Doing Business in India: A Cultural Perspective

Doing Business in India: A Cultural Perspective


Joel stood by the windows of the Hilton and watched the lights twinkling in the harbor – tiny, glittering explosions of life. It was a quarter past nine in majestic Mumbai. Some Mumbaites were unwinding by the beach dining al fresco. Many were scurrying back home from work and the homeless were looking for a place to lay their heads for the night. The street below was bustling with activity and the loud, blaring sounds of rush hour traffic contributed to the environment the city is famous for.




It had only been a few days before that Joel landed in the subcontinent. In the back of his mind was the joint-venture that he had planned with a mid-sized Indian firm. Negotiations and meetings had followed each other everywhere in the past few days, but nothing concrete seemed to have been decided upon, yet. His future in this new, chaotic and strange land seemed bleak and unpromising. He couldn’t seem to get a grip of events and frustrated, Joel was almost on the verge of calling it quits.



The Indian economy had been booming for the past few years. The country held great promise for the future. Liberalized foreign policies had unleashed the entrepreneurial spirit of its people and many multi-national firms, attracted by the dusty plains of Deccan, had already set up big offices throughout the nation.



Joel and his associates had been very excited at the prospect of entering into a joint venture with this particular Indian firm and were quite optimistic about the outcome. Negotiations had started off quite well initially, but slowly, problems and misunderstandings arose as a detriment to finalizing the deal. Joel had attended several meetings in the past one-week and had expected a completed deal that morning, but it seemed like the Indians didn’t feel rushed to come up with a feasible deal and project plan. They had spent hours debating the objectives and long-term effects of the merger, but the discussions had rambled on and on without any concrete points being reached. Even after certain decisions were reached during discussions, the process was further prolonged by the necessity of going back to their senior colleagues for approval.



An enraged Joel tried to speed up matters, as a lot more issues had to be addressed, but the Indians felt that he was only interested in finalizing and implementing the deal. He didn’t seem to be concerned about debating the finer concepts behind the deal. They also, began to question his intelligence, abilities and sincerity. His informal way of addressing them also made them feel uncomfortable and not respected. All in all, they didn’t really trust him and the deal that he had carried all along and so eagerly looked forward to.



Trust had become a central issue between Joel and his Indian counterparts. Joel began to doubt the Indians capability of actually following through on the project and getting it done on time, therefore, making them a viable business partner became a huge question mark. On the other hand, the Indians were uncertain as to whether or not they could trust Joel. He also came across as tactless and rude.



Now, lets slightly examine with care as to where exactly this lovestory started falling apart. What was beyond Joel and gang as well as the Indians was that this lack of trust was mainly due to the cultural differences between the two countries. If only Joel had realized that the Indians viewed time differently from the Americans, he would definitely have been a lot more relaxed in his interactions. The Indians in turn, would not have viewed Joel as a pushy American who was only concerned about signing the deal, had they been a lot more clear about the American practical way of thinking and their approach to problem solving and project implementation. If either faction had been aware of how culture was a major factor in shaping business deals, they would have been able to adjust a little more and make each other more comfortable. This would have led to a sense of trust between them, business would have proceeded and the deal would have been negotiated to the satisfaction and benefit of all those who were involved.



Our cultures define our fundamental beliefs about how the world works and forms ways in which we interact and communicate with others and develop and maintain relationships. Doing business in a particular nation requires a focus on a multi-dimensional understanding of its culture and business practices. Understanding those differences and adapting to them is the key.



India is a complex country, and those arriving here to do business will discover that the path to success is often, not very smooth. The following tips will give them an idea of the working and business norms in practice here. These form the basis of doing business in India as well as closely connected to risks of doing business in India.



In the United States of America, efficiency, adhering to deadlines and a host of other similar habits are considered normal and are expected. But when it comes to India, one needs to understand that one is dealing with people from a different cultural background, that think and interact differently. As a result, what is considered to be reasonable and feasible in America may not work so in India and vice-versa.



Aggressiveness can often be interpreted as a sign of disrespect. This may lead to a complete lack of communication and motivation on the part of the Indians. One needs to take the time to get to know them as individuals in order to develop professional trust. Indians are very good hosts and will therefore, invite you to their homes and indulge in personal talk often. All this is very much a part of business. One is expected to accept the invitation gracefully. Taking a box of sweets, chocolates or a simple bouquet of flowers would definitely be a welcome gesture. Indians respect people who value their family. They will allow family to take priority over work, whenever necessary.



Criticism about an individual's ideas or work needs to be done constructively, without damaging that person’s self-esteem. As Indians are used to a system of hierarchy in the work-place, senior colleagues are obeyed and respected. Supervisors are expected to monitor an individual's work and shoulder the responsibility of meeting deadlines. Therefore, it is important to double-check and keep track of time. Educated Indians have learnt to adapt to the western methods of monitoring one’s own work and completing it on schedule.



An Indian who hesitates to say ‘No’ may actually be trying to convey that he is willing to try, but presuming the task to be unrealistic in nature, he may worry whethe he would get the job done. It is important to create a safe and comfortable work environment where it is okay to say "No" and also okay to make mistakes without the fear of repercussions.



In a group discussion, only the senior most person might speak, but that does not mean that the others agree with him. They may maintain silence, without contradicting him (or you) out of respect for seniority. Westernized Indians on the other hand can be quite assertive and direct and it is fine to treat them in the same manner. Politeness and honesty go a long way in establishing the fact that your intentions are genuine.



Women are treated with respect in the work place. They feel quite safe and secure in most organizations in India. Foreign women working here will find it easy to adapt to an Indian work environment. However, they need to plan their wardrobe carefully, keeping in mind the conservative dress codes in India.



Humor in the work place is something that some Indians are not used to. Most traditional Indians are teetotalers/vegetarians, so their eating habits need to be respected. Westernized Indians are more outgoing and do socialize and drink (excessively at times).



These tips mentioned above may not apply to all situations, as India is a land of contrasts and each person you meet will be unique blend of Indian/Western values. People from different socio-economic strata, educational backgrounds, class and religion may behave very differently.



For any expatriate the pace, pressure and protocol of living and working in a new country can be overwhelming, but there are many positive aspects to living, working and doing business in India – the valued friendships that one makes with Indians, the beautiful and exotic places to visit, the multi-varied cuisine to experiment with, and the many, many interesting things to buy. An expatriate who is prepared to accept the differences and make the necessary adaptations will definitely be greeted with the sweet taste of success in all business endeavors.

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