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India is fast becoming a hot relocation destination. With consistently high GDP growth and an increasingly important role on the worldwide stage, there is much to attract companies to this dynamic and entrepreneurial country. We provide some insights into successfully relocating employees to India.

Click here for rough guides to major cities in India 

 

Antal Global SnapshotA global survey of hiring and firing trends, covering more than 9,600 organisations in 55 countries, has found job prospects for professionals and managers continuing to improve.

The Global Snapshot, from international recruitment firm Antal, asked companies in major markets, including western and Eastern Europe, Africa, India, China and the USA, whether they were currently hiring at professional and managerial level. It then asked whether they planned to do so in the coming quarter and whether they were currently letting staff go or were planning to do so in the next three months.

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Taxi cabs in India With 30 per cent of companies still intending to increase assignment volumes this year, India is one country likely to be in their sights. Ruth Holmes finds out how this booming BRIC economy is bucking the trends.

India has had a ‘good’ global downturn. Insulated from falling demand in countries like the US and UK by its rapidly-growing domestic consumer demand and relatively little reliance on its export markets, India has maintained its solid growth rates in the past 18 months. While there is no denying that the growth rate has been dented somewhat (halving from around 12 per cent to seven per cent per annum), recent indicators suggest that growth is set to accelerate again.

Returns-hungry foreign investors, like London-based 3i capital and British institution Marks & Spencer, have recently announced significant investments on the sub-continent, adding to the $500 billion being pumped into massive Indian government infrastructure projects by 2012, which are pushing the demand for skills still higher.

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Sunit Jilla, senior consultant, Farnham Castle International Briefing Centre, looks at the cultural complexities of living and working in India.

India landscape With a population of over one billion, India is a complex society made up of people with a multitude of languages, customs and differing values. Understanding these differences and being prepared for unfamiliar situations will help the employee and his or her family who are relocating to the region.

The first point to keep in mind is that you are not alone! In Bengaluru (Bangalore) alone, there are an estimated 10,000 westerners who have moved to the city over the last few years to live and work. As a result, around the country there are many expat clubs that can give a unique ‘western’ perspective on how to manage in India’s very different cultural environment.

However, there is no substitute for making Indian friends who will help with the integration into the new culture. Don’t be shy to accept an invitation for dinner from an Indian counterpart whom you have met only once or twice. In India, people are generous with their hospitality, and this is a great way to make new friends and integrate into the real life of this colourful, vibrant country.

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India is a popular destination, with increasing numbers of executives and business travellers seeking or filling professional positions there every year.

There are many challenges facing expatriates, including culture of work, working conditions, compensation rates, competition, work permits and other issues. We examine below some significant changes to the Indian immigration rules in recent times that affect expatriates and those seeking work in India.

The Ministry of Home Affairs (MHA) in India recently made certain radical changes regarding Indian visa applications specifically relating to business visas, as it was evident that individuals travelling to India on business visits were working in India in direct contravention of the purpose stated on their visas.

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Reports and SurveysThe latest global relocation Trends survey report from Brookfield GRS makes interesting Reading for those managing assignees in Brazil, China, India or Russia. The following extracts are taken from it.

When asked to identify the three countries that were emerging as new assignment locations, 15% of respondents ranked China as the most common new destination, followed by India (13%), and Russia (6%). These three countries also were the top three destinations in last year's report. Furthermore, with only one exception in the history of this survey (when it was ranked in second place), China always has been the most commonly cited emerging destination.

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Mark McAlea, consultant with international assignment management specialist IPM, speaks to Re:locate about current mobility issues in India.

‘India is very much a destination of choice at the moment for many of our big clients. There are two key areas that they and others have to overcome.

Entry and exit

‘The first is that it is difficult on occasion to secure the right visa to enter the country. India has a number of different visas, from three-month to 12-month visas, depending on the applicant’s job role in the country.

‘It is up to the embassy which length and type of visa is issued. This can be a single-entry visa. So, if the employee leaves the country, they need another to re-enter.

Home truths

‘The second issue, and a bigger concern, is that there is a mismatch between expectations and the available accommodation. It can be the case that top-level employees are shown round properties by real estate agents that aren’t in a fit state.

‘Some real estate agents are also trying to lock clients into two-year lease agreements when assignments are just for a year or 18 months.

‘The price of accommodation can also very wildly. Prices have grown exponentially over the last few years or so. We’ve therefore put together a framework for accommodation budgets for each of the major centres so our clients can get a good handle on the costs involved.

Taxing questions

‘The tax system is very similar in principle to the UK. This is especially the case with the concepts of resident in India for tax and ordinarily resident in India for tax.

‘The top rate of tax is 30 per cent, with a 10 per cent surcharge for those earning in excess of 1 million rupees – most high-earners will therefore be subject to this.

‘Employers are also subject to a “fringe benefit tax”, where non-salary benefits and payments are taxable.’

IPM, established in 1995, is currently helping clients manage international assignees in more than 50 home and 60 host countries. For more information, please contact www.ipmltd.co.uk.


© 2007 of Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.

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As a relocation destination, India is set to make the top four within the next two years. While many precedents exist with regard to international mobility, companies and workers relocating to India face a number of country-specific challenges.

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Setting realistic expectations is key to successful relocation. While India has so much to offer in terms of culture, a dynamic business life and a good standard of living, expatriates may find that the quality of housing, public sanitation and medical facilities below what they may be used to.

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Indian business practice is firmly rooted in the country’s cultural heritage in many respects. Yet flexibility is key, as business culture is fast adapting to outside influences.

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Employees traveling to India must obtain either a Business Visa or an Employment Visa. Neither visa requires approval from within India; instead, each is obtained from the Indian Consulate in the employee’s home country.

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More Articles...
Moving to India? What you can – and can't - take with you

Stephen Levitt, of removals specialist Clark & Rose, has some guidance for those relocating to India on what can, and cannot, be imported into the country.

Moving to India can certainly be a culture shock, especially as a foreign national. India is evolving at a pace so rapid that it has left its title of 'developing country' far behind; the increasing number of people moving to India is an indicator of the boom in the Indian economy and the vast opportunities on offer there.

Before planning a relocation to India, you need to ensure you understand your legal situation. Depending on your nationality and the purpose of your trip, you may require an entry visa, residence permit and/or work permit, and currently all foreign nationals coming to India are required to have a valid passport and a valid Indian visa.

Read more...
 
Malaria: the facts

Malaria is a serious disease that can have long-term effects but is both preventable and curable, says Dr Sneh Khemka, medical director of Bupa International.

According to the World Health Organisation (WHO), which is responsible for monitoring malaria around the world, about 40% of the world's population, mostly those living in the poorest countries, are at risk of malaria. Of these, 2.5 billion people are at risk, more than 500 million become severely ill with malaria every year, and more than 1 million die from the effects of the disease.

Malaria is a disease that can be transmitted to people of all ages, but it is both preventable and curable. It is caused by a parasite called Plasmodium, which is transmitted via the bites of infected mosquitoes. There are two kinds of malaria, Plasmodium flaciparum and Plasmodium vivax. The former is a severe type that may kill people, whereas the latter is mild but has long-term effects.

When the parasite enters the human body, it multiplies in the liver before infecting the body's red blood cells. If malaria is not treated, it can disrupt the blood supply to vital organs, and quickly becomes a life-threatening disease. A fever, headache, and vomiting are the best-known symptoms of the disease and usually appear between 10 and 15 days after the mosquito bite.

Before going to malaria risk countries, travellers should seek advice from their own doctor or clinic to discuss antimalarial and vaccination requirements, ideally at least eight weeks before travel. By taking other precautions to reduce the chances of getting bitten, for example applying insect repellent (ideally up to 50% DEET) to any exposed skin and sleeping under a mosquito net that has been covered with insect repellent, will give added protection. It is important to remember that antimalarials should be taken after a traveller returns home. The malaria parasite can remain in the body and reproduce rapidly, which potentially leaves a traveller exposed to malaria even when they are back from their trip.

Early diagnosis and prompt treatment are the basic elements of malaria control. Effective treatment will shorten the duration of malaria and prevent the development of any complications that could result in death from the disease.

Most cases and deaths are in sub-Saharan Africa. However, Asia, Latin America, the Middle East and parts of Europe are also affected. Travellers from malaria-free regions going to areas where there is malaria transmission are highly vulnerable – they have little or no immunity and are often exposed to delayed or wrong malaria diagnosis when returning to their home country. It is important that returning travellers who are suffering from any flu-like symptoms notify their doctor that they have been visiting a country that is at risk, to ensure a correct diagnosis. There has been a significant rise in the number of cases in malaria-free countries, associated with increased travel and limited precautions.

With death rates from malaria still high and statistics showing that a child dies every 30 seconds from the disease, it is a disease that should continue to be taken seriously the world over.

 
Guidance on issuance of Indian business and employment visas

In recent months, the Indian authorities have made significant changes to policies and procedures governing Indian visa applications, including clarification on the issuance of business visas and application for employment visas by third country nationals.

Says law firm Magrath LLP, “These changes, in addition to the recent changes in procedure for former Indian nationals applying for an Indian visa, indicate that the Indian authorities intend to restrict the entry of semi-skilled foreign nationals by tightening their control on the issuance of visas. The guidelines may have significant implications for foreign nationals who have previously travelled to India for business purposes, as they may now be required to apply for employment visas.

“It is anticipated that applications for business and employment visas will be scrutinised more closely by the Indian Diplomatic Posts. It is therefore of paramount importance that employers consider carefully the nature and activities of any potential visit to India, to ensure that the correct visa is applied for.

“It has been common practice for many employers to seek to avoid the more difficult process of applying for an employment visa, and the subsequent requirement to register with the Foreigners Regional Registration Office on arrival in India, by applying for business visas for short-term assignments. Diplomatic Posts have not in the past refused such applications, but it appears that this will no longer be permitted, and employers should be aware of this in the future. In addition, employers with individuals currently present in India should carry out an immediate review of each individual's visa status to ensure that they are not in breach of the new legislation.”

For further information on the changes, go to www.magrath.co.uk

In the Winter issue of Re:locate, we’ll be spotlighting India, a flourishing BRIC economy and a major relocation destination.

 

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