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Here two experts offer practical and compact everything you need to know for a successful engagement in the Indian business. In addition to the economic framework and the cultural background, they describe in a well-founded and clear manner what is important in organizational structure, personnel management and negotiation, and provide many useful tips for the specific design and maintenance of business relationships with Indians


"Clas Neumann and Manuel Vermeer give the reader many practical suggestions for doing business successfully in India on the basis of a deep understanding of Indian culture. A worthwhile reading, especially for project managers in the Indian business and those who want to work there."

Jürgen Fitschen, member of the Group Executive Committee, Deutsche Bank AG

"At the age of 34, Clas Neumann went to Bangalore to set up the SAP branch. Within seven years, one hundred employees grew to four thousand. In their book, which is based on a lot of practical experience, the authors deal with the history, culture and economic development of the up-and-coming people Great power India. Your views and insights are useful to any businessman who wants to move on the subcontinent with a prospect of success. "

Dr. Theo Sommer, DIE ZEIT

“The book bridges the gap between culture, people and management in India. Having been familiar with India for many years, the authors use many examples to present the pitfalls in the country and provide practical tips on how to work successfully in India and with Indians.
Certainly a standard work that will contribute to better cooperation in projects and companies! "

Dr. Jürgen Hambrecht, Chairman of the Board of Management, BASF AG


“SAP Labs India is certainly an excellent example of how an R&D center in India can be set-up - utilizing the potential of Indian talent to create innovatively and to deliver consistently with top Qu


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Manuel Vermeer | Clas Neumann Practical Guide India

Manuel Vermeer | Clas Neumann

Practical Guide India How to successfully manage your business in India Understand culture, lead employees, organize negotiations

Bibliographic information from the German National Library The German National Library lists this publication in the German National Library; detailed bibliographic data are available on the Internet at.

1st edition 2008 All rights reserved © Betriebswirtschaftlicher Verlag Dr. Th. Gabler | GWV Fachverlage GmbH, Wiesbaden 2008 Proofreading: Ulrike M. Vetter Gabler Verlag is a Springer Science + Business Media company. www.gabler.de The work, including all of its parts, is protected by copyright. Any use outside the narrow limits of copyright law without the consent of the publisher is inadmissible and punishable. This applies in particular to reproductions, translations, microfilming and storage and processing in electronic systems. The reproduction of common names, trade names, trade names, etc. in this work does not justify the assumption that such names are to be regarded as free within the meaning of the trademark and trademark protection legislation and can therefore be used by everyone, even without special identification. Cover design: Nina Faber de.sign, Wiesbaden Printing and bookbinding: Wilhelm & Adam, Heusenstamm Printed on acid-free and chlorine-free bleached paper Printed in Germany ISBN 978-3-8349-0535-2

Why India?

5

Why India?

... Not everyone who goes to India discovers America. Erich Kästner Because India will influence the 21st century to an extent that Europe and the USA have so far refused to admit. China is still the focus of general attention. India is associated with the usual clichés from holy cows to IT nation; the truth is far more complex. A few numbers should clarify our reasoning: 1.1 billion people who make up the largest democracy in the world; a middle class of over 250 million people, 50 percent of the population are under 25 years of age, in 2015 there will be 550 million teenagers in India! Megacities like Mumbai (Bombay) with almost 18 million inhabitants, 50 percent of whom live in the slums, of which one million in the largest of all slums, in Dharavi - but also 700 million Indians who have no access to weatherproof roads. More Muslims live in India than in Pakistan; less than ten percent of the population speak English; not a single one of the many languages ​​is spoken by the majority of Indians; 40 percent of the world's poorest people live in India; there are plans for manned space travel as well as seemingly archaic rites in the "Towers of Silence" in Mumbai, where the remains of the parsees of vultures are "disposed of". In other words, opposites like no other country in the world currently has, and not on a numerically negligible scale, but in a state whose population is second worldwide and, according to World Bank estimates, will surpass China's by 2050. Enough reasons to deal with this country in detail - but always in a practical way in this book. The existing literature consists either of literature or of general works on recent economic and political developments. A practical handbook is missing, something that can be given to those in charge of India, the traveler there or the expat who moves there for several years. Well-researched, oriented towards day-to-day business. This is what this book tries to achieve; The different but complementary qualifications of the authors seemed ideal for this task.

6

Why India?

Most of the examples relate to the company SAP. We have not assigned every example to the respective author. This also applies to the respective chapters; primarily the chapters economic policy, entrepreneurship, personnel management and negotiations come from Clas Neumann and the other chapters mainly from Manuel Vermeer; of course, a lot was also written together. As with all statements about this country, any generalization is basically inadmissible, but nonetheless inevitable. How else are you supposed to write over a billion people? Any statement in this book can therefore be easily refuted with sufficient goodwill. And yet it is important to make statements that help the non-Indian to find their way around. Therefore, when one speaks of “India” and “the Indians”, always be fully aware of this problem. But anything else is impractical. For better readability in the text, only the masculine form is used (employees, etc.), whereby the feminine forms are of course included in the statements. The scope of the book dictates its limits; we have concentrated on the areas that we believe are relevant for business people. Geography and general regional studies are therefore kept quite short; Much had to be foregone (tourism, inclusion of the irrelevant island groups, an even deeper study of Indian religions and other things). It is not a scientific treatise; Even if the book meets all the requirements in terms of content, a "customer-friendly", relaxed expression was used for the sake of better readability. Indologists may forgive us for this. And the English expressions used in some chapters correspond to the "slang" common among managers and have therefore been retained. We would like to thank our numerous interlocutors, whom it is not possible to name here. But especially thanks to our wives Lisa and Bea; they endured our scant free time becoming even scarcer. Gaiberg near Heidelberg / Bangalore, in autumn 2007 Manuel Vermeer

Clas Neumann

Table of Contents

7

Table of Contents

Why India? .................................................. .................................................. . 5 India at a glance ............................................ ............................................. 11 On the way Indians see themselves .................................................. ...................... 13 1. Political regional studies ....................... .................................................. ........ 17 1.1 Geography ....................................... .................................................. ........ 17 1.2 Climate ....................................... .................................................. ............. 17 1.3 Population .................................. .................................................. ........ 18 1.4 Natural resources ....................................... .................................................. .. 18 1.5 Agriculture ............................................. ............................................ 1 9 1.6 Structure of the state and government ........................................... ................. 19 1.6.1 Congress Party ........................... .................................................. .. 20 1.6.2 Bharatiya Janata Party (BJP) ...................................... .................... 21 1.6.3 The Communist Party ....................... .................................... 21 1.7 Administrative units ........... .................................................. ................. 21 1.7.1 The States (28) and Union Territories (7) ................... ...... 21 1.7.2 Economic regions ....................................... ................................ 23 2. Historical overview ............. .................................................. ................... 31 2.1 From the beginnings to the British Empire ...................... ....................... 31 2.2 The British Empire and India .................... ............................................ 34 2.2.1 The East-India Company ............................................. ................... 34 2.2.2 Gandhi and the division ....................... ........................................... 37 2.2.3 The Kashmir problem. .................................................. ............. 39 2.3 Pakistan .................................. .................................................. ............... 39 2.4 India 1947 - 2007 ............................. .................................................. ... 40 2.5 India and China .......................................... ........................................... 42 2.6 German-Indian relations in politics and economics ............... 44 2.6.1 The Indo-European language family ........................ ...................... 44 2.6.2 Germany in India, India in Germany ................. .............. 45 2.6.3 Economic relations ............................... .................................. 48

8

Table of Contents

3. Economic and political environment .............................................. ......................... 51 3.1 Economic framework ..................... .................................... 51 3.2 Labor market ........... .................................................. ................................ 53 3.3 Financial market ............... .................................................. ............................ 54 3.4 Infrastructure ................... .................................................. ........................ 56 3.5 The market ...................... .................................................. ......................... 58 3.6 Important sectors ..................... .................................................. ............. 61 3.6.1 Infrastructure development ................................ ................................. 61 3.6.2 Manufacturing industry ........... .................................................. ... 62 3.6.3 Services ....................... .................................................. ..... 64 3.6.4 IT, IT services and BPO .................................. ............................... 66 4. Cultural influencing factors .............. .................................................. ............ 71 4.1 Moral teaching / religion ................................. .............................................. 71 4.1.1 About religion, gurus and ashrams ............................................ ...... 71 4.1.2 Buddhism ....................................... ............................................. 73 4.1.3 Hinduism .................................................. ................................... 74 4.1.4 Karma and reincarnation ........ .................................................. ..... 78 4.1.5 Islam, Christianity, Judaism .................................... .................... 79 4.1.6 Jainism ......................... .................................................. .............. 80 4.1.7 Parsing ................... .................................................. ......................... 81 4.1.8 Sikhs .................... .................................................. .......................... 81 4.1.9 The Indian caste system and thinking in hierarchies .......... 82 4.2 The importance of the family in Indian society ....................... 85 4.2.1 On the position of women in India ......... .............................................. 85 4.2.2 Parents and children ............................................... ............................. 86 4.2.3 Daughter-in-law and parents-in-law .............. ............................. 88 4.2.4 Spouses ................ .................................................. ..................... 88 4.2.5 Widow burning ........................ ................................................ 89 4.2 .6 Relevance for the company ............................................ ........... 90 4.3 Symbols .................................... .................... .......................................... 90 4.4 Indian epics .... .................................................. ..................................... 92 4.5 Practical information .......... .................................................. ............................. 93 5. Entrepreneurship in India .............. ....................................... 95 5.1 Basics ........ .................................................. .............................. 95 5.2 Outsourcing: Production and research with external service providers ..... 97 5.3 Joint venture. .................................................. .......................................... 99

Table of Contents

9

5.4 The 100 percent subsidiary ........................................... ............................ 100 5.4.1 Excursus: 100 percent subsidiary as internal service provider ........ ....... 103 5.4.2 Location selection and site expansion .................................... ............ 103 5.4.3 Start-up opportunities for the 100 percent subsidiary ................... 106 6. Personnel management ................................................. ................................... 119 6.1 Basics ............ .................................................. ........................ 119 6.2 The Indian labor market for specialists and managers ................ ...... 119 6.3 Selection of employees in / for India ................................... ............. 123 6.3.1 Selection criteria ................................ .......................................... 123 6.3.2 Technical requirements for prior Employees working location ............... 127 6.3.3 Personality requirements ........................ .. ................. 128 6.3.4 Communication management ............................ ......................... 130 6.3.5 Co-criteria: Who shouldn't be selected? .................. 131 6.3.6 Personnel selection ........................... ................................................ 132 6.3 .7 Preparation of employees to be posted ................................... 139 6.4 Personnel search ...... .................................................. ................................ 141 6.4.1 Campus Recruiting ............ .................................................. ......... 141 6.4.2 Recommendations .................................... .......................................... 141 6.4.3 Advertisements in daily newspapers. .................................................. ..... 142 6.4.4 Walk-in interviews ..................................... .................................. 143 6.4.5 Practical tips ........... .................................................. ....................... 143 6.5 Managing teams in India and with Indians ................. ..................... 144 6.5.1 Management of Indian teams ..................... ......................... 144 6.5.2 Management of intercultural teams with Indians and Germans ....................................... .............................. 147 6.5.3 Effective remuneration systems .............. ....................................... 158 7. Organizational structure - extended workbench or integrated teams? ...... 165 7.1 Basics of the structure of the distributed organization ..................... 165 7.2 The organizational form - from the black box to virtual teams ... .....166 7.2.1 The "Black Box" ......................................... ................................. 167 7.2.2 Decoupled projects ........... .................................................. ....... 169 7.2.3 The "virtual team" approach ............................... .......................... 170 7.3 Organizational design - how much controlling does it have to be? .............. .......... 174 8. Conducting negotiations in India .................................. ................................. 177 8.1 The initial situation ............. .................................................. ............ 177 8.2 Preparing the negotiation ................................. .............................. 178 8.2.1 IST - Indian Stretchable Time ........... .......................................... 178 8.2.2 Technical preparation .. .................................................. ............ 181

10

Table of Contents

8.2.3 Personal preparation ............................................. ................. 182 8.3 Conducting negotiations .............................. ............................................... 183 8.3. 1 structure ................................................ ......................................... 183 8.3.2 Gestures, facial expressions and emotions .................................................. .... 188 8.3.3 Negotiation strategy ......................................... .......................... 189 8.4 Contracts and Undertakings - Indian Business Practices ................ ............ 191 8.4.1 Significance of contracts ............................... ............................... 191 8.4.2 The enforceability of contracts ........... .................................. 192 8.4.3 Excursus: Supervision of Indian delegations in Germany ..... ..... 193 9. Notes on staying in India ...................................... ......................... 197 9.1 Establishing and maintaining business relationships ................................ 197 9.1.1 Greeting Indian business partners ........... .............................. 197 9.1.2 Dress code ............... .................................................. ..................... 198 9.1.3 Invitations home ...................... ......................................... 199 9.1.4 Official invitations to dinner. ............................................... 201 India from A to Z ............................................... .............................................. 203 Annotated bibliography. .................................................. ........................... 227 websites ..................... .................................................. ...................................... 229 addresses .......... .................................................. ................................................ 230 Index .................................................. ....................................... 233 The Authors ................................................. .................................................. .... 240

India at a glance

11

India at a glance

State name

Republic of India, Bharat (Hindi)

Capital

New Delhi (14 million inhabitants)

States

28, plus 6 union territories and the capital Delhi

Form of government

Parliamentary federal Republic

surface

3,287,000 km2

climate

tropical / subtropical, independent of the monsoon

population

1.1 billion, approx. 532 million male and 496 million female

National languages

22 officially recognized languages ​​Hindi and English as national languages ​​Over 800 other dialects

Local time

CET + 4.5 hours, no summer / winter time changeover

Religions

Hinduism (82 percent), Islam (13.4 percent), Buddhism, Christianity, Sikhism, Jainism, etc.

public holidays

Since mostly depending on the lunar year, the current dates are different every year

National holiday

January 26th (Republic Day)

currency

Indian rupee (IR) to 100 Paisee. 1 euro = approx. 50 IR

Most important cities

Delhi, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai

Main rivers

Brahmaputra, Ganges, Indus

Independence day

August 15, 1947

12

India at a glance

International area code

00 91

Internet identifier

.in

The colors of the Indian flag are saffron, white, and green. In the center of the white middle stripe there is a blue wheel. It is called "Ashoka's Dharma Chakra" and has 24 spokes. Each stands for an hour of the day. The wheel is a symbol for the eternal duration of the good.

The national coat of arms is derived from Emperor Ashoka. In the 3rd century BC he founded a city, Varanasi, the city of lions, at the place where the Buddha first proclaimed his basic ideas. The coat of arms thus stands for India's commitment to world peace. Under the coat of arms it says: "The truth alone will win."

To the self-image of the Indians

13

To the self-image of the Indians

The shelves of Indian bookstores are full of books about the self-image of the Indians. Titles such as “Being Indian”, “Games Indians play” and “The argumentative Indian” by Nobel laureate Amartya Sen attempt to fathom what defines the Indian self-image, why Indians are the way they are. Churchill once said contemptuously: "India is not a country, just a geographical definition"; Even his assessment of Gandhi as a “half-naked fakir” was not very differentiated. In view of the cultural diversity, languages, religions, etc., it seems impossible to give a comprehensive and generally applicable definition. Why, asks V. Raghunathan, who taught for years at the renowned Indian Institute of Management in Ahmedabad, are Indians so disinterested in their social environment? Why do they throw their rubbish on the neighbors' property, spit on the street, jostle in every queue, pollute public toilets, seem disinterested in any kind of quality, drive at night on the national highways with high beams without any consideration for other road users, honk at everyone senseless Situation and at any time of the day or night, disregard any traffic light switching - in short, why are Indians so selfish and think only of themselves in every situation and not of the general public and the common good? Raghunathan is not alone with this critical view of his own culture. In addition to the new self-confidence of a country that is planning a manned space flight, there is also increasing criticism of Indian behavior. India is demanding a seat on the UN Security Council and is unable to sort out the chaos on the streets? Altruism is not a typical Indian attitude; Egoism and, especially in the megacities, also growing materialism are identified (by Indian authors, mind you!) As thoroughly Indian characteristics. Opposing viewpoints are discussed in the media: here the pride in the achievements of a nation that is increasingly attracting the interest of the global public, one of the largest economies on earth, with a wealth of cultural diversity and unique historical achievements, and there the critical navel gazing a "functioning anarchy" (John Kenneth Galbraith).

14

To the self-image of the Indians

While abroad cultivates its clichés of an India that values ​​the hereafter more than this, of employees who place religion above any material incentives, of a billion people who live according to Gandhi's principles of non-violence (ahimsa), have internalized democracy and Speaking predominantly English, Indian authors write about the absolute will to material success, about the brutal Mafia in Mumbai (see the book "Bombay, maximum city" by S. Mehta) and the astonishing fact that just 10 percent of the population is really English speaks. And even this number has to be put into perspective once you have tried to call an “English” -speaking Indian in Kashmir or Tamil Nadu. The former Prime Minister of India, Vajpayee, is said to have said that the English finally left India because they could no longer bear the disfigurement of their language ... The Mahatma, the "Great Soul" as Gandhi was reverently called, is still in the whole country adored. His life was filmed, every city has its “M. G. Road “, even the most powerful woman in India, Sonia Gandhi (not related to the Mahatma and on the list of the 100 most powerful people in the world in 2007), still benefits from the coincidental name - but shortly after Gandhi's (violent) death thrown his principles overboard immediately and without a guilty conscience. His close friend and admirer Nehru, India's first prime minister after independence in 1947, immediately moved into the huge palace that has since been the seat of government and that Gandhi wanted to convert into a hospital. No trace of modesty and simple life. In India, rule was always associated with appropriate symbolism, and every Indian felt (and feels) it as completely normal and logical that the rulers use (and do) use these symbols. Even more: Without these symbols, be it houses, cars or other things, the mighty loses power - they do not manifest themselves, so they do not exist or do not exist to a corresponding extent. Nehru's Palace in 1947 or the blue light on the Ambassador company car with which the police chief makes his way through the overcrowded streets of his city - not presumptuous, but an accepted symbol of power. With the same naturalness with which the politician insists on his right of right of way, the other, less powerful, accept this and step aside. "Don’t you know who I am?" Is the outraged exclamation of those who are to be prevented from disregarding applicable rights. A bossy demeanor, a white company car with a red light, and no one will dare to stand in your way. This is exactly how the assassins got in a few years ago (with a white ambassador and a red light)

To the self-image of the Indians

15

Parliament, where they subsequently threatened exactly those who had given them access, since they themselves expect unconditional respect. Hierarchy and status play a major role and in a certain way continue the social differentiation of the caste system. "Meeting someone and not knowing their status is like jumping into a pool without knowing its depth" - everything depends on it: salutation, behavior, courtesy, commitment. First of all, Indians ask numerous questions: Where do you live? What was your father's job? Where did you study? Who do you know? Who are you related to? Both sides accept these questions because they serve the social classification and are therefore socially necessary. While foreign countries cite Gandhi's principles when the opportunity arises, nobody in India lives by them. Using only materials made in India? Gandhi is adored, yes. His house in Mumbai is not just a museum, but also a place of pilgrimage. But he is revered as someone who cannot be measured by normal standards, who stood outside of what a normal mortal can achieve. An idol who cannot be a goal to emulate anyway. What about the British? What traces have they left in the national character of the Indians? Do you hate them for their occupation, the “Raj”, or are you grateful for what they brought to the country? The truth can only lie in the middle. The intelligentsia is well aware of the achievements of the British; What was invested in the areas of infrastructure, postal services, administration, etc., India still lives on today. But no gratitude, the rule was too brutal and exploitative for that. Certainly no hatred either, after all the educated class speaks English, goes to “English” schools, and emigrates to England. Whatever traditions we find in India today, regardless of religious affiliation, existed even before the first merchants of the British East India Company set foot on Indian soil. And what is modern development has nothing to do with the "Empire" anyway. The Interregnum is over, it has certainly brought a lot of positive things to India, even in retrospect. Now you go further yourself, the Indian way. British remnants of national character exist only unconsciously. India is too contradicting itself to be clearly assigned to a self-image. A woman as prime minister over forty years ago, a woman as head of state also today, but widow burnings still happen today. Developing country or future world power? Where is India headed in the self-image of its residents? The economic outlook appears promising at the moment, the hard work and the will

16

To the self-image of the Indians

to success (also and especially in material terms) have lifted millions of people out of poverty in a relatively short period of time. And millions more will follow. This is the firm belief of the people you speak to, be they CEOs of successful corporations, university professors, government officials or members of the class of the untouchables, the "Dalits". India believes in success, believes that with diligence and hard work (and of course the help of the gods) anything can be achieved. Whether this success will come ten or twenty years from now is irrelevant; Indians are convinced that it will occur. Perhaps each for himself personally, is more interested in his own well-being than in that of the general public. But this all adds up to an impressive willpower and positive mindset. Perhaps this is one of the most important things one can say about the character of "the Indians": a fundamentally positive attitude towards life. The idea of ​​the existence of a “higher” reality, a reality beyond the here and now, leads to a latent hope in every Indian that he is already part of an uncertain but better future. This is the only way to explain the joie de vivre found in Indian slums under terrible living conditions for Europeans. Every little hope is perceived as such. The omnipresent "no problem!" Is therefore not an expression of an inability to tell the uncomfortable truth, but rather symptomatic of the Indian state of mind: It will somehow be regulated. Perhaps not as structured as in other western and eastern states. But basically everything will turn out fine - no problem!

Political geography

1.

Political geography

1.1

geography

17

India is the seventh largest country in the world in terms of area. With a north-south extension of 3,200 kilometers and a width of almost 3,000 kilometers, India covers around 3.2 million square kilometers; this corresponds to about ten times the area of ​​Germany, but only a third of the Chinese territory! From the peaks of the Himalayas to the beaches of the Indian Ocean in the south, from the Arabian Sea in the west to Myanmar in the east - there is a reason why India is called a subcontinent. The Indian Union also includes the Laccadives in the Arabian Sea and the Andaman and Nicobar Islands in the Bay of Bengal. India borders with Afghanistan, Pakistan, China, Bhutan, Nepal, Myanmar, and Bangladesh. The country can be roughly divided into the Himalayan region, the plains of the Indus and Ganges and the highlands of central and southern India, bounded by the mountains of the Western and Eastern Ghats (600 to a maximum of 2,000 meters). The Himalaya is the youngest and highest mountain range on earth; originated when the Indian plate pressed against the Eurasian plate from the south 120 million years ago. While the Indus-Ganges basin was created on the one hand by a lowering of the Indian plate, on the other hand the Karakoram-Transhimalaya Mountains have been raised by half a centimeter to one centimeter per year on the other. In addition to Mount Everest, ten other mountain peaks rise over 7,500 meters. The three main rivers, the Ganges (2,511 kilometers) and Brahmaputra (2,900 kilometers) in the east and the Indus in the west (3,100 kilometers), have their source in Tibet, China. New Delhi is the capital; other important cities are Bangalore, Chennai, Goa, Hyderabad, Kolkata, Mumbai, Pune and others.

1.2

climate

India is in the tropics; Due to the very different topography, however, the climate is very different from region to region. Inland there is a continental

18

population

valley climate, d. H. hot summers and cold winters. In the coastal regions, on the other hand, the temperatures fluctuate only minimally. The climatic conditions vary from the ice regions of the Himalayas to the deserts in the northwest (Thar desert). The monsoon (from Arabic: mausim, season) has the greatest influence on the climate. This phenomenon, which describes a regularly recurring change in wind direction, leads to a very clear distinction between summer and winter in terms of rainfall and temperature. Just one example: Mumbai can experience extreme rainfall between June and September, with flooding and chaotic (i.e., more than usual) conditions; during the rest of the year it hardly rains at all. This should be taken into account when planning a trip.

1.3

population

With 1.1 billion inhabitants, India is the second most populous country on earth after China. The annual growth is given as 2 percent. Apart from short-term measures for forced sterilization on the initiative of Sanjay Gandhi in the 1970s, there were and are no government measures for birth control. About 25 percent of the people live in the big cities.60 percent of the world's population under the age of 25 live in India! By 2050, there will be half a billion teenagers living in India. In contrast to aging China, we are dealing with an extremely young population in India.

1.4

Natural resources

India is rich in mineral resources. Iron ore, manganese, chromium, magnesium, bauxite, copper, lead and zinc can be found in relevant deposits; Nickel and gold are less common. India is the fifth largest coal producer in the world; Coal is also India's most important mineral resource (approx. 200 billion t). Crude oil deposits are rare; a very critical factor for future economic development. India is a net importer in almost all areas, including iron ore and oil.

Political geography

1.5

19

Agriculture

Agriculture has been practiced in India for 5,000 years; still today about 64 percent of the population live from this sector. The exports include Tea, coffee, cotton and oily seeds (sesame, mustard, rapeseed, sunflower, etc.). The most important crop is undoubtedly rice. A third of the world's rice harvest comes from India; In terms of acreage, India ranks second behind China, but only seventh in terms of yield. Rice is grown in practically every state. Wheat is the second most important crop and grows primarily in the northwest. Sugar cane, cotton, coffee and rubber are widely used; India is also the world's largest producer of tea. 45 percent of Indian tea comes from the valley of Brahmaputra in northeastern Assam; but tea is grown even in southern Tripura.

1.6

Building the state and government

The Indian Union, as its official name, is a parliamentary-democratic republic with a federal structure. The parliament forms the government according to the constitution of January 26, 1950. The president presides over the executive and is elected for five years. He appoints the prime minister and, on his suggestion, the cabinet. India has a bicameral parliament (Congress) with an upper house (Council of States, Rajya Sabha) and a lower house (House of the People, Lok Sabha). The Council of States has existed since 1919; with the independence of India it became a real second chamber. No more than 250 members may belong to it; 238 as representatives of the states and union territories and 12 nominated by the president. The Council is a permanent institution that cannot be dissolved. Every 2nd year a third of the members leave the council and are replaced by new members elected for six years. The Vice Prime Minister is the chairman of the Rajya Sabha. The Lok Sabha has a maximum of 552 members, including a maximum of 530 as representatives of the states and a maximum of 20 for the Union territories. The number of seats should be in the same proportion as possible compared to the respective population of the state. A legislative period lasts five years.

20

Building the state and government

The Council of Ministers, headed by the Prime Minister, advises the President; real power therefore rests with the prime minister and his cabinet. In the constitution, which has not changed significantly to this day, the division of powers into legislative, executive and judicial branches is regulated; likewise the equality of all people, secularism (separation of religion and state) and human rights. The 28 states are headed by their own governors who are appointed by the Indian president for five years. The states also have their own parliaments and constitutions. The six union territories are administered by so-called governor lieutenants; the difference lies in the fact that the Union territories are centrally controlled by the government. In addition to the powerful Congress Party, the Bharatiya Janata Party (BJP) and the Communist Party of India are represented as important political forces. There are also numerous (several hundred) other parties, some of them very small, which sometimes only play a regional role. Many parties live mainly from a charismatic leader, so that party withdrawals or a change of party affiliation are not uncommon in India. Increasingly, religious aspects, caste membership, etc. also play a role in local politics. The wide range of political currents in the governing coalition, from the Hindu nationalist wing to the communists, ensures a balanced policy of the center (which often moves forward slowly).

1.6.1

Congress Party

The congress party emerged from the Indian National Congress (INC). Founded in 1885, this party achieved great importance under M. K. Gandhi and J. Nehru in the context of the independence movement. Under Indira Gandhi it became the strongest party in 1980 and later became the opposition party under Sonia Gandhi. Since 2004, the Congress Party has again been the strongest political force and, with M. Singh, is the Prime Minister. The real power behind Singh is therefore attributed to Sonia Gandhi, who wisely refrained from taking power after the elections. Since this party has been in power with a few interruptions since India's independence in 1947, clique economics and corruption are widespread.

Political geography

1.6.2

21

Bharatiya Janata Party (BJP)

The "Indian People's Party" is a very young, Hindunationalist party. Even if it professes secularism in principle, the goal is a Hindu nation-state that clearly marginalizes the Muslim minority. These radical views brought the party to power in 1998, which it suddenly lost again in 2004. It had not succeeded in letting the rural poor participate in the general upswing. The farmers overthrew the government, a good testament to the fact that India is really a functioning democracy. It is uncertain whether the BJP will be able to regain power.

1.6.3

The communist party

Together with other left-wing parties, it represents the third major political force in India. In West Bengal (Kolkata!), But also in Kerala and Tripura, they are or have been the government. In 1957, Kerala was the first state in the world where communists came to power through free and democratic elections! They recognize the balance of power and have thus managed to be directly involved in forming a government. Behavior directed against democracy is not to be feared from this side. They are communists who are very friendly towards the market economy.

1.7

Administrative units

1.7.1

The states (28) and union territories (7)

Surname

Capital

Major industries

Andaman and Nicobar Islands

Port Blair

tourism

Andhra Pradesh

Hyderabad

Software, pharmacy, biotechnology, numerous raw materials

Arunachal Pradesh

Itanagar

Natural resources, agriculture

Assam

Dispur

Tea, oil

Bihar

Patna

Agriculture

Chandigarh

(Capital of Punjab and Haryana and Union Territory)

22

Administrative units

Surname

Capital

Major industries

Chhattisgarh

Raipur

Natural resources, agriculture

Dadra and Nagar Haveli

Silvassa

Agriculture

Daman and Diu

Daman

Agriculture

Union Territory of Delhi

New Delhi

Various branches of industry

Goa

Panaji

Raw materials, tourism

Gujarat

Gandhinagar

Industry, diamonds

Haryana

Chandigarh

Agriculture, industry

Himachal Pradesh

Shimla

Agriculture

Jammu and Kashmir

Srinagar / Jammu

Agriculture

Jharkhand

Ranchi

Coal, steel, raw materials

Karnataka

Bangalore

Industry, software, raw materials

Kerala

Thiruvananthapuram

Tourism, spices

Lakshadweep

Kavaratti

Fishing

Madhya Pradesh

Bhopal

Raw materials. Industry

Maharashtra

Mumbai

Industry

Manipur

Imphal

Agriculture

Meghalaya

Shillong

Agriculture

Mizoram

Aizawl

Agriculture

Nagaland

Kohima

Agriculture

Orissa

Bhubaneshwar

raw materials

Union Territory of Puducherry

Pondicherry

Industry

Punjab

Chandigarh

Agriculture, industry

Rajasthan

Jaipur

Agriculture

Sikkim

Gangtok

Tourism, raw materials

Tamil Nadu

Chennai

Industry, raw materials

Tripura

Agartala

Agriculture

Uttarakhand

Dehradun

Raw materials, agriculture

Uttar Pradesh

Lucknow

Industry, raw materials

West Bengal

Kolkata

Services, industry

Political geography

1.7.2

23

Economic regions

1.7.2.1 Overview India can be divided into a few large, clearly differentiated regions with different location advantages. The most important economic area in India is the greater Mumbai area on the west coast, which extends in the southeast of the metropolis to Pune and in the north and northeast to Nashik, Baroda and Ahmedabad. Here are the states of Maharashtra and Gujarat. The Delhi area with Gurgaon and Noida as well as Faridabad is known as the NCR (National Capital Region). The area Hyderabad, Bangalore to Chennai belongs to Central and Southeast India. Much less important, but still worth mentioning, is the Kolkata area in the east. In the future, the Goa area (west coast) and, in the south, Kerala will gain in relevance; The former in particular is already characterized by very good investment opportunities and a comparatively good infrastructure. From a European point of view, the location on the west coast provides a decisive logistical advantage over Chennai on the east coast. Logistics plays the most important role in the development of the preferred port cities of Mumbai, Kolkata or Chennai, while in the software sector, inland cities such as Hyderabad and Bangalore were also possible and were able to position themselves accordingly. The entire inland is mostly underdeveloped or very poor (Bihar).

1.7.2.2 Metropolis Concept In 1950 around 29 percent of the world's population lived in cities; According to the United Nations, it will be 60 percent (of the 8.2 billion people) in 2030. India has seven cities with populations over four million and 35 million cities. The rural exodus continues; the cities are completely overburdened; the UN classifies 40 percent of India's urban population as poor. In December 2005, Premier Singh launched a gigantic project to support the cities. 28 billion US dollars are to be used for this in 63 cities. Hyderabad was the first to create

24

Administrative units

City a new city center, tore down old buildings and made sure that the beggars disappeared from the streets. Other cities follow; the message that India can only be economically successful with functioning cities has arrived. But a Herculean task lies ahead of those responsible. 97 percent of the population of Mumbai breathe air that does not meet the standards of the World Health Organization.

1.7.2.3 Megacities: Mumbai, Delhi, Kolkata If cities with more than 10 million inhabitants are defined as megacities, then of the twenty there are in the world, three are in India. Fascinating, however, terrifying in their merciless poverty, their chaos - but also the hope of modern India. And yet: only 30 percent of the Indian population live in cities; the degree of urbanization is therefore significantly lower than in China (45 percent) or Africa (40 percent). Nevertheless, this country, in which 70 percent of the people live in rural areas, has produced three of the largest cities in the world!

Greater Mumbai The advantages of the western economic area around Mumbai are evident. These include: "the best infrastructure in India," an above-average number of well-trained staff available, "primary objective of the FDI (Foreign Direct Investment)," good English language skills in large sections of the population, "excellent connections to international economic flows.

Disadvantages can also be seen: “already high site costs,“ less good investment climate than in southern India.

Political geography

25

Mumbai (Bombay) In 1534 the Portuguese came from Goa to this group of seven islands that stretched around a lagoon. They found it to be a “good bay” (Portuguese: “bom bahia”) and set up a naval base. In 1665 the British received the archipelago as a wedding present: Charles II married the Portuguese Infanta Donna Catharina, the dowry was now pronounced in English ("Bombay") and experienced an unexpected boom when it was leased to the British East India Company (EIC). The fact that the city has been called Mumbai since 1995 is thanks to the Hindu nationalist movements, which, rejecting anything foreign, preferred and enforced the local expression for a protective goddess (in the Marathi language: Mumba Ai). The EIC relocated its headquarters to strategically better Bombay and set about conquering India economically. The rise of Bombay to become the most important economic metropolis in India was unstoppable; Immigrants from all over Asia and the Middle East brought their knowledge and skills with them; Merchants from Gujarat (a northwestern province) came to Bombay and quickly became the dominant power. Gujarati is still the common language in business circles today. The seven islands quickly grew together to form a peninsula through land reclamation measures. Today the city, which has been the capital of the state of Maharashtra since 1960, has around 18 million inhabitants; an estimated 9 million live in the approximately 1,200 so-called slums. At least since the new economic policy at the beginning of the nineties, Bombay has grown into the most important economic area in India with the surrounding cities of Pune in the southwest and Ahmedabad in the north. The 120 kilometer long corridor, through which the city of Pune can be reached in three hours on the national highway, is being expanded to become an IT focus; the new airport will be built along this route, and the city administration expects the two cities to grow together in the long term. Housing is already prohibitively expensive; Prices of four lakh (400,000 IR, or around 8,000 euros in 2007) per square meter are not only common in good locations. It is therefore not only the poorest of the poor who live in the slums, but also low-income earners who send their children to school and do regular work but cannot afford an apartment. Bombay is therefore due to its unique location with a protected harbor (Delhi is poorly located in terms of traffic) and the quick accessibility from Europe (advantage over Kolkata), in connection with a large class of traders and very many Indians living abroad

26

Administrative units

ans, NRI), who invest their money in this city, play a pioneering role in the future development of India. The Bombay Stock Exchange is the country's main stock exchange; Most Indian companies prefer this location to Delhi or Bangalore; Bollywood's film industry is expanding around the world; but also the strong Hindu nationalist currents of the Shiv Sena or the BJP emanate from here. A great opportunity for city reform existed when a huge area in a prime location, an abandoned factory complex, was for sale a few years ago. However, instead of seizing the opportunity and tackling a comprehensive concept for creating affordable living space, the area was handed over to investors who are planning large shopping centers and luxury hotels. Bombay is expected to have nearly 30 million residents in 2020; Prime Minister Singh's dream that Bombay should transform itself into a city like Shanghai seems unattainable. Other relevant locations Very close to Dharavi is the Bandra-Kurla Economic Zone. In the course of the creation of numerous Special Economic Zones, comparable to the Chinese model, the offices of multinational companies are to be located here. Also worth mentioning are New Bombay, a city artificially planned on the drawing board, which has already grown into a city of millions, and Thane, also a city of its own, but which has de facto grown together with Bombay. In addition to Bombay, Pune is also increasingly becoming a preferred destination for foreign investments. Automobile manufacturers (OEM) such as VW, Daimler and General Motors as well as suppliers (including Bosch) have established themselves here and are attracting further investors. The new highway connects Pune with Mumbai; a planned new airport is being built between the two metropolises to serve the growing cities. Pune has approx. 4 million inhabitants and is aimed directly at foreign investors through special business parks. There are quite well-trained specialists at the numerous local educational institutions. In addition to the proximity to Bombay, it is this factor in particular that speaks in favor of Pune. In the near future, Pune will become even more attractive. There are some interesting locations north of Bombay in the state of Gujarat. To be mentioned are primarily Baroda (Vadodara) and Ahmedabad as well as the seaport Kandla. Gujarat is one of the wealthy Indian states. The connection to Bombay via the highway is very good by Indian standards. Given Bombay's total congestion, these cities win

Political geography

27

increasingly relevant; however, from an economic point of view as well as from the point of view of “qualified workers”, significant cuts must be made.

Greater Delhi In addition to the economic area around Bombay, the so-called NCR (National Capital Region), i.e. the region around the capital New Delhi, must be shown. In addition to the actual city of Delhi, there are also regions from the states of Rajastan, Haryana and Uttar Pradesh. The advantages are evident: “Proximity to the political centers of power,“ the associated public contracts, “the chance to influence an improvement in the infrastructure and“ investment opportunities.

The disadvantages are also obvious for anyone who has already traveled to this region: “The infrastructure is still underdeveloped,“ The work ethic does not correspond to that of the South, “The proximity to politics in particular favors corruption.

In addition, there is the fact that, in contrast to Maharashtra, four political units would have to work together here, which in practice leads to administrative and control-political complications. Any progress will be delayed further because no uniform concept can be implemented for the Greater Delhi area. Delhi The Greater Delhi area has always been an important settlement area in northern India. In the Mughal period of the 17th century, the city received the function of a residential city; with the arrival of the British in the 19th century and the expulsion of the Mughals, Delhi sank into economic insignificance. Finally, in 1911, on the occasion of his coronation celebrations, the British King George V announced that he wanted to appoint Delhi instead of Kolkata as the capital of India. The rise to the cosmopolitan city began; the whole city was redesigned (New Delhi), splendid boulevards and residential areas emerged. And yet, the infrastructural chaos that is still omnipresent today, the strangely sprawled-looking cityscape originate from this time in which without a mass

28

Administrative units

urban development plan the consequences of the division of India with all its consequences (hundreds of thousands fled from west to east and vice versa) also hit Delhi. Today the city (14 million inhabitants) sprawls uncontrollably in all directions; For the future, a large area of ​​around 50 million people and 100 kilometers in diameter is envisaged. The 2010 Commonwealth Games will be held here; one speculates on the 2016 Olympics. Ambitious projects that are tackled with concrete measures. New Delhi is a largely green city with no slums, where the huts of the poor have been forcibly removed. The metro (except Delhi has inner-city rail links in Bombay, Kolkata and Chennai) works, is clean and even profitable. The transport capacities will be expanded to one million passengers a day. Delhi is the seat of all government agencies, ministries, etc. Even if it is far from being as attractive as Bombay, it has nonetheless become an important economic area since the middle of the 20th century. In particular, the area around Delhi described below is becoming increasingly relevant. Gurgaon, Faridabad and Noida These have now developed into preferred alternative locations for Indian and foreign investors. With better, or at least equivalent, infrastructure compared to Delhi, better investment opportunities, better air (but only relative to Delhi) and some well-known names, they are becoming more attractive. Major American and European companies are drawn to Noida and Gurgaon, including SAP (Gurgaon).

Kolkata The East India Company, founded in 1600, quickly expanded its power over the subcontinent; after Madras (1640) and Bombay (1667), three villages (one was called Kalikata) on the banks of the Hugli, a tributary of the Ganges, were acquired in 1690. From 1779 Calcutta was the capital of the British colonial government and remained so until 1911; the city soon became a flourishing cultural and commercial metropolis. Their wealth was based on the trade in textiles, spices, but above all opium, which was "exported" from here to China. The infrastructure was purposefully expanded; The first cars were driving in Calcutta as early as 1896. Calcutta University was founded in 1857. The city's rise to become a cultural metropolis followed.

Political geography

29

If the name Calcutta is also considered the epitome of poverty and misery in Europe today (cf. “City of Joy” in the bibliography), this in no way corresponds to what the city actually represented for 200 years. Today the 14 million metropolis is on the way to becoming an IT center; the communist government of West Bengal, whose capital is Calcutta (now Kolkata), wants to develop this city into a second Bangalore. Compared to Bombay and Delhi, however, the city has lost its economic relevance; it has become famous above all as the cultural capital of India. The most important disadvantages are: "catastrophic infrastructure," bad image (epitome of poverty), "communist chief minister (prime minister).

Only the former wealth and the former splendor can be listed as advantages; the sales market has shrunk with the separation of East Bengal (Bangladesh); the surrounding states of Orissa, Bihar and the entire north-east are among the poorest regions in India by far: Kolkata will have to work hard to reconnect with Bombay and Delhi.

1.7.2.4 The South: The economic area of ​​Karnataka (Bangalore), Hyderabad and Tamil Nadu South India, including the states of Karnataka, Tamil Nadu, Kerala, Andra Pradesh and Pondicherry, has no cultural and historical connection to North India. A separate culture, the so-called Dravidian culture, whose languages ​​Tamil, Canada etc. are not related to the Indo-European languages, arose independently of the north. Outwardly you can recognize the inhabitants of South India by their darker skin color, often also by their smaller stature. In the states mentioned, it is above all the cities of Bangalore, Hyderabad and Chennai that have become increasingly economically relevant since the beginning of the 1990s. While Bangalore attracted worldwide attention as an IT center, Chennai has become particularly important as a location for the automotive industry. Hyderabad started reforms early on, including brought about a cleanliness on the streets of the inner city, which was almost atypical for India; In view of the exorbitant hotel prices in Bangalore, many travelers prefer to spend the night in Hyderabad and fly to the IT metropolis in the morning.

30

Administrative units

Bangalore, used by the British as a military base as well as - it is located at about 900 meters above sea level - as a summer residence, has very quickly developed into the "Silicon Valley" of India; the reasons for this are set out below. In addition to SAP, other western as well as Indian software companies have their headquarters here. Chennai is considered the automobile city of India; around 40 percent of Indian car production comes from the former Madras. In addition to BMW, numerous foreign automobile manufacturers have settled here, and German suppliers are also following. Recently, Chennai is also growing into a new IT center. The location on the eastern Coromandel coast makes Chennai particularly interesting for transport links to East Asia.

Historical overview

2.

31

Historical overview

A fundamental understanding of India includes knowledge of historical developments in order to understand current issues, but also religious and political contexts. Indians (and therefore your business partners!) Are very aware of their history. History is omnipresent in India, from the beginnings of the Maurya Empire to the Mughal rulers to the British Empire (“Raj”, the Hindi word for “rule”). We encounter it in the marveled art treasures, the temples, but also in the daily street scene: Why do we see so many Muslims in Hindu India? In which areas are the traditions of the “Raj” still alive? What do the Indians owe to the British? Why is India's most famous building, the Taj Mahal, obviously of Islamic style? If you look at a current political map of India, you will notice the strong division into states. India was never a unified empire like China, which created a strong central power 2,000 years ago and standardized weights and measures as well as the wagon track. India consisted of numerous individual states, ruled by Maharajas ("great kings"), who ruled partly over territories the size of today's European states, partly over tiny principalities. They were independent, militarily equipped and largely disinterested in the other states. Enemy conquerors, again in contrast to China, did not have to fight against a large, unified empire, but had the much easier task of defeating (or buying) individual local rulers and thus already consolidating their claims to power. In a sense, it was “easier” to conquer India than China. And that is what happened.

2.1

From the beginning to the British Empire

Evidence of human dwellings found in the area of ​​the Indus River (today's Pakistan) probably goes back as far as 5,000 years before our era. Much later, around 1500 BC. BC, tribes immigrated from the Near East who called themselves the “nobles” (“Arya”, hence “Aryans”); in the conquest of northern India and the subjugation of the population (superiority by horse armies that India did not have) the so-called Vedic arose

32

From the beginning to the British Empire

Culture. Mind you in the north; Since these conquerors never penetrated into the far south, the differences between the people living in the respective regions are evident to this day. Even the extreme east, today's Bihar and West Bengal, was not conquered, as this region was considered "unclean"; there later developed their own great empires as well as the "counter religions" Buddhism and Jainism. The Vedas, the first evidence of Indian literature, gave this epoch its name. Probably towards the end of the Vedic period the first beginnings of the caste system were formed, which differentiated the brahmins (priests), the warriors, the merchants and peasants and finally the servants. In the 5th century BC Two important currents arose in the east; In addition to Siddharta Gautama, who later received the honorary name Buddha and founded the most important Indian religion at first, Jainism also began here (see chapter Religions). Buddha was born in what was then the Kingdom of Magadha; this was the empire, little known even in the west of India, that Alexander the Great intended to conquer on his Indian campaign (326 BC). At that time India was also called what is now eastern Afghanistan; from there to today's Bihar in the east it was too far for Alexander's men. He never achieved his goal. The Kingdom of Magadha experienced an outstanding cultural heyday under the famous King Ashoka (268-232 BC). The Maurya Empire, as it was called, was the largest state India would ever experience: it stretched from Bihar in the northeast to the extreme tip of the subcontinent in the south and to Pakistan and Afghanistan in the west (albeit in actual control rather limited to the Indian heartland). Ashoka himself converted to Buddhism after he had come to power with great brutality and created the first state in the world that made Buddhist principles such as social welfare and non-violence the basis of the state. After Ashoka's death, the vast empire split into smaller, insignificant states; It was not until the 3rd century AD with the Gupta dynasty that a north Indian power began to gain importance. Buddhism and Hinduism were promoted; In the 5th century, Nalanda was founded in Bihar, probably the largest educational institution of antiquity: it is said to have comprised 10,000 students from all over Asia, 1,000 teachers and 9 million books (!). The Indian Middle Ages, if you want to use the term, begins with the invasion of the Huns in the 6th century; Buddhism lost its influence, among other things. because the maintenance of the monasteries was very expensive or the monasteries were destroyed by the Huns. Numerous smaller empires took turns; a great empire did not emerge until the 13th century with the Sultanate of Delhi. The

Historical overview

33

Muslims had invaded India from the northwest as early as the 12th century; after military victories they succeeded in ruling almost all of India from Delhi. The strongly contrasting value systems of Islam and Hinduism clashed; It was only after many difficulties that a synthesis from these so different cultures could succeed. The heyday of Islamic rule was reached between the 16th and 19th centuries under the Mughal rule. The term "Mogul" is derived from the Indo-Iranian word for "Mongols"; these rulers had Persian as well as Mongolian ancestors. Coming from the north-west, they gradually took control of northern India and later also the south; however, their power in the south was always nominally rather than really consolidated. Their technical superiority was based on their command of field artillery. The Indians owe magnificent buildings such as the Taj Mahal (mausoleum of the Great Mogul Shah Jahan for his main wife Mumtaz Mahal, who died in 1631), the city of Fatehpur Sikri or the Red Fort in Agra to the Mughals, who, with Delhi as their capital, always struggled secure their influence. Further incursions from the northwest, uprisings in the south, small states with Rajas or Maharajas - India was not a unified empire that, once conquered, only had to be administered. Begun in the 16th century, flourished under Akbar, the power of the Mughals had already passed its zenith in the 18th century; the constant wars and the suppression of the uprisings began to strain the treasury. The religious component must not be forgotten either. If it was initially possible to involve Hindus in the administration and thus to minimize the risk of an uprising or a secession of Hindu provinces, in the 18th century certain privileges of the Hindus were withdrawn, mixed marriages were again banned and thus potential for conflict was created. The increasing influence of the British, initially through the East India Company, was added. More and more regions and provinces were de facto no longer under the rule of the Mughals; In 1857 the Mughal Empire finally came to an end when India was completely conquered by the British (the suppression of the Sepoy uprising).

34

The British Empire and India

2.2

The British Empire and India

2.2.1

The East-India Company

Little is known that in the 17th and 18th centuries India was less ruled by the British Crown and more controlled by the East India Company (EIC). This is all the more surprising when you know that the Mughal Empire had around 150 million inhabitants, while Great Britain only had around 5 million! The fact that this essentially private trading company, which had its own military and equally sophisticated administrative structures, was much more concerned with increasing the money of its owners than with the development of the country, continues to have an effect today. The colonial era is felt as a yoke in historical consciousness, not least because of this 150 years of exploitation. India benefited and suffered greatly from this regime. Founded in London in 1600, the EIC began as an ordinary trading company whose investors shared in the profits. After the Dutch India Company, the EIC was the second public company in the world. The Queen had initially granted merchants the right to do business between the Cape of Good Hope and the Strait of Magellan for 15 years. From 1612 the EIC was active on the Indian west coast, 30 years later also in Madras and in West Bengal on the east coast. She managed to establish branches in Surat (1612), Madras (1639), Bombay (1668) and Kolkata. Eventually she even got the right to mint her own coins and exercise military jurisdiction in India! Strictly speaking, it was not Great Britain that conquered India, but the EIC did so on behalf of and for the mother country: the advantage that illegal business - such as the flourishing opium trade with China - could be carried out by the EIC, which the world power Great Britain would not have been able to do. Bengali opium was sold to the Chinese for silver, which was not only a lucrative business, but also led to the annexation of Hong Kong in the British crown via the Opium War when the Chinese threatened to cease the trade. Like Singapore, Hong Kong itself traces its origins back to the founding of the EIC (which also controlled the island of St. Helena with its famous captured Napoleon!). The EIC traded primarily in tea (and set up large plantations in India), silk, spices and, above all, cotton. The French competition was driven out of India in the 18th century; the EIC had a trade monopoly. The

Historical overview

35

Bengali cotton was the finest in the world and accordingly sought after in Great Britain. However, the import became too expensive; people began to weave and spin cloth themselves - the industrial revolution took its course in Great Britain.Since there were not enough workers available to meet the demand (the printed cotton has meanwhile been delivered back to India!), Technically advanced machines had to be used or invented first. In India, with its cheap labor surplus, there was no need to invent machines; no industrial revolution took place here. The Indian economy, which had worked quite well and continued to benefit from the influx of foreigners, suffered increasingly from the occupation, whose interest was not at all in developing India economically. Added to this was the typically British view of superiority over the locals. Indians were considered incapable of performing demanding jobs; Because of their mode of production, they were, according to foreign reading, “condemned to eternal standstill”, as Karl Marx put it. Towards the middle of the 19th century, Lord Macaulay wrote that all oriental literature was not worth as much as the books on a single shelf in a European library! As the Indians increasingly began to learn English and also worked their way into educated legal circles, this was not seen as a threat. The EIC was thus de facto ruler over large parts of India with all the powers granted by the British government for this purpose. In the middle of the 18th century this power reached its zenith; their influence reached as far as Singapore and Hong Kong and about a fifth of the world population at that time was under their rule! On the other hand, the EIC increasingly had to cope with uprisings, which is why the British crown gradually withdrew its powers and took control itself. Many Indian mercenaries were in the service of the EIC, but they were very dissatisfied with the way they were treated by young superiors who were inexperienced in India. When they were finally forced to use cartridge cases rubbed with animal fat (which had to be bitten off before use, which was unacceptable for Hindus and Muslims alike, as the origin of the fat was not known), an uprising broke out in 1857, which quickly broke out large parts of the country and was supported by the still ruling Mughals. With the help of the Sikhs it was possible to suppress the uprising. The EIC, however, had finally forfeited its claim to power and was dissolved in 1858. The British Crown formally took control of India.

36

The British Empire and India

In the minds of many contemporaries, all of India was under British occupation, but it was not. Even if British control was gradually expanded, it was essentially based on a skilful policy of “keeping in office” certain regional kings, who in turn had to pay tribute to the crown. In many cases these were then puppets of British power politics. The pretext of a “Pax Britannica” around 1815 did not bring about “peaceful colonialism”, but merely represented a political facade for economic liberal interests and further expansion. Now Queen Victoria took over power. She herself became Empress, the previous Governor General was appointed Viceroy of India; Victoria even learned Hindi! As before, however, it was almost impossible for Indians to enter the "Indian Civil Service". Bureaucratic hurdles prevented them from exercising their fundamental rights. Displeasure with British rule became increasingly widespread; the exploitation of the Indian economy by the occupiers was now also criticized by the Indian educated class, who had received a British education. The different currents came together in the so-called National Congress (All-India National Congress); In 1885 the first meeting took place in Bombay. But even the Congress by no means spoke with one voice; While the nationalists were of the opinion that British-Indian laws would form an independent state, their opponents believed that one only had to liberate India from its occupiers in order to achieve a strong nation. In essence, it was about the question of how far the cooperation with the British should be supported. When Lord Curzon then divided the huge province of Bengal into a western and an eastern half (which corresponded pretty much exactly to what would later become Bangladesh), this clearly religiously intended division led to further protests. British goods were boycotted (boycotts always played an important role even under Gandhi); “Swadeshi” was the magic word: buying products made in your own country. Even a constitutional reform could not resolve the emerging conflicts between the members of Congress. The British government was increasingly characterized by wrong or helpless decisions; At first one was happy when there was some calm in India. In 1891 King George V went to India; the unfortunate partition of Bengal was reversed on this occasion and the capital was moved from Calcutta to Delhi. The contrast between the representatives of the Hindus and the Indian Muslims also grew stronger. Mohammed Ali Jinnah had risen to become the leader of the Muslim League; he saw himself as the representative of all Muslims in India. Be

Historical overview

37

At the beginning of the twenties of the twentieth century, Mohandas Karamchand Gandhi, who was later also referred to as "Mahatma", "Great Soul", became an opponent.

2.2.2

Gandhi and the division

Gandhi was a lawyer like Jinnah. He had received his training in the UK and then sent to South Africa on a mandate. There he made a name for himself as a representative of the discriminated Indian minority; Various personal experiences led to the decision to give up his legal profession and in future to make the concerns of the oppressed his own. In 1915 he returned to India; Recognized in the National Congress, he quickly began to publicize his ideas of peaceful resistance or, initially, of “non-cooperation”. And he by no means had all the Indians behind him; The educated class in particular could not do anything with much of what he propagated (according to his fundamental analysis of the values ​​of Western civilization). There was also no constructive cooperation with Jinnah, which would have been beneficial for both of them. The situation escalated when the British massacred innocent people who had gathered in connection with demonstrations against an unloved law. Hundreds of people are believed to have died when the crowd was shot in Amritsar. Gandhi responded by calling for a boycott not only of British products but also of universities and other government agencies; he even went so far as to promote the personal weaving of one's own clothes in order to be independent of British goods. He was always to be found with a spinning wheel; this should quickly become something of a trademark. Gandhi won the trust of the Indian National Congress; he was trusted to have the authority and diplomacy that would now be required. Again and again it was he who initiated or led campaigns against civil disobedience. His “Salt March” became famous: one of the unjust measures that the British had introduced was the payment of a salt tax. Indians were forbidden to produce or even store salt themselves. But salt is vital; the poor were particularly hard hit. Gandhi led a legendary march to the west coast in April 1930, during which, followed and acclaimed by thousands of supporters, he broke the British salt monopoly by picking up a few crumbs of salt from the beach. He clearly demonstrated the absurdity of the ban to the assembled press, including international ones.

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The British Empire and India

Gandhi could have drawn attention for a short time through such symbolic acts, but ultimately could not have caused lasting damage to the British. The temporal circumstances came to his aid; the Indian farmers, who got into trouble through no fault of their own due to the looming global economic crisis, listened to him. The British rulers wanted Gandhi as a negotiating partner. And so it came about that the "half-naked fakir", as Churchill contemptuously called him, negotiated on an equal footing with the viceroy. The campaigns have been stopped for the time being. The Second World War broke out; India was drawn into it without being asked, although neither Gandhi nor Nehru had agreed to a declaration of war. The US urged Churchill to get India on their side, but he had little interest in doing so. Gandhi cleverly exploited the global political situation and announced his policy: “Quit India!” The British should leave India for good and quickly. Riots broke out; a weak viceroy and an otherwise busy British government did their part to further drive the situation into the unknown. In 1946 there were elections in India; Jinnah, who was in favor of a Muslim state secede from India, tried to prevent the formation of a government that was critical of his plans. What was missing was a decisive person who could and wanted to finally make decisions about the continued existence of India or its division. Then Lord Mountbatten (the Anglicized form of the German "Battenberg") was appointed Viceroy of India. He immediately issued an ultimatum and set the date for Indian independence to be August 15, 1947. It was clear to him that India had to be divided. The creation of "Pakistan" (artificially composed of P for Panjab, A for Afghan Province, K for Kashmir, S for Sindh and the ending of Baluchistan) was sealed. The tragedy took its course. The dilemma of the division by a British administrative act was that although the northern fringes in West Pakistan and East Pakistan could split off, the Muslims in the interior of India were, in a sense, betrayed. There was no solution for them. The division was made by a judge's verdict on the basis of census data that determined the respective religious majority. Jinnah agreed; Gandhi had to be persuaded personally by Mountbatten to accept this "vivisection of India", as he called it. On August 14, 1947, the independent state of Pakistan was born in Karachi; one day later in New Delhi India. This is not the place for a detailed appreciation of the Mahatma; the picture that he practically alone led India to independence is certainly not correct. On the other hand, he was a role model in his unswerving demeanor,

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which many emulated without ever being able to reach him. One admires him to this day, not because one could adopt his values ​​as one's own, but because he exemplified something that cannot be achieved. “I am a Hindu, a Muslim, a Christian, a Zoroastrian, a Jew” - this extremely ecumenical approach was spoken in all seriousness. After his death, his values ​​were not lived by even his closest followers. His insistence on non-violence gave him a moral advantage; he was not open to attack. The award-winning film "Gandhi" was also a great success in India. Gandhi's house in Mumbai is almost a sacred place. Criticism of the Mahatma (there are certainly points to be criticized) is not possible. As explained on page 41, Sonia Gandhi still benefits from this today.

2.2.3

The Kashmir problem

All states that belonged to British India were assigned by administrative act (or, as in the case of the Panjab, divided themselves). The principalities were given the free choice of joining a state or becoming independent - a rather unrealistic option. There were problems with Hyderabad, where a Muslim ruler ruled over a Hindu majority, and with Kashmir, where a Hindu maharaja ruled a Muslim majority. Located in the middle of India, Haiderabad had no choice but to join; However, Kashmir hesitated. Concerned about Pakistani attacks, it finally turned to India for help; this initially required his affiliation. When Indian troops marched into Kashmir, Pakistani troops also intervened. Instead of resolving the dilemma immediately, Nehru postponed the Kashmir problem and considered a later referendum. To this day, 60 years after the partition, Indian and Pakistani troops face each other in Kashmir; in addition, there are the advocates of independence. The situation between India and Pakistan, with another border with China, is what makes the situation so explosive. A solution is still not in sight.

2.3

Pakistan

When it came to administering the two states, the Indians denied the Pakistani their share of the British Indian treasury. Gandhi personally stood up for the Muslims; Fanatical Hindus resented this and accused him of treason. On January 30, 1948, Mahatma Gandhi, the leader of the Indian freedom movement, who wanted a reconciliation between Hindus and Muslims, was shot dead by a Hindu of all people.

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India 1947-2007

He was just one of the many thousands of victims the partition was supposed to claim. Muslims and Hindus, each on the run from their homeland to the new national territory intended for them, were killed, robbed, burned on their trains and persecuted. Exact figures are not available; the partition of India was turned into a terrible tragedy by the thoughtlessness and disinterest of the British government. The existence of an "East Pakistan", separated from the west of the country by the Hindu India in between, was also very fragile from the start; the secession and finally independence as Bangladesh is only a matter of time. India and Pakistan saw themselves as counter-drafts from the start; If India had a democratic tradition, Pakistani power was based on the military. India, under its charismatic head of government Nehru, tried hard to maintain its non-alignment; Pakistan therefore initially turned to the USA. They supported the country, which seemed to be a demarcation from the communist states of China and the USSR. The Pakistani military benefited from American aid; later it also turned to China to geopolitically encircle India. Still, the Indian army was strong enough to hold off a Pakistani attack on Kashmir in 1965; as a result, the Indian government also supported the replacement of Bangladesh, which finally took place in 1971. Pakistan did not succeed in bringing East Pakistan under control by force of arms across the Indian subcontinent. Now the nuclear arms race followed; In 1998 the first official test explosions were carried out on both sides. Since then there has been an equilibrium that is still more unstable than stable: even if rapprochement is currently the declared goal of the respective government on both sides, brutal attacks and assassinations have occurred time and again, primarily in India, attributed to Muslim fanatics become. The Kashmir problem remains an area of ​​tension.

2.4

India 1947-2007

Nehru, a close follower of Gandhi and India's first prime minister, sought to keep India politically out of the big blocs. Rather, he emphasized the importance of peaceful coexistence and a pan-Asian alliance policy. In principle, he tended more towards the Soviet Union than towards the USA; this was reflected in his economic policy, which propagated its own third way between socialist and market economy elements. in the

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