The UK India Business Council (UKIBC) supports businesses with the insights, networks, policy advocacy, services, and facilities needed to succeed in the UK and India.
If you want to do business in India, a good understanding of the country’s culture and market is essential.
India is vast. With 28 states and the largest population in the world, it is a diverse nation encompassing many different identities, languages, cultures and religions. And while it is very difficult to make generalisations about Indian culture, here are a few tips that can help you understand business culture in India.
Introductions and greetings in India
A flexible approach is important and it is often best to be guided by the person you are meeting. Like with most places in the world, business etiquette requires a handshake though some Indians may use namaste – palms together with fingers pointing upwards, accompanied by a slight bow.
When entering a business meeting, always greet the most senior person first. Receive business cards with your right hand and put them away respectfully. Small talk is common at the start of a business meeting and could include questions about your family. It's also appropriate to ask after the family of business partners, and may be a good way of building trust.
In general Indians place importance on – and prefer – using formal titles. For example, if you are meeting a doctor or a professor, address them by their given title. The exception of course if they state otherwise.
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.
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 layers.
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 meaning can vary across cultures and countries.
Indians may have a particular difficulty saying “no”, as it can convey an offensive message. Instead, they may make 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 example, if you are trying to secure a meeting and there is some evasion, you could ask when would be convenient. If there is resistance in sending a purchase order, you could ask when it is likely that it would 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. Try to schedule your meetings well in advance. Bear in mind that the arrangements may change and may not be confirmed until the day of the meeting itself.
Punctuality is expected, but 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. 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 viewed as rudeness.
The role of hierarchy in Indian business
Indian businesses are often very hierarchical. In negotiations, decisions are generally made at the highest of levels. This means, decisions are unlikely to be made unless senior members of the company are present.
If you choose to set up an India-based office, you will need to consider these cultural differences. If your office does not follow a vertically structured hierarchy, with defined responsibilities, you will need to create a dynamic feedback and communication system between your UK and Indian employees. Interactions between UK and Indian staff may at times cause miscommunication.
You may well find that your Indian operations are much more flexible than your UK operations. Indians 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.
Training your UK and Indian staff about the cultural differences is 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.
