Counsel to Counsel - November 2008 - (Page 12) global perspectives InvestIng In IndIa: Working Past Cultural differences By Keith Ecker LUSHPIX/UNLISTED IMAGES, INC. I ndia has become a U.S.-investor hot spot thanks to its common law legal system, well-educated work force and prevalence of English speakers. Frequently, however, new entrants to the market, enticed by this business-friendly atmosphere, fail to conduct their due diligence. In doing so, they unknowingly enter a culture that is very different from their own. Some of these unique cultural elements can have a major effect on business. When Kyle A. Wombolt, a partner at Goodwin Procter LLP visited India more , than a year ago, it could take travelers up to two hours to drive on a narrow road from New Delhi to Gurgaon, India’s technology startup hub. Although the distance was a little more than 20 miles, the road was heavily congested with commuters traveling back and forth between the two cities. “Infrastructure is one of the big challenges to establishing operations in India, but there have been improvements,” Wombolt says. “Enhancing the country’s infrastructure is a priority of the government.” Now when Wombolt visits, he can take the newly built Delhi-Gurgaon Expressway, which greatly reduces the amount of time it takes for business travelers to hop between the two destinations. In addition to its developing infrastructure, U.S. companies need to be aware of India’s highly regulated business environment and its reputation for governmental corruption, both of which the government has taken steps to reform. “Investing in India requires dealing with significant cultural differences,” Wombolt says. “That being said, the differences are easy to overcome if you take time to educate yourself.” Improving the Infrastructure The country’s infrastructure is still in the process of reaching maturity. Fortunately, as witnessed by Wombolt’s experience with the Delhi-Gurgaon Expressway, India has begun investing in its roads, airports and power generation. Within the past couple of years, cities that were relatively remote from major transportation hubs have seen the development of new airports. In May of this year, the Bengaluru International Airport opened in the southern city of Bangalore, which has become the fastest growing major metropolis in India. The airport, which is designed to handle 12 million passengers a year, is intended to help facilitate direct international travel to the region. The government also is currently working on improving the country’s power supply. 12 LexisNexis® Martindale-Hubbell®
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