Indian Business Culture: Top 5 Things You Need to Know
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Having a good understanding of the norms, values and customs in India is essential to successfully do business in the country. We will guide you through the cultural differences between European and Indian business culture that you should be aware of when taking your first steps in the Indian market.
1. Preparation: a good personal relationship with your business partner is essential in India
Personal relationships play a major role in Indian business culture, so it is important that you really take the time to build those relationships. For Indians, having trust in the person you are doing business with is very important. You are therefore expected to make the effort to get to know your partners and to continue to invest in the relationship.
For this reason, Indians talk more about personal matters during business meetings than we are used to in Europe. They will also ask you more questions about your private life. Do not avoid these kinds of questions, as that will across as rude and disrespectful. Try to show interest in the private life of your business partner by asking questions yourself and accepting invitations to events such as a birthday party of a family member of your business partner or maybe even a wedding. If you are going on a business trip to India, leave room in your schedule for possible dinners and other activities.
2. The first meeting: take local customs into account
Before you travel to India, it is important to plan your appointments at least a month in advance. If you want to set up a meeting with someone you have not yet met in person, it can help if a third person makes the initial contact. If you already know each other, make the appointment by phone instead of sending an email. This type of personal contact is very important to Indians, even when it comes to these small interactions. The best time for an appointment is either late in the morning or early in the afternoon. It is also advisable to confirm the meeting the week before and call again on the day itself before you get into the car.
A handshake is the standard way to greet each other in a business environment in India. However, you should take two things into account. First of all, in India the business culture is still very hierarchical. If you meet several people at the same time during a meeting, always greet the oldest person first. Secondly, if you are a man, it is important to wait for the women to take the initiative to shake your hand. It is not customary in India for men to initiate greetings with women.
Greeting someone with the traditional “Namaste”, where you place both hands on top of each other in front of your chest and bow slightly, is appreciated and shows respect for Indian customs. Due to the strong hierarchical structure in India, people are always formally addressed by their title and surname and will always address you as sir, madam or your title.
3. Business Card Etiquette in India
When meeting someone for the first time, business cards are usually exchanged after the initial handshake. A business card always contains the full name, profession, title or specialty, telephone numbers, email, and your company’s address and website. Since people in India are used to addressing each other by their titles, it is a good idea to include your own title on your business card. This conveys a certain seniority that Indians are sensitive to. When giving your business card, always present the card with the text facing the recipient so that he or she can read the text. Always give and receive a business card with your right hand or with both hands by holding the card at the ends.
When you are given a business card, always read what is written on it, even if you do not understand the text. This shows respect and interest in your business partner. They will do the same in return. Then put the card in a notebook, side pocket of your bag or the pocket of your jacket.
4. The business meeting: silence is a sign of respect
In India, it is considered polite to be a little late for meetings and gatherings, but by arriving on time you can impress your Indian business partners with your punctuality. There is no strict agenda or schedule during meetings, which often results in meetings starting and ending late.
If you are meeting several people at the same time and they have already joined you at the conference table, it is good to know that the most important people always sit in the middle, with their assistants on either side. The least important people therefore always sit at the ends of the table, furthest from the middle. Meetings usually start with small talk about personal matters. This is an important part of doing business and should therefore not be cut short. It is therefore wise to let your Indian partners take the lead in this part of thee meeting, they will indicate when its time to switch to actual business talk.
Business meetings in India are always very formal and at times quiet affairs. It is impolite to speak loudly or point at other people in the room. Indians are sensitive to body language, so a closed or aggressive posture, such as folded arms or hands on hips, should be avoided. In addition, silence is a very normal and even an important way in India to show respect for those present. Pausing before answering shows that you have listened to your partner and have thought about your answer.
In some companies, interruptions in meetings are not uncommon and people may answer their phones in the middle of the meeting. If this happens, to remain calm and not to show irritation.
5. Negotiating is a long-term affair in India
Because in India the trust between partners plays a major role in doing business, you should not expect to close a deal during your first meeting. In India, both the buyer and the seller play an important role in the negotiations and they must both ensure that they reach a suitable agreement. In India, negotiations are therefore conducted in multiple rounds and reaching an agreement is seen as a long-term matter.
If Indians say ‘yes’ to your proposal quite early in the negotiations, this does not mean that you have a deal. It simply means that they are listening to you and are interested. In India, everything is negotiable, so be prepared for aggressive proposals and considerable pressure from your business partner. Do not be alarmed by this and take your time to find a compromise point by point. The strong stance that Indians often take at the beginning of negotiations does not mean that they are not reasonable.
