Chris Devonshire-Ellis on Indianizing a China Business

Chris Devonshire-Ellis on Indianizing a China Business

As China begins to slow down, and the global supply chain shifts, India has just recorded GDP growth of 9 percent for the past quarter meaning it has overtaken China in terms of production. It is a trend that is likely to remain. As China-based businesses also start to gear up for the development of China's domestic market, and look to the hinterlands for growth, others are also eying the India market. Exporting a business into another country is never easy, and this is especially so in the case of China and India. The countries have different administrative systems and do not necessarily agree to international conventions surrounding territories and descriptions. Then there are the immense language and written language issues. If these are not recognized, embarrassment and even criminal action can follow.

As my practice Dezan Shira & Associates has found out, care needs to be paid when replanting a subsidiary root of a business from one country to another. Not all systems or points of reference are the same. Dezan Shira & Associates first moved to establish operations in India four years ago (after 14 years extant only in China) and we found many surprising cases where what we thought we knew from a cultural perspective needed a rethink, and additional work and attention to new cultural detail. This article is designed to explain some of the practical differences in styles the China-based executive may meet when asked to look at India.

India isn't up to China standards when it comes to the development and execution of large-scale projects. Administrative delays, worker discipline and, above all, the interference of local politics can interfere with planning and execution. Problems, including the notorious infrastructure issues, need to be worked with and solutions found. Innovation and an ability to think outside the box are needed in India, whereas in China they've tended to make the administration far easier. However, there are signs that China is not what is was increases in labor unrest, strikes (previously unheard of), and especially protectionism are growing in China. As was mentioned to me in Mumbai recently "I'm paid to sort these problems out, and that's what my MBA program was for." Is India more big project awkward than China? Yes. Is it solvable? Also yes.

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