Indian Heritage in business management

Indian Heritage in business management  

 Important Contributions of India to the World of Business

India has contributed significantly to the world of business right from the beginning. The modern day mantras of business have their origin in the past practices of India. Let us look into some of the major contributions : 

i. The Numeral and Decimal System The numeral system of 1, 2, 3, 4, …

Indian mathematics: Originated numeral system, including zero. Aryabhatta's contributions: Pi (3.146), solar year (365.3586805 days), quadratic equations. Rigveda, Maitrayi Samhita, Sulva Sutras contain fraction references. Bandhayan, Katyayan stated Pythagorean theorem. Vocabulary for fractions: ardha (½), tripada (¾), pada (¼), sapha (1/8), kushta (1/12), kala (1/16). Advanced geometry, positive/negative quantities understood. Arabs and Europeans adopted Indian numerals. Fundamental to modern mathematics.

 ii. Joint Hindu Family Business System Business, 

Joint Hindu Family business system, a traditional Indian practice, integrates family and business, where all eligible members, including brothers, sons, and grandchildren, reside together under the leadership of the eldest member. It functions as a distinct organizational form, separate from sole proprietorship or partnership. Male members, including minors, collectively own the business, managed by the Karta, who distributes profits equally. Coparceners, by birth, have no interference in business management but may offer suggestions. They maintain separate private property, shielded from business debts. However, the Karta bears personal liability, with their property liable for business losses due to negligence. This system, recognized in Indian law, persists as a significant business model, fostering familial cohesion and business continuity.

iii. Division of Labour 

Division of labor, vital in any organization, entails allocating tasks based on individuals' expertise. In Rigvedic society, comprising Brahmanas, Kshatriyas, Vaishyas, and Sudras, this division was occupational, not hereditary. Brahmanas were teachers, Kshatriyas rulers, Vaishyas farmers and merchants, and Sudras artisans and laborers. Varna classification within families existed. This system reflects an early form of division of labor, where societal roles were delineated based on occupation rather than birth, fostering specialization and efficient functioning in various domains

(iv) Hundis For credit transactions,

 'Hundis', an indigenous financial instrument in India since the Mughal era, facilitated safe money transfer and short-term credit without physical cash, similar to bills of exchange. These were honored without seals or witnesses, enhancing trade efficiency. In ancient India, a customer-centric approach prevailed in business. Village-based economies fostered personal relationships between traders and customers, enabling customized products based on individual preferences. Marketing relied on close manufacturer-middleman-user ties, emphasizing credit transactions and future product maintenance. This historical practice reflects an early form of customer orientation, where businesses prioritized understanding and meeting customer needs, fostering trust and loyalty in trade relationships.

  (vi) Emphasis on Quality

 Indian artisans historically prioritized quality, crafting goods with individual attention, leading to specialization and regional recognition. Ancient Indian tribes excelled in steel production, attracting even kings like Seleucus of the Maurya dynasty. Hand-spun muslin and enduring dyes showcased India's craftsmanship. Indigo dye, derived from Indian herbs, became renowned (indikos meaning 'of India' in Greek). Various arts like chikan embroidery, appliqué, brasswork, and Patachitra paintings exemplify Indian artisans' excellence. These contributions reflect India's rich cultural heritage and profound influence on modern business and trade practices, emphasizing quality craftsmanship over mere quantity.