India’s emerging economy encourages international business relationships and more companies are looking to do business in India. The ability to attract large scale Foreign Direct Investment (FDI) into India has been a key driver for policy making by the Indian Government. India has received FDI inflows worth USD 60.1 billion in 2016-17, which was an all-time high.
Historically speaking, India is a post-colonial country and that has an impact on how business is done there. Having been a British colony, some of the laws and ways to do business are an interesting mix of local customs and English style. Some may feel familiar to you and others will be surprising. To learn more about post-colonialism’s impact on India, you may also enjoy this recent podcast about Post-Colonialism and Culture in India.
As with all business etiquette guides, the information we’re sharing is based on generalizations and everyone you meet will be unique. Here are some common areas where misunderstandings can arise. Minimize them by keeping these tips in mind.
Business Communication
While there are over 22 major languages spoken in India, the official languages are Hindi and English. Therefore, most people you will deal with in a business setting speak English. While it’s common for business people to speak fluent English, be prepared to work with an interpreter if needed.
You’ll find conversations and business discussions are more circular in nature, not direct as in Northern European and American cultures. Some have likened it to a flowing meandering river moving from topic to topic. You eventually get around to all the topics you want to cover but expect it to be more of a squiggly line instead of direct line. Always stay respectful, don’t get frustrated or rude when this happens. Assume that all conversations, relationships, and business dealings will take much more time than you expected.
Another interesting type of communication that’s best explained in a video is the ‘Indian head nod’, and the meanings and nuances of the different types of nods. This helpful and humorous video explores the unique nods to all of us novices.
Business Customs
Indian culture and customs may be frustrating until you understand them. For example, the Indian time zone is often referred to as SIT: Stretchable Indian Time. Punctuality is considered rude. Expect the meeting to begin up to a half hour late. On the other hand, your new associates may be accustomed to observing Western time in the workplace, so you absolutely must be present and prepared to begin at the stated time.
Expect to begin the business meeting with small-talk as business dealings are relational. No matter what you have to offer or propose, it will be better accepted if the people you are dealing with are acquainted with you. A welcome question is about a person’s family. Expect questions about your family. Always assume your meetings are going to take longer than what you thought, don’t schedule your trip so tightly that you’re not prepared to spend time with your prospective business partners.
Handshakes are the usual greeting, but in some of India’s many cultures, men and women do not touch. Take your lead from the interactions of others in the room. If a woman offers her hand, shake it. If she keeps her arms to her sides, do not extend your hand, instead put your hand over your heart and make a small bow.
Greet as many people as possible individually instead of as a group, being extremely careful to greet the most senior or oldest person first, followed by the next senior and so on down the line. India is a hierarchical society.
Always use titles. When you do not know a person’s title, use Mr. or Mrs. You may use first names only when invited.
Business Gift Giving
Small gifts are appreciated when meeting with business prospects — especially sweets, which should be presented in an attractive bakery box. An inexpensive gift that is representative of your country is thoughtful, such as a calendar or book with photos of American landmarks.
How To Dress
In general, business meeting attire is fashionable and conservative. Jackets, shirt and ties for men, and skirts that cover the knees for women or pant suits are acceptable also. The startup and IT world has pockets of less conservative dress but it’s best to start conservative unless you know the people you’re meeting with.
Negotiating
How do negotiations work in India? Indians expect to get a good deal out of a negotiation. Make sure to start with enough margin in your proposal that there is an acceptable amount left after the negotiation is done. Business leaders want to feel like they got a good deal in both substance and price. Expect that everyone in the negotiation is out to reduce their own costs. One sign of a good Indian business person is proving to management that they are good negotiators. If you have a strict policy and no room for negotiation, you may be seen as inflexible and not a good business partner. If you can’t get to an agreement, walk away respectfully. Costs will be higher in India, so keep that in mind when you decide how much margin you need to succeed.
Be prepared to hear “maybe” or “I’m not sure.” A direct “no” is too confrontational. Rephrase the question or a series of questions if possible so that “no” is not a possible answer. For example, “If we open a plant here, what would be the best location?” Hard sell and demanding language will not work with people who value harmony and respect. Remember that Indians bargain and barter in most transactions, so they are comfortable with negotiating. Final decisions will be made by the most senior person. This may take time. Your patience is crucial.
Business Cards
Expect to exchange business cards. If they are in English, they do not need to be translated on the back. Present your cards face up with the text facing your business prospect and accept cards with appreciation and pride. Make sure you look at the card and then place them in an attractive card holder, this shows you value them.
Business Lunches & Dinners
A business meeting in India may not end with a decision, but will likely include a meal. If you are invited to share a meal, these dining tips could go far in swaying the decision in your favor:
- In restaurants, it is common to order several dishes to be shared. Let the Indians order. If utensils are not provided, a waiter will serve you. Do not dip into a common dish with your hands.
- You may ask for a spoon that may or may not be provided. It is best if you are prepared to eat with your hands. Remember to use your right hand only. The left hand is considered unclean. Use the naan (bread) for a scoop, and form rice into neat balls.
- Good topics of conversation include cricket, politics, films, music, Indian history and culture, and economic reforms. Never ask about religion, Pakistan, or their country’s poverty.
- Do not say “thank you” at the end of a meal, but be sure to praise the food and show your appreciation while you eat.
If you are organizing a buffet, be sure to over-order. It is acceptable for invited guests to bring others such as colleagues and friends. When written invitations are sent, follow-up with a telephone call the day before as this is the polite way to extend an invitation. Include a variety of vegetarian dishes (at least half) as many Indians do not eat meat, often for religious reasons. Do not call attention to a guest’s failure to try a dish that contains meat.
With 1.2 billion people, ranked second in the world for size, this diverse and interesting market has tremendous potential for your business. Being aware of and doing business respecting the Indian business culture will help get you off to a good start with your business relationships in India.
Other Related Articles You May Like
Podcast: Post-Colonialism, Culture, And How To Do Business In India
The Benefits And Challenges Of Manufacturing In India
Color and Culture: What Color Come to Mind When You Think ‘Wedding’?
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