The Executive Suite: Business Practices in India

Friday, September 27, 2013

Business Practices in India

Although the entire world has experienced an economic slowdown, India's economy has accelerated. The country has one of the world's fastest growing economies and with its large population and potential, India will continue to be popular for business. For people planning to go to India for business purposes, being aware of the business practices will allow for a smooth and successful interaction.

India's main language is Hindi, but the secondary language is English. Still, there are many other languages also spoken and in 1961, the Indian census listed 1,652 "mother tongues." Nevertheless, business with foreigners is conducted in English, particularly in the larger cities like the financial hub Mumbai and the political center New Delhi. Between Indians themselves, Hindi, or another local language, is commonly used.

Appointments are typically set as early as a month prior to actual meetings, and a confirmation call can be made one or two days prior to the meeting. The ideal meeting time is late morning or between 11 a.m. and 4 p.m. However, meetings will not take place during national holidays or certain festivals such as the Indian Independence Day or Diwali. And, because family is so important in Indian culture, it is acceptable for important business meetings to be canceled, even at short notice, if a family matter requires it.

Greetings

When greeting each other, Indians do the "namaste." They bow and clasp their hands together at their chests as a form of greeting. Foreigners meeting an Indian can shake hands. However, a foreigner doing the "namaste" instead of a hand shake demonstrates respect for Indian culture. Indians also use titles when speaking to each other. Thus, use "Dr." or Professor" when necessary. If a person's title is unknown, the formal "Madam," "Miss,", "Mr.," "Mrs." or "Sir" is appropriate.

Indians are polite and have a hard time saying "no" outright in response to a request. Hence, if an Indian says "Possibly" or "We'll see" within the business context, it is likely that he is actually saying "no." Politeness and diplomacy are expected, even when expressing a criticism or disagreement.

Indians prefer to do business with people they have relationships with. As such, building relationships is a key element to business. Being aware of recent cricket scores and current news events will enable smooth conversation and help build a strong business relationship in the long run. Asking after family members is also appreciated.

India's caste system divides its people into hierarchies. For instance, peons are hired within companies to do manual work. As such, if chairs and tables need to be reorganized, no one, other than a peon, will move it. Within the business context, this reality can cause meetings to come to a standstill if the peon is unavailable.