Western executives ignorant about Indian economy

Mumbai, June 21: The Western corporate sector would rather do business in India than elsewhere but lack basic knowledge of the Indian economy and industry, according to a major new international study ''Building Business With BRICS'' by BT India.

More than half (55 per cent) of board directors in the US, UK, France and Germany do not even know the Indian base currency unit.

In addition, ten per cent could not even give an example of India's main export or industry, and five per cent believe it is tea. But, six out of ten of them accept that emerging economies such as India will reshape the global business landscape.

A clear majority (61 per cent) of respondents admit it is crucial their business is able to work with the economies of Brazil, Russia, India, China and South Africa to succeed in the long term. India is perceived by four out of ten Western directors to be the most advanced in terms of technology support for business, compared to 29 per cent for China. Nearly one-third of them rated India as the country in which they would be the most comfortable doing business.

India is also seen as having fewer barriers to effective collaboration between Western and Indian businesses than its BRICS competitors. The top three perceived barriers are different legislation and regulation (rated as very high by just 12 per cent), data security (11 per cent) and political interference (8 per cent), according to the study, Building Business With BRICS.

BT India chairman Arun Seth said, ''The research indicates that India's investment in effective communications technologies has paid off, making Western businesses feel at ease working within the Indian economy. India is set to be a powerhouse of the 21st century as it becomes more a centre of intellectual capital and less a cheap place to outsource work.'' Western directors need to spruce up their knowledge and insights on the Indian economy if they are indeed ready to work effectively with businesses here, he adds.

The study also found that more than seven out of ten directors believe that organisations in the ''developed'' world are better equipped technologically to work internationally than those in BRICS. Western organisations need to start collaborating in and with BRICS businesses or be left behind. Successful collaboration between organisations in the West and those in BRICS will be a sign that globalisation has truly come of age, he says.

According to the study, four in five Western directors believe they have access to the necessary technology to allow their businesses to work effectively on an international stage.

Mr Seth said, ''Western executives have the systems in place to work with India but the study suggests they lack the knowledge to do so effectively.'' UNI