to pay a direct tax to the federal
government if they are incorporated in India or have operations in India.
This is an income tax that is paid by companies from the revenue they earn. Based on their income,
corporations pay tax. This tax is referred to as a surcharge.
Companies deemed to be resident in India all come under the purview of the Corporation Tax. In cases
of non-resident corporations, tax is levied on the income earned from business dealings in India based on
agreements between the company and the government.
Corporate Tax on a Domestic Company
Income-tax rates applicable in case of domestic companies for assessment years 2020-21 and 2021-22
are as follows:
Direct Tax on Domestic Companies
(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such
tax, where total income exceeds INR 1 crore but not exceeding INR 10 crore and at the rate of 12% of
such tax, where total income exceeds INR 10 crore. The surcharge shall be subject to marginal relief,
which shall be as under:
(i) Where income exceeds INR 1 crore but not exceeding INR 10 crore, the total amount payable as
income-tax and surcharge shall not exceed total amount payable as income-tax on total income of INR 1
crore by more than the amount of income that exceeds INR 1 crore.

(ii) Where income exceeds INR 10 crore, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of INR 10 crore by more than the amount
of income that exceeds INR 10 crore.
Special Tax Rates Applicable to a Domestic Company
The special income tax rates applicable in case of domestic companies for assessment year 2020-21 and
2021-22 are as follows:
Special Tax on Domestic Companies
Surcharge: The rate of surcharge in case of a company opting for taxability under Section 115BAA or
Section 115BAB shall be flat 10% irrespective of amount of total income.
Minimum Alternate Tax: The domestic company who has opted for a special taxation regime under
Section 115BAA & 115BAB is exempted from the provision of MAT. However, no exemption is available
in cases where Section 115BA has been opted.
In that case, the provisions of MAT apply, tax payable cannot be less than 15% of “book profit” computed
as per Section 115JB. However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable)
in case of a company, being a unit of an International Financial Services Centre and deriving its income
solely in convertible foreign exchange.
Corporate Tax on a Foreign Company
Tax on Foreign Companies
(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such
tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of
5% of such tax, where total income exceeds INR 10 crore. However, the surcharge shall be subject to
marginal relief, which shall be as under:
(i) Where income exceeds INR 1 crore but not exceeding ten crore rupees, the total amount payable as
income-tax and surcharge shall not exceed total amount payable as income-tax on total income of INR 1
crore by more than the amount of income that exceeds INR 1 crore.
(ii) Where income exceeds INR 10 crore, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of ten crore rupees by more than the
amount of income that exceeds ten crore rupees.
(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further
increased by health and education cess calculated at the rate of four percent of such income-tax and
surcharge.

Expenditure Tax as Direct Tax
The Expenditure Tax is aimed at paying for expenses you may incur while availing the services of a hotel
or a restaurant. Individuals exceeding their expenses beyond INR 3,000 at a restaurant, or a hotel have
to pay this tax.
The government collects Expenditure Tax from the person operating the hotel or restaurant business that
is providing the services that fall under the definition of chargeable expenditure.
Local Government of India refers to the government of the 28 Indian states and the 7 union territories.
There are a total of 6,45,000 local governments of India. Local governments of the rural regions are
termed as the Panchayats. The local government in the urban areas is referred to as the nagar panchayats
and the municipalities.
The village panchayats basically refer to the councils of the local government of India, that take care of
the various administrative affairs of the rural regions. Along with the independence of India, came the
verdict from the Indian Constitution that all the panchayats will be chosen by the state and will be provided
such powers so as to enable them function on their own. These local governments of India are self-
sufficient and self-enabled units that work under the state government of India.
The 73rd Constitution Amendment Act, 1992 and the 74th Constitution Amendment Act, 1992 came into
force in the year 1993. In this Act, the constitutional status was attached to the city as well as village
councils in India. Some of the significant steps that were taken for the local government in India include
regular elections, the fixed five-year term and the review and augmentation of the finances by the State
Finance Commissions.
11. ROLE OF LOCAL GOVERNMENT

11.1. Functions of Local Government of India
All the local governments of India have to perform certain responsibilities, which are divided into two
categories obligatory functions and discretionary functions.
Some of the obligatory functions performed by the local governments are:

➢ Registration of births and deaths
➢ Supply of pure drinking water
➢ Construction and maintenance of public streets
➢ Lighting and watering of public streets
➢ Cleaning of public streets, places, and sewers
➢ Naming streets and numbering houses
➢ Establishment and maintenance of primary schools
➢ Maintenance or support of public hospitals
Some of the discretionary functions, which are performed by the local governments of India, are:
➢ Planting and maintenance of trees

➢ Housing for low income groups
➢ Construction and maintenance of public parks, gardens, libraries, museums, rest houses and other
public buildings
➢ Securing or removal of dangerous buildings or places
11.2. Legal system
11.2.1. Organization of the judiciary system
The Constitution of India (unlike the US and the Australian constitutions) does not have an express
provision for separation of powers. However, it still recognizes and incorporates the doctrine of separation
of powers between three branches (legislature, executive and judiciary). Therefore, while no formal lines
have been drawn between them, it is widely considered that the doctrine of separation of powers "runs
through" the Constitution of India.
There is often an overlap in the scope of the functions of the three branches. Because of the parliamentary
form of government, the dividing line between the executive and the legislature is naturally rather a fine
one. Under the Constitution, the executive can legislate using:
➢ The ordinance-making powers of the President and the governors.
➢ Delegated executive legislation.
The legislature exercises some form of control over the judiciary in that it can legislate on the constitution,
jurisdiction and powers of the courts, and can also impeach judges.
The judiciary has wide powers to review and strike down unconstitutional executive and legislative
decisions and actions. The legislature can make such rulings ineffective by amending the law while staying
within the constitutional limits (a concept known as "legislative overruling"). This is an example of the
inherent checks and balances under the Constitution which further strengthen the separation of powers.
Despite the fact that the three branches interconnect and have functional overlaps, the Indian judiciary
has recognized the doctrine of separation of powers as a basic feature of the Constitution and an essential
part of the rule of law.
11.2.2. Code, common, socialist, or Islamic-law country?
Socialist.
The Constitution of India was drafted and adopted by a constituent assembly of elected representatives
of the people and came into effect on 26 January 1950. The Constitution of India is not the creation of
parliament but of the people of India and is therefore supreme. India's constitutional supremacy is
evidenced in the opening sentence of the Preamble to the Constitution of India: "We, The People of India,
having solemnly resolved to constitute India into a Sovereign Socialist Secular Democratic Republic".

11.2.3. Participation in patents, trademarks, and other conventions
India has laws covering various areas of intellectual property as enumerated herein below:
➢ Trademarks
➢ Patents
➢ Copyrights and Related Rights
➢ Industrial Designs
➢ Geographical Indications
➢ Layout Designs of Integrated Circuits
➢ Plant Varieties
➢ Information Technology and Cyber crimes
➢ Data Protection
Patent Law in India
The Patents Act 1970, along with the Patents Rules 1972, came into force on 20th April 1972, replacing
the Indian Patents and Designs Act 1911. The Patents Act was largely based on the recommendations of
the Ayyangar Committee Report headed by Justice N. Rajagopala Ayyangar. One of the
recommendations was the allowance of only process patents with regard to inventions relating to drugs,
medicines, food and chemicals.
Trademarks & conventions Law in India
India’s obligations under the TRIPS Agreement for protection of trademarks, inter alia, include protection
to distinguishing marks, recognition of service marks, indefinite periodical renewal of registration, abolition
of compulsory licensing of trademarks, etc.
With the globalization of trade, brand names, trade names, marks, etc., have attained an immense value
that require uniform minimum standards of protection and efficient procedures for enforcement as were
recognized under the TRIPS. In view of the same, extensive review and consequential repeal of the old
Indian Trade and Merchandise Marks Act, 1958 was carried out and the new Trademarks Act, 1999 was
enacted. The said Act of 1999, with subsequent amendments, conforms to the TRIPS and is in
accordance with the international systems and practices.
The Trademarks Act provides, inter alia, for registration of service marks, filing of multiclass applications,
increasing the term of registration of a trademark to ten years as well as recognition of the concept of well-
known marks, etc. The Indian judiciary has been proactive in the protection of trademarks, and it has
extended the protection under the trademarks law to Domain Names as demonstrated in landmark cases
of Tata Sons Ltd. v Manu Koura & OR’s [90 (2001) DLT 659] and Yahoo Inc. v Akash Arora [1999 PTC
201].

India, being a common law country, follows not only the codified law, but also common law principles, and
as such provides for infringement as well as passing off actions against violation of trademarks. Section
135 of the Trademarks Act recognizes both infringement as well as passing off actions.
12. SOCIAL ORGANIZATIONS

Non-Governmental Organizations in India have developed and strengthened through their good works in
the last few decades. However, only a few of them have impacted society, and some are still working hard
and serving the community. Despite being surrounded by all the troubles prevailing in our nation, it lacks
transparency or the rate of corruption. Some Top 10 NGO in India has reached a level, and some want to
go where the Indian community has seen their efforts.
From this article, we are provided with complete detailed information about the Top NGO (Non-
Governmental Organizations) in India, how they are doing ideal for society by doing great work for the
society in India. They will give complete information about NGOs and how they will reach the top
Organization.
An NGO is an organization in which the government has no role; It is a non-governmental organization.

People who have good money or business help people through NGO. NGOs are a subgroup of
organizations established by citizens, including clubs and associations that provide services to their
members and others—an organization aimed at the welfare of society. NGOs do much social work such
as housing for widowed women, teaching poor orphans, protecting women, etc.
Best NGO in India
Here the updated list of Top NGOs in India is officially created by our team NGO Feed. To know detailed
information about Registration, Purpose, Objectives, Mission and Vision, Office etc. Read this post
carefully.
1. Smile Foundation
Smile Foundation is an NGO based in New Delhi, India. It was established in 2002 and had a presence
in 25 states. As of 2017, the Foundation reaches approximately 4 lakh children and their families. The
purpose of the Smile Foundation for Education in India was to promote education among the
underprivileged. Their development program includes Education, health, livelihood for children and
women, provision to be equally affected by lack of resources. Some of his programs are Smile on Wheels,
Mission Education and Smile Twin e-learning programs.
2. Nanhi Kali
Nanhi Kali is an Indian non-governmental organization that supports education for underprivileged girls in
India. Founded by Anand Mahindra in 1996, it is jointly managed by Naandi Foundation and KC Mahindra
Education Trust, which is part of the Mahindra Group’s corporate social responsibilities. Project Nani Kali
educated girls and women to influence India in the long run positively. The chairman of the non-profit
organization, Sheetal Mehta, told the Daily News and Analysis in an interview that “we wanted to create
global awareness about the plight of young girls in the country who are denied their basic rights.”

3. Give India Foundation
Give India is a non-profit organization in India. It is an online donation platform and aims to provide
channels and resources to trusted non-governmental organizations across India. As a web portal, it helps
raise funds and contributions from individuals in India and around the world and then distributes these
donations to trusted NGOs.
4. Goonj
Goonj is a non-governmental organization based in Delhi, India. It performs disaster relief, humanitarian
aid and community development work in parts of 23 states of India. Echo focuses on clothes as a basic
but unheard-of need. It was founded in 1999 by Anshu Gupta. For his work with Goonj, he was awarded
the Ramon Magsaysay Award in 2015. In 2012, he was named India’s Social Entrepreneur of the Year
2012 by the Schwab Foundation, a World Economic Forum partner organization. Goonj has started with
67 garments and now deals over 3500 tons of material every year. It is registered under the Societies Act
and Section 80G, 12A and FCRA to exempt foreign contribution.
5. Helpage India
HelpAge India is an Indian organization focused on the concerns of elders. Established in 1978, its mission
is to “work for the cause and care of under-aged elderly people and improve their standard of living”.
HelpAge is taking action against universal, pension, healthcare, Elder Abuse at the national, state and
social levels with the central and state governments and advocates for the needy. It runs various age care
programs to cater to the more significant needs. It aims to serve the disadvantaged elders holistically to
lead an active, dignified, and healthy life.
6. CRY (Child Rights and You)
CRY is an Indian non-governmental organization that helps restore children’s rights to build a society that
promises equality, justice, and respect. The organization was founded in 1979 by Ripon Kapoor.
CRY partners with organizations to uplift thousands of Dalit children. CRY works at all levels, including
advocacy, awareness-raising, direct action, and policy changes. They devote both their time and money
to ensure a healthy, happy, and creative childhood.
7. Care India
CARE India has been working in India for 68 years and is a non-profit organization focusing on reducing
poverty and social injustice. We do this through well-planned and comprehensive projects in health,
education, livelihood, disaster relief, and response. Our overall goal is to empower women and girls from
poor and marginalized communities and improve their lives and livelihoods. Care India reached 31.5
million people directly through 43 projects in 14 states, covering more than 90 districts. It is a part of CARE
International Confederation, which operates in 95 countries globally, where all people live with dignity and
safety.

8. Childline India Foundation
CHILDLINE 1098 is a phone number those spells hope for millions of children across India. It is a 24-hour
day, 365 days a year, free emergency phone service for children in need of aid and assistance. We
respond to the emergency needs of children and link them to relevant services for their long-term care
and rehabilitation. We have, to date, connected to three million children across the nation, offering them
care and protection.
9. Sammaan Foundation
Samman Foundation is a ‘not-for-profit company, registered under Section 25 of the Indian Companies
Act 1956. It was established in 2007; it is actively engaged in community service through several
grassroots initiatives, including extensive work in health and livelihoods.
10. Pratham
Pratham is one of the largest non-governmental organizations in India. Madhav Chavan and Farida Lamba
founded it. It works towards the provision of quality education for underprivileged children in India.
Established in Mumbai in 1994 to provide pre-school education to children in slums, Pratham has today
intervened in 23 states and union territories in India and supported chapters in the United States, Britain,
Germany, and Sweden Used to be.
13. BUSINESS CUSTOMS AND PRACTICES
13.1. INDIAN CULTURE AND BUSINESS ETIQUETTE
Indians are strongly guided by their respective religions and their shared values. Respect for elders and
hierarchy are core values that permeate all aspects of Indian society. Indians also place huge importance
on family and community. And as in many Asian cultures, the concept of saving face – avoiding blame or
any type of shameful situation – can influence decision-making processes and affect your business
dealings in India.
India is a relatively conservative society, and it is important for visitors to be respectful of societal norms
and traditional values, which continue to underpin many customs and business practices. Younger Indians
are less particular about decorum than older generations, but will still adhere to many traditions and
conventions, especially when around superiors or elders.
Positions of power and authority are highly valued and revered. At the same time, Indians are proud of
being citizens of the largest democracy in the world and consider their rights under this system paramount.
Key principles of democracy, such as the right to speak freely, can become exaggerated in a business
context. It is not uncommon for middle managers to seek time with the CEO to air grievances – whereas
in Australia, by contrast, it might only be appropriate to share grievances with a direct superior or a human
resources representative.

Building good business relationships and trust are important in India, so you should expect to spend plenty
of time at meetings, dinners, and social clubs with potential business partners. In a first meeting, let the
Indian host guide the initial stages of the conversation. Follow his or her lead as to when the small talk
should end, and the business discussion should begin. As in some other Asian cultures, Indians like to
develop a personal connection first. So, expect to be asked – and prepare to ask your own questions –
about family. Try to find a connection with your Indian counterpart and make a note to remember it. For
example, if he or she has a child or grandchild, remember the child’s name and ask about his or her well-
being each time you see your contact.
13.2. Greetings and titles

A handshake is the standard way to greet men and women in a business setting, whatever their age or
seniority. When meeting with small independent retailers in non-urban areas, you may be greeted by your
potential partner with the word namaste (pronounced nah-mas-Tay). You may reciprocate by repeating
the word, with the palms of your hands together and a slight bow or nod of the head. More traditional
Indian women will likely use this greeting with foreign men and, similarly, traditional Indian men with
foreign women. An extra display of courtesy in the presence of an older person will also bring you favor.
Often people will slightly nod or bow their heads when shaking hands, particularly with senior figures.
Business cards are then generally exchanged before seating. When offering and receiving business
cards, use both hands or use your right hand with your left hand supporting your right forearm. The left
hand is considered unclean and as such, should never be used alone to offer or accept a handshake,
drink, food, money, gifts or business cards.
You may observe junior Indian colleagues addressing their superiors by their first or last names, followed
by sir or madam. As a foreigner, however, you must appear to be the lead decision maker when meeting
with a potential partner and it is acceptable to simply address senior men and women using their honorifics
(Dr/Mr./Ms.) and their first names or surnames – unless you are invited to do otherwise.
In some negotiations, it can be advantageous to suggest that you are a senior representative, but perhaps
not the final decision maker. Negotiations are explored later in this chapter.
13.3. Body language

Indians tend to value their personal space and are generally not prone to making much physical contact.
However, it is not uncommon for Indian men to engage in friendly back patting. This is a sign of friendship
and a positive signal for your working relationship. Indians are generally expressive and use body
language to convey messages that are not always verbal. It is always best to clarify verbally if you think
you are getting a “yes” response.
Like most other nationalities, Indians do not appreciate being summoned. Hand gestures motioning
someone to approach you are best avoided. Showing the soles of your feet or your shoes, or pointing
your feet towards anyone, is considered highly disrespectful and insulting in India, as is stepping on or
over papers, books, religious offerings on the ground – and especially people. Hence, you should avoid

pointing your feet towards anyone and keep them flat on the ground when you are seated. If possible,
walk around books or papers on the ground in front of you, or pick them up in order to walk through.
If you are entering someone’s home, offer to remove your shoes. Increasingly, however, many Indians
will suggest you keep your shoes on. Even then, if your host is barefoot, taking off your shoes will be well
regarded by your host.
It is rude to touch anyone’s head. Pointing with fingers is also disrespectful; if you must point, use your
thumb, with the rest of your fingers curled into a fist, palm facing upward. You may also gesture politely
to someone or something with an open, upward-facing palm.
13.4. Business cards

These are essential when conducting business in India and must be handled with respect. Make sure
your card includes your name, company name, position, and email address, all in English (it is not
necessary to have your card translated into Hindi). A website address is also helpful. If you have a higher
degree such as a masters or a PhD, you may wish to disclose it on your business card, as it will earn you
greater respect in India. Take plenty of cards, as it is not uncommon to give out dozens of them in one
night at a networking event. When presenting your card, do so with both hands holding the card at the top
in between your thumb and index finger with the writing facing the recipient. After receiving a business
card, spend a few moments examining it, providing positive feedback with a smile, before placing it either
in your chest pocket or in front of you at the table (putting it away at the end of the meeting either in your
chest pocket or business card holder). Never place business cards in your pants or skirt pockets in front
of your hosts – even if it is in your wallet at the time – as this can appear disrespectful.
13.5. Corporate culture

Depending on the type of Indian business you are dealing with, it is not common for middle management
to have decision-making autonomy. Make sure the person you are negotiating with is senior enough to
commit to business and partnership decisions. Do not begin business meetings by getting straight to the
heart of the negotiation. Take a short time to ask personal questions about your contact’s family and
background, covering topics such as how long they have worked in the company or industry and where
they grew up.
Do not expect negotiations to be completed at the first meeting. And be aware that Indians are reluctant
to say “no” – you may be told that something is possible even when it is not. Asking for further detail about
how something will be done could help to uncover whether your contact will be able to fulfil your needs.
On the other hand, you may be told something is impossible to do if your contact thinks it will be expensive,
complicated, or tedious. Ask again firmly, but with a smile if you think that your request is a reasonable
one.
Foreigners accustomed to transparency in business will take time adjusting to the Indian style of deal
making. It helps to try to understand what personal or corporate interests may derail the deal and start
working to neutralize these where possible. Although a strict hierarchy is adhered to, a decision maker’s

subordinate is capable of derailing the deal, given that Indian businesspeople and bureaucrats listen to
underlings with vested interests far more than their foreign counterparts do. It is therefore important to
understand the role and dynamics of all at the table, as well as those who may be absent but influential.
The existence of such people can be politely investigated at dinners and drinks.
Never adopt a prescriptive tone or attitude in discussions; this will likely be met with instant resistance.
For many Indians, such an attitude could seem colonialist in character. You will likely be offered a hot
drink, spiced chai (tea) or a soft drink at a meeting. Try not to refuse what is offered and be sure to
consume some of it. Your cup or glass will most likely be refilled when you have emptied it.
Schedule more time than is necessary for your meeting. This will help in case either you or your contact
is delayed. Traffic problems in major cities like Mumbai are severe, so lateness is common. Make a
concerted effort to be on time for formal business meetings but be aware that they will not always start on
time.
13.6. Dress code

Conservative, professional attire is expected in the business setting, although this can differ depending
on the season and the city. Men should generally wear a suit (with tie) and women should wear a business
dress or a suit with a blouse (not low-cut and, in the case of skirts, not too short). In summer, however, it
is more acceptable for men to not wear a jacket. Women should avoid wearing short outfits or exposing
their shoulders. Your host may be informally dressed but he or she will likely expect new guests to be
formally attired. Dressing down can occur eventually as mutual familiarity is established.
13.7. BUILDING RELATIONSHIPS WITH INDIANS

Employees with cross cultural or language skills was important or very important to business success in
India. However, it should be noted that India offers the benefit of higher English literacy than many of its
Asian neighbors. The language and cultural barriers that do exist can be overcome by spending extensive
time in India and investing time and effort into building relationships with business and government
contacts.
The strength of your business relationships can determine many aspects of commercial life, including
gaining credit, procurement and contracting, as well as the timeliness of bureaucratic processes. Investing
in relationships often involves large amounts of ‘face-to-face’ time with a person of appropriate seniority,
with a strong emphasis on building trust and proving loyalty within the relationship. businesses should
also explicitly consider the impact of age, gender, educational and marital status on the formation of
personal and commercial relationships in India. For example, younger people are often excluded from
decision-making processes in India and are expected to defer in language and attitude to older people.
This is changing somewhat as smart, educated young Indians – who are more representative of the
consumer market than older Indians – begin joining the workforce. When establishing relationships,
remember that if it is a business contact worth pursuing, the people you are dealing with are likely to be
evaluating you and your business as well.

Expect that your business relationships will have a reciprocal nature and that your contact will want to
know what you can do for them and whether they can benefit from your networks in Australia. Be open
about what you are willing and able to do and what you cannot do for them.
13.8. General knowledge of India

It is helpful to have some general knowledge of India and its culture. This can assist you in establishing
an immediate connection with a new Indian contact. For example, an ability to demonstrate knowledge of
Indian geography when someone tells you where they were born demonstrates your interest in India and
your commitment to doing business there. Such positive signals can inspire your potential partner to be
more open with you than they otherwise might be.
Travelling around India to develop a connection with the country could therefore serve you well in a
business context. Showing ignorance of basic facts about India – for example, if you mistakenly refer to
the Hindi language as Indian – may seem small but will not impress your hosts. Also be aware that
although Indians may seem to you quick to criticize themselves and their country, they will be insulted by
a foreigner doing the same. Peppering your conversation with aspects of India and its culture (business
or otherwise) that you genuinely admire, in a natural and sincere manner, can be helpful.
13.9. Formal introduction

Indians tend to prefer to do business with people they know, or with whom they have some personal
connection. It can help to be introduced to a prospective business associate through an intermediary. If
your contact is well respected and has been in a senior position, the likelihood of being introduced to the
right people and key decision makers is increased.
13.10. Conscious effort

Relationships in India, as in many parts of Asia, are more trust-oriented and personal than elsewhere; a
conscious and continued effort is therefore required to develop and maintain them. This will require
frequent visits, almost daily communication (preferably CEO/company director to CEO) and plenty of
socializing. Always stay at least one night in each Indian city where you have a meeting to allow for social
events. After you have established your business, you should continue to send the most senior executive
you can to India to nurture and sustain positive relationships and avoid insulting your local contacts.
13.11. Gifts
Gifts are not normally expected at initial meetings but can be a positive gesture when you have concluded
a business negotiation or when you are marking a milestone in the business relationship. Chocolates,
small China, or crystal can be appropriate, as can items with significant home country symbolism or which
possess your company emblem. Gifts should be given and received with both hands and should not be
opened in the presence of the provider. When you receive a gift, you should generally reciprocate with a
gift of similar value. Try to avoid giving expensive gifts that will make the receiver feel obliged to

reciprocate. Also avoid watches or clocks, shoes, and sharp objects such as knives or scissors, all of
which have negative symbolism or involve superstitions. You should also note:
➢ Gifts are best wrapped in bright colors.
➢ If more than one person is attending your meeting, the gift should be presented to the most senior
delegate.
➢ If you are giving individual gifts to the Indian delegation – do so in the order they were introduced
to you. If you do not have enough gifts for everyone, give just one to the most senior person.
➢ It is not uncommon for Indians to refuse a gift at first to be polite, so ensure that you offer a second
time.
➢ Always bring a small gift (such as chocolates, fruit, or desserts) for the host or hostess if you are
invited to a person’s house. Do not assume that a bottle of wine will be an appropriate gift unless
you know that your host drinks alcohol.
13.12. Dining and entertainment

Once you have established relationships in India, you are likely to be invited to lunches or dinners.
Entertaining at restaurants, pubs and high-end hotels is very common. An invitation to dine at your
contact’s home is a signal that your relationship is becoming deeper and that you are a trusted contact.
Do not be offended, however, if this never happens in the course of your business relationship; it could
simply mean your Indian partner lives in a small apartment that is not conducive to entertaining. But if you
do receive an invitation, make every effort to attend. Dinner guests in India often arrive between 15 and
30 minutes after the stipulated arrival time. Remove your shoes before entering someone’s home and
bring a gift for the host or hostess.
In business negotiations, dining is commonly used to gently probe positions without any formal
commitment. Business is generally not discussed in depth during meals; their main purpose is to build
trust and relationships. However, business may be discussed if your Indian counterpart initiates it.
Business lunches are becoming more popular in some parts of India, but they are generally seen as less
important than dinners. Breakfast meetings seldom occur, as poor road infrastructure and traffic delays
make them almost impossible to schedule. If you want to impress and flatter your Indian counterparts, ask
them to dinner.
13.13. Business partners Building trust.

It is important to build relationships of trust with Indian business partners and to maintain regular contact,
including trips to India. Having frequent face to-face meetings are critical to ensuring you are not missing
any non-verbal cues that could be more indicative of the likely success of a project than verbal or written
messages. Ensuring the most senior executive of your company is available will help ensure that the
needs of your company are prioritized by your Indian business partner. It can also secure reciprocal
access to the key decision maker in the Indian business. If you are unable to make available the most
senior executive, you might consider giving the less senior person who will communicate most with your
business partner a high-status title. Using Skype or video conferencing, rather than telephone calls, can
also help you to develop deeper relationships and build trust.

Tips:
➢ Indians tend to be open and direct, which can seem insulting. Accept opinions with a smile and if
you are disagreeing, smile and do so politely.
➢ Direct questioning is common in India, so don’t be offended if you’re asked how old you are and
how much money you make. Privacy, especially concerning your personal life, is generally not
practiced.
➢ Draw on the informal, personal relationships you have with local cultural informants to understand
the hierarchy.
➢ Identify the key decision makers in meetings or negotiations by observing who walks into the room
first, who opens the discussions in the meeting, who sits in the middle of the table and to whom
the delegation defers.
➢ Senior figures generally try to avoid denying a request. A response like “I will try” can be a polite
way of saying no. At the same time, at lower levels, you may be told something is impossible
because it is inconvenient.
➢ Always make requests a second or third time, with a polite smile. This will help you to clarify if your
needs can be fulfilled adequately or if you should seek a new partner.
14. Religion and aesthetics

Religion has historically influenced Indian society on a political, cultural, and economic level. There is a
sense of pride associated with the country’s rich religious history as the traditions of Hinduism, Buddhism,
Sikhism and Jainism all emerged out of India. Moreover, while a majority of people in India identify as
Hindu (79.8%), the medley of religions that exist within the country continually impact contemporary
society.
In India, religion is more publicly visible than it is in most English-speaking Western countries. This
becomes evident when considering the numerous spaces that are thought to be sacred and holy.
Examples include ‘ashrams’ (monasteries or congregation sites) consisting of large communities of
scholars or monastics, temples (mandir), shrines and specific landscapes such as the Ganges River.
There is a rich religious history visible in architecture, and it is not uncommon to find various places of
worship, such as a Hindu temple, Muslim Mosque and Christian church, all next to each other.
The 2011 Indian census indicated that 79.8% of Indians identified as Hindu, 14.2% identified as Muslim
and 2.3% identified as Christian. A further 1.7% of the population identified as Sikh, 0.7% identified as
Buddhist and 0.37% identified as Jain. Due to the massive population size of India, religious minorities
still represent a significant number of people. For example, although only 0.37% of India may identify with
Jainism, that still equates to over 4 million people. While not all religions in India can be discussed in
detail, the following provides an overview of the major religions in the country as well as sizable religions
that originated in India.
14.1. Hinduism in India
Hinduism – the most widely followed religion in India – can be interpreted diversely. Pinpointing what
constitutes Hinduism is difficult, with some suggesting that it is an umbrella term that encompasses

various religions and traditions within it. Nonetheless, Hinduism in all its forms has been particularly
influential in Indian society.
Daily Life
Hinduism continues to thrive in modern-day India. The religion affects everyday life and social interactions
among people through the many Hindu-inspired festivities, artistic works and temples. There is also a
continuing revival of the classical ‘epic' narratives of the Ramayana (Rama’s Journey) and
the Mahabharata (The Great Epic of the Bharata Dynasty) through the medium of film and television.
The Krishna Lila (The Playful Activities of Krishna) is another popular tale among many villages.
It is common to find images of gods and goddesses in public and private spaces at all times of the year.
The elephant-headed god, known as Ganesh, is particularly popular due to his believed ability to remove
obstacles. Natural landscapes are also venerated, such as particular trees or rivers. The Hindu pantheon
of deities extends into the hundreds of thousands due to the localised and regional incarnations of gods
and goddesses. There are also many festivals celebrated throughout the country dedicated to the many
Hindu narratives and deities.
Social Structure
One influential component of Hinduism impacting India is the large-scale caste system, known as the
‘varna’ system. The varna caste system represented the Hindu ideal of how society ought to be structured.
This form of organisation classified society into four ideal categories: brahmin (priestly
caste), kshatriya (warrior, royalty or nobility caste), vaishya (commoner or merchant caste)
and shudra (artisan or labourer caste).
It is a hereditary system in that people are believed to be born into a family of a specific caste. Each caste
has specific duties (sometimes known as ‘dharma’) they are expected to uphold as part of their social
standing. For instance, a member of the Brahmin caste may be expected to attend to religious affairs
(such as learning religious texts and performing rituals) while avoiding duties outside of their caste, such
as cleaning. In contemporary times, Brahmin men who have been trained as priests often tend to temples
and perform ritual activities on behalf of other members of Hindu society.
14.2. Islam in India

Islam is the second most followed religion in India, influencing the country's society, culture, architecture,
and artistry. The partition of the subcontinent in 1947 led to mass emigration of roughly 10 million Muslims
to Pakistan and nearly as many Hindus and Sikhs from Pakistan into India. This event changed the
demographics of both countries significantly and is continually felt throughout India.
Nonetheless, the Islamic community in India continues to play a considerable role in the development of
the country. For example, the Muslim community in India has contributed to theological research and the
establishment of religious facilities, institutes, and universities. The mystical strain of Islam (Sufism) is
also popular, with people gathering to watch Sufi dance performances. The majority of Muslims are Sunni,

but there are also influential Shi'ite minorities in Gujarat. Most Sunnis reside in Jammu and Kashmir, Uttar
Pradesh, West Bengal, and Kerala as well as major cities.
14.3. Sikhism in India

Originating in India, Sikhism is a monotheistic religion that promotes devotion to a formless God. The
religion is centered on a tenet of service, humility, and equality, encouraging its followers to seek to help
those less fortunate or in need. For example, it is common for Sikhs to offer food to those visiting
a gurdwara (the primary place of worship for Sikhs). One of the most recognized symbols of the Sikh
community is a Sikh turban (known as a ‘dastar’ or a ‘dumalla’) worn by many men and some women.
Since the partition of India and Pakistan, most Sikhs in India have resided in the Punjab region.
14.4. Buddhism in India
Buddhism originated as a countermovement to early Hinduism by presenting a universal ethic rather than
basing ethical codes on an individual’s caste. The core doctrine of Buddhism, known as the ‘Four Noble
Truths’, teaches that one can be liberated from the suffering that underpins the cycle of death and rebirth
by practicing the ‘Noble Eightfold Path’. Buddhism has become more widely practised in India over the
last 30 years. This is partially due to the increased migration of exiled Buddhist monks from Tibet.
However, its popularity has also increased as many from the 'untouchables' caste view it as a viable
alternative to Hinduism in contemporary Indian society. Many Buddhists reside in the states of
Maharashtra, Sikkim, Arunachal Pradesh, Jammu and Kashmir.
14.5. Jainism in India
Jainism also originated as a countermovement that opposed some of the teachings and doctrines of early
Hinduism. In modern-day India, layperson Jains usually uphold the ethical principle of ‘ahimsa’ (‘non-
harm’ or ‘non-violence’). As such, Jains tend to promote vegetarianism and animal welfare. Another
common practice in the Jain lay community is samayika, a meditative ritual intended to strengthen one's
spiritual discipline. Samayika is often practiced in a religious setting, such as a temple, before a monk, or
in one's home. Most Jains reside in Maharashtra, Gujarat and Rajasthan.
14.6. Christianity in India
Christianity is the third most followed religion in India, mostly concentrated in the far south and Mumbai.
The most prominent denomination of Christianity in India is Roman Catholicism, but there are also
localized Christian churches (such as the Church of North India and the Church of South India). Converts
to Christianity have come mainly from traditionally disadvantaged minorities such as lower castes and
tribal groups.

15. AESTHETICS
15.1. Visual Arts & Literature

15.1.1. FOLK AND TRIBAL ART
India had always been known as the land that portrayed cultural and traditional vibrancy through its
conventional arts and crafts. The 35 states and union territories sprawled across the country have their
own distinct cultural and traditional identities and
are displayed through various forms of art prevalent there. Every region in India has its own style and
pattern of art, which is known as folk art. Other than folk art, there is yet another form of traditional art
practiced by several tribes or rural population, which is classified as tribal art. The folk and tribal arts of
India are very ethnic and simple, and yet colorful and vibrant enough to speak volumes about the country's
rich heritage.
Folk art in India apparently has a great potential in the international market because of its traditional
aesthetic sensibility and authenticity. The rural folk paintings of India bear distinctive colorful designs,
which are treated with religious and mystical motifs. Some of the most famous folk paintings of India are
the Madhubani paintings of Bihar, Patachitra paintings from the state of Odisha, the Nirmal paintings of
Andhra Pradesh, and other such folk-art forms. Folk art is however not restricted only to paintings, but
also stretches to other art forms such as pottery, home decorations, ornaments, cloths-making, and so
on. In fact, the potteries of some of the regions of India are quite popular among foreign tourists because
of their ethnic and traditional beauty.
Moreover, the regional dances of India, such as the Bhangra dance of Punjab, the Dandiya of Gujarat,
the Bihu dance of Assam, etc., which project the cultural heritage of those regions, are prominent
contenders in the field of Indian folk art. These folk dances are performed by people to express their
exhilaration on every possible event or occasion, such as the arrival of seasons, the birth of a child,
weddings, festivals, etc. The government of India, as well as other societies and associations, have
therefore made all efforts to promote such art forms, which have become an intrinsic part of India's cultural
identity.
Tribal art, like folk art, has also progressed considerably due to the constant developmental efforts of the
Indian government and other organizations. Tribal art generally reflects the creative energy found in rural
areas that acts as an undercurrent to the craftsmanship of the tribal people. Tribal art ranges through a
wide range of art forms, such as wall paintings, tribal dances, tribal music, and so on.
15.1.2. TANJORE ART
Folk art is linked with the forgotten art of storytelling. Paintings are used to depict the visual counterpoint
in narration in every region of India. Art forms of Rajasthan, Gujarat and Bengal narrate the myths and
legends of local heroes and deities and construct a kaleidoscopic image of our glorious past and rich

cultural heritage. Each work is a complete narration in itself, giving us a glimpse of the past, which has
been kept alive by talent and devotion of our artists.
15.1.3. MADHUBANI PAINTING
Madhubani painting, also referred to as Mithila Art (as it flourishes in the Mithila region of Bihar), is
characterized by line drawings filled in by bright colors and contrasts or patterns. This style of painting
has been traditionally done by the women of the region, though today men are also involved to meet the
demand. These paintings are popular because of their tribal motifs and use of bright earthy colors. These
paintings are done with mineral pigments prepared by the artists. The work is done on freshly plastered
or a mud wall.
15.1.4. WARLI FOLK PAINTING
Maharashtra is known for its Warli folk paintings. Warli is the name of the largest tribe found on the
northern outskirts of Mumbai, in Western India. Despite being in such close proximity of the largest
metropolis in India, Warli tribesmen shun all influences of modern urbanization. Warli Art was first
discovered in the early seventies. While there are no records of the exact origins of this art, its roots may
be traced to as early as the 10th century A.D. Warli is the vivid expression of daily and social events of
the Warli tribe of Maharashtra, used by them to embellish the walls of village houses. This was the only
means of transmitting folklore to a populace not acquainted with the written word. This art form is simple
in comparison to the vibrant paintings of Madhubani.
15.1.5. PATTACHITRA PAINTING
Pattachitra style of painting is one of the oldest and most popular art forms of Odisha. The name
Pattachitra has evolved from the Sanskrit words patta, meaning canvas, and chitra, meaning picture.
Pattachitra is thus a painting done on canvas, and is manifested by rich colorful application, creative motifs
and designs, and portrayal of simple themes, mostly mythological in depiction.
Some of the popular themes represented through this art form are Thia Badhia - depiction of the temple
of Jagannath; Krishna Lila - enactment of Jagannath as Lord Krishna displaying his powers as a child;
Dasabatara Patti - the ten incarnations of Lord Vishnu; Panchamukhi - depiction of Lord Ganesh as a five-
headed deity.
15.1.6. RAJASTHANI MINIATURE PAINTING
The art of Miniature painting was introduced to the land of India by the Mughals, who brought the much-
revealed art form from Persia. In the sixteenth century, the Mughal ruler Humayun brought artists from
Persia, who specialized in miniature painting. The succeeding Mughal Emperor, Akbar built an atelier for
them to promote the rich art form. These artists, on their part, trained Indian artists who produced paintings
in a new distinctive style, inspired by the royal and romantic lives of the Mughals.
The particular miniature produced by Indian artists in their own style is known as Rajput or Rajasthani
miniature. During this time, several schools of painting evolved, such as Mewar (Udaipur), Bundi, Kotah,

Marwar (Jodhpur), Bikaner, Jaipur, and Kishangarh.
15.1.7. KALAMEZHUTHU
Names like Rangoli, Kolam etc. are not new to us, and neither is the tradition of drawing them at the
entrance of homes and temples. In fact, it is part of the domestic routine in Hindu households, who
consider it auspicious to draw certain patterns at the doorstep and courtyard to welcome a deity into the
house. This art form is a harmonious blend of Aryan, Dravidian and Tribal traditions.
Kalam (Kalamezhuthu) is unique form of this art found in Kerala. It is essentially a ritualistic art practiced
in temples and sacred groves of Kerala where the representation of deities like Kali and Lord Ayyappa,
are made on the floor.
15.2. Performing Arts

15.2.1. MUSIC
Two main schools of classical music-Hindustani and Carnatic continue to survive through oral tradition
being passed on by teachers to disciples. This has led to the existence of family traditions called gharanas
and sampradayas.
15.2.2. DANCE
Dance in India has an unbroken tradition of over 2,000 years. Its themes are derived from mythology,
legends, and classical literature, two main divisions being classical and folk. Classical dance forms are
based on ancient dance discipline and have rigid rules of presentation. Important among them are Bharata
Natyam, Kathakali, Kathak, Manipuri, Kuchipudi and Odissi. Bharata Natyam though it derives its roots
from Tamil Nadu, has developed into an all-India form. Kathakali is a dance form of Kerala. Kathak is a
classical dance form revitalized as a result of Mughal influence on Indian culture. Manipur has contributed
to a delicate, lyrical style of dance called Manipuri, while Kuchipudi is a dance form owing its origin to
Andhra Pradesh. Odissi from Odisha, once practiced as a temple dance, is today widely exhibited by
artistes across the country. Folk and tribal dances are of numerous patterns.
Both classical and folk dances owe their present popularity to institutions like Sangeet Natak Akademi
and other training institutes and cultural organizations. The Akademie gives financial assistance to cultural
institutions and awards fellowships to scholars, performers and teachers to promote advanced study and
training in different forms of dance and music, especially those which are rare.
15.2.3. THEATRE
Theatre in India is as old as her music and dance. Classical theatre survives only in some places. Folk
theatre can be seen in its regional variants practically in every region. There are also professional theatres,
mainly city oriented. Besides, India has a rich tradition of puppet theatre, prevalent forms being puppets,
rod puppets, glove puppets and leather puppets (shadow theatre). There are several semi-professional
and amateur theatre groups involved in staging plays in Indian languages and in English.

16. LIVING CONDITIONS
16.1. Diet and nutrition
India is a diverse nation with many different cultures. Although there are some eating habits that are
considered staples of Indian cuisine, these habits may not be practiced by all the cultures of India. Cuisine
differs across India’s diverse regions as a result of variation in local culture, geographical location
(proximity to sea, desert, or mountains), and economics. It also varies seasonally, depending on which
fruits and vegetables are ripe. Also, Middle Eastern and Central Asian influences have occurred on North
Indian cuisine from the years of Mughal rule. Indian cuisine is still evolving, as a result of the nation’s
cultural interactions with other societies.
Historical incidents such as foreign invasions, trade relations, and colonialism have played a role in
introducing certain foods to the country. For instance, potato, a staple of the diet in some regions of India,
was brought to India by the Portuguese, who also introduced chilies and breadfruit. Indian cuisine has
shaped the history of international relations; the spice trade between India and Europe was the primary
catalyst for Europe’s Age of Discovery. Spices were bought from India and traded around Europe and
Asia. Indian cuisine has influenced other cuisines across the world, especially those from Europe, the
Middle East, North Africa, sub-Saharan Africa, Southeast Asia, the British Isles, Fiji, and the Caribbean.
Indian food is rich in flavor. However, spices do more than flavor a dish; They are also used to cool and
warm the body during hot or cold weather. Yogurt is commonly used to flavor dishes or as a sauce to chill
spicy dishes. Many Indian dishes are cooked in vegetable oil, but peanut oil is popular in northern and
western India, mustard oil in eastern India, and coconut oil along the western coast, especially in
Kerala. Gingelly (sesame) oil is common in the south since it imparts a fragrant, nutty aroma. In recent
decades, sunflower, safflower, cottonseed, and soybean oils have become popular across India. Butter-
based ghee, or dashi ghee, is used frequently, though less than in the past.
Many types of meat are used for Indian cooking, but chicken
and mutton tend to be the most commonly consumed meats.
Fish and beef consumption are prevalent in some parts of
India, but they are not widely consumed except for coastal
areas, as well as the north east. Some leaves commonly used
for flavoring include bay leaves (tempt), coriander leaves,
fenugreek leaves, and mint leaves. The use of curry leaves
and roots for flavoring is typical of Gujarati and South Indian
cuisine. Sweet dishes are often seasoned with cardamom,
saffron, nutmeg, and rose petal essences.
Eating habits of the Indian culture are based on culinary traditions. Most dishes feature meat or vegetables
mixed with sauce and rice. Many Indians are vegetarian, so eating habits are often based on a diet that
excludes all meat. When meat is incorporated in dishes, it is most commonly in the form of chicken, beef
or lamb, and sometimes seafood, such as prawns. The majority of the Indian population is Hindu, so beef
and pork are often excluded from Indian dishes due to religious requirements.

Cutlery is not traditionally used to eat food in the Indian culture.
Food is meant to be a whole sensory experience, so an eating
habit in the traditional Indian culture is to consume Indian foods
such as curry, rice and naan bread by picking it up using the
hands. Bread is often used to scoop up the curry sauce and rice,
and it is dipped into traditional soups such as deal, a lentil-based
soup. Indian people are supposed to eat with their right hands,
because eating with the left hand is sometimes considered to be
unclean.
Eating is usually with family and friends, with the homemaker on the
table keeping an eye on the table, bringing and offering more food. In larger group meals or celebrations,
a volunteer or attendant may not eat with the group, and dedicate himself or herself to bringing meal
courses, feeding and serving the group. Asking for water, salt and helping oneself to items is accepted
and cheered. Special requests such as less or more heat, yoghurt and other items is usually welcomed.
Sometimes the group may eat silently, but asking questions to a loved one, catching up about one’s day
and conversations are common.
16.1.1. BENGALI FOOD
Bengali cuisine is appreciated for its fabulous use of panchphoron, a term used to refer to the five essential
spices, namely mustard, fenugreek seed, cumin seed, aniseed, and black cumin seed. The specialty of
Bengali food lies in the perfect blend of sweet and spicy flavors.
16.1.2. GUJARATI FOOD
The traditional Gujarati food is primarily vegetarian and has a high nutritional value. The typical Gujarati
thali consists of varied kinds of lip-smacking dishes. Gujarati cuisine has so much to offer and each dish
has an absolutely different cooking style.
16.1.3. KASHMIRI FOOD
Kashmiri food that we have today in the restaurants has evolved over the years. Highly influenced by the
traditional food of the Kashmiri pundits, it has now taken some of the features of the cooking style adopted
in Central Asia, Persia and Afghanistan.
16.1.4. MUGHLAI CUISINE
Mughlai cuisine is one of the most popular cuisines, whose origin can be traced back to the times of
Mughal Empire. Mughlai cuisine consists of the dishes that were prepared in the kitchens of the royal

Mughal Emperors. Indian cuisine is predominantly influenced by the cooking style practiced during the
Mughal era.
16.1.5. PUNJABI FOOD
The cuisine of Punjab has an enormous variety of mouth-watering vegetarian as well as non-vegetarian
dishes. The spice content ranges from minimal to pleasant to high. Punjabi food is usually relished by
people of all communities. In Punjab, home cooking differs from the restaurant cooking style.
16.1.6. RAJASTHANI FOOD
The cuisine of Rajasthan is primarily vegetarian and offers a fabulous variety of mouthwatering dishes.
The spice content is quite high in comparison to other Indian cuisines, but the food is absolutely
scrumptious. Rajasthani’s use ghee for cooking most of the dishes. Rajasthani food is well known for its
spicy curries and delicious sweets.
16.1.7. SOUTH INDIAN CUISINE
The cuisine of South India is known for its light, low calorie appetizing dishes. The traditional food of South
India is mainly rice based. The cuisine is famous for its wonderful mixing of rice and lentils to prepare
yummy lip smacking dosas, vadas, idlis and uttapams.
16.2. Housing
Housing in India varies from palaces of erstwhile maharajas to modern apartment buildings in big cities
to tiny huts in far-flung villages. There has been tremendous growth in India's housing sector as incomes
have risen.
rather information: Poverty in India and Illegal housing in India

According to the Times of India, "a majority of Indians have per capita space equivalent to or less than a
10 feet x 10 feet room for their living, sleeping, cooking, washing and toilet needs."
The average is 103 sq ft per person in rural areas and 117 sq ft per person in urban areas.
99 percent of rural households have access to electricity.
Although cities have better facilities than villages in India & provides full-day water supply.
Almost all States such as Gujarat,Madhya Pradesh and others provides a continuous power supply.

16.2.1. MUMBAI
The Imperial Towers, Mumbai are the 2nd tallest buildings in India.
Mumbai experiences similar urbanization challenges as other fast-
growing cities in developing countries: wide disparities in housing
between the affluent, middle-income and low-income segments of the
population.
16.2.2. DELHI
Delhi has witnessed rapid suburban growth over the past decade. South Delhi, Gurgaon and Noida have
added thousands of apartment buildings, Affordable Homes, shopping centers and highways. New Delhi's
famous Lutyens bungalows house the prime minister, members of his cabinet, top political and
government leaders, military officials, senior judges and top bureaucrats. New Delhi is also home to
thousands of diplomatic staff of foreign countries and the United Nations. With India's growth, Delhi has
developed into a business center, especially for outsourcing, IT consultancy, high-tech, research,
education and health care services. Employees of these institutions are the source of growing demand
for high-end housing provided by major builders such as DLF.
16.2.3. BANGALORE
In the 1990s the information technology boom hit Bangalore. Y2K projects in America's IT industry resulted
in shortages for skilled computer scientists and systems programmers. Bangalore has transformed into
the Silicon Valley of India as over 500,000 well-paying jobs for young college graduates were created.
The demographics of the city changed, new high-rise was built, campus-style office parks sprouted, vast
shopping centers started to thrive, streets became crowded with new cars and gated expatriate housing
estates emerged.
Roughly 10% of Bangalore's population lives in slums.
16.2.4. KOLKATA (CALCUTTA)

The most sought-after neighborhoods of Calcutta are generally centered around Lower Circular Road,
Sarat Bose Road, Salt Lake, Ballygunge, Anwar Shah Road, Chowringhee and Golf Green. A recent
building boom has converted sprawling British-era bungalows into high-rise condominiums and
apartment-buildings with modern amenities. Kolkata currently has the second the greatest number of
highrises and tall buildings in the country, second only to Mumbai. The highest of them is at 65 floors (The
42). New suburbs are constantly being developed in Rajarhat and along the Eastern Metropolitan Bypass.
These suburbs will consist of major condominiums, complete with penthouses, many designed primarily
for NRIs, expats and affluent residents. The tallest buildings in the city, The South City Towers and Urbana
towers, are also condominiums.
16.2.5. HYDERABAD
In Hyderabad, housing in modern ages in the 21st century is more modernized and developed than it has
been in the past. The housing sector in Hyderabad has relatively sophisticated infrastructure. and is

suitable for gated communities and villas, as well as higher-standard flats and condominiums. Hyderabad
is home to several skyscrapers, including The Botanika, Lodha Belezza, etc. Roughly 15% of population
is living in slum presently. Many residential infrastructure companies are well-established in Hyderabad.
16.3. Clothing
Clothing for most Indians is also quite simple and typically untailored. Men (especially in rural areas)
frequently wear little more than a broadcloth dhoti, worn as a loose skirt like loincloth, or, in parts of the
south and east, the tighter wraparound lungi. In both cases the body remains bare above the waist, except
in cooler weather, when a shawl also may be worn, or in hot weather, when the head may be protected
by a turban. The more-affluent and higher-caste men are likely to wear a tailored shirt, increasingly of
Western style. Muslims, Sikhs, and urban dwellers generally are more inclined to wear tailored clothing,
including various types of trousers, jackets, and vests.
Although throughout most of India women wear saris and short blouses, the way in which a sari is wrapped
varies greatly from one region to another. In Punjab, as well as among older female students and many
city dwellers, the characteristic dress is the shalwar-kamiz, a combination of pajama-like trousers and a
long-tailed shirt (saris being reserved for special occasions). Billowing ankle-length skirts and blouses are
the typical female dress of Rajasthan and parts of Gujarat. Most rural Indians, especially females, do not
wear shoes and, when footwear is necessary, prefer sandals.
16.4. Recreation, sports, and other leisure activities

Sports have always been an important part of the country’s entertainment and culture. People are
passionate about sports in India. While hockey is officially the national game of India, cricket is highly
revered and deeply connected with the hearts of sports fans. Apart from cricket and hockey, there are
several other sports like football, badminton, tennis, wrestling, chess, etc. that are popular amongst sports
enthusiasts. Also, there are some traditional sports and games played in rural India like kabaddi, kho kho,
kite flying and more. These have been an integral part of rural India’s ancient culture.
Other leisure activities in India
If you like sports and enjoy adventurous activities, there are several options you can try during vacations
and weekends. Some of the most popular leisure activities that attract tourists and others include
paragliding, mountaineering, river rafting, skiing, bungee jumping, etc. Moreover, you can also join a
sports club or gym if you want to maintain a healthy body and soul.
Yoga and meditation centers of India are very popular amongst expats. These ancient practices help you
maintain inner peace and give you the much-needed escape from the busy humdrum of life.
16.5. Shopping and other leisure activities

India is a perfect haven for those who enjoy shopping. Here you will find diverse marketplaces that offer
a wide variety to the customers in terms of items, quality, pricing etc. There are numerous shopping malls,

boutiques as well as upscale and traditional markets, wholesale traders and folk fairs. You will love the
variety you get to see in clothing, shoes, accessories, gadgets, handicrafts, jeweler etc. Most of the shops
remain open till nine 0'clock to ten o'clock at night, in most cities. Note that one day the shops are closed
in a week.
There are also nightclubs, bars, restaurants, coffee shops, cinema halls, concert halls, etc. that ensure
you some good and relaxed time. So, no matter where you are placed, you will get something interesting
to enjoy.
16.6. Social security

Social security is divided by the Indian government into seven branches: healthcare; old age/retirement;
family and childcare; accident assurance; and occupational disease; rural job guarantee; and food
security. The Central Government of India's social security and welfare expenditures are a substantial
portion of the official budget, and state and local governments play roles in developing and implementing
social security policies. Additional welfare measure systems are also uniquely operated by various state
governments. The government uses the unique identity number (Aadhar) that every Indian possesses to
distribute welfare measures in India. The Code On Social Security, 2020 is part of the Indian labor code
that deals employees' social security and have generous provisions on retirement pension, healthcare
insurance and medical benefits, sick pay and leaves, unemployment benefits and paid parental leaves.
The largest social security programs backed by The Code On Social Security, 2020 are the Employees'
Provident Fund Organization for retirement pension and the Employees' State Insurance for healthcare
and unemployment benefits.
16.7. Healthcare System In India

India has a vast health care system, but there remain many differences in quality between rural and urban
areas as well as between public and private health care. Despite this, India is a popular destination for
medical tourists, given the relatively low costs and high quality of its private hospitals. International
students in India should expect to rely on private hospitals for advanced medical care.
Studying in India offers a number of health challenges that students from developed countries may be
unused to, so it is important to know how the health care system in India operates in the event you need
it. Health care in India is a vast system and can be much like the rest of the country: full of complexity and
paradoxes.
Private and Public
The health care system in India is universal. That being said, there is great discrepancy in the quality and
coverage of medical treatment in India. Healthcare between states and rural and urban areas can be
vastly different. Rural areas often suffer from physician shortages, and disparities between states mean
that residents of the poorest states, like Bihar, often have less access to adequate healthcare than
residents of relatively more affluent states. State governments provide healthcare services and health
education, while the central government offers administrative and technical services.

Lack of adequate coverage by the health care system in India means that many Indians turn to private
healthcare providers, although this is an option generally inaccessible to the poor. To help pay for
healthcare costs, insurance is available, often provided by employers, but most Indians lack health
insurance, and out-of-pocket costs make up a large portion of the spending on medical treatment in India.
On the other hand, private hospitals in India offer world class quality health care at a fraction of the price
of hospitals in developed countries. This aspect of health care in India makes it a popular destination for
medical tourists. India also is a top destination for medical tourists seeking alternative treatments, such
as ayurvedic medicine. India is also a popular destination for students of alternative medicine.
International students should expect to rely on private hospitals for advanced medical treatment in India.
Local pharmacists can be a valuable resource for most minor health ailments.
Knowing the Indian health care system and taking reasonable health and safety precautions should help
ensure that your time in India is a healthy and enjoyable one!
To learn more about the various insurance plans available for students going to India, please see the
following plans:
17. Languages
The languages of India primarily belong to two major linguistic families, Indo-European (whose branch
Indo-Aryan is spoken by about 75 percent of the population) and Dravidian (spoken by about 25 percent).
Other languages spoken in India come mainly from the
Austro-Asiatic and Tibeto-Burman linguistic families, as well
as a few language isolates. Individual mother tongues in
India number several hundred, and more than a thousand if
major dialects are included.[1] The SIL Ethnologue lists over
400 languages for India; 24 of these languages are spoken
by more than a million native speakers, and 114 by more than
10,000. Three millennia of political and social contact have
resulted in mutual influence among the four language
families in India and South Asia. Two contact languages have
played an important role in the history of India: Persian and
English.
While Hindi is the official language of the central government

in India, with English as a provisional official sub-language, individual state legislatures can adopt any
regional language as the official language of that state. The Constitution of India recognizes 23 official
languages, spoken in different parts of the country, and two official classical languages, Sanskrit and
Tamil.
The Constitution of India now recognizes 23 languages, spoken in different parts of the country. These
consist of English plus 22 Indian languages: Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada,

Kashmiri, Konkani, Maithili, Malayalam, Meitei, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Santhali, Sindhi,
Tamil, Telugu and Urdu. Hindi is a official language of the states of Uttar Pradesh, Bihar, Jharkhand,
Uttaranchal, Madhya Pradesh, Rajasthan, Chhattisgarh, Himachal Pradesh, Haryana and the National
Capital Territory of Delhi. Tamil is an official language of Tamil Nadu, Puducherry and Andamon Nicobar
Islands. English is the co-official language of the Indian Union, and each of the several states mentioned
above may also have another co-official language.
17.1. Official Languages
India has "Official Languages” at the state and central levels but there is no one "national language." Hindi
is the official language of the central government in India, with English as a provisional official sub-
language. Individual state legislatures can adopt any regional language as the official language of that
state.
18. A BRIEFING ON NEGOTIATION STYLE (OURS AND THEIRS)
18.1. Indian Negotiation Tactics
The following areas are tactics typically used by Indian negotiators during negotiations.
It is important that you are aware of them, but that avoid them yourself:
➢ Emotional blackmail
➢ Use of silence to make you uncomfortable and to encourage you to break the silence by talking.
➢ Stalling by revising areas or turning questions back on you
➢ Placing potentially unreasonable time pressures on you
➢ Placing no value on negotiation schedules
➢ Being untransparent with certain areas in an attempt to draw out your weaknesses before
disclosing real issues.
➢ Revisiting issues that you had assumed were closed.
If you become aware of these tactics being used, then remain friendly and personable but be firm in
bringing discussions back to where they need to be. Do not succumb to emotional blackmail or any other
form of emotional pressure.
18.2. NEGOTIATING WITH INDIANS...

spend time building relationships and trust – do not rush this part!
Draw upon both elements of faith when preparing your negotiation bid and incorporate them into the more
empirical and factual materials, do not cause people to lose face, be firm but friendly at all times, try to
recenter the negation if you feel it is going off topic, or if tactics are being used and avoid high pressure
negotiation tactics – they can and will backfire!

Summary
India is home to over a billion people, accommodating incredible cultural diversity between languages,
geographic regions, religious traditions, and social stratifications. In recognition of this large demographic
diversity, the following descriptions are not intended to represent every Indian person. However, there are
common themes and principles that contribute to the values, attitudes, beliefs, and norms of the dominant
society. Generally speaking, Indians tend to have a strong sense of pride in the distinctiveness and
diversity of their culture. For example, the country’s agricultural expansions and technological
advancements in infrastructure, science and engineering are sources of pride. Moreover, a considerable
amount of pride stems from India's rich artistic cultural exports of music, fine arts, literature, and spirituality
(especially the practice of yoga).

19. MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS
Indian confectionery market is competitive and has evolved drastically over the years. With multinational
companies accounting for major market share, small businesses are making their way with new product
innovations and marketing strategies for surviving in the segment.
19.1 Product
In Nooga Oriental Desserts, our primary focus is on providing pastry aficionados with the finest Mideastern
pastries available anywhere in the world. Every cookie, cake and baklava pastry that comes with our
promise of freshness, quick delivery, and unbeatable personal customer service.
From sweet honey syrups and pistachio flavored to crust-less pumpkin
19.1.1. RELATIVE ADVANTAGES AND COMPUTABILITY
As recently things are changing with young children who prefer chocolates, cakes, and donuts while older
people are also venturing for changes the doors for new innovative, healthy and yet culture
accommodative sweets are widely open.
Most Indian people want something new & different and attracted by Chocolates, Donuts, Cakes, Cookies,
Scones, Candies, jujube, coated nuts... etc.
As consumers are now more conscious about sugar intake and are shifting towards products that offer a
high nutrition value, the demand for sugar-free, organic, and low-calorie products is also increasing.
Innovative small businesses that manufacture healthy and customized confectioneries, are cropping up
increasingly.
19.1.1.1. SUGAR FREE- SUGAR SUBSTITUTE – LOW SUGAR:

➢ Because of health reasons people are looking for reduction of sugar but not taste
➢ Products with different sweetness intensity will be available as per the customer needs.
➢ Substitutes of sugar such as sucralose, sugar alcohols, fructose oligo saccharide (FOS), stevia
etc. will be used for a healthier sweet.
19.1.1.2. INTRODUCING NEW FLAVORS AND VARIETY:

➢ Addition of fruits, nuts, spices, herbs, mixing ingredients creates variation in flavors that will attract
the customer as well as adapting the local culture.
➢ Addition of other ingredients will change texture, appearance, and taste to be applicable for the
Indian local taste and expectations.
➢ As nuts are quite popular in India it will be used either as is or with new different flavors
➢ As Cookies, candies, jujubes are getting popular so Indian matching oriental sweets and desserts
varieties will be developed having similar characteristics, but materials and flavors could be more
related to the Indian taste.

19.1.1.3. LOW FAT:
➢ Many consumers are looking for lower fat sweets because of obesity, CVD, high bp etc.
➢ As most of the Indian traditional sweets not only have sugar but sizeable amount of fat a low-fat
sweet which will be healthy as well as delicious will be catchy for the customer.
➢ Fat replacer or fat percent reduction is easy to perform with regards to the oriental sweets without
any effect on the original taste and texture
19.1.1.4. HEALTHIER INGREDIENTS:

➢ Prescence of fibers either from ingredients or substances in the oriental sweets’ types
➢ Use of Nuts, dry fruits and dairy products which are rich in the nutritional value.
➢ No food colors or flavors are used in the oriental sweets, all are natural ingredients.
19.1.1.5. PRODUCTION RELATED:

➢ Uniform Quality of Raw Material
➢ Equipment is very simple and can be easily change according to the product change.
➢ Shelf life is moderate varies from a week to 10 days.
The previous factors strongly support entering the market with a healthy yet delicious substitute to the
traditional sweets and desserts.
Using low fat and low sugars receipts for the normal oriental sweets and desserts while keeping its unique
delicious taste will be one of the most competitive advantages that will support the marketing of these
products.
19.1.1.6. Localize texture and flavors:
As Indian taste palate is used to of the spicy, tangy, sweet, and sour masala flavors and hence, the sweets
with a masala filled center, will quickly gain popularity.
Long shelf life / easy to store category of sweets are favored by Indians due the hard climate type.
19.2. Market
India is one of the world’s fastest growing confectionery markets with a huge sweet-tooth populace. Being
a land of festivals and unending ceremonious occasions, food confectionery is a definite add-on to menus
irrespective of any custom or tradition.
This prospect only deepens the need for the industry’s growth also inviting several international players
to find a spot in the market, because of its huge consumption factor.
Customizing for the Indian palate as per Statista.com, revenue in the Indian confectionery segment
amounts to US$ 11,567 million in 2019, while the market is expected to grow annually at a CAGR of 6.7
per cent for the period of 2019-2023.

Moreover, while the global market hosts a snail-paced growth, India’s market defies the odds with its
humungous volumes of confectionery production valued at $1.5 billion currently. Thus, at this outset,
competition in the country sets pace igniting challenges among competitors in producing diverse.
The confectionery industry of India, which was ranked 25th in the world in 2009, has now emerged as one
of the largest and well-developed food processing sectors of the country. The credit goes to liberalization
along with growing Indian economy, which have led several multinational companies to invest in India’s
confectionery market, further changing the face of this industry.
It is largely the demographics and the demand, that play an imperative role in driving sugar confectionery
sales, as it continues to retain a wider audience with all age groups. “Significant popularity of confectionery
comes from the rural and semi urban areas, where in 80 per cent cases, it is sold as an individual unit,
mostly at the paan (a betel leaf preparation) shops or small grocery stores,”
The confectionery market of India is divided into three segments: chocolate, sugar confectionery and gum
market, which is further divided into sub-segments.
➢ Global confectionery market size is over USD 200 billion.
➢ Traditional Indian sweets market is said to be around Rs 45,000 crores (USD 6 billion) of which
packaged market is said to be Rs 3,500 crores.
➢ Chocolate & sugar confectionery is about Rs 11,000 crores.
19.3. Potential competitors

According to researchers the Indian confectionery market is going through rapid changes in terms of
trends and consumer behavior pattern.
The industry is being benefitted from the country’s

economic boom, and growth in consumer spending.
This higher consumer spending is also driven by the
newfound mall culture and changing lifestyle.
Besides, the entry of various multinational companies

in the Indian confectionery market has not only
increased the competition but also the per-capita
consumption, by launching new products at affordable
prices, and creating awareness among the buyers
through advertisements and promotional campaigns.
It was found that emerging trend of gifting confectionery products and untapped rural market are among
the key factors that are expected to fuel growth in Indian confectionery market in the near future. Backed
by these factors, the Indian confectionery market was expected to grow at a CAGR of more than 18%
during 2012-2015.
Companies must deal with slowdown and product imitation by unorganized players. There is also a greater
competition from new snacks and the growing awareness of health issues making the consumer more
conscious.

The new market of bars that talk energy, nuts, oats, and protein, have managed to attract audiences
looking for healthy alternatives to confectionery. These products are here to stay and will make it difficult
for desserts to grow unless it taps into local health trends.
19.3.1. TRADITIONAL SWEETS IN INDIA

Traditional sweets industry dominates Indian scenario. These figures can be even larger as sizeable
manufacture traditional sweets occurs in unorganized sector for which figures are not very clear.
The reasons for the large market of Traditional sweets are:

➢ Indians love the traditional sweets like pedha and burfi which they ate while growing.
➢ Traditional sweets are also given at religious and festival occasions and family functions like
marriages.
Significant popularity of confectionery comes from the rural and semi urban areas, where in 80 per cent
cases, it is sold as an individual unit, mostly at the paan (a betel leaf preparation) shops or small grocery
stores,”
19.3.2. MULTINATIONAL CORPORATES

The confectionery market is well entrenched with multinational players such as Mondelez erstwhile
Cadbury India, Nestle, Perfetti Van Melle, Mars India and Lotte; along with large domestic players such
as Amul, Parle, ITC and so on.
Multinational companies such as Ferrerro, Hersheys and Lindt too have a strong presence in the market
by different sweets types of especially premium chocolate market.
19.4. Innovation, Marketing, and distribution strategies:
Indians love to eat sweets and are very open to try out new concepts. Confectionery segment is also
seeing new paradigms in terms of innovations which make this sector lucrative for startup ventures.
Today, consumers want to try new and innovative products and are ready to spend on impeccable service
and taste. On the other hand, customers are so health conscious.
Our concept is to make fresh, healthy, and delicious products. There is no use of chemicals and added
preservatives.
The company planning to have an innovation R&D located in Delhi which helps in localizing the flavors;
and is working to introduce products that suit the Indian taste.
The company is strengthening its operations in India and is building a sustainable supply chain to expand
its reach beyond metro cities. “With our continued focus on growth in the India market through our
expanding distribution network, flexibility to scale as per demand, ongoing efforts to build sustainable

supply chain and strong market potential and focus on a better distribution system and reach of the product
up to the retailer’s shelf.
Online shopping is also increasingly attracting Indians with its exciting offers and variety of brands.
eliminating the need for visiting gourmet stores. The growing internet user population offers a promising
growth to the product through offering the online service through the company website including special
offers and sale actions for customer attraction.
Convenience, ease of searching, billing, wide selection of products and discounts and promotion has
fueled the online sale. Online retail recorded an impressive CAGR of 57.9 per cent during 2012-2017.
Nowadays, people love to have different kinds of packaging. Thus, we have variety of categories of
packaging for every occasion, whether it is life celebrations, corporate or thematic events. Consumers
can choose options accordingly their needs from our stores or website.
Overall, rising demands of premium quality confectionery products has certainly revolutionized this sector
in terms of innovation, products, and consumer awareness.
Heavy discounts offered at supermarkets/hypermarkets and healthy eating habits are other factors
contributing to the boost in sales.
Convenience Stores led the sale with a share of more than 70 per cent in the distribution channel. With
more variety and innovative packaging, along with increasing consumption due to rise in population,
increasing per capita income and urbanization, this trend is sure to continue soon.
19.5. Government laws and policies

The confectionery manufacturers are facing challenges with the government regulatory authorities,
wherein the codex and Food Safety and Standards Authority of India (FSSAI) are changing their norms
and regulations for the safety of the customers and the manufacturers need to comply with that by
changing their packaging material primary and secondary very often.”
Actually, the new regulations prohibit packaging material made of recycled plastic, including carry bags
for packaging, storing, carrying or dispensing food items.
Primary food packaging refers to packaging material in direct contact with food products; whereas
secondary packaging encloses the primary food packaging which does not come in direct contact with
food products.
Taking cognizance of the carcinogenic effect of inks and dyes, the norms also prohibit the use of
newspaper and other such material for packing or wrapping of food articles.
This includes respective Indian standard for printing inks for use on food packages. Food businesses
need to comply with new packaging regulations that prohibit the use of recycled plastics and newspapers

to wrap food articles w.e.f. July 1, this year. While organized sector may not face any difficulties in
implementing these regulations but unorganized sector is feeling the heat as it comes into force.
Other issues of import duties, while the growth is relatively less than what it should be despite the
increasing demand.
This has led to a steep increase in import duty charged on sweets raw materials. “
this is a government gimmick which is creating a huge setback for domestic confectionery makers as
there is no import duty on finished products.
19.6. COVID-19 effect on the demand peak:
19.6.1. LOCKDOWN AND CURFEW EFFECT

The COVID-19 lockdown has had a severe impact on confectionery sales,
Sales in the important impulse segment have dropped dramatically due to the closure of non-essential
retailing and strict restrictions on outdoor activity.
19.6.2. GROWING DEMAND FOR PRODUCTS PERCEIVING TO BE HEALTHIER

As in other product categories, the rise in consumer health-awareness is exerting a growing influence on
demand sweets and desserts. Consumers are increasingly displaying a preference for sugar-based
options such as natural products that are free from artificial additives and preservatives, and low in sugar.
19.6.3. MANUFACTURES WORKING TO ADAPT

Focusing on the healthier and natural products ingredients to offer
Follow the hygienic and COVID anti-infection precautions in delivering and processing of the goods
Using the online and delivery options to overcome the lockdown issue in addition to the on-the-go retailers
or small shops inside gas stations and in the streets.
Summary
Many Indians silently changed their sweet tooth from the old traditional sweets. The change often goes
unnoticed, yet the rich culture of local sweets and the bright, colorful looking gooey Indian sweets are all
being replaced by more healthy and new introduced sweets such as chocolates, candies, cakes, and
cookies.
Come any Indian festival, even TV commercials play the trick in our minds. Gone are the days of finding
a no-frills, down-by-the-lane sweet shop where you could have a plateful of Dahi Jalebi for breakfast.
This clearly reflects the fact that the confectionery sector has attracted new types of sweets and is pulling
up the growth ‘bar’ strongly.
Companies must deal with slowdown and product imitation by unorganized players. There is also a greater
competition from new snacks and the growing awareness of health issues making the consumer more
conscious.

The new market of bars that talk energy, nuts, oats, and protein, have managed to attract audiences
looking for healthy alternatives to confectionery. These products are here to stay and will make it difficult
for desserts to grow unless it taps into local health trends.
The success rate for the products highly depends upon retail and supply chain. Similar products may or
may not see the high acceptance level in different regions, while their price point at shelf space remains
same. For instance, the customer may not go for specific brand when buying confectioneries. Here, the
sales depend upon, retail sellers as they play an important role for displaying and selling these products.
The future is sweet.
Overall, rising demands of premium quality confectionery products has certainly revolutionized this sector
in terms of innovation, products, and consumer awareness.
Online shopping is also increasingly attracting Indians with its exciting offers and variety of brands.
There is a strong appeal for sweets in India that are widely available on online channels, eliminating the
need for visiting gourmet stores. The growing internet user population in tier-II & tier-III cities offer a
promising growth in the rural areas as well.

20. INDIAN ECONOMY
20.1. Introduction
India is the second most populated country in the world with nearly a fifth of the world's population.
India is projected to surpass China to become the world's most populous country by 2024. It is
expected to become the first country to be home to more than 1.5 billion people by 2030.India is a land
of diversity in all manners. From culture, economy and even the landscape of India has a diverse element,
all on one landmass. The wide range of physical features of India makes the country a complete
geographical study. India has emerged as the fastest growing major economy in the world and is expected
to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust
democracy and strong partnerships.
20.2. Population
▪ The current population of India is 1,393,790,539 as of Friday, July 9, 2021, based on World meter
elaboration of the latest United Nations data. India 2020 population is estimated
at 1,380,004,385 people at mid-year according to UN data.
India population is equivalent to 17.7% of the total world
population. India ranks number 2 in the list of countries (and
dependencies) by population. The population density in
India is 464 per Km2 (1,202 people per mi2). The
total land area is 2,973,190 Km2 (1,147,955 sq. miles)
India has more than 50% of its population below the age of
25 and more than 65% below the age of 35. In 2020, the
average age of an Indian is 29 years, compared to 37 for
China and 48 for Japan; and, by 2030, India's dependency
ratio will be just over 0.4.[ However, the number of children
in India peaked more than a decade ago and is now falling.
The number of children under the age of five peaked in
2007, and since then the number has been falling. The
number of Indians under 15 years old peaked slightly later
(in 2011) and is now also declining.
20.2.1. AGE STRUCTURE

0–14 years: 27.34% (male 186,087,665/female 164,398,204)
15-24 years: 17.9% (male 121,879,786/female 107,583,437)
65+ years: 6.24% (male 37,837,801/female 42,091,086) (2017 est.)

Median age
Total: 28.7 years

Male: 28 years
female: 29.5 years (2020 est.)
20.2.2. POPULATION GROWTH RATE

1.1% (2020 est)
20.2.3. LITERACY RATE

74% (age 7 and above, in 2011) 81.4% (total population, age 15–
25, in 2006)
20.2.4. PER CENT OF POPULATION BELOW POVERTY LINE:

22% (2006 est.)
20.2.5. UNEMPLOYMENT RATE

7.8%
20.2.6. NET MIGRATION RATE

0.00 migrant(s)/1,000 population (2020 est.)
20.2.7. SEX RATIO

At birth: 1.12 male(s)/female
Under 10 years: 1.13 male(s)/female
15–24 years: 1.13 male(s)/female
24–64 years: 1.06 male(s)/female
65 years and over: 0.9 male(s)/female
Total population: 1.08 male(s)/female (2017 est.)
20.2.8. LIFE EXPECTANCY AT BIRTH

Total population: 69.7 years
Male: 68.4 years
Female: 71.2 years (2020 est.

20.2.9. TOTAL FERTILITY RATE
2.35 (2020 est.)
The TFR (total number of children born per women) by religion in 2005–2006 was: Hindus, 2.7;
Muslims, 3.1; Christians, 2.4; and Sikhs, 2.0.
20.3. Religious Composition:

Hindus 79.5%, Muslims 15%, Christian 2.3%, Sikh 1.7%, other and unspecified 2% (2011 est.)
20.3.1. ETHNIC GROUPS

India is a diverse multiethnic country that is home to thousands of small ethnic and tribal groups. That
complexity developed from a lengthy and involved process of migration and intermarriage. The
great urban culture of the Indus civilization, a society of
the Indus River valley that is thought to have been
Dravidian-speaking, thrived from roughly 2500 to
1700 BCE. Indo-Aryans form the predominant ethno-
linguistic group in India (North India, East India, West
India, Central India), Bangladesh, Pakistan, Nepal, Sri
Lanka and the Maldives. Dravidians form the
predominant ethno-linguistic group in southern India,
the northern and eastern regions of Sri Lanka and a
small pocket of Pakistan. The Iranic peoples also have
a significant presence in South Asia, the large majority of whom are located in Pakistan, with heavy
concentrations in Balochistan and Khyber- akhtunkhwa. Dardic peoples are classified as belonging to
the Indo-Aryan language group, forming a minority among the Indo-Aryans, though they are also
sometimes classified as external to the Indo-Aryan branch.[ They are found in northern Pakistan
(Gilgit-Baltistan and Khyber-Pakhtunkhwa) and in Jammu and Kashmir and Ladakh, India. Minority
groups not falling within either large group mostly speak languages belonging to
the Austroasiatic and Tibeto-Burman language families, and largely live around Ladakh and Northeast
India, Nepal, Bhutan and the Chittagong Hill Tracts of Bangladesh. The Andamanese (Sentinel, Onge,
Jarawa, Great Andamanese) live in some of the Andaman Islands and speak a language isolate, as
do the Kusunda in central Nepal,[19] the Vedda in Sri Lanka, and the Nihali of central India, who
number about 5,000 people. The people of the Hunza valley in Pakistan are another distinct population;
they speak Burushaski, a language isolate.
List of ethnic groups on the basis of language:

➢ Indo-Aryan people.
➢ Iranic people.
➢ Nuristani people.
➢ Dravidian people.
➢ Austroasiatic people.
➢ Tibeto-Burmese people.

➢ Andamanese and Nicobarese groups.
➢ Semitic people.
20.4. Current Economic Conditions

India recorded the real GDP (gross domestic product) growth of 0.4% in the third quarter of FY21, as
per the NSO's (National Statistical Office) second advance estimates. This rise indicates V-shaped
recovery progression that started in the second quarter of FY21.
As per Economic Survey 2020-21, India's real GDP growth for FY22 is projected at 11%. The January
2021 WEO update forecast a 11.5% increase in FY22 and a 6.8% rise in FY23. According to the IMF,
in the next two years, India is also expected to emerge as the fastest-growing economy.
India is focusing on renewable sources to generate energy. It is planning to achieve 40% of its energy
from non-fossil sources by 2030, which is currently 30% and have plans to increase its renewable
energy capacity from to 175 gigawatt (GW) by 2022.
India is expected to be the third largest consumer economy as its consumption may triple to US$ 4
trillion by 2025, owing to shift in consumer behaviour and expenditure pattern, according to a Boston
Consulting Group (BCG) report. It is estimated to surpass USA to become the second largest economy
in terms of purchasing power parity (PPP) by 2040 as per a report by PricewaterhouseCoopers.
Note: Conversion rate used for March 2021 is Rs. 1 = US$ 0.014
Key information about India Gross National Product (GNP)
➢ India Gross National Product (GNP) was reported at 2,635.407 USD bn in Dec 2020.
➢ This records a decrease from the previous number of 2,843.035 USD bn for Dec 2019.
➢ India Gross National Product (GNP) data is updated yearly, averaging 269.006 USD bn from
Dec 1957 to 2020, with 64 observations.
➢ The data reached an all-time high of 2,843.035 USD bn in 2019 and a record low of 28.750
USD bn in 1957.
20.5. India Economic Growth

The economy is projected to decline in FY 2020 (April 2020–March 2021) as Covid-19 containment
measures hamper domestic activity and external demand. Moreover, the ongoing spread of the virus
and potential snap-back of lockdown measures, coupled with fiscal stimulus measures falling well
short of the mark, continue to pose a downside risk to the outlook. Focus Economics panelists project
GDP to fall 9.3% in FY 2020, which is down 0.2 percentage points from last month’s forecast and
increase 9.2% in FY 2021.

20.6. India Economy Data
2015 2016 2017 2018 2019
Population (million) 1,283 1,300 1,317 1,334 1,352
GDP per capita (USD) 1,633 1,766 2,018 2,023 2,113
GDP (USD bn) 2,096 2,295 2,657 2,699 2,857
Economic Growth (GDP, annual variation in %) 8.0 8.3 7.0 6.1 -
Consumption (annual variation in %) 7.9 8.1 7.0 7.2 -
Investment (annual variation in %) 6.5 8.5 7.2 9.8 -
Industrial Production (annual variation in %) 3.3 4.6 4.4 3.8 -1.2
Public Debt (% of GDP) 68.8 68.7 69.4 69.4 71.9
Money (annual variation in %) 11.5 6.7 21.8 14.3 10.3
Inflation Rate (CPI, annual variation in %, eop) 4.8 3.9 4.3 2.9 5.9
Inflation Rate (CPI, annual variation in %) 4.9 4.5 3.6 3.4 4.8
Inflation (PPI, annual variation in %) -3.6 1.8 2.9 4.3 1.7
Policy Interest Rate (%) 6.75 6.25 6.00 6.25 4.40
Stock Market (annual variation in %) -9.4 16.9 11.3 17.3 -23.8
Exchange Rate (vs USD) 66.25 64.86 65.11 69.19 75.34
Exchange Rate (vs USD, aop) 65.42 67.04 64.46 69.91 70.91
Current Account (% of GDP) -1.1 -0.7 -1.8 -2.1 -
Current Account Balance (USD bn) -22.1 -15.2 -48.7 -57.0 -
Trade Balance (USD billion) -117.3 -108.9 -158.6 -182.3 -153.5
Exports (USD billion) 262 275 305 331 314
Imports (USD billion) 379 384 463 513 467
Exports (annual variation in %) -15.6 5.1 10.6 8.5 -5.1

Imports (annual variation in %) -15.3 1.3 20.5 10.7 -8.9
International Reserves (USD) 356 373 421 414 476
External Debt (% of GDP) 23.1 20.5 19.9 20.1 -
Since April 2020, the government has received over 120 foreign direct investment (FDI) proposals
worth ~Rs. 12,000 crore (US$ 1.63 billion) from China. Between April 2000 and September 2020, India
received US$ 2.43 billion FDI from China.
Today India is ranked the seventh largest economy, and third largest in terms of Purchasing Power
Parity (PPP). The Indian economy’s GDP is pegged at $ 2.9 tn. At a press conference, Finance Minister
Arun Jaitley commented, ‘We keep oscillating between the fifth and the sixth largest economy,
depending on the dollar rate. As we look at the years ahead, we will be $ 5 tn by 2024 and $ 10 tn by
2030 or 2031.
The GDP per capita in India was $ 1963.55 in 2017. The GDP per Capita in India is equivalent to 16%
of the world's average and averaged $ 693.96 from 1960 until 2017. It reached an all - time high of $
1963.55 in 2017.
India has been ranked a lowly 72nd among 106 countries in terms of the average wage per month,
while Switzerland topped the chart, according to a global ranking of average wages prepared by
Picodi.com. With an average monthly wage of Rs 32,800 (USD 437) India's nominal per capita
income was US$1,670 per year in 2016, ranked at 112th out of 164 countries by the World Bank, while
its per capita income on purchasing power parity (PPP) basis was US$5,350, and ranked 106th.

20.7. India Wealth Distribution
20.8. Transportation
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for
propelling India’s overall development and enjoys intense focus from Government for initiating policies
that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector
includes power, bridges, dams, roads, and urban infrastructure development. India was ranked 44 out
of 167 countries in World Bank's Logistics Performance Index (LPI) 2018. India ranked second in the
2019 Agility Emerging Markets Logistics Index.
20.8.1. ROADS
India's road quality is generally low, despite India's roads carrying 90 percent of passenger traffic and
65 percent of freight road density is high. most highways are narrow, congested, and poorly surfaced.
• There is poor access to rural areas; 40 percent of India's villages do not have access to all weather
roads.
The Government of India has a range of projects to improve road infrastructure.
➢ the National Highways Development Projects, which require investments of up to USD170

billion.
➢ The Bharatmala project, stretching from India's western to eastern land borders.
➢ The Northeast Express Highway (1,300 km express highway in northeast India).

20.8.2. AIRPORTS
Air traffic is expected to experience double digit growth well beyond 2020, at which point India will
become the world's third largest aviation market (behind China and the United States). passenger traffic
is forecast to multiply by four times and cargo traffic by six times in the next twenty years; India's
existing airport infrastructure is underutilized.
▪ One of the 449 airports or airstrips in India, commercial airlines are operating at just 61, with the
remaining unused or only occasionally used but of those 61, several are under strain and at capacity.
• many Indian airports have widely recognized deficiencies in areas such as ground handling, night
landing systems and cargo handling.
• the maintenance and repair operations market are expected to grow at 6.7 per cent per annum to reach
$5.7 billion in the next 10 years from the current size of $3.1 billion growth of India's aviation industry
would have cross-cutting benefits for tourism.
• Around 97 percent of tourists arrive in India by air.
20.8.3. SHIPPING
More than one billion tons of cargo was handled across over 200 ports in India in 2015 with maritime
logistics accounting for 90 per cent of international trade by volume and 72 per cent by value. Despite
the cost-efficiency of coastal and inland water transportation, India's ports tend to be small, lack draft
for larger vessels, and are inefficient. with an average 4.5 day turn-around time, versus one day in
China and 1.2 in the United States.
•
• Port links to road and rail connections are poor between 2015 and 2025 the Indian Government's
SagarMala project is set to provide over $80 billion to infrastructure for ports and coastal shipping in
India.
20.8.4. RAIL
India's railways play a major role in affordable transport of passengers and cargo across the country.
it is one of the largest networks in the world with 7,216 stations: 92,000 km of track and 1.3 million
employees. Indian railways carried eight billion passengers and transported over one billion tons of
freight in 2017–18. The Ministry of Railways plans to improve and expand the rail network, renew the
train fleet, and improve passenger safety.
20.9. Communication system

It refers to the channels by which exchange of ideas, information’s, news and views takes place
between different individuals, groups and institutions.
The following are the means of communication:

20.9.1. POSTAL SERVICES
The postal network in India is the largest in the whole world with 1.5 lakh post offices. In these days
special attention has been given to the rural, hilly, and remote areas for expending postal network.
The main aim of the postal department is to provide a post office within 3 kms of every village and
a letter box in every village having 500 populations.
20.9.2. TELEGRAPH SERVICES

Indian Telegraph is one of the oldest governments owned public utility organization in the world. It
was launched in 1851 and established link between Kolkata and Diamond Harbor. Prior to
independence, it was used for military purposes only. The telegraph service helps the public in
sending messages to distance places quickly. The Govt. has now added tele-printer, telex, and fax
services.
20.9.3. TELECOMMUNICATIONS
The number of telephone connections has increased from 1.7 lakh in 1950-51 to 49.32 million in
Oct. 2004, out of which 40.3 million are landline and a million are mobiles. In private sector 3.8
million are basic phones and 3.58 million are cellular phones. Subscriber Trunk Dialing (STD) for
national dialing and International Subscriber Dealing (ISD) are made available to customers.
Cellular phones are getting popular. Telephone service had been renamed as Bharat Sanchar
Nigam Limited (BSNL) in Oct. 2000. Telephone Sandee for Mumbai and Delhi has been under
Mahan agar Telephone Nigam Limited (MTNL). Telephone Regulatory Authority of India (TRAI) has
been established to regulate tariff and competition in the telecommunication section.
20.9.4. ELECTRONIC METHOD

It is the recent development in communication Messages are sent through Fax and E-mail
throughout the world within minutes.
20.9.4.1. Fax
It is an electronic method of sending recorded messages in the form of letters, handbills, statements,
and files etc. It can be used throughout the day and night from any comer of the globe.
20.9.4.2. E-mail
E-mail is the recent electronic media to send message. It is a way to communicate people all over
the world throughout the day and night without waiting the receiver to wake up and making himself
present. It can send messages to hundreds of people in a few minutes. It can also send files, photos
or even video clips.
20.9.4.3. Internet Service
It is the latest mode of communication. We can get required information directly through computers
by opening the site. The required information can be downloaded any time. We have to install an
internet connection.

20.10. Working conditions
Working conditions and salaries in India are different from the ones in western countries. The official
work week in India runs from Monday to Saturday, from 10am to 6pm each day. In reality, overtime is
the norm and most local companies do not compensate their workers for it.
The Indian work culture is immensely diverse. There are major differences depending on whether you
work for small, local companies, for big Indian corporations or for international companies. Business
practices also vary between regions.
20.11. Work practices in India

The importance of hierarchies in Indian culture can also be witnessed in the daily work environment.
People of different management levels are treated differently. The behavior of superiors towards other
employees seems very rude from a Western point of view. This is normal in India. Even though that
might make you feel uncomfortable at first, you need to adapt to this as otherwise employees of lower
hierarchy levels will try to take advantage of your kindness. They might treat you extra nice but then
expect favors in return, such as help in getting a job in the West.
Communication within Indian companies is something many expatriates have trouble getting used to.
Unlike rather relaxed business dinners, formality plays an important role in Indian work environment
and instructions are direct (to the point of seeming bossy). It is also highly unlikely that you will address
you co-workers with their first names.
20.12. Salaries in India

Average salaries in India are only a fraction of Western salaries. However, they are rising at rates
between 12 and 14 percent each year. Expatriates usually earn significantly higher salaries than
Indians, though this depends on whether they work for Indian or international companies. If you are
appointed to India by your company from overseas
your salary will usually be at a Western level. You
will also be provided with the full list of benefits
available to employees in Europe or the USA, and
your salary will be three times that of your local
counterpart. In addition to salary and standard
benefits, international companies often provide
special expatriate allowances, such as housing
allowance, three to five weeks paid vacation, a
round trip air ticket per year, full healthcare
coverage etc.
The average salary in India is ₹3,87,500 per year (or ₹32,840 per month) (440$).
1 Indian Rupee equals 0.013 United States Dollar.

Most importantly, Indian companies usually do not offer the fancy expat benefits provided by
international companies. However, fringe benefits are an important part of every Indians paycheck and
can account to up to 50% of the actual salary. Since fringe benefits are taxed at a lower rate than
regular income (Fringe Benefit Tax, FBT) they are commonly used to reduce the required tax payments.
Typical benefits include paid vacation, sick leave, health insurance and maternity leave. Depending on
your job and qualification the amount of healthcare benefits varies greatly but will usually be around
Rs 10,000 a month.
20.13. Industry in India

Quite a many industry segments in India are doing very well in India producing billionaires.
The Major Industries in India are:
➢ Pharmaceuticals
➢ Software & Services
➢ Chemicals and Petrochemicals
➢ Automobiles & Auto Components
➢ Construction & Engineering
➢ Financial Services
➢ Food & Beverages
➢ Textiles, Apparels & Accessories
➢ Real Estate
Modern industry has advanced fairly rapidly since independence, and the industrial sector now
contributes 26.9% of the GDP. Large modern steel mills and many fertilizer plants, heavy machinery
plants, oil refineries, locomotive and automotive works have been constructed; the metallurgical,
chemical, cement, and oil-refining industries have also expanded. Moreover, India has established its
role in the high value-added sectors of the "new economy" sectors of information technology (IT),
computer hardware, computer software, media, and entertainment. Yet, though the total product is
large, industry absorbs only about 17% of the labor force. Nine states— Maharashtra, West Bengal,
Tamil Nadu, Gujarat, Uttar Pradesh, Bihar, Andhra Pradesh, Karnataka, and Madhya Pradesh—
together account for most of Indian industry.
Private investment was closely regulated for all industries, discouraging investors from formal entry
into the sector. However, industrial policy in recent years has shifted towards privatization and
deregulation. Since 1991 government licensing requirements have been abolished for all but a few
"controlled areas": distillation and brewing of alcoholic drinks, cigars and cigarettes, defense
equipment, industrial explosives, hazardous chemicals, and drugs and pharmaceuticals. Under the
government disinvestment program announced at the end of 1999, only three sectors remain
completely closed to private investment: defense, atomic energy, ad railway transport. The oil industry
was opened to joint foreign investment in 1997 under the New Exploration and Licensing Policy (NELP).

The first exploration blocks were auctioned off in two rounds in 2000, but the initiative none of the major
international oil companies put in bids. The Ministry of Disinvestment was established in December
1999 to oversee the reduction of government shares in 247 state-owned companies, referred to as
public sector units (PSUs), to a 26% stake. The first sale, in early 2000, was 51% of the Bharat
Aluminum Company, Ltd. to Sterlite Ltd. of India. In May 2002, managerial control of Maruti Udyog Ltd.
(MUL), India's top carmaker claiming a 60% market share, was transferred to Suzuki Maintenance
Corporation (SMC) of Japan, one of the few foreign buyers in the disinvestment program to date. SMC
was already MUL's technology provider in their joint venture and owned a 46% share of MUL. SMC
took control by buying an additional 5% for about $213 million, a move it had previously declined to
take. The government plans to offer the rest of its shares on the stock market in 2004. Generally, the
PSUs for which the government has found buyers in its disinvestment program have not been in the
industrial or manufacturing sectors. Instead, the government has also stepped to make their operations
more competitive. In 2001, for instance, quantitative restrictions (QRs) were removed from about 715
imports, including cars, clothes watches, pins, dairy products, part of the accession process to the
WTO. Credit and capital markets have also been greatly liberalized. Since 1992, all foreign companies
have been on par with Indian companies in the area of foreign exchange solvency and on the stock
market. With these reforms, private investment in industry is now proceeding at a steady if still modest
pace, fostering increased competition in most of the mining and manufacturing sectors previously
monopolized by parastatals. In 2001/02 net foreign direct investment (FDI) and net portfolio investment
combined equaled $6.3 billion, the highest on record.
Textile production dominates the industrial field, accounting for about 30% of export earnings while
adding only 7% to 8% to imports. The textile industry employs approximately 35 million workers, making
it the second-largest employer in India after agriculture. The sector is highly fragmented, containing
about 7000 operational units encompassing a $2.9 billion clothing industry, a $16.3 billion finished
fabrics industry, a $1.9 billion industrial textile products industry, and a $600 million household textile
products industry. On a broad level it can also be divided between the natural fiber segment (cotton,
silk, wool, jute, etc.) and the man-made fiber segment (polyester filament yarn, blended yarns, etc.).
Cotton accounts for about 60% of both domestic consumption and exports. In terms of operations,
since the 1980s decentralized power looms have produced an increasingly large share of production
as centralized mills have declined. In 1986, there were about 638,000 decentralized power looms in
operation, and by 2002 these had increased 260% to about 1,662,000, including an estimated
1,227,000 conventional shuttle looms, 400,000 drop-box semi-automatic looms, 30,000 automatic
looms and 5,000 shuttles less looms (most second-hand imports). Anticipating the globalization of the
textile market in 2004 when the multifiber agreement (MFA) is scheduled to be phased out, India's
National Textile Policy-2000 has pinpointed the weaving sector as the crucial link in the textile value
chain (from fiber to fabric to garment to style) that needs to become more competitive. The Textile
Program, announced in the budget for 2001/02, included a program for modernizing the power loom
sector through the introduction of 50,000 shuttle less looms and 250,000 semiautomatic looms. The
union budget for 2002/03 continued the program, adding an array of tax and duty exemptions for the
benefit of power loom operators. In 2002/03, the Office of the Textile Commissioner estimated that
decentralized power looms accounted for 76.8% of cloth production (including hosiery); hand looms,
18%; mills, 3.7%; and others, 1.5%. By contrast, integrated mill operations, which perform spinning,
weaving, and processing in a central location, have stagnated and declined. In December 2002, 464
mills were closed compared to 220 in 1999/98, and hundreds more were slated for closure in 2003.

There were 1,782 cotton and man-made fiber mills in 1999, only 192 of them were publicly owned.
Mumbai (formerly Bombay), Ahmadabad, and the provincial cities in southern India lead in cotton
milling, which accounts for about 65% of the raw material consumed by the textile industry. Jute milling
is localized at Calcutta, center of the jute agricultural area. India is the world's number one jute
manufacturer. On average, textile production has been growing about 5% a year, although in 2001–
02, with demand damped by a series of negative events—economic recession in the United States, a
global economic slowdown, the 11 September 2001 terrorist attacks on the United States, the attack
on India's Parliament 13 December 2001 and sectarian violence in Gujarat—growth fell to2.6%,
compared with 4.4% in 2000/01, while textile exports fell 9%. However, by the end of 2002 and
continuing into 2003 strong growth was evidenced. The production of textile products, including ready-
made garments, grew 17% during the first quarter of 2003 year-on-year (YOY) and textile exports grew
8.48%.
India is the world's tenth-largest steel producer. In 2001/02, according to the Ministry of Steel, it
produced 4.08 million tons of pig iron (up 19.8%) and 30.64 million tons of finished steel (up 4.7%).
The industry consists of seven large integrated mills and about 180 mini steel plants. Despite some
signs of recovery 2002, all the major steel companies except the Tata Steel Corporation, the largest
and oldest (founded in 1907), were facing serious financial problems due to overcapacity, cheap
imports, and anti-dumping duties imposed by the United States in June 2001 that affected Indian
exports. Nevertheless, during 2002 steel experienced a strong revival due to rising steel prices,
increased domestic demand mainly from highway construction projects, and a 15.88% YOY rise in
exports April to November 2002. The metallurgical sector also produced 818,000 tons of aluminum
products, up from 640,000 tons in 1998/99. Automobile production, fed by both the steel and aluminum
industries, has grown at an annual rate close to 20% since liberalization in 1993, propelled by low
interest rates, the expansion of consumer finance, and strong export demand. In 2002, 90.2% of
vehicles produced were economy cars, and 9.8% were luxury cars and SUVs. From 1999/2000 to
2001/02, total production of cars, utility vehicles and commercial vehicles declined 4.7% from 875,179
to 834,071, while the production of two-wheelers increased 14.4%, from about 4.8 million to 5.47
million. Exports of all kinds of vehicles totaled 215,318 April to December 2002, a 68% YOY increase.
In the field of computers and consumer electronics production has been boosted by the liberalization
of technology and component imports. In consumer durables, production in many cases grew at
double-digit rates in 2002/02 (air conditioners, 25%; microwave ovens, over 20%; color TVs, over 15%,
refrigerators, 12%; audio products and DVDs, 10%; washing machines, less than 5%), while computer
production was up 36%. Computer software exports have grown as a compound growth rate of 50%
per year for the past five years. In 2001/02, electronics hardware exports reached $1.253 billion, up
22.6% over 2001/02, while computer software exports reached $7.8 billion, up 28.7%.
In the petrochemical sector, India has 18 refineries throughout the country with a total refinery capacity
of more than two million barrels per day. Sixteen refineries are government-owned, one is jointly owned,
and one, the 540,000-barrels-per-day Reliance Industries refinery at Jamnagar in Gujarat State, is
privately owned. Almost half India's refinery capacity—now at 970,000 barrels per day—has been built
since 1998, the government's goal being self-sufficiency in refined petroleum products. India's total
refinery capacity should currently be enough to meet domestic demand, but because of operational
problems it still has to import diesel fuel.

India's cement industry is the second largest in the world, after China, with an installed capacity of 135
million tons as of March 2002. Exports have been very limited and only to immediate neighbors. The
cement industry is highly fragmented, consisting of 120 large plants and 56 companies. In the last
decade, government's portion of cement consumption decreased from 50% to 35% as the domestic
housing market has grown. However, government financed infrastructure projects also helped sparked
a growth in construction of about 9.7% YOY April to December 2002. In 2001/02, 106.9 million tons of
cement were produced, of which 5.14 million tons were exported.
Like cement, India's food processing industry in oriented mainly toward the domestic market. It is India's
fifth largest industry, with output reaching $31 billion food in 2001/02. Structurally it consists of about
9000 operational units, accounts for about 6.3% of GDP, 13% of exports, and 18% of industrial
employment (about 1.6 million workers).
India's fertilizer industry is the third largest in the world, and central to its efforts to increase agricultural
productivity. The industry consists of 64 large fertilizer plants (39 producing urea, the most affordable
fertilizer and 18 manufacturing diammonium phosphate or DAP, and other products), and 79 small and
medium plants. As of 2000, installed capacity in nitrogen-based nutrients was 11 million tons and in
phosphate-based nutrients, 3.6 million tons. Potassium-based nutrients must all be imported. Since
1992 the government has been gradually decontrolling the price of fertilizers. The prices of urea are
scheduled to be completely decontrolled by 2006/07.
Overall industrial production grew at 2.7% in 2001/02, its weakest performance since the early 1990s.
Manufacturing, accounting for about 80% of the sector, grew 2.9%, while the electricity segment
increased 3.1% and mining only 1.2%. Figures for April to November 2002 showed signs of recovery,
however, with a 5.3% YOY increase for industrial production overall, and 5.4% YOY growth in
manufacturing.
20.14. Foreign Investment

Apart from being a critical driver of economic growth, Foreign Direct Investment (FDI) has been a major
non-debt financial resource for the economic development of India. Foreign companies invest in India
to take advantage of relatively lower wages, special investment privileges like tax exemptions.
Some of the significant FDI announcements made recently are as follows:
➢ In the second quarter of FY21, total FDI inflows amounted to US$ 28.10 billion, of which equity
inflows were US$ 23.44 billion. This boosted FDI equity inflows to US$ 30 billion between April
2020 and September 2020, a 15% increase on y-o-y basis compared with the same period in
FY20.
➢ In November 2020, Rs. 2,480 crore (US$ 337.53 million) foreign direct investment (FDI) in ATC
Telecom Infra Pvt Ltd. was approved by the Union Cabinet.
➢ In November 2020, Amazon Web Services (AWS) announced to invest US$ 2.77 billion (Rs.
20,761 crore) in Telangana to set up multiple data centers; this is the largest FDI in the history
of the state.

➢ Since April 2020, the government has received over 120 foreign direct investment (FDI)
proposals worth ~Rs. 12,000 crore (US$ 1.63 billion) from China. Between April 2000 and
September 2020, India received US$ 2.43 billion FDI from China.
India is expected to attract foreign direct investments (FDI) of US$ 120-160 billion per year by 2025,
according to CII and EY report. Over the past 10 years, the country witnessed a 6.8% rise in GDP with
FDI increasing to GDP at 1.8%.
20.14.1. INTERNATIONAL FOREIGN STATISTICS
MERCHANDISE TRADE: Preliminary Data, February 2021
Non- Petroleum and Non-

Total Non-Petroleum Gems & Jewellery
2019- 2020- % 2019- 2020- % 2019- %

20 21 change 20 21 change 20 2020-21 change
27.74 27.67 -0.25 24.30 25.16 3.55 21.28 22.48 5.65

Exports
37.90 40.55 6.98 27.12 31.56 16.37 22.21 23.85 7.40

Imports

20.15. Major Export Products
The following export product groups categorize the highest dollar value in Indian global shipments
during 2019. Also shown is the percentage share each export category represents in terms of overall
exports from India.
1. Gems, precious metals: $36.7 billion (11.4%)

2. Machinery including computers: $21.2 billion (6.6%)
3. Organic chemicals: $18.3 billion (5.7%)
4. Vehicles: $17.2 billion (5.3%)
5. Pharmaceuticals: $16.1 billion (5%)
6. Electrical machinery, equipment: $14.7 billion (4.5%)
7. Iron, steel: $9.7 billion (3%)
8. Clothing, accessories (not knit or crochet): $8.6 billion (2.7%)
Top Increase in February 2021 as Top Decline in February 2021 as compared

compared to February 2020 to February 2020
Commodity Change Commodity Change in

group in value % change group value % change
PETROLEUM
294.09 167.79 -933.82 -27.13
IRON ORE PRODUCTS
DRUGS AND
PHARMACEUT GEMS AND
254.55 14.58 -377.64 -11.18
ICALS JEWELLERY
ENGINEERIN
210.29 30.10 -185.01 -2.56
Export RICE G GOODS
PETROLEUM
CRUDE &
2928.20 123.95 -1792.43 -16.63
GOLD PRODUCTS
COAL, COKE
&
ELECTRONICS BRIQUETTES
1326.97 37.77 -514.85 -28.09
GOODS ETC
ORGANIC & TRANSPORT

INORGANIC EQUIPMENT
559.09 37.61 -505.45 -23.00
Import CHEMICALS S
India’s top 10 exports accounted for roughly three-fifths (60.2%) of the overall value of its global
shipments.

RANK INDIAN EXPORT PRODUCT 2019 VALUE CHANGE
(US$)
1 Processed petroleum oils $42,212,861,000 -10.5%
2 Diamonds (unmounted/unset) $21,909,135,000 -14.6%
3 Medication mixes in dosage $14,529,723,000 +13.4%
4 Jewelry $13,369,370,000 +7.5%
5 Rice $7,112,146,000 -3.4%
6 Cars $6,810,975,000 -5.3%
7 Automobile parts/accessories $5,032,374,000 -2.1%
8 Crustaceans (including lobsters) $4,461,050,000 -0.7%
9 Light vessels, fire boats, floating docks $4,279,340,000 +108.9%
10 Phone system devices including smart $4,117,136,000 +101.1%
phones:
20.16. Trade Restrictions

The most common non-tariff barrier is the prohibition or restriction of goods that are imposed through
import licensing requirements. Certain products are subjected to licensing related trade barriers,
although India has eliminated its import licensing requirements for most consumer goods.
The import licenses for motorcycles are provided only to foreign nationals that permanently reside in
India, working in India for foreign firms that value more than 30% equity or to foreign nations that work
at embassies and foreign missions. Very few domestic importers import vehicles without a valid license,
where the imports are counterbalanced by exports that is attributable to the same importer.
20.17. Negative List

India maintains a ‘negative list’ of imported products that come under various forms of nontariff
regulation. The negative list is further divided into three categories. They are:
➢ Banned or prohibited items that include tallow, fat and oils of the animal origin.
➢ Restricted items that require an import license for goods like such as livestock products and
certain chemicals.
➢ Canalized items like pharmaceuticals that can be imported only by the government trading
ownerships that required the cabinet approval regarding the import timing and quantity.
20.18. Entry Requirements
With respect to entry requirements, India has divided goods that are new, those goods that are
secondhand, remanufactured, refurbished or reconditioned. India permits the imports of secondhand
capital goods by the end users without carrying an import license, provided the goods are undamaged
for five years. The country’s Foreign Trade Policy segregates remanufactured goods in a similar
manner to the secondhand products, without considering that the remanufactured goods have been

restored to the original working condition, meeting the technical and safety specification that is applied
to the products made from raw materials. Reconditioned computer spare parts can be imported only if
an Indian Chartered Engineer certifies that the equipment retains at least 80% of its life, while
redeveloped computer parts from domestic sources are not applicable for this requirement. Some of
the problems that the stakeholders’ report includes the excessive details that are needed in the license
application, the quantity limitation that is set on the specific part number and the long delays between
the application and the grant of license.
20.19. Testing, Labeling and Certification

The Indian Government has sorted out 109 commodities that that must be certified by the Bureau of
Indian Standards (BIS) and the National Standards body. Apart from this, the Food Safety and
Standards Authority of India, implemented under the Food Safety and Standards Act, 2006 laid down
standards for articles of food and regulating the manufacturing, processing, distribution, sale and import
of food. These regulations were brought in to make sure the quality of goods. Whereas other countries
use them as measures to protect the goods.
20.20. Anti-dumping and Countervailing Measures

Anti-dumping and countervailing measures are executed by the WTO Agreements to protect the
domestic industry from facing severe injury that is caused by dumped or subsidized imports. India
imposes these regulations on a time-to-time basis to protect the domestic manufacturers from dumping.
This anti-dumping policy has raised concerns about the transparency and due process. The officials
have taken steps to increase the application of the antidumping law.
20.20.1. EXPORT SUBSIDIES AND DOMESTIC SUPPORT

Several export subsidies and other domestic support have been provided to various industries to make
them globally competitive. Export earnings are exempted from taxes and the exporters are not liable
for the local manufacturing tax. The export subsidies intend to displace exports from other countries
into third country markets, whereas the domestic support acts as a direct barrier to access the domestic
market.
20.20.1.1. Export Subsidy Programs
Indian has launched multiple export subsidy programs that include exemptions from taxes for certain
export-oriented enterprises and for exporters in Special Economic Zones. Sectors like textiles and
apparel, paper, rubber, toys, leather goods and wood products receive subsidies considering the
exemptions from customs duties and internal taxes that helps in determining the export performance.
This has made the Indian textile sectors to become a beneficiary of many exports promotion measures.
Besides this, the Government of India has increased the subsidy for garment sectors to develop
employment opportunities.

20.20.2. IMPLEMENTATION OF POLICIES
In 2015, the Indian Government authorized 20 per cent of its public procurement to be given to the
Indian based micro, small and medium enterprises. In 2017, the Indian cabinet has approved a public
procurement policy that encourages preferences for Indian manufactured goods to promote the ‘Make
in India’ initiative. This is aimed to develop the local manufacturing and to boost the domestic demand
for locally manufacturing products. The National Manufacturing Policy is used to increase the local
content requirements in government procurement in certain sectors like information communications
technology and clean energy. The Department of Industry Policy and Promotion (DIPP) has issued two
notifications under the Public Procurement ‘Preferential Electronics Order’ and ‘Cyber Notification’ that
requires local content for state and central government procurements that give preferences for
domestically manufactured electronic goods and cyber-security software products.
20.20.3. SERVICE BARRIERS

The following are the services that include restrictions.
➢ Insurance
➢ Banking
➢ Securities
➢ Motion pictures
➢ Accounting
➢ Construction
➢ Architecture
➢ Engineering
➢ Retailing
➢ Legal services
➢ Express delivery services
➢ Telecommunication
The Indian Government has strong ownership in major service sectors like banking and insurance.
Foreign investments made in business in certain service sectors that include financial services and
retail. Foreign participation in professional services has also been restricted, and in the case of legal
services, it is prohibited entirely.
20.20.4. OTHER BARRIERS

Equity restrictions and other trade-related investment measures result in an unfair advantage to
domestic companies. The Indian Government had restricted FDI in sectors like retail trade and
agriculture. Besides this, there is an unpublished policy that advances the counter trade. Several Indian
companies both government-owned and private organize small countertrades.

20.21. Labor Force
Labor force, total in India was reported at 471688990 in 2020, according to the World Bank collection
of development indicators, compiled from officially recognized sources. India - Labor force, total - actual
values, historical data, forecasts, and projections were sourced from the World Bank in July of 2021.
Labor force comprises people ages 15 and older who supply labor for the production of goods and
services during a specified period. It includes people who are currently employed and people who are
unemployed but seeking work as well as first-time jobseekers. Not everyone who works is included,
however. Unpaid workers, family workers, and students are often omitted, and some countries do not
count members of the armed forces. Labor force size tends to vary during the year as seasonal workers
enter and leave.
20.22. Developments/Investments in India
With support from the Government, considerable investment and development has incurred in different
sectors such as agriculture, healthcare, space research, and nuclear power through scientific research.
For instance, India is gradually becoming self-reliant in nuclear technology.
20.22.1. RECENT DEVELOPMENTS

Some of the recent developments in the field of science and technology in India are as follows:
➢ In March 2021, the Minister of Micro, Small and Medium Enterprises, Nitin Gadkari, inaugurated
two technology centers at Visakhapatnam and Bhopal, three extension centers of big
technological centers and seven mobile Udyam Express of MSME.
➢ In February 2021, production linked incentive scheme for IT Hardware was approved to boost
domestic manufacturing of IT Hardware.
➢ In February 2021, about 1 lakh women were trained on digital literacy in India via ‘We Think
Digital.’
➢ In February 2021, Union Minister for MSME & Road Transport & Highways Nitin Gadkari
inaugurated 50 artisan-based SFURTI (Scheme of Fund for Regeneration of Traditional
Industries) clusters, which will be spread >18 states, to support >42,000 artisans in traditional
crafts.
➢ Oppo’s India research and development center (R&D) has filed 200 patents, including patents
for 5G and camera technologies. The company is also planning to make huge investments in
India from its US$ 7 billion global investment bucket.
➢ In December 2020, Ambassador of France, Germany, and the European Union announced that
they will together work out a detailed plan to fund more eco-friendly projects in Kerala in the
coming years.
➢ In November 2020, the Engineering Exports Promotion Council India and the National Institute
of Design collaborated to promote and upgrade designs and technology for the medical devices
industry, enabling it to meet the emerging needs of the country’s health sector, particularly in
the aftermath of COVID-19.
➢ In November 2020, Union Cabinet, chaired by the Prime Minister, Mr. Narendra Modi signed a
memorandum of understanding (MoU) between the Indian Institute of Astrophysics (IIA),

Bengaluru, and the Instituto de Astrofisica de Canarias (IAC) and the GRANTECAN, S.A. (GTC),
Spain to develop scientific and technical collaborations in astronomy field.
20.23. Distribution and Sales Channels

There has been a significant expansion in distribution channels in recent years. According to the India
Brand Equity Foundation (IBEF), Indian retail market, which stood at $672 billion in 2017, is projected
to grow to $1.1 trillion by 2021. The total number of retail distribution outlets in the country is
approximately 12 million mostly family-owned businesses. An annual growth rate for the fast-moving
consumer goods (FMCG) sector is predicted to be 10-12 percent during the next 10 years. According
to Boston Consulting Group, India is expected to become the world’s third-largest consumer economy
by 2025. India’s Business to Business (B2B) e-commerce market is expected to reach $700 billion by
2020. India is expected to become the world’s fastest growing e-commerce market, driven by robust
investment in the sector and rapid increase in the number of internet users. Online retail sales are
expected to double from $32 billion in 2018 to $60 billion by 2020.
Most Indian manufacturers use a three-tier selling and distribution structure that has evolved over the
years. This structure involves redistribution stockists, wholesalers, and retailers. As an example, an
FMCG company operating on an all-India basis could have between 40 and 80 redistribution stockists
(RS). The RS will sell the product to between 100 and 450 wholesalers. Finally, both the RS and
wholesalers will service between 250,000-750,000 retailers throughout the country. The RS will sell to
both large and small retailers in the cities as well as interior parts of India. Depending on how a
company chooses to manage and supervise these relations, its sales staff may vary from 75 to 500
employees. Wholesaling is profitable by maintaining low costs with high turnover, with typical FMCG
product margins anywhere from four to five percent. In urban areas, the more enterprising retailers
provide credit and home-delivery. Now, with the advent of shopping malls, companies talk of direct
delivery and discounts for large retail outlets.
In recent years, there has been increased interest from companies to improve their distribution logistics
to address a fiercely competitive market. This in turn has led to the emergence of independent
distribution and logistics agencies to handle this important function. Marketers are increasingly
outsourcing some of the key functions in the distribution and logistics areas to courier and logistics
companies and searching for more efficient ways to reach the consumer. The courier network in India
now spreads to smaller Class IV towns (defined as a town with a population of less than 50,000).
Most FMCG and pharmaceutical companies use clearing and forwarding (C&F) agents for distribution,
with each C&F agent servicing stocks in an area, typically a state. Taxes used to vary between states
until the introduction in 2017 of a national value added tax, known in India as the General Service Tax
(GST). Now, at every stage from producer to end consumer, retail prices are the same throughout
India. With the cost of establishing warehouses extremely high, C&F agents are fast becoming the
norm.
India has 12 major (national government control) and 205 minor (local state/private control) ports, but
in terms of gross weight tonnage conveyed annually, Mumbai and Marmagao on the west coast, and
Vishakhapatnam and Chennai along the east coast are the most important ports in India. Mumbai, the
financial capital of the country, is very important for international cargo trade.

To assist companies entering the Indian market, the GOI uses free trade and warehousing zones
(FTWZ) as a special category of special economic zone with a focus on trading and warehousing. The
objective of the FTWZ is to create trade-related infrastructure to facilitate the import and export of goods
and services with greater flexibility. These zones are established in areas close to seaports, airports,
or dry ports. FDI up to 100 percent is allowed in the development and establishment of the zones and
in their infrastructure facilities. The program allows duty free import of all goods for warehousing
(except prohibited items such as arms and ammunition, hazardous waste, special chemicals,
organisms, materials, equipment, and technology items). The maximum period that goods may be
warehoused within the FTWZ is two years, after which the goods must be re-exported or sold. After
the two-year period expires, custom duties are applied and automatically become due unless the goods
are re-exported with a grace period of three months.
20.23.1. USING AN AGENT OR DISTRIBUTOR
A local presence in India is strongly advised, but if your company is not ready to establish a branch
office or a subsidiary, you can appoint an agent, representative, or distributor. India is a huge and
diverse country, with over 30 regional languages and different rules and regulations in each state. A
regional approach (north, south, east, and west) ensures broader market presence and greater
flexibility in addressing region-specific needs and issues. Within each region, states differ widely in
citizen income, purchasing power, educational, and other socio-economic aspects. Furthermore, there
are a certain product where the appointment of an authorized agent or distributor in India is legally
required, such as for pharmaceutical drugs or select medical devices, diagnostic kits, cosmetics, food
products and for some technical products where stringent quality testing and standardization
certifications are mandatory. Thus, there is always an advantage to work with an agent, representative
or a distributor, who understands your target market and has a good grasp of local laws and policies
to help increase your reach and, ultimately, determine your success.
20.23.1.1. Defining the Terms
An agent is an intermediary appointed to represent your company and can have authority to the extent
specified in the terms of contract. An agent procures a potential buyer, negotiates the price, and
concludes deals with customers on your behalf. An agent works independently and gets a commission
on each sale. A representative works directly for the company whose compensation may include a
salary plus commission on the sales generated. A distributor acts as an importer and typically
purchases and stocks the products before selling to the end user. The distributor’s compensation is
higher than that of an agent or a representative due to higher inventory management costs.
20.23.1.2. Use Caution when Establishing Critical Relationships
The U.S-India relationship is strong, and Indian firms are eager to buy U.S. products and services. As
a result, U.S. exporters can expect generally positive interest from potential representatives and
distributors for a broad range of products. However, the enthusiasm of potential partners must be
weighed against several factors before a relationship is considered. Carrying out appropriate due
diligence procedures is critical in evaluating whether the partner will truly add value.
When evaluating a distributor or agent, the Indian firm’s business reputation, financial resources,
willingness, and ability to invest, marketing strength, regional coverage, industry expertise, and credit
worthiness should be considered. An ideal distributor will have an extremely good banking relationship
to enable the extension of credit and have the capacity to market a full range of products and

services. It is important that the agent or distributor maintains a solid infrastructure and facilities such
as warehouses, service workshops, showrooms, and competent staff.
U.S. companies should be careful not to be influenced by the eagerness and persistence of a distributor
or his representative. Sometimes, Indian firms represent so many companies that they have little time
or interest in developing new markets. The Indian firm may not have the vision to go beyond the
existing list of contacts that it has nurtured over time. While in the short run, this can still provide
positive returns, a more sustainable value-add will be in developing new or under-developed markets.
Therefore, it is critical to measure objectively the ability, willingness, and aggressiveness of the firm in
developing new networks, contacts, and areas of business. By checking multiple professional
references, a U.S. company can gain broad insight into an Indian counterpart.
20.23.1.4. Other Issues to Consider
Advantages of a small distributor
A small distributorship with a regional presence and local knowledge may prove to be a competitive
advantage over larger ones. Though India is slowly moving towards more modern distribution channels
in some sectors, most companies face a fragmented and multi-layered distribution network. In some
cases, appointing distributors by product is a plausible consideration for companies.
20.23.2. ONLINE MARKETPLACE AND ECOMMERCE

India is witnessing a surge in eCommerce business in metropolitan areas along with an increasing
trend of digital payments services adoption in tier II & Tier III cities. Thus, having a distributor with an
online presence through a dedicated website or through an online marketplace listing will be a huge
added advantage. However, eCommerce is subject to Competition Acts released time to time by the
Indian Government to enforce pricing and distribution policies. U.S. Companies should be wary of
such provisos and incorporate relevant clauses in the distribution partner agreement to avoid violations
of competition law.
20.23.3. DUE DILIGENCE CHECKS

Traditional methods of validating a potential partner’s credentials are less reliable or not possible,
especially in case of privately-owned companies, due to a lack of public access databases. For
example, while checking a proposed partner’s credit - a crucial first step, the U.S. firm should check
with the potential partner’s bank to determine financial health, reputation, and credit worthiness. Further
details can be sought from accountants, lawyers, industrial associations, and other entities currently
working with the firm. For technical products, U.S. companies should confirm the technical expertise
of the company’s staff, without sole reliance on documentation.
To identify agents and distributors, U.S. companies can take advantage of the Initial Market Check
(IMC), International Partner Search, Business Facilitation Service (BFS), Gold Key Service (GKS) and
Single Company Promotion (SCP), services offered by the U.S. Commercial Service through its seven
offices in India. To assist with due diligence background checks on local agents and distributors, U.S.
companies can take advantage of the International Company Profile (ICP) service. Virtual services are
now offered to address travel restrictions due to the pandemic.

20.23.4. ESTABLISHING AN OFFICE
The most important factors in choosing a location in India are: (1) physical infrastructure; (2) state
government support and flexibility; (3) cost and availability of power; and (4) the law-and-order
situation. Other factors to consider include labor availability and cost, labor relations and work culture,
and proximity to resources and/or markets. Under labor law, an employer with more than 100 workers
cannot fire them without permission from a government labor commissioner — something usually
impossible to obtain.
Given the shortage of good commercial office space at reasonable prices in major Indian cities,
business centers are a viable option for new companies wanting to establish a physical
presence. Business centers are facilities that are ready to move in, wired for communications, and air-
conditioned. Billing is normally done monthly. For long-term use, discounts are generally
available. Many state governments are creating special technology parks for selected industry sectors
like software, biotechnology, and automotive.
20.23.4.1. Type of Office
A foreign company or individual planning to set up business operations in India – but choosing not to
establish a subsidiary or to form a joint venture with an Indian partner – can do so by establishing
liaison, project, or branch offices in India. Approval from the Reserve Bank of India (RBI) is required
and can be obtained by submitting form ‘FNC’. Such companies also must register themselves with
the Registrar of Companies (ROC) within 30 days of setting up a place of business in India.
20.23.4.1.1. Liaison or Representative Office

Many foreign companies initially establish a presence in India with a liaison or representative office that
is not directly engaged in commercial transactions in India. The purpose of these offices is to oversee
their networking efforts, promote awareness of products, and to explore further opportunities for
business and investment. A liaison office is not allowed to undertake any commercial activity and
cannot earn any revenue in India. As no revenue is generated, there are no tax implications to the
office in India. Such offices are not allowed to charge any commission or receive other income from
Indian customers for providing liaison services. All expenses are to be borne by inward remittances. A
foreign company establishing a liaison office cannot repatriate money out of India. All in-country
activities conducted by the liaison office should be non-revenue generating.
20.23.4.1.2. Branch Office

A branch office is not an incorporated company but an extension of the foreign company in India. A
branch of a foreign company is limited to the following activities by the RBI: representing the parent
company and acting as its buying/selling agent, conducting research for the parent company, carrying
out import and export trading activities, promoting technical and financial collaborations between Indian
and foreign companies, rendering professional or consulting services, rendering services in information
technology and development of software in India, and rendering technical support to the
products supplied by the parent/group companies.
A branch office does business in India and is subject to taxation in India. The branch office may
repatriate profits generated from their Indian operations to the parent company after paying

taxes. However, a branch office is not allowed to carry out manufacturing and processing activities
directly (though it can sub-contract such activities to an Indian manufacturer).
20.23.4.1.3. Project Office
Foreign companies sometimes set up a temporary project office to undertake projects in India awarded
to the parent company. It is essentially a branch office set up for the limited purpose of executing a
specific project. Approval for project offices is generally accorded for executing government-supported
construction projects or where the projects are financed by Indian and/or international financial
institutions and multilateral organizations. In exceptional cases, approval is also given for private
projects. Upon completion of the project, project offices may remit profits outside India after meeting
tax liabilities.
None of these entities is permitted to acquire real estate without prior RBI approval. However, project
offices can lease property in India for a maximum period of five years.
.
20.23.5. LIMITED COMPANY
A limited company is an incorporated entity, which is a separate legal entity distinct from its members
or shareholders. Foreign investment in India is governed by the FDI policy of the government as well
as the Foreign Exchange Management Law. As per the current policy, all companies in India must be
incorporated under the provisions of the Companies Act, 2013.
20.23.6. DIRECT MARKETING

According to a report by World Federation of Direct Selling Associations, the Indian direct marketing
sector recorded sales of $2.7 billion in 2019. The growing Indian market has attracted many Indian
and foreign direct selling companies. Globally, the direct selling industry is a labor - intensive industry
that has a positive socio - economic impact in terms of higher employment, women empowerment, skill
development, financial independence, flexible timings, and an improved ability to take care of the
families. These factors, combined with favorable demographics, will lead to the direct selling industry
witnessing an unprecedented opportunity for growth in the coming years.
According to a 2018 report (latest available) issued by The Federation of Indian Chambers of Commerce
and Industry (FICCI) and KPMG India the industry will grow at a Compounded Annual Growth Rate (CAGR) of
16 percent and is estimated to reach $8 billion in India by 2025.
The Indian Direct Selling Association (IDSA) reported a growth rate of 13 percent in 2018-19. The wellness
industry that included weight management supplements, energy bars and drinks contributed to more than half
of the total volume of the industry. Wellness and healthcare products account for over 50 percent of direct sales
revenue, with cosmetics and personal care products contributing 34 percent, homecare products
11 percent and consumer and household durables 5 percent. Direct selling companies are importing
fewer goods as they develop local sources of supply.
According to IDSA, Government of India’s Ministry of Consumer Affairs, Food & Public Distribution
issued a “Model Framework for Guidelines on Direct Selling” in Fall 2016. However, the direct
marketing industry faces some challenges faced with misconceptions of illegal direct selling of products
by e-commerce majors and Indian States have been slow to adopt these guidelines.

FICCI organizes an annual conference on the industry to focus on the guidelines released by the
Ministry of Consumer Affairs and highlight the benefits for the state governments in adopting these
guidelines.
20.24. Media in India
Media is consumed by audiences across demographics and various avenues such as television, films,
out-of-home (OOH), radio, animation, and visual effect (VFX), music, gaming, digital advertising, live
events, filmed entertainment, and print.
In 2024, television will make up 40% of the Indian media industry, 13% by print media, 12% by digital
advertising, 9% by cinema, and 8% each by OTT and Gaming sectors.
The trajectory for the country’s digital revolution is expected to reach more than a billion users by 2028.
By 2024, Media & Entertainment industry is expected to reach $39 bn and a CAGR (2019-24) of 9%
The overall online video market for India is projected to grow at a CAGR of 26% between 2020 and
2025 to reach $4.5 bn in revenue over the next five years.
India holds the most potential of any market in the world and its breakneck rate of growth will see total
OTT video revenue overtake South Korea, Germany, and Australia to jump to be the 6th largest market
in 2024.
Accounting for 80% of the revenue, online gaming segment will drive enormous engagement and
another addition of another 100 million smartphones and continued conversion of 2G and 3G
connections to 4G will drive a 3X growth in this segment by 2022.
Total pay-tv subscribers will expand from 127 million in 2020 to 134 million by 2025.
Summary
The economy of India is characterized as a middle income developing market economy. It is the
world's sixth-largest economy by nominal GDP and the third-largest by purchasing power
parity (PPP). According to the International Monetary Fund (IMF), on a per capita income
basis, India ranked 145th by GDP (nominal) and 122th by GDP (PPP). From independence in
1947 until 1991, successive governments promoted protectionist economic policies with
extensive state intervention and economic regulation, which is characterized as dirigisme, in the form
of the License Raj. The end of the Cold War and an acute balance of payments crisis in 1991 led to
the adoption of a broad economic liberalization in India. Since the start of the 21st century, annual
average GDP growth has been 6% to 7%, and from 2013 to 2018, India was the world's fastest growing
major economy, surpassing China. Historically, India was the largest economy in the world for most of
the two millennia from the 1st until the 19th century. The Indian economy to grow by 11% in real terms
(adjusted for inflation) during 2021-22.
Nevertheless, one factor that needs to be kept in mind; the size of the Indian economy, as measured
by the Gross Domestic Product (GDP), is expected to contract by 7.7% during 2020-21 to ₹134.4 lakh
crore. The long-term growth perspective of the Indian economy remains positive due to its young

population and corresponding low dependency ratio, healthy savings, and investment rates, increasing
globalization in India and integration into the global economy. In 2019, India was the world's ninth-
largest importer and the twelfth-largest exporter. India has been a member of the World Trade
Organization since 1 January 1995.It ranks 63rd on the Ease of doing business index and 68th on the
Global Competitiveness Report. With 500 million workers, the Indian labor force is the world's second
largest as of 2019. India has one of the world's highest number of billionaires and extreme income
inequality. Since India has a vast informal economy, barely 2% of Indians pay income taxes. India is
the fourth-largest unicorn base in the world with over 21 unicorns collectively valued at US$ 73.2 billion,
as per the Hurun Global Unicorn List. India needs to increase its rate of employment growth and create
90 million non-farm jobs between 2023 and 2030's, for productivity and economic growth according to
McKinsey Global Institute. Net employment rate needs to grow by 1.5% per year from 2023 to 2030 to
achieve 8-8.5% GDP growth between 2023 and 2030.
India's foreign exchange reserves stood at US$ 582.04 billion, as of March 12, 2021, according to data
from RBI.
According to World Bank, to achieve sustainable economic development India must focus on public
sector reform, infrastructure, agricultural and rural development, removal of land and labor regulations,
financial inclusion, spur private investment and exports, education, and public health.

21. PRELIMINARY MARKETING PLAN
21.1. Market entry strategy
While emerging markets offer enormous opportunities for international businesses, companies must
first develop a market entry strategy. most companies struggle not because they can’t create viable
offerings but because they get their business model wrong many internationals simply import their
domestic model into emerging markets, instead of adapting their fundamental profit formulas and
operating model to the needs presented in emerging markets.
The success of MNC’s in new markets is widely attributed to a firm's selection and implementation of
this adapted business model. Companies must consider numerous factors including market size and
growth, local infrastructure, company objectives, risk, control, and many others. In this section we will
focus on we will focus on the two components of market entry strategy which are country/market
selection and mode of entry.
21.1.1. COUNTRY/MARKET SELECTION
Today, many corporations will enter new markets because of an executive personal or gut feeling,
experiences, or even family ties. Others follow the “herd instinct” and follow customers or rivals into
emerging markets. The first step in entering a new market is to conduct market research and assess
the current market situation, its size and trends, the competitive landscape, and the legal environment.
Out of the countries identified in the BRICS bloc, the most

promising is perhaps the world’s largest democracy with 1.25 billion
people, India. Located in the heart of South Asia, India has become
a target country for the strategies of many multinational
businesses. With its diverse economy spanning a variety of
industries, India is thought to be the next superpower, both
geographically and economically. Geographically, the country is
strategically positioned to balance the power of China and provide
stability to the region. India also is focused on strengthening
diplomacy and trade ties with multiple countries including Russia,
Japan, and the US. Economically, India accounts for 2.83 percentage of the world economy and
continues to grow at record rates. In 2015, India’s economy grew by 7.6 percent, the fastest among
any other major nation. Services are the main source of economic growth, accounting for nearly two-
thirds of India’s output. However, the country is also home to modern agriculture, pharmaceuticals,
textiles, handicrafts, and many other industries.
21.1.2. INDIAN MARKET OPPORTUNITIES

India has become a preferred investment destination for many multinational companies. Whether
searching for a place to outsource labor or seeking to introduce a new brand to the market, MNC’s are
stirred by lucrative business opportunities. First, based on its largely educated English speaking
population and growing middle class, India will soon be the human resource capital of the world.
McKinsey Global Institute estimates that by 2025, 69 cities in India will have a population of over one
million each, bringing about the need for businesses to sustain the livelihood of India’s population. The
number of hours worked will continue to climb at a significantly faster rate than elsewhere as India
creates jobs to support its youthful populace. The country boasts a labor force of 234 million citizens
between the age of 15 and 24 and still growing. India’s growing workforce also translates to a growing
consumer class. There is an enormous and growing demand for foreign products and brands.
Secondly, the operational costs of developing a business in India are substantially lower compared to
setting up a business elsewhere. The cost of basic amenities required for businesses is lower in India,
whether it is investing in infrastructure, labor, food, transportation, internet or even taxes. The openness
of the Indian market makes it easier for businesses to enter and experiment new products or services
on a large population.
Third, the government has also led the effort to ease restrictions on foreign investment in sectors
including construction, medical technology, railways, defense, and insurance. Starting with the Goods
and Services Tax Bill, the Modi Government has passed substantial legislation to make the Indian
economy more transparent and uniform. From the demonetization of the nation’s currency in December
of 2016, to the Land Acquisition Bill in 2017, the current administration has focused on shifting spending
from consumption to investment. The government’s “Make in India” initiative focusing on 25 different
industrial sectors was devised to transform India into a global design and manufacturing hub. It is “Make
in India” not “Made in India” implying the countries hopes of attracting foreign investment and opposing
protectionism.
The Indian market provides endless opportunities for multinational companies with the right services,
products, and growth outlook.
21.1.3. INDIAN MARKET CHALLENGES

However, many challenges remain prevalent. India still ranks 100th overall on the Doing Business list
provided by the World Bank, last among the BRICS countries. India is a complex nation composed of
diverse religions, cultures, and languages. Despite there being 29 states, the country boasts of its
diversity and economic unity. Localized markets force businesses to adapt business models in different
regions of the country.
The fundamental problem is India’s massive unmet need for basic services, such as water and
sanitation, energy, and healthcare, for example, while red tape makes it hard to do business. A study
conducted by the McKinsey Global Institute, estimated that 46% of Indians lack access to basic
services, like subsidized food, health care, and early education. The country’s underdeveloped
infrastructure in transportation, energy production, and logistics further complicate strategies for

international businesses. If these services and frameworks are not in place for the country’s own
population, India as a source for HR talent and business opportunity could be bleaker.
another source of skepticism on India concerns is lumbering state-owned banks who have accumulated
stressed loans. India also faces many challenges economically including the privatization of public
enterprises, deregulation of certain industries, monetary policy reform and the regulation of financial
services.
Social programs and restriction on businesses remain among the biggest challenges to business and
labor productivity advances. The current presence of corruption at all levels of government continues
to keep business owners cautionary in regards to starting a business in India. During the clearance
process in creating a business, dealing with construction permits, or even registering property: a bribe
moves things more quickly. Prime Minister Modi’s goal of a top 50 ranking will only be reached if the
government introduces big ticket reforms to labor law, land ownership, and the judicial process.
Layers of bureaucracy and protectionist policies provide several hurdles to overcome when importing
and exporting to India. The lack of efficiency in the approval process of moving goods across borders
threatens India’s rise as a global trade partner.
21.1.4. PESTEL ANALYSIS FOR INDIA

As noted above, companies wishing to succeed in emerging markets must have a clear view and
understanding of the country’s business environment. Many companies use the PESTEL framework to
evaluate a countries business environment. Below, the PESTEL analysis is applied to India’s business
environment. Some of these factors, we will see arise again as either opportunities or challenges for
multinational corporations to navigate.
PESTEL ANALYSIS FOR INDIA

Political ▪ Federal parliamentary republic
▪ Three-tier structure of government: union, state, and
urban and rural bodies
▪ Privatization policies
▪ Deregulation policies
▪ Red tape
Economical ▪ Nominal GDP: $2.349 trillion USD (4th largest in the
world)
▪ Massive amount of natural resources
▪ Economy is considerable stable.
▪ Push for foreign investment and multinational business
favored policies
Social ▪ Population: 1.3 Billion
▪ Cultural and religious diversity (predominantly Hindu) (22
official languages)
▪ Growing young, educated, middle class.
▪ Median age: 27.9 years

▪ Recent religious adversity and violence
Technological Strong IT sector for development, government
technology, mobile communication, technology transfer,
and software/processes
Environmental ▪ Air pollution
▪ Climate varies by region
Legal Significant legal changes have been made in the past
including a minimum wage increase and legislation on
disability discrimination
21.1.5. India’s Food & Beverages Market
The food processing sector in India accounts for 32% of the country’s total food market, and is ranked
5th in terms of production, consumption, export and expected growth. The sector is comprised of six
major segments: fruits and vegetables, milk, meat and poultry, marine products, grain processing, and
consumer food. The consumer food segment is among the fastest growing segment in India posing
enormous opportunities for multinational corporations and investors. Constituting over 40% of India’s
Consumer Packaged Goods (CPG) industry, the food and beverage sector was valued at $369 billion
in 2017 and continues to grow at record levels. middle class are driving the demand for food and
beverages, as they are the top consumption item by India’s population.
21.1.6. PORTER’S FIVE FORCES

Porter’s Five Forces is a great model to understand the competition existing among players in the food
and beverage markets.
PORTER’S FIVE FORCES - India’s Food and Beverage Market

Competitive Rivalry High - power struggle for market share between many players
in a highly unorganized market
Bargaining Power of Suppliers Medium - industry largely dependent on agricultural products
for raw materials, yet also vast supply locally and from imports.
Bargaining Power of Buyers High - customers can choose from a host of products and govt.
has allowed 100% FDI
Threat of Substitutes Medium - trends may change but core industry will not be
replaced
Threat of New Entrants Medium - low economies of scale and capital intensive
21.1.7. FOOD & BEVERAGES MARKET OPPORTUNITIES

The food and beverage industry is among one of the fastest growing segments in India. India is thought
to surpass China’s population by 2024 and be home to 1.25 billion consumers. Total consumption of
the food and beverage segment is expected to increase from $369 billion to $1.142 trillion by 2025. A
surge in demand for healthy food and beverage options are a result of the rapid urbanization and
increasing media penetration.

Rising disposable income and a growing middle class provide ample opportunities for multinational
corporations to introduce new products to the Indian consumer. Not only are there opportunities in
product innovation, but also in evolving service offerings tailored to Indians changing consumption
patterns.
India’s diverse climate conditions and strategic location also make the country an attractive destination
to establish a food processing hub for both investment and export. The government has pushed these
initiatives by focusing on mega food parks and agricultural export zones that attract foreign investment
and aid in infrastructure. Between April of 2000 and March 2017, FDI in the food processing industry
stood at $7542.91 billion and the government continues to welcome corporations willing to invest in
supply chain infrastructure.
The food and beverage industry is a relatively untapped market with strong growth potential for foreign
investors.
21.1.8. FOOD & BEVERAGES MARKET CHALLENGES

Although the opportunities look vast, there are still many challenges for both local and multinational
players. The biggest challenge is that the industry is dominated by unorganized players who contribute
to 80% of the food processing industry (by volume) unlike other sectors. A lack of adequate
infrastructure and supply chain efficiencies, shortage of skilled manpower, and inconsistent policy on
both the national and local level presents multifaceted challenges to players in the market. There is still
hope, however; multinational firms are partnering with local players to address many of these issues
by providing innovative and advanced strategies. The food processing industry is pivotal to liberating
India from the clutches of hunger and malnutrition, it will provide options of global standard to the
aspiring consumers in India.
21.2. Mode of Entry
After defining our target market, the next crucial step in developing a market entry strategy is to select
the best mode of entry. Business leaders must carefully choose a mode of entry that balances risk and
control, enabling the company to succeed in the target market. A market entry mode is “an institutional
arrangement that makes possible the entry of a company’s products, technology, human skills,
management or other resources into a foreign country”. There are many different modes of entry that
will be discussed below, and companies must weigh the advantages and disadvantages of each during
the selection process. Just as in evaluating markets, there are multiple factors that influence the
selection of a mode of entry. The entry mode is influenced by three different variables: strategic,
environmental, and transaction specific. We believe that company's current state, past experiences,
and structure of the target market all affect the decision of what entry mode to select. Other factors
include how much time is available and level of competition. Firms that take the trouble to understand
the institutional differences between countries are likely to choose the best markets to enter, select
optimal strategies, and make the most out of emerging markets.
Typically, the modes of entry are grouped into the following: exporting strategies, contractual entry
modes, and investment entry modes. Exporting strategies are the most well-established form of

entering foreign markets and exist when one country transfers goods it produced to another country.
Exporting includes both direct and indirect transfers. Contractual entry modes, as their name suggests,
are modes of entry where company’s make contractual agreements with other firms to license,
franchise, or sell their goods and/or services. Lastly, investment entry modes involve foreign companies
purchasing a local company or creating alliances and ventures with existing local market players. The
matrix below has been compiled with the use of multiple academic sources to identify advantages and
disadvantages of each.
Group Mode of Description Advantages Disadvantages

Entry
Exporting Direct Direct transfer of • Low capital • No learning
goods and services to a investment experiences.
customer across • Moderate • More demanding
national boundaries financial risk on resources
• Reduces risk of • Potentially high
operating opportunity cost
overseas
Indirect The sale of goods or • Least • Low profitability of
services through the complicated transactions
Domestic intermediary • Low capital • Lack of control
investment • High dependence
• Low financial risk on foreign agent
Contractual Licensing Foreign licensee buys • Fastest way to • Need for quality
the rights to produce a expand. control.
company’s product in • Low cost of • Limits market
the licensee's country for developing development
a negotiated fee foreign market. • Relatively low
• Means to bridge income
import barriers
Franchising Franchisee gains rights • Little or no • Lack of global
to use brand name and financial strategic
business model in return investment coordination
for a lump sum payment • Rapid way to gain • Need for quality
and a share of the entry. control.
franchisees profits, often • Simple expansion • Profit sharing
in the services and trade • Possibility of
sectors franchisee
disloyalty
Investment Strategic Business relationship • Shared costs • Risk of conflict
Alliance established by two or • Increase with partners
more companies to competitive • Risk of creating a
cooperate out of mutual strengths. competitor
need and to share risk in

achieving a common • Opportunities for
objective rapid expansion
Joint The creation of a foreign • Shared • Risk of conflict
Venture subsidiary jointly development • Potential loss of
controlled (minority and costs and risk control by one of
majority interests) by the • Easier political the parties
parent company and a acceptability • High entry cost
foreign partner • Access to local
partner’s
knowledge
Wholly Parent company owns • Full control • High entry cost
Owned 100 percent of the • Protection of and risk
Subsidiary subsidiary’s stock technology • Divergent
• Less competition corporate cultures
• Access to local and priorities
assets • Complicated
registration
procedures
After the analysis of all entering modes and India’s PESTEL analysis, we found ourselves more
interested in Strategic Alliance or Joint Venture. These two strategies are discussed together since
a strategic alliance is simply a weaker form of a joint venture. A strategic alliance is defined as an
agreement between two companies to combine their value chain activities for a competitive advantage.
The big difference in the two strategies, is that a new company is formed in a joint venture, while
strategic alliances are merely contractual agreements. A joint venture is typically represented in the
form of a 50/50 venture in which each party takes 50% ownership. There are many advantages in
selecting this mode of entry, including the opportunity to receive a greater return from greater equity
participation. When foreign ownership is not permitted, companies select this mode of entry and parties
mutually benefit from each other’s understanding of the international market. Economic and political
risks can also be reduced when a company joins with a local partner. A disadvantage of this strategy
could be tension and conflict that results from partnered decision making. Conflict resolution is
something that should be addressed upfront when establishing a joint venture. There is also a potential
risk of losing control over technology or patented products. Joint ventures and strategic alliances do
not always yield a fruitful advantage; however, more and more companies are using this mode to enter
emerging markets where having a local partner is crucial for success.

21.3. Market size in India
The bakery industry is very popular in urban part of India. Around 60% of production takes place in the
unorganized sector. There are around 2 mn unorganized bakeries in the country, comprising small
bakery units, cottage, and household type manufacturing. Bakery products are part of the processed
food category. They include cake, pastries, biscuits, bread, breakfast cereals, and other products.
The growing per-capita consumption trends of bakery products indicates the untapped growth potential
in the global bakery products industry. The market potential is huge in the emerging markets; wherein,
consumer demand is increasing for packaged products, as a result of the influence of Western culture
and also for its convenience. The total market size of the bakery products is expected to reach USD
530 billion by 2021, at a 4.5% CAGR during the forecast period.
We are targeting to have a 0.1% market share in the first year which means USD 53 million.
21.4. Nooga Marketing Mix (4Ps) Strategy
Marketing Mix of Nooga analyzes the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains Nooga marketing strategy. There are several marketing strategies like
product/service innovation, marketing investment, customer experience etc. which helps the brand
grow.
Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is
the widely used framework to define the strategies. Here we will elaborate the product, pricing,
advertising & distribution strategies will be used by Nooga oriental sweets.
Let us start Nooga’s Marketing Mix & Strategy:
21.4.1. NOOGA PRODUCT STRATEGY

The product strategy and mix in Nooga marketing strategy can be explained as follows:
Nooga is one of the largest sweets’ manufacturers & retail outlet in India. With a big variety in offerings.
It is also in the business of restaurants but 60% of revenue is generated by packaged products
business. The company also has an online presence where customers can place their orders and avail
various special products offered by Nooga which include custom sweet boxes and specialized festive
products. The website also offers services like placing bulk orders and fatafat delivery (quick delivery).
Nooga product strategy as a part of its marketing mix come in packages of various sizes to satisfy the
different requirements of customers. They also give a lot of importance on attractive packaging with
attractive colors to encourage impulse buying among customers. Nooga focuses greatly on delivering
quality products. The whole manufacturing process is in-house and stringent quality checks are done

by the founders themselves. There is a uniformity in quality and authenticity in taste which make Nooga
a tremendous success in Indian sweets market.
21.4.2. NOOGA PRICE/PRICING STRATEGY:

Below is the pricing strategy in Nooga marketing strategy:
Nooga follows a competitive pricing strategy in order to compete with huge unorganized snacks and
sweet sector in India.
Nooga will charge a minimal premium owing to the branded and well packaged products. They give a
huge importance to good presentation and lively packaging as a way of differentiation from other non-
branded unorganized products and thus demand a premium for it. But since the premium is so small
that consumers usually do not mind given the trusted high-quality products.
At the same time Nooga will keep prices slightly lower than other branded competitors like Bikaji, Lehar,
Bikano etc. Thus, competitive pricing is the backbone of its marketing mix business strategy. To charm
the more price sensitive customers, the packs of variety sweets of 1 kg will be priced around Rs.210.
21.4.3. NOOGA PLACE & DISTRIBUTION STRATEGY
New Delhi:
The country's direct selling industry is expected to touch Rs 159.3 billion by 2021, but certain reforms
are required for sustainable growth.
The direct selling industry has almost doubled since 2011 to reach Rs 126.2 billion in 2016.
Direct selling opportunities can be enhanced in India provided we create a conducive environment
which is protecting all the stakeholders within the framework of the regulatory framework.
Nooga will develope a strong distribution network to ensure the widest possible reach for its products
in India. From the manufacturing unit, the company’s finished goods are passed on to the carrying &
forward (C&F) agent. C&F agents passes on the products to distributors, who ship them to retail outlets.
Nooga in Delhi is going to have 25 C&F agents and 700 distributors in India. C&F agents receive a
commission of around 5% while distributors earn margins ranging from 8% to 10%. The retail outlets
earn margins from 14% to 30%. At retail outlet level, margins vary according to the weight of packs
sold.
Apart from the exclusive showrooms owned by Nooga, the company will offer its products through
retail outlets such as supermarkets. The products will also be available in public places such as
railway stations and bus stations that account for a sizeable amount of its sales.

21.4.4. NOOGA PROMOTION & ADVERTISING STRATEGY
Different varieties of posters are designed to appeal to the masses. The punch line for Nooga products
was always in good taste‟. Advertising depicting the entire range of Nooga sweets will be published in
the print media (magazines and newspapers). These advertisements will have captions such as
„millions of tongues can’t go wrong”, “what are you waiting for, Diwali??‟ and Keeping your taste buds
on their toes‟
To increase the visibility of the Nooga brand, the company will place its boardings in high traffic areas
such as train stations and bus stations. Posters will be designed for display on public transport vehicles
such as buses.
Special brochures are designed for those customers who want to know more about Nooga products.
The brochures describe the products and give information about the ingredients used to make those
products.
21.5. Governmental regulations and licensing
1. FSSAI Food Safety and Standards Authority License

The FSSAI license, also known as the Food License, is one of the essential permits required to open
a restaurant and is obtained from the FSSAI (Food Safety and Standard Authority of India). This
license is not merely a license; on the contrary, it also serves as an approval by the authority. It
ensures the customers that the food of that particular restaurant affirms to the food safety standards
of India. This license is necessarily a unique 14-digit registration number that is given to
manufacturers, traders, and restaurants which should mandatorily be printed on food packages. This
confirms your consumers that they are dining at the right place, which adhered to all the safety
standards.
2. Health/Trade License
The 11th schedule of the Municipal Corporation Act (1957) is about Health Trade License. It came
into existence from the concern that public health must be given supreme importance. This license is
generated by the local civil authorities like the State’s Municipal Corporation or the Health
Department.
3. Eating House License

The Eating House License is provided by the Licensing Police Commissioner of that city, where you
would want to open the outlet. The approximate cost required to issue this license is Rs. 300 for three
years.
4. Shop and Establishment Act

To run a food business in India, you must register your restaurant under the Shops and Establishment
Act, be it a Food Truck or a Fine Dine restaurant. You need to register your restaurant within 30 days
of the commencement of your business. This license is city specific. The total cost you would incur

for this license amounts to Rs.200 to Rs.4,000 per year. However, the charge is relative as it depends
on the number of employees and the location of the restaurant.
5. GST Registration
GST that came into force since the 1st of July 2017, has kept everyone hitched to it with these
frequent changes. Both the restaurant industry and the government have been in loggerheads for
long. Even then, registering in GST is one of the essential things that your restaurants must do, which
will ensure that your restaurant runs seamlessly.
6. Fire Department
The restaurant’s ulterior motive must be to protect its customers from all things dangerous, be it food
products or hazards such as a fire. A No Objection Certificate (NOC) from the fire department is also
required to run a restaurant.
7. Lift Clearance
In case you want to install a lift in your multi-story restaurant, you need to get clearance from an
inspector from the electricity department as well as the Labor Commissioner of that specific city. The
Electrical Inspector issues this license from the office of the Labor Commissioner after verifying the
installation of life, layout, safety gear, and the like. State-wise applications are available for obtaining
lift clearance.
8. Music License
Don’t you, as a restaurant owner, love to play the trending songs at your restaurant? It is not only
you, but the customers love it too. But, to play music at your restaurant, you need to obtain a
restaurant music license. Under the Copyright Act of 1957, those who play pre-recorded music in any
non-private, commercial, or non- commercial establishments must obtain a music license issued by
Phonographic Performance Limited (PPL). If a restaurant plays music and operates without the said
license, they will have to face legal penalties.
9. Certificate of Environmental Clearance

The restaurant is not only responsible for ensuring the health of the customers, but they are also
legally and morally bound to ensure that its operations must not negatively harm the nature of the
mother earth. Hence, restaurants are also expected to apply for the Certificate of Environmental
Clearance.
10. Signage License

You need to market your product well that will ensure that your business helps you garner the
maximum profit. However, if you want to sell your restaurant either through word of mouth, logos,
posters, pictures, and symbols, you are required to obtain a legal permit, which is the signage license.
You can get this license from local civil authorities like the Municipal corporations.

22. CONCLUSION
22.1. Winning in India
How can multinationals win in India?! – companies should avoid simply imposing global business
models and practices on the global market. And for that purpose, the illustrative scorecard below can
be used as a localization-assessment tool to guide companies on how to win in India.
The future of many multinational corporations will depend on their ability to succeed in India. A country
that could potentially account for more than 20% of global revenue growth over the next decade, India
is a country of both cultural and market complexities. It is essential that multinational corporations
learn to do business the Indian way and commit to understanding the changing consumption patterns
of the Indian consumer.

22.2. Why do so many multinational corporations fail in India?
According to data from the Reserve bank of India (RBI), in the period leading up to 1978, 54
companies had applied to exit India. Another study done my McKinsey and Company reported that
for every successful market entry, approximately four fail. India is a different ballgame. The first
multinational corporations to enter India were faced with numerous restrictions on foreign direct
investments and trade. Companies such as Coca-Cola, IBM, General Motors, and many others were
forced out of the country after being publicly crucified in the media and failing to abide by the rule of
law. Many overpromised, and under delivered, while others imposed the same international business
models in the Indian context.
Too many companies think they understand India then Why Do Western Businesses Fail in India?
Companies failed to understand localization and deliver products that addressed issues faced by the
Indian consumer. McDonalds serves as a great example, as it took years before the company realized
the vegetarianism of the average Indian citizen. Western companies that are overly concerned with
rules and the legal system failed are at odds with the “process culture” in India: a culture where
Indians seek to find short-cuts as part of being smart and innovative. Companies fall into the
profitability trap, taking a “low commitment, low risk” approach and expecting to generate immediate
profits in the short term. The only way that companies prosper in these markets is to cut costs
relentlessly and accept profit margins close to zero.
22.3. What can be learned from the successes and failures of market entrants?
New entrants should not make the same mistakes as other companies have previously made while
entering India. With research on over 1,000 multinational corporations previously entering India,
much can be learned about winning in India as well as the fundamentals of a successful market entry
strategy. Strategic planning, due diligence, consistent follow-up, and perhaps most importantly,
patience and commitment are all prerequisites to successful business in India.
We will first look at the keys to succeeding in India, focusing in on strategies and tips for companies
conducting business in the Indian market.
You need to see India as not just one country but 20 separate cultures, with different languages and
customs. India is arguably the most diverse market in the world: the country boasts the second largest
population on earth is divided into 29 states and 7 union territories. Approximately 22 different
languages are spoken across the country, not to mention the 1,500 different dialects. As one may
conclude, conducting business in one part of the country, can and tends to be extremely different
than conducting business in another part. Cultural norms, cuisine, and customs are all different
depending on whether you’re in the north, south, east, or west - some even change within a mile of
another. Prior to conducting business in India, we suggest spending two to three weeks there as a
tourist to simply learn and engage in Indian culture. Expatriates have to learn to live in two worlds.
They should be prepared to start and end their day late, for last minute schedule changes, to take
days and sometimes weeks off for holidays.

22.3.2. LOCALIZATION - BUSINESS MODEL AND PRODUCT OFFERINGS
Many multinational corporations struggle because they have an inaccurate business model. They
simply import their domestic models into emerging markets”. This strategy does not work well in
emerging markets and particularly in India. It fails to address the diversity of the Indian consumer and
customization of products sought. What is missing is a “systematic process for reconceiving the
business model” and the identification of unmet needs that can be fulfilled at a profit. A localized
business model targeting specific market segment and consumers, is required for succeeding in
India. Successful companies develop strategies for doing business in emerging markets that are
different from those they use at home and often find novel ways of implementing them too.
As part of a localized business model, you have to consider the opportunity to localize product
offerings. The growing middle class in India demands “low cost, high value” product offerings that are
both “new and familiar” in taste. Pizza Hut’s strategy of “think global, act local” has succeeded in both
developing a local supply chain and catering to Indian tastes. More than 95 percent of the ingredients
are sourced locally, and the company’s local menu options are as large as its international menu.
Purely vegetarian dine-ins and menus that cater to the Indian taste, attract crowds middle class
consumers to incorporate the new food into the Indian diet. The need for localized product offerings
is particularly evident in the food and beverage sector.
Invest, empower, and commit are keywords that multinationals should keep in mind. They should
invest in local talent, empower the local population, and be committed towards the Indian market to
be able to make a name. In India, social and financial commitment go hand in hand. Since
liberalization, the government of India has focused heavily on the potential for MNC’s to develop their
respective industries by investing in infrastructure, distribution networks, and other social activities.
Many companies have been proactive in addressing the issues and problems, plaguing the country
and inhibiting business growth. One example is PepsiCo’s Performance with Purpose: the company
has been committed to developing educational and health programs for multiple communities near
its bottling plants. The company also operated three initiatives to better the environment: water
replenishment, waste to wealth, and partnerships with farmers. Social commitment is not only
attractive to the government localities, but also it improves perception among consumers. Some
consumers remain hostile towards multinational corporations and investing locally is a great way for
consumers to experience the company’s intentional commitment. India offers businesses a plethora
of opportunities from sourcing talent to selling soon to be the world's largest consumer class;
however, a continuance in economic growth will only be made possible by a continuance in social
and community development. Corporations should choose a problem in India that aligns with their
core competencies and purpose to improve the lives of its workers and make a better India. Stand
for one thing and deliver on it consistently better than anyone else. Whatever the consumer wants,
stand for that.
A main source of criticism of MNC’s is that they are mainly profit oriented and have short term focus
on quick profits. National interests and problems are generally ignored. Many MNC’s tend to first
target India’s 20 million “richest” consumers to generate sales and growth. While initially the strategy
may work, companies start to “sink into the midway trap” and risk consigning themselves to the 1%

club. The long-term view ambitiously expands this footprint to lower market tiers. Pricing is a key
component of recognizing the potential to sell to all consumers in India. Don’t take the Indian
consumer for granted; even though they can’t spend much per capita, the consumer in India still
states that they want a great quality product at a very affordable price. While the middle class in India
is growing rapidly, a considerable large part of the Indian population lives below the poverty line and
spends little on day-to-day needs. To put this into perspective, the average American spends $97
every day, the average Chinese $7 and the average Indian $1.8, according to Goldman Sachs data
and an India Spend analysis. The global poverty line, as defined by the World Bank, is $1.90 (Rs
126); as many as 363 million Indians live below the poverty line defined in India as Rs 47 per person
per day in urban areas and Rs 32 in rural areas, nearly half of the global poverty line. The growing
middle class is beginning to spend more. the Indian consumer is neither a pay more, get more; nor
pay less, get less. The Indian consumer wants to pay less, get value. PepsiCo has achieved this
strategy by keeping 70% of its products price points to between 5-20 rupee.
22.3.3. HAVE THE RIGHT LOCAL PARTNER

Have the right local partner - someone who is transparent, honest, values relationships, has integrity,
and a great track record. Finding the right partner who understands the local Indian market and
economic landscape of the country can be helpful when the decision comes to invest in the market as
a new company. Experience and insight can help the company avoid careless mistakes and create an
Indianized strategy. However, this does not necessarily mean one must use the joint venture model to
enter the country. In fact, many strategists argue that when selecting the joint venture route, “it is
mandatory to have a clear-cut ownership path as well as management control to avoid confusion at a
later stage”. It is nearly impossible for a multinational corporation to fully understand the nature of the
Indian market. Not only is PepsiCo a case study of joint venture entry, but there are also many others.
Starbucks Coffee Corporation dealt with issue for years as it studied the Indian market and failed at an
early attempt. Acknowledging the complexity of the Indian market, the company took 6 years to carefully
plan and execute its entry strategy into India. In January of 2012, Starbucks Coffee Company entered
a joint venture with Tata Global Beverages to operate Starbucks cafes in India, roast coffee to supply
to the cafes, and export coffee from Indian estates to the Starbucks Coffee Company in the US. The
biggest decision you make when you go into a marketplace is finding the right partner.
22.3.4. LEADERSHIP
Any international company must be willing to set its leaders in India free of the bureaucracy at corporate
headquarters, so that they can address local issues and opportunities. Having a large sense of
autonomy is key to succeeding in the India market since customization by different consumers is
demanded. When employees are valued for their innovation and managerial talent, they are in tune
with the company's direction and can act on local issues that need to be resolved at a lower level. Local
decision making helped PepsiCo to develop the snack food, Kurkure, for India and relayed commitment
to understanding the Indian market. Consistent leadership also matters to properly understand India as
a complex country with different values. Over a span of 21 years, General Motors had nine different
individuals head up Indian operations. A motivated executive need about three years to become fluent
in India, yet GM’s average CEO only lasted a little over two years and this is what caused a real
problem.

REFERENCES
10 Most Promising Food Confectionery Companies - 2019. (2019, March). Silicon India(Special2
issue). Retrieved from https://industry.siliconindia.com/ranking/food-confectionery-companies-
2019-rid-613.html
Aiyar, S. S. (2018, October 18). India’s New Protectionism Threatens Gains from Economic Reform.
Retrieved from CATO Institute: https://www.cato.org/policy-analysis/indias-new-protectionism-
threatens-gains-economic-reform
Behura, M. (2010, August 8). Sweet Deal: Bitter competition among confectionery majors. The
Economic Times. Retrieved from https://economictimes.indiatimes.com/business/sweet-deal-
bitter-competition-among-confectionery-majors/articleshow/6273028.cms
Demographic trends. (n.d.). Retrieved from Britanica:
https://www.britannica.com/place/India/Demographic-trends
EZZAT, F. M. (2019, May 5). 19 Middle Eastern Desserts to Remember this Ramadan. Retrieved
from Egyptian Streets: https://egyptianstreets.com/2019/05/05/19-middle-eastern-desserts-to-
remember-this-ramadan/
FOREIGN DIRECT INVESTMENT. (2021, January). Retrieved from IBEF:
https://www.ibef.org/economy/foreign-direct-investment.aspx
Greer, G. (2018). Win in India: An Analysis of Market Entry Strategy Into India's Food and Beverage
Industry. University of Arkansas, Fayetteville. Retrieved from
https://scholarworks.uark.edu/cgi/viewcontent.cgi?article=1038&context=finnuht
India. (2020, November 17). Retrieved from FOCUS ECONOMICS: https://www.focus-
economics.com/countries/india
Infrastructure Sector in India. (2021, March 22). Retrieved from IBEF:
https://www.ibef.org/industry/infrastructure-sector-india.aspx
Modi, S. N. (2021, February). INDIA’S MERCHANDISE TRADE: Preliminary Data, February 2021.
Retrieved from Minstry of Commerce and Industry, Government of India:
https://commerce.gov.in/press-releases/indias-merchandise-trade-preliminary-data-february-
2021/#:~:text=India's%20merchandise%20imports%20in%20February,2020%2C%20increase
%20of%2025.84%25.
Mondal, E. (2019, October 11). Evolution of India’s Exchange Rate System. Retrieved from Indian
Folk: https://www.indianfolk.com/evolution-indias-exchange-rate-system/
Physical Features of India. (n.d.). Retrieved from toppr:
https://www.toppr.com/guides/geography/physical-features-of-india/main-physical-features-of-
india/
Sage. (2020, November 12). The 1 lakh cr Snacks and Sweets industry in India. Retrieved from Case
Reads: https://casereads.com/the-1-lakh-cr-snacks-and-sweets-industry-in-india/
Singh, A. (2019, July 26). Capturing India’s sweet tooth: The confectionery chronicles. Retrieved from
SME FUTURES: https://smefutures.com/capturing-indias-sweet-tooth-confectionery-
chronicles/
Social Factors Affecting Business. (2015, February 25). Retrieved from PESTLE Analysis:
https://pestleanalysis.com/social-factors-affecting-business/
(2020). Sugar Confectionery in India. Euro Monitor International. Retrieved from
https://www.euromonitor.com/sugar-confectionery-in-india/report
The Rise of the Bakery Industry in India at all Levels. (n.d.). Retrieved from Fi global:
https://www.figlobal.com/india/en/visit/news-and-updates/rise-bakery-industry-india-all-
levels.html
Wallace, C. (n.d.). Baking and Pastry Arts. Retrieved from WILKES Comunity College:
https://www.wilkescc.edu/programs/hospitality/baking-and-pastry-arts/
White, R. (2020, September 23). Overcoming Language Barriers When Entering New Global
Markets: A Language Intelligence Overview. Retrieved from Language Intellegence:
https://www.languageintelligence.com/post/overcoming-language-barriers-when-entering-new-
global-markets-a-language-intelligence-overview
Workman, D. (n.d.). India’s Top 10 Exports. Retrieved from World's Top Exports:
http://www.worldstopexports.com/indias-top-10-exports/
Yadav, A. S. (2014). culture & indian consumer buying behavior. Retrieved from
https://www.slideshare.net/bootstrapam/culture-indian-consumer-behavior

Nooga Oriental Sweets

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nooga Oriental Sweets

Uploaded by

Copyright:

Available Formats

Nooga

oriental sweets in india

Supervised By: Dr. Ahmed Elcamadicy

Nooga oriental desserts 1

Nooga oriental desserts 2

Nooga oriental desserts 3

Nooga oriental desserts 4

Nooga oriental desserts 5

Nooga oriental desserts 6

Nooga oriental desserts 7

Nooga oriental desserts 8

If you are looking for an alternative to generic gourmet food

In addition to trays for special occasion gifting, we also carry

1.1. Nooga Oriental Desserts

Nooga oriental desserts 9

Umm Ali is an Egyptian sweet pastry pudding. Umm Ali, is A purely

A sweet cake made of semolina, soaked in simple sweet syrup;

It is known as Basbousa in Egypt, Revani in Turkey or Namoura in

Sweet, rich, crunchy, and creamy, Kunafeh or Knafeh can be found in

Kunafeh is made of semolina dough and thin noodle-like phyllo pastry.

Like many Middle Eastern dishes, baklava is said to have

Another popular sweet phyllo pastry made of several layers of

Nooga oriental desserts 10

Asabe zainab, which translates to "Zainab's fingers", is a traditional

Rice pudding, roz bel laban in Arabic, can be found in many

This appetizing easy to make dish is made of a mixture of rice and

Qatayef is an Arab dessert commonly eaten during Ramadan. It

Qatayef is sweet a dumpling often filled with Akkawi cheese, or

Nooga oriental desserts 11

Feteer or Feteer Meshaltet is originally known as feteer

In its original form feteer is baked in an earth oven (pizza

10. HALAWAT EL JIBN

A finger-licking dish, halawat el jibn is a cheese dessert drizzled with either

Halawat el Jibn, means the sweetness of cheese, it is a very popular

Ghorayeba can be described as the shortbread of the Middle

Ghorayeba is most known for its distinctive fine crumb,

12. FABULOUS KAHK (EID COOKIES)

Kahk is believed to date back in Egypt to the 10th century, when

Nooga oriental desserts 12

13. Maamoul Cookies (Date Filled Cookies)

Maamoul are buttery date filled middle eastern cookies that

Maamoul cookie can be made with semolina, farina, plain

14. LAYALI LUBNAN

Layali Lubnan, meaning Lebanese nights, is a Lebanese semolina

Layali Lubnan is topped with a thick layer of whipped cream and

15. QARA’ ‘ASALI (Pumpkin delight)

Qara’ ‘Asali is a middle eastern pumpkin pie. It is not clear where

This pumpkin delight is baked to total sweetness. This pie has no

Mshabak is a Lebanese sweet often eaten during Ramadan or the Virgin

Nooga oriental desserts 13

Halva or Halaweh is a Middle East staple. Made from sesame

Halva can be eaten in many ways. It is often spread on bread

18. TURKISH DELIGHT

Turkish delight is a family of confections that originated in Turkey. It

19. SWEET DATES:

A staple among Middle Eastern desserts, dates are often eaten in

Scrumptious and very sweet, sweetened dates are often called

Fakhfakhina is a glorious fruit salad with several additions and toppings. It is

Nooga oriental desserts 14

We will be manufacturing all our products.

1.4. Target Market

Our target market to start is India because of:

3. VISION & MISSION