Relocating from China to India: What to Expect

September 29, 2010 Posted by Chris Devonshire-Ellis Reading Time: 13 minutes

Op-Ed Commentary: Chris Devonshire-Ellis

Sept. 29 – As increasing numbers of senior level overseas executives with several years of China-work under their belt get transferred to India, what awaits them? In a manner similar to the way the first early executives dealing with large projects in China were often ex-Africa hands, the same is doubly true in India. Considered a hardship posting, the financial benefits of the battle hardened global expatriate of relocating to India having gained China or Africa experience can be highly rewarding. Increasingly, I am finding on my sorties between China and India an increasing number of expatriates in India with China experience. Corporate membership of Chambers of Commerce is increasing, as are demands for places in international schools and private clubs. Here then are some of the changes between being an expatriate in India as opposed to China:

A more demanding large project environment
India isn’t up to China standards when it comes to the development and execution of large-scale projects. Administrative delays, worker discipline and above all the interference of local politics can interfere with planning and execution. Problems – including the notorious infrastructure issues – need to be worked with and solutions found. Innovation and an ability to think outside the box are needed in India, whereas in China they’ve tended to make the administration far easier. However, there are signs that China is not what is was – increases in labor unrest, strikes (previously unheard of), and especially protectionism are growing in China. As was mentioned to me in Mumbai recently “I’m paid to sort these problems out, and that’s what my MBA program was for.” Is India more big project awkward than China? Yes. Is it solvable? Also yes.

A more welcoming social environment
While China is a generally friendly and welcoming place to be, for the small infrastructure it falls down when dealing with foreigners, and there are still barriers. Getting tickets, going out to Chinese events, finding out what’s happening online, reading international news, social networking, keeping in touch internationally with family and friends over the internet – these are all awkward or have infrastructure banned in China. While one can get used to not having Facebook in China, if you’re used to it overseas it’s a major hassle. India has both free media and social networking, and its usage of English language just makes the social element of being in India that much more pleasant. Plus, if you’re Japanese, Indians don’t have endless spats over wartime related events and territorial disputes over 60 years old that frequently mar the Japanese population in China. Neither, apart from Pakistan and China, does India have territorial disputes with anyone else. China is currently in disputes with India, Vietnam, Japan, Taiwan, several nations over the Spratly Islands, is threatening potential economic sanctions with Norway if the Nobel Peace prize is awarded to a Chinese reformist, and has a history of encouraging its nationals to harass citizens of other nations when things go wrong – such as throwing stones at the U.S. and British embassies over the NATO incident in Belgrade. China is more antagonistic, is quite prepared to occasionally indulge in harassment of foreign nationals, while Indians tend to argue among themselves rather than with foreigners.

Food, drinks and hygiene
Indian food is as diverse as the nation is large, and although the ubiquitous curry remains king, there is such a variety that you could spend a lifetime here and not try the same thing twice. Generally speaking, the further north, the hotter the curries, while in the south coconut prevails and creaminess comes into the palate. China also has a place in Indian cuisine, a large number of coolies were sent over during the days of the British Raj to work on railways and road construction (the Chinese ability to build infrastructure better than their Indian counterparts has been noted for centuries) and their descendants, many from Fujian, now run very successful and often long established Chinese restaurants across the country. Cities such as Delhi, and especially Mumbai, have an even greater selection of cosmopolitan cuisine and restaurants than Shanghai. Favorites? Try Indigo in Mumbai, recent winner of the world’s best bar, while La Piazza in Delhi is home to Michelin Star chef Andrea Angeletti. Unlike China, most of India’s fine international dining still remains within hotels, but this is slowly changing. Many old colonial properties are being purchased, upgraded and opened specifically to cater for the international clientele, and there is no doubt in my mind that just as has happened in China, India’s best restaurants will eventually move into some of the most elegant properties the country has to offer, and again as is happening in China, Michelin ranked chefs and restaurants are moving into this huge country full of gourmands all eager to explore and develop a cuisine over 5,000 years old. It’s the ultimate challenge for a chef, and India’s tastes are both locally excellent yet still ripe for gastronomic cultivation. In terms of alcohol, some states in India are completely dry, while in other cities such as Delhi and Mumbai, occasional dry days are observed. That aside, Indian wines are making inroads into international markets, with brands such as Sula, Grover and others very enjoyable indeed, while an extensive imported selection is also freely available. The days of the British Raj of course introduced whisky, rum, and gin, and the Bombay Sapphire, modeled on an ancient Raj era recipe and including aromatics found only in India, is world famous. Quality bars, restaurants and hotels are well up to (and in many cases exceed) international standards, it’s only when one steps out of these comfort zones that problems can arise. Hygiene can be an issue as the country is moist and warm – ideal breeding grounds for disease and stomach bugs. To avoid any upsets, eat and drink at sensible places and if out on walk about, take bottled water. It’s only the naive or corner cutter these days who gets caught out with “Delhi Belly,” but just in case it’s a good idea to maintain a stock of Imodium. If not you, someone else might need it. Be sensible, and India’s hygiene and consumption of water and other drinks and food will not be a problem.

International communications
In every way, India is far superior to China in this regard. While much of China’s problems in this area are self-inflicted issues over a lack of press freedom, language issues and its notorious Great Firewall, India by comparison is a paradise. There are numerous English language daily newspapers available (I read about five of them: Times of India, The Economic Times, Hindustan Times, DNA and the Asian Age, while the International Herald Tribune, Wall Street Journal, Financial Times and USA Today are all published in same day Indian editions). Imported newspapers are also freely available, typically 24 hours behind. Keeping up with the news then is not a problem, especially if like me you like to browse the morning newspapers over a cup of coffee. Cities such as Mumbai also provide a second daily, evening newspaper, something China’s media censorship cannot cope with. India’s domestic TV is in a plethora of languages including English language channels, and can get a bit vociferous, especially over issues concerning Pakistan or China, but respected global networks like CNN, BBC and Al Jazeera all maintain Delhi-based bureaus and programming. Meanwhile, Facebook, YouTube and total access to surf the internet is a given right in India. Also, unlike China, where calls are relatively expensive, India’s call charges are amongst the lowest in the world, and this dynamic will also lift the interconnectivity of the country as well as help bring its rural population out of poverty. India is very much hardwired into the international community and international communications, phone, internet and wireless are all world class. There is also less espionage in India, whereas China has a reputation for spying on commercial activities that affect its state owned enterprises. About 90 percent of China’s largest businesses are completely or partly state-owned and are consequently prone to government involvement or interference, while in India, about 90 percent are in the private sector. It makes business communications far simpler, and less likely to be subject to commercial espionage. From a practical time zone perspective, the time difference between Delhi/Mumbai and New York is currently 9.5 hours and Chicago is currently 10.5 hours (under daylight savings time). London is just 4.5 hours.

Medical care and hospitals
India’s doctors have been exported all over the world and are highly trained both at home and at overseas hospitals and universities. India also has a wide network of international standard clinics and hospitals, as well as being home to some of the world’s top surgeons. There are numerous institutions to choose from – your medical insurance company will provide details, but others include Fortis and Apollo, while Pacific Prime provide a list of English speaking doctors and facilities on a national basis. I have had minor surgery in India (bursitis, an old tennis injury) and both the operation and aftercare were first rate.

Housing
It’s more expensive in India, although not outrageously so. A decent family sized furnished apartment will be priced between US$4,000 and US$5,000 a month. Of course the sky is the limit if you wish. The difference is not the quality of the building – in fact Indian top end apartments are generally better than Chinese – it’s the rubble and state of the roads outside that makes the difference. Plus the odd wandering sacred cow. But that’s part of life in India, and it adds character at the very least. Finding a house is as always, a bit of a battle, but making contacts with chambers of commerce or your embassy will help reveal the details of reputable agents that will know the quality and area you’ll be interested in. However, be prepared for a steep bill from the landlord – unlike China’s 2 + 1 month deposit system, many landlords in India will ask for a 9 or 12 month deposit upfront, and that’s generally the norm. Ouch.

Car and driver
A must. Indian city traffic is improving (but still problematic during rush hours), while China’s traffic problems are worsening. A decent car and driver is needed for you to read the newspapers, catch up on the laptop, and generally use your car bound time efficiently. Best to get a high wheel base vehicle though, especially in Mumbai – those summer monsoon rains dictate you need something to get through the waters. India also has a thriving second hand auto market, something China has yet to really develop – so bargains can be found. And for the wealthy, Bentley, Rolls Royce, Ferrari and Lamborghini are all in the latest showrooms. Our recommendation would be a Land Rover Discovery – it’s now an Indian-owned brand (no import duties) and that’s the job for navigating the worst of the roads and the worst of the weather. If you want to swank it up, another Indian-owned brand is Jaguar and unlike China’s expensive imported vehicles, Indian ownership means parts and service are easy. A driver is a must – a local guy who knows the city and will know all the short cuts and deal with the inevitable argument or road hassle.

Hotels

India’s hotels at the top end are legendary and are among the best in the world. They are also among some of the most expensive – a night at the Taj Mumbai is going to be US$750. There are some bargains to be had, such as the Gordon House Hotel, close to the Taj, however the boutique hotels often require more local knowledge that we don’t have space to reproduce here. Opulence and luxury aside (we also recommend the Imperial Hotel Delhi as best in class – it’s one of the top 20 hotels in Asia, let alone India), most of the major chains are here. Again, they are an oasis of calm and tranquility among the heat and dust of India. Hilton does a far better job in India than they do in the United States, while brands such as the Oberoi, who specialize in Asia and the Middle East, are well worth checking out and offer comfort, service and quality that is hard to match either in China or the United States. Hotels in India really should be to five star standard for the traveling executive (lower stars get progressively worse), and they literally make your trip happen for you. A five star hotel in India provides the added value service that is essential in an emerging country like this. Your accounting department may not like it, or the extra costs when compared with China, but in India it’s not worth scrimping on this aspect. You’ll need them as a business base, as a home, and as a sanctuary. And yes, you can drink the water, while concerning the service and helpfulness aspect, English is widely spoken, and overall service is far better than that in China’s hesitant or reluctant assistance, where the proletariat can and do still demonstrate their political superiority over the bourgeoisie, and unknown or unproven capitalists in particular. There is a very good reason the new Fairmont Peace Hotel in Shanghai spent a fortune on hiring Western trained service personnel. In India, its long been a normal standard and hospitality reigns supreme here.

Schools
India’s schooling system at the top end is generally excellent – the country possesses some of the most prestigious pre-university public schools in Asia. The Indian government has also recently liberalized the education sector at the university end and is for the first time permitting prestigious academic institutions to establish joint ventures and schools in India. The web site International Schools in India provides a national search function and details. However, in common with China, international schools in India are expensive. You’ll need to allow about US$20,000 per annum per child, however there is a wide and generally well established selection to choose from – with many based on the proven British standard model of education. Your embassy will also be able to advice on pertinent educational facilities in India.

Chambers of commerce
These vary considerably in quality (as they do in China), some being excuses for a monthly beer drinking session, others taking a more active role in the business community. The American Chamber and European Chamber in India are particularly active, while other chambers such as the British Business Group (not called a chamber as India is part of the Commonwealth) host regular social events and feature a variety of corporate speakers. Other Asian, European, Oceanic, African, and South American nations have their own versions. Many of these organizations also have representations in other major Indian cities. The current chairman of the BBG in Mumbai, Jim James, is himself a former China expatriate, whose business in Shanghai was so awkward from the regulatory perspective that his employers moved him to Mumbai. They are now thriving in India, something that proved mission impossible in China. Interestingly, that is not an uncommon experience among expatriates living in India who have relocated from China. Also of note are the various India-country chambers, such as the India-China Chamber of Commerce, which provides a solid link between their respective governments and businesses. Google searches will reveal the chambers, groups and organizations pertinent to you.

Private clubs
China isn’t really big on private member clubs, and those that do exist tend to be both really expensive and cater for Chinese tastes only, although there are notable exceptions in Beijing, such as the Capital Club. But generally China is not so developed for club facilities for expatriate families and business duties. India, though, follows more the Singapore model, where clubs have long existed that cater for the expatriate community. Of particular worthy mention are the Breach Candy Club (Mumbai), close to the U.S. Consulate and home to Asia’s largest outdoor swimming pool. The Bombay Gymkhana Club offers a great range of sports activities, such as the inevitable cricket, but also hosts the rugby teams, soccer, hockey and many other activities, while in Delhi the Indian International Center is the place to hang out – and is funded by the Rockefeller Center. Private clubs in India are a source of comfort and a home away from home for many expatriates in a manner that China tends to distrust lest foreigners connive together to plot a subversive overthrow of the regime, but they are a welcome respite from the heat and daily hassles of Indian expatriate life, often have a fascinating history, a vibrant business community and provide superb facilities for the family and to make friends. Every executive expatriate package in India should include such a membership, especially if a family is involved. Other cities too, have their equivalents.

Individual income tax
India, like China, has a sliding scale for individual income tax payments, but the top threshold for tax payment is lower in India than in China. India also has in place a rather complicated system of additional surcharges and expense rebates, the latter of which are more generous that those currently available in China. Also, unlike China, India does not charge individual income tax on dividend payments from companies. This can be an important factor especially for expatriates with bonuses or stock options. As a general rule of thumb, the expatriate is rather better off in India than China, with a basic level of 30 percent IIT in India at the highest tax bracket as opposed to 45 percent in China. As always, each case can be specific and it is best to ask for clarification on these matters beforehand as other factors such as housing allowances and so on can complicate matters and they need to be structured properly. Please contact Dezan Shira & Associates India at india@dezshira.com for advice on individual income tax in India.

Summary
I am often asked the differences between Beijing and Shanghai, or Shanghai and Hong Kong, and which I prefer, and the same is true of Delhi versus Mumbai. I always strive to be diplomatic and say that I’m always happiest where I am at that particular moment. Increasingly though, I’ve noticed that in the China-India space I have occupied now for the past five years, there are more expatriates who are traveling to work in India, many of them from China. It’s to be expected, many successful foreign invested China businesses have either been well established and are now localizing in terms of operational management, or businesses previously only in China are now expanding into India and are sending over their trusted “Asia hand” to do it. There is no doubt that the membership of chambers of commerce in India is expanding, and that progressively greater numbers of expatriate managers are seeking work and employment in the country. China will have been the previous posting for many of them. As was mentioned in my piece two days ago, India’s infrastructure is the opportunity and many experienced project managers will be making the transition sooner or later. India represents a logical extension to a professional expatriate’s career, and the relocation from one to the other is not as extreme nor as awkward as many would think. India is the new land of opportunity, and while China commences its long descent into normal growth and suburban normality, India is where the action is. Overseas expatriates need to start preparing to expect that call – and with a significantly lower individual income tax burden – even positively looking forward to it as a solid career move. Relocating from China to India is fast becoming normal executive career practice.

Chris Devonshire-Ellis is the principal and founding partner of Dezan Shira & Associates, establishing the firm’s China practice in 1992. The firm now has 10 offices in China. For advice over China strategy, trade, investment, legal and tax matters please contact the firm at info@dezshira.com. The firm’s brochure may be downloaded here. Chris also contributes to India Briefing , Vietnam Briefing , Asia Briefing and 2point6billion

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