Introduction

Located in the southern peninsula of the Asian continent, India is the seventh largest and second most populous country in the world with a total land area of about 3.3 million square kilometers and a population of approximately 1.13 billion. The Indian sub-continent is distinct from the rest of Asia. In the North are the towering Himalayas, which slope out into the great Indo-Gangetic plains. In Central India, the Vindhya ranges separate the Deccan peninsula from the northern plains. On the east coast of the country projects into the Indian ocean.

The Republic of India is divided into 28 federative states (divided on linguistic basis) and seven centrally administered union territories. The Constitution provides for a sovereign, socialist, secular and democratic country. Patterned on the basis of the British parliamentary system, India has a federal form of government, with New Delhi as its capital. The government at the state level has the same structure as that of centre, thus creating a dual policy with a single citizenship and universal adult franchise. India’s judiciary is independent of the Parliament. It has the Supreme Court as the highest court, followed by a High Court for each state and hierarchy of lower courts. The language of the Supreme Court and High Court is English, although the national language Hindi is rapidly gaining ground.

India’s official language is Hindi in the Devanagri script. While English enjoys associate status, it is widely spoken and is one of the most important languages for national, political and commercial communication. The states are, however, free to decide their own regional languages. There are 24 principal languages spoken in India. As the birthplace of four major religions that exist even today, India is rightfully known as the land of spirituality and philosophy. The most dominant religion in India today is Hinduism with almost 82% of the people being Hindus and 12.12% are Muslim. Other large religious groups include Christians 2.34%, Sikhs 1.94%, Buddhists 0.76%, Jains 0.40%, other religions and persuasions 0.39% and religions not stated 0.05%.

India possesses richness and diversity of culture and climatic conditions and natural and mineral resources. A new spirit of economic freedom is stirring in India. Today, India is said to be the third largest economy (in terms of purchase power parity) in the world. A series of ambitions economic reforms have deregulated the economy and stimulated domestic and foreign investment. The liberalization program has unleashed the vast potential of Indian economy. India’s enduring institutions, which are rooted in the principles of democracy, ensure a transparent, predictable and secure environment for foreign investment. The existence of a free and vibrant press, an independent judiciary, a strong legal and accounting system and the use of English as the principal language of business and administration are some of the attractive features of the business environment. India possesses an abundance of qualified and skilled manpower, which makes it an ideal base for sourcing production, both for export and the huge domestic market. The private sector is the backbone of the economy, accounting for 75% of the GDP. The opening up of the economy, which has resulted in the entry of a large number of foreign companies, together with the increasingly global focus of domestic industry, has resulted in the dynamic growth and increased competitiveness of Indian firms. The role and importance of the private sector in India’s economic development is rapidly increasing. Today, India is one of the most exciting emerging markets in the world.