Doing business in INDIA

Overview One of the fundamental components of Indian culture, vital for your business organization to succeed, is an understanding of the traditions and ways of communicating with others that form the basis of Indias society. In such a richly diverse and complex country as India, regionalism, religion, language and caste are all factors that need to be taken into account when doing business in India. Behavior, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed. Indian Society & Culture Of all the cultural influences that most impact Indian business culture, hierarchy plays a key role. With its roots in Hinduism and the caste system, Indian society operates within a framework of strict hierarchy that defines people's roles, status and social order. This fact leads to a noticeable lack of privacy and a smaller concept of personal space, and places an additional importance on interpersonal contacts, avoidance of conflict and a more indirect approach to communication. In India, the family unit is highly valued, therefore showing interest and respect towards your Indian counterparts family is vital for establishing successful relationships. In Indian culture disagreement is rarely expressed in a direct manner. The word no is often avoided and is replaced by other non-verbal cues and indirect communication. Rather than disappoint you, for example, by saying something isn't available, Indians will offer you the response that they think you want to hear. Since they do not like to give negative answers, Indians may give an affirmative answer but be deliberately vague about any specific details. This will require you to look for non-verbal cues, such as a reluctance to commit to an actual time for a meeting or an enthusiastic response. The notion of Karma and that everything happens for a reason is still significant in the decision making process of many Indians. It also influences the concept of time in India and as a consequence business negotiations may take longer and are never rushed. Relationships & Communication

Doing business in India involves building relationships. Indians only deal favorably with those they know and trust - even at the expense of lucrative deals. It is vital that a good working relationship is founded with any prospective partner. This must take place on both business and personal level. Relationships are built upon mutual trust and respect. It may be a good idea to go through a third party introduction. This gives you immediate credibility. All relationships involve hierarchies. In schools, teachers are called gurus and are viewed as the source of all knowledge. The patriarch, usually the father, is considered the leader of the family. The boss is seen as the source of ultimate responsibility in business. Every relationship has a clear- cut hierarchy that must be observed for the social order to be maintained. Within the system of hierarchy in the Indian work place, senior colleagues and especially elders are obeyed and respected. Discussions are almost always lead by the most senior person. Final decisions rest with the highest-ranking business executives, therefore it is important to maintain strong relationships with senior figures in Indian business. Self-esteem is an essential part of Indian culture, therefore any individual criticism in business situations must be done carefully and with sensitivity.

Etiquette & Customs Meeting & Greeting Etiquette When doing business in India, meeting etiquette requires a handshake. However, Indians themselves use the namaste. This is where the palms are brought together at chest level with a slight bow of the head. Using the
Moisi Cristina Bianca - MCAC

Doing business in INDIA

namaste is a sign of your understanding of Indian etiquette. Do wait for a female business colleague to initiate the greeting. Indian men do not generally shake hands with women out of respect. When addressing an Indian whom you know personally, always use the appropriate formal title, whether Professor, Doctor, Mr., Mrs. or if you do not know their names then Sir or Madam will suffice. When doing business in India, business cards should be exchanged at the first meeting. It is a good idea to have it translated on one side into Hindi, more as a sign of respect as opposed to linguistic necessity. Be sure to receive and give with your right hand. Make sure the card is put away respectfully and not simply pushed into a trouser pocket. Gift Giving Etiquette Indians believe that giving gifts eases the transition into the next life; It is not the value of the gift, but the sincerity with which it is given, that is important to the recipient; If invited to an Indian's home for a meal, it is not necessary to bring a gift, although one will not be turned down; Do not give frangipani or white flowers as they are used at funerals; Yellow, green and red are lucky colors, so try to use them to wrap gifts; A gift from a man should be said to come from both he and his wife/mother/sister or some other female relative; Gifts are not opened when received;

Dining Etiquette & Table manners Indians entertain in their homes, restaurants, private clubs, or other public venues, depending upon the occasion and circumstances; Although Indians are not always punctual themselves, they expect foreigners to arrive close to the appointed time; Take off your shoes before entering the house; Dress modestly and conservatively; Much Indian food is eaten with the fingers; Wait to be told where to sit; If utensils are used, they are generally a tablespoon and a fork; Guests are often served in a particular order: the guest of honor is served first, followed by the men, and the children are served last. Women typically serve the men and eat later; You may be asked to wash your hands before and after sitting down to a meal; Always use your right hand to eat, whether you are using utensils or your fingers; In some situations food may be put on your plate for you, while in other situations you may be allowed to serve yourself from a communal bowl; Leaving a small amount of food on your plate indicates that you are satisfied. Finishing all your food means that you are still hungry.

Business Meetings & Negotiations Business Meeting Etiquette If you will be travelling to India from abroad, it is advisable to make appointments by letter, at least one month and preferably two months in advance. Avoid meetings near or on national holidays. Avoid the heat by scheduling between October and March; It is a good idea to confirm your appointment as they do get cancelled at short notice;
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Doing business in INDIA

The best time for a meeting is late morning or early afternoon between the hours 11 and 4. Reconfirm your meeting the week before and call again that morning, since it is common for meetings to be cancelled at the last minute; Keep your schedule flexible so that it can be adjusted for last minute rescheduling of meetings; You should arrive at meetings on time since Indians are impressed with punctuality; Meetings will generally begin with friendly small talk. This may include personal questions about your family and is seen as a way of building rapport and trust before business. In fact, it is quite possible that no business will be discussed at the first meeting; Always send a detailed agenda in advance. Send back-up materials and charts and other data as well. This allows everyone to review and become comfortable with the material prior to the meeting; Follow up a meeting with an overview of what was discussed and the next steps.

Business Negotiations During negotiations, trust and well-established relationships with your Indian counterparts must be in place before any form of business can take place; Indians are non-confrontational. It is rare for them to overtly disagree, although this is beginning to change in the managerial ranks. When negotiating avoid high pressure tactics. Do not be confrontational or forceful. Criticisms and disagreements should be expressed only with the most diplomatic language; Decisions are reached by the person with the most authority; Decision making is a slow and thoughtful process. Deadlines should not be rushed as impatience is seen as aggressive, rude and disrespectful; If you lose your temper you lose face and prove you are unworthy of respect and trust; Delays are to be expected, especially when dealing with the government; Most Indians expect concessions in both price and terms. It is acceptable to expect concessions in return for those you grant; Never appear overly legalistic during negotiations. In general, Indians do not trust the legal system and someone's word is sufficient to reach an agreement; Do not disagree publicly with members of your negotiating team; Successful negotiations are often celebrated by a meal.

Dos and Don'ts

Do use titles wherever possible, such as Professor or Doctor. If your Indian counterpart does not have a title, use Mr., Mrs., or Miss. Do wait for a female business colleague to initiate the greeting. Indian men do not generally shake hands with women out of respect. Do remain polite and honest at all times in order to prove that your objectives are sincere. Dont be aggressive in your business negotiations it can show disrespect. Dont take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands. Dont refuse any food or drink offered to you during business meetings as this may cause offence. In addition, it is useful to bear in mind that traditionally, Indians are vegetarians and do not drink alcohol.

The above examples of differences in culture, business practices and business etiquette show the advantages cross cultural awareness brings. By tailoring your behaviour and approach to doing business in India you maximize the potential of your visit.

Moisi Cristina Bianca - MCAC

Doing business in INDIA

Moisi Cristina Bianca - MCAC