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 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.

Business dress code mostly consists of smart, and 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 dress modestly, wear a trouser suit or a skirt knee length or below. Indian’s will also where tradition dress, particularly women but also men depending on their religious beliefs.

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. 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.

INDIAN BUSINESS MEETINGS, NEGOTIATIONS & EVENTS

Adopt a flexible approach.  Meetings or events scheduled well in advanced may change several times and may not be confirmed until the day of the meeting itself. In India it is perfectly acceptable to make last-minute meetings or simply show up or walk in.

It’s not uncommon for meetings or events to start and hour late. Be prepared for meetings to start and finish late and for interruptions to occur on a regular basis. Be patient and demonstrate good character; forcefulness will likely drive your contact away.

The business day usually starts later in Indian from 10am until 9pm, however this differs from region to region.  Early morning meetings are not common, so expect to wait until around 11am for a meeting.  Lunch is normally around 2pm or 3pm and dinner isn’t served until 9.30pm.

Entertaining is an important part of the Indian business culture.  Indians are very hospitable and want to be good hosts.  They will always take business partners for meals, and much business is conducted over lunch or afternoon drinks.  These invitations are used to strengthen the personal relationship. They may even extend to an invitation to a meal at the family home.  It is common to be invited to the family home for dinner and not to speak of business, but to develop a relationship with the family.

UNDERSTANDING BUSINESS RELATIONSHIPS IN INDIA

Indian society has very strong belief systems based on the family, and these extend into business. Up to 70 percent of business in India is controlled by family owned organisations.  Be prepared to meet a lot of family members, including extended family members. To do business with India you need to have a professional relationship built on a personal relationship. You must reach an understanding personally before you can start negotiating or conducting business.

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.

QUICK GUIDE TO INDIAN BUSINESS CULTURE

• There are many Indias within India. Be aware of the cultural diversity and be cautious about generalisations.
• Prepare yourself to be adaptable, flexible and patient.
• 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.

If you would like to build new or better business relationships in India, please contact Small Business Association of Australia on 1300 413 915 or for more information click here.