Business culture in India – UK India Business Council

A good understanding of the underlying values, beliefs and assumptions of Indian culture and how they manifest themselves in the market and workplace is essential for the success of your business.

India is a vast, populous and diverse nation encompassing many different identities, languages, cultures and religions. It is very difficult to make generalisations about Indian culture. There are, however, a few tips that can help you understand business culture in India and guide you in your Indian business venture.

INTRODUCTIONS AND GREETINGS IN INDIA

A flexible approach is important and it is often best to be guided by the person with whom you are meeting. Etiquette requires a handshake, although some Indians may use the namaste, a common greeting involving pressing your palms together with fingers pointing upwards, and accompanied by a slight bow. When entering a business meeting, always greet the most senior person first. When exchanging business cards, make sure to receive the card with your right hand and put it away respectfully. Small talk at the beginning of a business meeting is common and could include questions about your family. Equally it is perfectly appropriate to ask after the family of business partners, and in some instances this may be a good way of building trust.

In General Indians place importance on and a prefer using formal titles. So if you are meeting a doctor or a professor they may expect or appreciate being addressed by their given title. The exception of course if they indicate otherwise. Using a Mr. or Mrs. when addressing a colleague or someone senior is preferred. Women in the workplace are often addressed as Madam and men as Sir. The suffix Ji is commonly used especially when addressing someone senior both in age and in rank.

TOP TIP

BE AWARE OF THE CULTURAL DIVERSITY; BE CAUTIOUS ABOUT GENERALISATIONS AND TAKE THE TIME TO DEVELOP RELATIONSHIPS.

Business dress code mostly consists of smart, comfortable clothing. A lightweight suit is appropriate and ties are not compulsory, except in traditional sectors such as banking or law. Women are advised to wear a trouser suit rather than a skirt. Keep in mind that India has a diverse and seasonal climate, so it is not always hot. Delhi and other parts of north India can be extremely cold in winter. Hotels and offices can also have very cold air conditioning, so it is well worth packing a sweater, or of course a pashmina.

BUSINESS LANGUAGE AND COMMUNICATION IN INDIA

English is widely spoken in business and is one of India’s official languages. Many Indians and business managers speak it fluently, though of course meaning can vary across cultures and countries. Indians may have a particular difficulty saying “no”, as it can convey an offensive message. Instead, they will prefer making statements such as “we’ll see”, “yes, but it may be difficult”, or “I will try” when they likely mean “no”. Listen carefully and be aware of the meaning behind these answers. Do not attempt to compel your contact to be more direct, as this can be counter-productive.

A good way to seek a more positive answer is to rephrase the question, for instance if you are trying to secure a meeting and there is some evasion, one approach is to ask what day and time would be convenient to meet. Similarly, if there is resistance in providing a purchase order, the question could be asked when it is likely that a purchase order will be raised. This type of questioning may provide a more meaningful response.

INDIAN BUSINESS MEETINGS AND NEGOTIATIONS

Give as much warning as possible of your intended dates of travel and try to schedule your meetings well in advance. If you require help with your India trip our business advisors based in both the UK and India can help source qualified leads, set up introductions, and arrange business meetings as well as plan productive business trips to India. Do bear in mind that the arrangements may change several times and may not be confirmed until the day of the meeting itself. Although punctuality is expected, be prepared for meetings to start and finish late and for interruptions to occur on a regular basis. Negotiations can be slow by UK standards. Be patient and demonstrate good character; forcefulness will likely drive your contact away.

UNDERSTANDING BUSINESS RELATIONSHIPS IN INDIA

Business relationships are of the utmost importance. Indians will base their decisions on trust and intuition as much as on statistics and data, so be mindful of the importance of a good working relationship. Take the time to engage in small talk and get to know your prospective partner. Rushing straight into the business issue could be perceived as rudeness.

THE ROLE OF HIERARCHY IN INDIAN BUSINESS

Indian businesses are often very hierarchically structured. In negotiations, decisions are generally made at the highest of levels. Therefore, unless the company director, owner or a very senior manager is present at a meeting, a decision is not likely to occur at that stage. Roles are well defined and tasks such as manual labour will only be carried out by a specific person. An Indian manager is typically not expected to carry out tasks that could otherwise be undertaken by someone at a lower level in the organisation.

When you choose to set up an India based office you will need to take into account these cultural differences. If your office does not follow a vertically structured hierarchy, with closely defined responsibilities, it will be important to create a dynamic feedback and communication mechanism between your UK and Indian employees to encourage collaboration. Interactions between UK and Indian staff may at times cause miscommunication. For example junior staff in India may not be used to making decisions or questioning senior staff with the same level of freedom as their UK counterparts.

You may well find that your Indian operations are much more flexible than your UK operations. Indian’s are often prepared to take on time sensitive and important tasks at the last minute.. Likewise your Indian staff may find the rigidity of timelines on the part of UK staff challenging and inflexible. Sensitising your UK and Indian employees about the cultural differences is therefore important for smooth day to day operations.

QUICK GUIDE TO INDIAN BUSINESS CULTURE

• There are many Indias within India. India is a multilingual, multi-ethnic and pluralistic society, and vast cultural differences can be seen between North and South India.
• Be aware of the cultural diversity and be cautious about generalisations. The great Cambridge economist Joan Robinson once observed: “Whatever you can rightly say about India, the opposite is also true.”
• English is the official language of business.
• Be prepared for meetings to start and finish late and for interruptions to occur on a regular basis
• There is a more formal and hierarchical relationship between managers and staff in India
• Indians place great value on relationships: take the time to develop contacts and relationships.

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