INDIA BUSINESS

CULTURE

INTERNATIONAL BUSINESS THEORY

Submitted by- Jitendar Meena

 BUSINESS ETIQUETTE IN INDIA

 Greetings
 Business Culture- India

 Business Meetings

 Conversation Topics

 Negotiation

 Language

 Business Entertaining

 Gift giving

 Doing Business in India

 GREETINGS

 The traditional greeting consists of placing your palmd together

with the thumbs pointing up under the chin, a slight lowering of
the head and uttering Namaste (Pronounced na-mas-tai),
meaning “I am at your disposal”.

 With foreign negotiation the most usual greeting is a gentle

handshake when you introduce yourself and leave.

 Only westernized Indians shake hands with the opposite sex.

 BUSINESS CULTURE- INDIA

 Showing hospitality is part of the negotiation process.

 Often meetings start by offering tea/coffee and snacks.

It is courteous to accept the offer.

 Relationships and feelings play a larger role in decisions in India.

 In general, Indians tend to take larger risks with a person whose

intentions they trust.

 Thus, one’s credibility and trustworthiness are critical in negotiating a

deal.
 BUSINESS CULTURE- INDIA
 Indians are ‘polychronic’ people, i.e., they tend to deal with
more than one task at the same time. So be prepared for some
distractions/ disturbances during the meeting, e.g., a secretary
walking in to get some papers signed, or the conversation
sometimes digressing into unrelated topics.

 One must appreciate that such behavior / occurrences do not

show a lack of interest or attention.
 BUSINESS CULTURE- INDIA
 Indians are inductive in their approach to understanding things.
 In the Indian psyche, reality can be understood only in its overall
context.
 Knowing the personal, social and historical contexts(of people,
events, ideas, etc) are a precondition to comprehending them
accurately.
 Therefore, one should be prepared for questions and enquiries,
which may not seem to be directly related to the subject.
 To people coming from more deductive cultures, this behavior
often appears to indicate a lack of focus and digression.
 BUSINESS CULTURE- INDIA
 PowerPoint Presentations are generally accepted to start the
discussion.

 It is necessary, however, to send a more detailed proposal in

advance.

 Often, the details of the proposal are vetted by some middle-level

executive, who will then brief, the superior about them.

 In general, Indians are cautious in accepting a new idea or proposal.

 Openness to a new idea depends not only on its

quality, but also on its source and endorsement.
 BUSINESS CULTURE- INDIA

 That is, information about who else has implemented it or who

has proposed it has a major influence on the decision about a new
idea.

 In making a proposal, you must include such details accordingly.

 Indians usually do not express their disagreements openly and

directly, doing so would be considered discourteous.

 Instead, when differences arise, they may circumvent them by

statements such as
‘we will discuss this later’.
 BUSINESS CULTURE- INDIA
 Bargaining for the price or additional concessions is normal in
India.

 Indian negotiators expect and value flexibility in negotiation.

 Therefore, sometimes a straightforward offer may be perceived

as a rigid stand.

 It is always advisable to build some buffers in one’s initial offer,

which allow for bargaining later.
 BUSINESS CULTURE- INDIA
 Do not insist on commitment in the first meeting.

 Making a decision, in Indian organization, is often a long-drawn

out process.

 This is not only because of the bureaucratic nature of many

Indian organization, but also because a decision may have to be
ratified by people who may not be present at the negotiating
table.
 BUSINESS MEETINGS
 Handshake are exchanged on meetings.

 When addressing an Indian try and use the appropriate formal

title.

 Names speak volumes about an Indian’s background.

 When doing business in India, business cards should be

exchanged at the first meeting.

 The best time to arrange appointments with Indian managers

is before or after lunch.
 CONVERSATION TOPICS
 Families

 Tradition

 Foreign countries

 Cricket

 Politics and Religion

 NEGOTIATION
 Negotiations must be held at the highest level. The business culture
is very hierarchical.

 Middle managers do not take decisions, although they steer

proposals and give advice about them.

 The negotiation process is slow. You should give information

gradually.

 Indian negotiators never give a straight “no” because they consider

it impolite to do so.

 Instead they evade the issue, use the expression

“we’ll try” or try to prolong the negotiations.
 LANGUAGE
 Different states in India each have different official
languages.

 Central government only recognizes Hindi as the official

language of India.

 However, when doing business in India, English is the

language of international conference.
 BUSINESS ENTERTAINING
 Indians usually arrive late for social events and dinners.
Before dinner they devote a long time to aperitifs and
drinks(especially whisky).

 The after-dinner session does not exist. When they have

finished eating they get up from the table.

 The local saying “Indian eaten, Indian gone” expresses this

very well.

 Menus are usually vegetarian. Hindus do not eat beef

because the cow is scared.
 GIFT GIVING
 At the first meeting you do not need to give gifts. Later on or
when the deal is concluded, a bottle of whisky, a bright colored
tie or a box of spices(saffron is much appreciated) can be good
choices.

 You should also be careful when giving alcoholic drinks since

in some states there are restrictions for religious reasons or they
are banned for example at election time.

 Presents must not be wrapped in white or black paper since

these colors are associated with death.

 They must not be opened in the presence

of the person who gives them.
 DOING BUSINESS IN INDIA

 If there ever was an example of what a heterogeneous society

looks like, it is India.

 The differences between people due to region, religion,

language and caste make it very difficult for anyone to impart
general observations on the country.

 Behavior, etiquette and approach are all modified depending

on whom you are addressing and the context in which you are
doing business in India.
THANK YOU