INDIABy:Kevin SzwarcAnanya SarkarYu LiGautam KakodkarTakemasa Soma1. What are the rough dimensions of the country in miles?The total area is 1,269,888 square miles, slightly more than 1/3 of the size of the U.S.2. What is the population? What percentage live in the 3 largest cities?The total population is estimated 1,029,991,145 by June 2001. Mumbai, Calcutta, and Delhi arethe three largest cities of India. They have over 10 million residents each. So the percentage of populationin the 3 largest cities is more than 3%.3. What is the predominant language? How widely used is English in business?English enjoys associate status but is the most important language for national, political, andcommercial communication, Hindi is the national language and primary tongue of 30% of the people. TheIndian constitution recognizes, for now, 18 official Indian languages.4. In the last three years have there been any instances of political instability?No. Fundamental concerns in India include the ongoing dispute with Pakistan over Kashmir,massive overpopulation, environmental degradation, extensive poverty, and ethnic strife.5. What is the currency? What is the exchange rate to US dollars? How has it changed in the past twoyears?Indian rupee (INR)$ 1 = INR 48.7 (Feb 27th, 2002)Feb 27th, 2001: $ 1 = INR 46.5May 30th, 2000: $ 1 = INR 44.66. What time zones exist in this country? What time is it in the capital when it is noon in Cambridge,MA?New Delhi: GMT +5:30When it is noon (12pm) in Cambridge, MA,1) from April to October (daylight saving), it is 9:30pm in New Delhi.2) from November to March, it is 10:30pm in New Delhi.7. What unique requirements exist for products sold in this country? (e.g. testing, packaging, language,safety, etc.)Import of goods into and export goods out of India is governed by the export-import policy(“EXIM policy”). EXIM policy is framed every five years. However, changes are made through annualrevisions in the policy and notifications issued from time to time.India’s current five-year trade policy (EXIM policy—April 1st 1997-March 31st 2002) hasgreatly liberalized imports and exports.Over the past few years there has been a steady liberalization of import and export regulations inIndia. Many quantitative restrictions, licensing and discretionary controls over imports and exports havebeen replaced through deregulation, procedural simplification and protection through tariffs and exchangerates. The item wise export and import policy is contained in the ITC (HS) classifications of export andimport item classifications published and notified by the Director General of Foreign Trade.In line with its WTO obligations, EXIM policy 1997-2002 has significantly reduced traderestrictions and liberalized imports. Accordingly, the importation of a large number of agricultural, textileand consumer products, liquor, cars and food products no longer requires a license. However, the non-tariff barriers on certain sensitive items have been imposed.8. What regulations or limitations exist regarding freight transport?There is no quantitative restriction on imports after March 31st, 2001, but there is a central value-added tax of 16% in addition to some custom duties such as 70% for agricultural commodities, 75% forcrude edible oils, and so on.There is also no restriction for all goods on exports except for 32 categories of items such asskins, minerals, and so on. For exports of the prohibited items, a trader needs to have a registration andmembership certificate from the relevant export-promotion council.****9. Are there saltwater ports which can handle large ships? How far are the major population centers fromthose ports?As shown below, India has 12 major ports, five on the east coast and seven on the west. Threelargest of them (Bombay, Madras, and Calcutta) are located within the major population centers.[http://www.indiaport.com/]10. What business terms and financial instruments are typically used for import commercial transactions?For import commercial transactions, tariffs are ad valorem with some exceptions. Total duties onimports consist of basic duty (0-35%) and additional or countervailing duties which link the import’s taxburden with India’s substantial internal excise duties. These rates are obtained from the Central Board ofExcise and Customs (CBEC) within the Ministry of Finance’s Department of Revenue.****11. How large is a typical supermarket or retail food store (square feet or meters)?Large supermarkets (by American standards) do not exist in India. Most food sales take place atopen-air markets. Although there is an increasing interest from a number of large corporate houses —Tata’s, Raheja’s, Piramals’s, Goenka’s . The prohibitive cost of land is a major roadblock to large-scaleretailing. The South Extension market in New Delhi commands a rental of Rs 150 per sq ft. A 10,000 sqft store will therefore command a rental of Rs 15, 00,000 a month.**12. Do any of the large US discount retailers (Wal-Mart, K-Mart, Toys ‘R Us) have stores in thiscountry?Few large discount retailers have penetrated the Indian marketplace. However, local companieslike S Kumars Group are getting into retail business by replicating the Wal-Mart style. Large formatfamily stores called S-Maart are scheduled to come up in 12 cities in the next 18 months. The first suchhypermarket of over 50,000 sq feet area is coming up in Mumbai in Worli.Toys-R-Us, the $ 11.9 bn international chain with over 1500 outlets around the world is set tolaunch its stores in India. Although the proposal is still with the Foreign Investment Public Bureau, andmay come with a fully owned subsidiary. Al-Futtaim Sons & Co of Dubai, a leading business group hasthe master franchise rights from the American parent company.Although retailers face hurtles like expensive real estate, there is some offsetting logistical costs-considering that some major U.S. retailers like the Gap and Wal-Mart source over 20% of their productsfrom India. ***13. Describe the highway and rail infrastructure. Are the: extensive, moderate, or primitive nationwide?India’s railways are in many ways impressive, with the world’s move extensive rail network at62,800km and 1.6m staff. However, passenger traffic is heavily subsidized by higher charges for movingfreight, increasingly forcing freight on to the roads. Railway safety has also become an