10 tips for doing business in India
Indians are mostly open and friendly, and follow familiar
conventions when it comes to doing business. Nevertheless, there
are one or two things worth bearing in mind.
1. English will help a lot.
Fourteen major and 300 minor languages are spoken in India, but the
official languages are English and Hindi. Most Indians of
managerial and technical levels, particularly in IT, have a good
command of English, and that is the common language for conducting
business. Your business card should show your details in English
(present it with your right hand as the left is considered
unclean).
2. In India everything takes
time. However, this is certainly changing, particularly
amongst IT professionals working in the Indian “Silicon Valley”,
with its numerous software facilities and large number of overseas
vendors. If time is an issue for you, make it clear to your Indian
partner that you need to start meetings on time. And during the
meeting itself, if other business is conducted simultaneously,
don’t be surprised: this is normal and does not indicate a lack of
interest in your discussion.
3. To greet someone, hold the
palms of your hands together and say, “Namaste,” giving a slight
bow. While this Hindu greeting is acceptable in all ethnic
communities, a firm handshake is common amongst urban westernised
Indians working for example in IT. (However, if you are male, offer
your hand to an Indian businesswoman only if she does so
first). Indian names can be complicated so address the person as
Mr/Ms/Dr and then the last name on their business card.
4. Meetings usually start with small talk.
Discussing one’s personal life is considered normal and friendly,
and popular topics are cricket, politics, films and economic
reforms. If you are offered refreshments, it is impolite to refuse,
though you can leave them untouched.
5. Indians may seem slow to accept new
ideas or proposals, but they are usually just exercising
caution. Openness to something new depends in Indian business
culture not only on the quality of a product or idea but on its
source and endorsement. So if someone has already implemented your
proposal or something similar, include these details along with
referrals from your other partners or clients in India.
6. Bargaining for price or
conditions is normal, so build buffers into your initial offer.
High import duties and taxes may add to the cost of products.
7. Setting deadlines: all decisions will take
time, particularly in bureaucratic, government-owned public-sector
companies. Deadlines are not considered crucial in India; a lot
depends on outside circumstances, for example religious holidays.
Try to understand your partner’s capabilities.
8. Business lunches are preferred to dinners and
are usually held in high-class restaurants or hotels. If you are
the host, remember that many Hindus are vegetarian, others eat meat
but not beef, and that Muslims don’t eat pork. Chicken, lamb, fish
and vegetables should therefore be on the menu!
9. Indians like to make visitors feel welcome so
you will probably be invited to “drop in” to someone’s house, “any
time” (phone first, though). Don’t forget that Indians consider a
direct “no” to be impolite, so always give a vague answer instead,
like: “Thank you, I’ll try.”
10. If you are invited to someone’s home, arrive
about 30 minutes late with a box of chocolates or sweets, or
something representative of your culture, wrapped in red, yellow,
green or blue paper (white and black are unlucky). Wash your hands
before and after the meal, and don’t forget that traditional Indian
food is eaten with the right hand. Alcohol is prohibited among
Muslims, Sikhs and in many other Indian communities, though this is
changing amongst urban, educated Indians. After the meal, offer to
reciprocate by inviting your hosts out to dinner – maybe on your
next trip over.