22..1 –  Overview 

India is a South Asian country with the second biggest population in the world after China (1.1 billion) and is scheduled to be the third-largest economy in the world by 2050 after China and the USA, according to Goldman Sachs.

Its population has a large and increasing middle class of some 300 million people. Indians are proud of the huge variety of their country, including the six metros (metropolitan cities) of Delhi, Mumbai, Hyderabad, Bangalore, Kolkata and Chennai, its 28 states, its 14 official and 300 minor languages, seven major religions (Hinduism, Islam, Buddhism, Sikhism, Parseeism, Jainism and Christianity). They are also deeply aware of the difference between the cities and the rural areas and the poverty and wealth that exists side by side in India.

Hindi is the official language and the majority of Indians (80% ) are Hindus. English is the lingua franca of the country, including among Indians from different regions but is a particular variety of English, different in some respects from English used internationally. There are 11 other official languages.

The famous caste system, which divided Hindus into four groups, Brahmins (priests), Tshatriyas (warriors), Vaishyas (merchants) and Sudras (clerks), together with the Dalits (untouchables) was outlawed in 1950 but still has some social values. India won independence from British rule in 1947 and became a republic in 1950. Many Indians settled in Kenya and Uganda but came to Britain in the early ’60s.

India and the UK share many superficial similarities in the way they conduct business. Legal, banking and administration systems have many synergies with British procedures. This is not surprising, as many Indian business practices originated during the Raj, the era of British colonial domination from the eighteenth century to the country’s independence in 1947. However, these apparent similarities mask significant cultural differences.

Indians think the British are much more formal than we really are, which accounts for their sometimes old-fashioned approach to us and the use of what has been called ‘Dictionary’ English. Equally, Britons must be careful not to patronise. This is all too easy to do after the decades of Carry On films that caricatured Indian speech and mannerisms. The Indians you deal with will probably be highly qualified, and many have wide experience in a number of industries. Show respect for their abilities and point of view.

22.1.1 – Values and attitudes

Values and attitudes are the key to the way a community thinks, derived from parents, schools, education, social environment and media. These values and attitudes will be reflected in business behaviour.

22.1.2 – Core values:

22.1.3 – Family

The first value for Indians is their family. They recognise a wide variety of relatives as immediate family, and it is common for different generations of the same family to live in a property together. The father is the absolute head of the household. First and foremost, Indians earn money to support their family.

Foreigners are often unaware of the enormous pressures of family life, religion and environmental issues (such as the monsoon) on Indian working life. Don’t assume that someone who is occasionally late or requests time off is slacking. This is usually made up for in other ways. If there are problems, be prepared to sit down and talk with people.

22.1.4 – Relationships

In the first place, India is a relationship business culture, while the UK is, by and large, a systems business culture. The British don’t have to be friends with you to work with you. Indians are different: they appreciate a family atmosphere at work, so take time to learn names – it’s a sign that you care. Expect people to ask you a lot of personal questions: Indians are emotional, and they appreciate seeing the human side of the people they deal with. Kindness and empathy are key to success in India.

22.1.5 – The guest is king

Indians show great politeness and consideration to guests, and they extend this courtesy to foreigners. You will meet will politeness and courtesy and should be careful to respond in kind.

22.1.6 – Devotion

Indians are devout and belong to a variety of different religions with different religious preferences. Hindus eat no beef and venerate the cow. Muslims will not touch pork or ham, Sikh men wear long hair under a turban and carry a ceremonial knife. Followers of Jain eat no root vegetables, such as onions, garlic and potatoes, Most Indians follow a mainly vegetarian diet with meat eaten occasionally.

Although India has no official religion, it is a strongly religious society with great respect for age, tradition and sacred symbols. Hinduism and Buddhism are the two main religions, but there is also Jainism, Sikhism, Christianity and Islam.

22.1.7 – Authority

India is very respectful of authority. This extends to not taking decisions beyond their immediate responsibility, not challenging instructions and not contradicting managers – even if they are wrong. It’s important to check instructions have been understood and to follow up on implementation.

22.1.8 – Respect

It is also important for Indians to protect personal dignity and they will go a long way to prevent you from losing face and will want to protect their own. They hold respect for older people, people in authority and the foreigners hold a special position in Indian society. It is important to recognise what may seem exaggerated politeness and deference in some cases as what it is – respect.

22.1.9 – Behaviour profile

Britain tends to conform to a profile of informality, task-based, strictly time-based, and unemotional business behaviour. India is on the whole much more formal, much more relationship-based, flexible in relation to time and a belief that showing your human side in the business relationship is important.

22.1.10 – Communication

Regular contact by phone and email and frequent personal visits are important when you’re doing business with Indians. If you try to communicate simply by sending occasional formal emails, no matter how detailed and clear they might be, you won’t build the kind of relationship that is so prized in India.

Flattery and compliments are an important way of putting people at ease when you’re developing the relationship. Beware, though, that this inevitably means that people may say what they think you want you to hear rather than objective truths. The word ‘no’ has harsh implications. Evasive refusals are more polite, so say something like, ‘I’ll try,’ instead. Learn to develop a tolerance for ambiguity in conversation.

Indians value eloquence in spoken communication, which can lead to long speeches delivered with passion. They will normally present the reasons for doing something first and the conclusions afterwards, which may conflict with American and British approaches. The British and the Americans will tend to work the other way round, say what they want and then explain the reasons. Indians may not always understand western humour, but they appreciate charm and laughter, so rely on those approaches to get you through. Politeness and praise are important, and people often use ‘we’ rather than ‘I’. Indian body language is generally expressive and important to communication – but don’t be confused by the nodding of heads when people are listening to you. It says, ‘We are paying attention’, not ‘We agree with you.’

Oral agreements are very important in India. The phone – and increasingly the mobile – is a vital communications medium. Telephone answering machines are often seen as impersonal, and may not be responded to.

22.1.11 –  Meetings and negotiating 

Indian business is unhurried, and people take time to discuss the finer points of a project. But implementation can move extremely fast. So expect negotiations to take longer than you are used to what you see as efficient time management may be viewed as aggressiveness or greed in India. Time spent at the beginning discussing all the points of the relationship will save time later. There will be a difference between managers who are used to working in the old family-run businesses and those who have experience with multinational companies. The latter will behave much more in ways that you are used to.

Indians are open to being persuaded. They appreciate eloquent speech and elaborate description, and it’s also useful to outline your education, expertise and experience. Your audience will want to give feedback: allow time for this when you are presenting, and indicate when you will accept questions.

Respect for education and formality means that Indians use titles and surnames when they first meet you. Don’t use first names unless you are asked to, although the younger generation gets on first-name terms much faster. Don’t offer to shake hands unless your Indian counterpart does. You don’t normally shake hands with women in India, but westernised women will sometimes offer their hand.

Agendas are not strictly adhered to. The aims of a negotiation will be revealed early in a discussion, but the objectives may not be divulged till later. They may say what they want to achieve in general terms but the details may take time to emerge. Indians are usually flexible, patient negotiators, and they often use personalised and sometimes emotional arguments. They are usually willing to compromise, especially in the interest of forming good long-term relations.

Negotiations often involve large groups, although individuals may be given the responsibility to pursue discussions beyond initial meetings. Remember that contracts are often considered as statements of intent, which can be modified, an approach that can be confusing to Westerners. This is because the first and foremost aim of an Indian negotiation is to achieve an agreement on which the relationship can be built. The details can be managed later. Indians tend to see contracts as the beginning of a negotiation, not the end. But anything written will be held to and will be scrutinised carefully.

‘Do and taboo’ conversations in India. As a multicultural, diverse society Indians are very tolerant, especially of foreigners. When you get to know people you can discuss anything you would in the UK but the following guidelines may be helpful.

22.1.12 – Organisation

Indians are masters of improvisation and flexibility, and their attitude to time reflects this. They believe in cycles – the equivalent of the saying, ‘What goes around, comes around.’ Adaptability is therefore a necessary skill for visitors doing business. Your pre-planning may not be acted on until you arrive, but when you do get there, it will be put into practice fast. So although the overall process of business is quite time-consuming and demands patience, individual actions will be accomplished very fast. Some say it’s easier to see the CEO of an Indian company at three hours’ notice than at three months. Company organigrams are not fixed, and people may be given additional internal responsibilities in your absence or be transferred to you without notice. Be prepared for change when you arrive and maintain a relaxed attitude. Keep in regular contact with colleagues to stay up to date with changes in personnel responsibilities and job movements. Indian managers believe that the prime factors in winning promotion are connections, education and hard work. 

22.1.13 – Team-working 

Indians often feel happier working together on tasks that Westerners would normally do on their own. For example, Emails are often not acted on, as people feel more confident talking things through face-to-face, so be prepared to follow up requests with a phone call to discuss issues.

A team is usually headed by a charismatic leader, who will often have family or trade group connections; remember that these may influence his decisions.

22.1.14 – Leadership

Indian companies operate a top-down system of management and all major decisions will be taken at the top of the company, so make your approaches at this level. Indians prefer established processes, and new ideas will have to be sold convincingly to your new colleagues. Persistent persuasion and appeals to emotion are often more successful than hard logic or fact. Remember, too, that Indians appreciate a win-win situation, and compromise is, therefore, acceptable to them.

Listen carefully to proposed solutions. They may seem illogical to you, but will usually work in the Indian context. People do not express disagreement directly. Disagreements may be expressed in writing or face to face. Women can occupy senior positions in business and administration in India. However, Indians generally are not accustomed to women in authority and may feel awkward dealing with senior foreign women.

22.1.15 – Socialising and gift-giving

Don’t refuse refreshment – it’s an insult. It is customary to decline the first offer, but you should accept the second or third. Business lunches are preferred to dinners. Most Indian meals are vegetarian with a little meat on the side but remember that Hindus do not eat beef and Muslims do not eat pork. People drink water (only from sealed bottles), soft drinks or beer. Evening entertaining is quite often done at home: if you are invited, arrive 15 to 30 minutes late. Wash your hands after a meal.

Gift-giving is common, but if you receive one, don’t open it in front of your visitor. Green, red and yellow are seen as lucky colours, but black and white as unlucky. Traditionally the head and the ears are viewed as sacred and the feet as dirty, so don’t point your feet or touch another with your shoes (if you do so, apologise).

·        Map from www.ciaworldfactbook.us, a vital source of up-to-date information

·        Text from The World’s Business Cultures and How to Unlock Them, See www.worldsbusinesscultures.com