Getting India right: Embracing the chaos and confusion! Part 1

This blog is dedicated to all my friends that I interacted and worked with during my professional time invested in India and all those who made my life enriching socially, culturally and professionally! 

Brazil, Russia, India, China and Indonesia have become indispensable destination and/or origination markets that cannot be ignored in a corporation’s business strategy irrespective of the challenges that they throw. Each of these markets are a source of customers, raw materials, talent, innovations, and culture that creates distinct value, diversity and a source of corporate value.

The corporate value is generally delivered via economies of scale, market insights, talent pool, creating price elasticity that is driven by managing the supply and demand and leverage on local innovations and customer knowledge for global business, exporting talent and connecting links that exist between India, its peers emerging economies and global business.

Many MNC's in high tax jurisdictions also use their global tax shields against business losses or impairment of investments in subsidiaries; a 40% tax shield reduces the global tax of the company by that amount. Global access to emerging markets also helps in capturing commodity price, interest and foreign exchange anomalies that exist in local and global markets.

My career has brought me to work in each of these countries at some point in time and the latest past a three year professional stint in India.  My journey took me to small towns, villages, cities to meet farmers, customers, suppliers and charities; it also took me to universities to hire talent and support the good work that is being done by educational charities. I also had the opportunity to grace marriages, celebrate birthdays, mentor and share my leadership experience with talented young people from IIT, ISB and RDF. My experience in India was incredible and that I will never forget it during my lifetime; it will always draw me back to this wonderful people and the country!

India has over past decade changed so much for better though the diversity and contrasts still remains and will continue over the next 2 decades unless there is a revolution to upgrade infrastructure, urbanization and poverty elimination. India always springs a surprise (like polio elimination or embracing 4G mobile) so we should not be surprised if the fortunes reverses faster than we think!  

What I experienced on India which will drive the change in the fortune is the people’s passion, entrepreneurship, aspiration, drive and the single mindedness to grow and upgrade their lives. India needs a change, Indians are demanding it.

Though I grew up in India, India always seems complex and ‘getting India right’ for my business was primary goal to add value to the corporation, our customers, colleagues, and the people that I interacted. Some of important experiences and learning which helped me in my journey is wish I share below:

1. Understanding and embracing Incredible India!

• India is geographically, culturally and politically diverse and vast with the good, bad and ugly thrive together.

• Complexity also stems from the democratic system and freedom that people enjoy in India.

• Indians have strong local and cultural roots with global aspirations and outlook developed over past decade with the growth of IT industry and the advent of MNC’s. Most Indians want to imbibe and enjoy the best while continuing with the worst on which they have no choice. The worst continues as it is driven by the local norms, bureaucratic, and political factors.

• India is self-sufficient in resources and agriculture and has the most diverse topography and culture providing a great tourist experience; anomalies exist as the infrastructure is underdeveloped, rivers are not connected and urbanization is ignored.

• For a diverse experience, cherish eating a thali and everyone enjoys a different experience. Order your own meal but still share it with others. Drive on the roads with a tractor leading the BMW. Work in an MNC and deal with local governments, entrepreneurs and corporates.  You can have your haircut at a street corner for US$1 and at a 5* boutique for US$100, all within a radius of 100 meters.

Relatively speaking India is incredibly complex so embrace the diversity, the smells and sounds, go with the flow, and go local.



3.  An organized chaos, way of life:
• A well-dressed MNC or a bank executive often gets frustrated with the simplicity of local business executives. Local entrepreneurs and employees (i) simplify and seek quick value addition and financial feasibility rather than the process, (ii) quickly copy so be prepared to be copied and emulated quickly, keep innovating. 

·Everything seems disorganized and chaotic but it still works - trains and planes are on time, schools open and close as usual, people reach office in time..... It’s just an organized chaos. Visit a train station, everything seems chaotic but still it works safely and on time.

2. Breaking the myths: 

• India is still a village, underdeveloped, backward, and poor! There are pockets of excellence everywhere but too small a pocket in the vastness to be standing out.  

• India is expensive though everything seems cheap; cost of productivity is hidden in cheapness.  It isn't easy to make money in a very competitive market.

• A society that looks and act western class is culturally rooted in Indian values and systems; an Indian cannot live without Indian food beyond a week!

• All Indians are vegetarians and pious; factually probably 90% are non-vegetarians though meat is not consumed daily. Most Indians are poor, dumb, and uncultured while many Indians are highly educated, rich and run MNC’s and banks. Most Indians do not follow the rules and regulations though everyone wants to be law abiding; imagine how you would cross a road without a pedestrian crossing. Many Indians are rich by international standards though they seem poor in view of the Indian infrastructure and urbanization scene! 

• India must be same as China; no they are different and will remain so for many decades! 

4. Local business houses tend to make all the MNC fanciful jazz look simple! Go-local.

• Don’t compare the international with local however do implement the best practices that add value or a financially feasible! 

• India is the best recycler and more or less self-reliant so it always springs a pleasant surprise!

• Historically brokers (or called by whatever name) are invaluable and indispensable to the vastly diversified supply chain in India; ignore them at your peril. Use them judiciously, without compromising on ethics or reputation, to reduce cost and scale your business.

5. Managing the noise and speculation:

In India everything is either oversold or undersold ahead of time. There is lots of disappointment when things do not turn out the way it was intended by the Indian markets. The wisest option is to restrain from going with the flow, suppress the noise and remain sane.

Continued........ Getting India right:  Smart choices and people, Part 2