India 
Economy
India used to be a closed control-and-command economy until the early '90s. Since then it has opened its economy, and allows foreign investments in most industries except a few strategic ones.
Over the last 25 years, the Indian economy has enjoyed an average annual GDP growth of around 6%, without any of the boom-and-bust cycles that are found in many other developing economies.
India's main stock exchange, the Bombay Stock Exchange, has around 6,500 listed companies, which is second only to NYSE. A total number of 9,600 companies are listed across India's 21 stock exchanges. It has the third largest investor base in the world.
The national currency is the Indian Rupee, and is denoted as 'Rs.' Prior to the 90s, the value of the Rupee was controlled through government intervention. Since the liberalization of the Indian economy in the 90s, the Rupee has become a floating currency.
Starting as one of the least-developed countries, India has emerged as a global player in many industries. Some examples:
It is the largest producer of tea in the world, accounting for more than 30% of global production;
India is the second-largest cement producing country in the world;
The Indian pharmaceutical industry ranks 4th in the world in terms of volume;
Aside from the USA and Japan, India is the only country to develop its own supercomputer;
India is among only six countries in the world to develop its own satellite-launch technology;
With more than 800 movies a year, India produces the largest number of movies in the world;
India is the world's largest center for diamond cutting and polishing.
Since 2001-02, the Indian auto-component industry has grown very fast, and has emerged as the sourcing hub for almost all global automobile companies.
India is the world's 2nd largest fruit and vegetable producer.
In recent years, India has also emerged as a global player in Information Technology, and ITES [IT Enabled Services]
Entrance Requirements
India has no barriers to the entry of foreigners, and it is easy to get a visa to enter the country. However, due to historical enmity, entry from Pakistan is monitored, and can create hassles for a western traveler.
Making Appointments
Indians appreciate punctuality and keeping one's commitments. However, many visitors to India find it very disconcerting that often Indians themselves are quite casual in keeping their time commitments. One of the reasons for this is that in the Indian mind, time is generally not considered as the objective yardstick for planning and scheduling one's activities. Rather, for most Indians, the plans and schedules are contingent on other people and events, and therefore can--and do--get changed.
It is advisable to schedule your appointment at least a couple of months in advance. If you are making your appointments before coming to India, do emphasize that you will be in India for a short period of time, if this is the case. It is also useful to reconfirm your meeting a few days before the agreed upon date.
Though not essential, it often helps in getting an appointment if you have an Indian contact.
There is a distinct difference in the cultures of the government departments and business organisations. Compared to a business organisation, it is normally more difficult to get an appointment with officials in a government department. Also, in the government departments, there is a greater likelihood that your appointment may be rescheduled or that you may be kept waiting for as many as several hours before you actually meet the person.
Do be prepared for last minute changes in the time and place of your meeting. It is useful to leave your contact details with the secretary of the person, so that, in case there are changes, you can be informed.
It is advisable to make the effort to be early in order to keep your appointment. In most Indian cities, the roads are quite crowded, and during high-traffic hours, it can take you a long time to reach your destination.
Indian addresses can be confusing. This is so because the pattern of numbering the buildings varies across different places, even in the same city. This is further complicated by the fact that during the last few years, in many cities, the streets have been renamed. To avoid getting lost, it is useful to check 'how to reach there' from your contact.
Normal office hours are 10:00 a.m. to 5:00 p.m. However, in some large cities [e.g., Mumbai], some places of business start working earlier to avoid congested traffic while commuting. Increasingly, among the business organisations, there is also a trend towards a longer working day, which can start as early as 7:30 a.m. and last till 8:00 p.m.
Normally, lunch is for one hour, between 12:00 p.m. and 2:00 p.m.
In recent years, there is a trend towards luncheon meetings and 'power breakfasts', which are often the times when business is discussed.
More information on making appointments
Dinner appointments for business purposes are rare. Official dinners are mostly hosted as large gatherings, and are mainly meant for socializing and getting to know each other.
The work-week differs across organisations and sectors: Government offices work Monday-Saturday, with the second Saturday of the month as an additional holiday; most business organisations follow a five-and-a-half day work week; and, most IT and software companies have a five-day work-week, with Saturday and Sunday off.
The business and official work in India are done using the western 'Christian' calendar. The convention for writing dates is dd/mm/yy, e.g., December 25th, 2004 will be written as 25/12/04.
In most Indian business organisations, banks and government departments, the Financial Year is calculated from April to March. Since the end of March is the time for closing the financial year, people are very busy. Try to avoid scheduling an appointment around this period. The MNCs, however, mostly follow a January-to-December financial year.
Most Indians take vacations during the summers [April-June] and Mid-December to Mid-January. In addition, in Northern and Eastern India, a favourite time for taking vacations is around October, which coincides with Dussehra/ Pooja holidays [see below].
India has a long list of holidays. Some of these--e.g., Independence Day [January 26th], Independence Day [August 15th], Gandhi Jayanti [October 2nd], and Christmas [December 25th]--are observed according to the western calendar. The others, which are Hindu, Sikh or Muslim festivals--e.g., Pongal/ Makar Sankranti, Holi, Idu'l Zuha, Dussehra, Deepawali, Muharram, Guru Nanak Birthday, etc.--follow the lunar calendar. The dates for the latter holidays
are not the same in terms of the western calendar, and therefore, it is advisable to contact the local Indian Embassy/ Consulate to find out the holiday list for that particular year.
Since India is a culturally diverse country, different parts of the country also celebrate festivals which are regional in nature. Thus, each state also has its own list of holidays. You can get this list from the Tourism Department.
Guidelines for business Dress
In recent years, the dress code in Indian business settings has undergone a transformation. Moreover, it also differs widely across regions and business sectors. Therefore, it is difficult to make a generalization about the most appropriate way to dress that will be valid across India. However, the following points should assist you in making the right decision.
Normal business dress for men is a suit and tie. However, since India has a warm climate, often just a full-sleeved shirt with a tie is also acceptable. It is also important to select neutral colors, which are subdued and not very bright.
In most companies, particularly in the IT sector, however, the dress code is much more casual. It is not unusual to find people wearing T-shirts and jeans with sneakers. However, as a visitor, conservative, though not formal, dress is advisable.
For foreign women, pant-suits or long skirts, which cover the knees, are more acceptable to wear. The neckline of the blouse or the top should be high.
For women, a salwar-suit is also acceptable for business dress.
Jeans with a T-shirt or short-sleeved shirt are acceptable as casual wear in informal situations for both men and women.
You can wear casual dress if invited to a social gathering. However, if a foreigner wears an Indian costume
[kurta-pajama for men, and sari or salwar-suit for women], this kind of dress is also appreciated, and often seen as a gesture of friendship.
General guidelines
Most Indians enjoy good conversation on a variety of topics. Even in business meetings, it is common and normal to start discussions with 'small talk' on other unrelated issues. In fact, this is seen as a way of building rapport and trust.
In general, Indians are open and friendly, and compared to many countries in the West, have a lesser sense of privacy. It is not unusual for a stranger to start up a conversation with you on a flight or a train journey.
Sometimes, Indians ask questions which can be seen as too personal and intrusive. However, one must remember that discussing one's family and personal life is normal among Indians. In fact, often enquiring about the other person's family is seen as a sign of friendliness.
Indians seldom express their disagreement in a direct manner; open disagreement is likely to be interpreted as being hostile and aggressive [though expression of disagreement by someone who is superior or elder is, by and large, acceptable]. Normally, disagreements are openly expressed only with those with whom one has built a trusting relationship. Otherwise, disagreements are expressed in an indirect manner. In most cases - unless, it is a crucial issue - it is advisable to avoid expressing direct disagreement.
Selecting and presenting an appropriate business gift
Gift giving is customary in India, and is seen as a sign of friendship. However, it is generally not expected at the first meeting.
It is advisable not to give expensive gifts, unless you are very close to the person. Normally, large and expensive gifts are given only by family friends and close relatives--and for specific family occasions, such as a wedding. Since Indians try to reciprocate a gift, if it is too expensive, it can cause embarrassment for the recipient.
Use red, yellow, green or blue coloured wrapping paper. White and black colors are considered inauspicious.
Normally, gifts are not opened in the presence of the giver. However, sometimes your Indian host may insist on your opening the gift, and would expect appreciation for his/her choice.
If you are invited to an Indian's home for dinner, you must take some kind of gift, such as a box of chocolates or flowers. If your host has children, carrying a gift for the child [a toy or a book] is also appreciated.
If you are visiting an Indian during a festival, it is customary to carry a box of sweets.
If you are giving money as a gift, do remember that 11, 51, 101, 501, etc. are considered auspicious numbers. Your gift would be more appreciated if it is in these denominations.
Before the opening up of the Indian economy, many foreign products were not available in India, and would have made a good gift. However, now most foreign-made products are accessible to Indians, and have, consequently, lost their value as a gift. However, Indians do appreciate a gift which is representative of your, or a specific, culture [e.g., Dutch wooden shoes/clogs, a Swiss knife, French perfume, etc.].
If you have worked or lived with Indians, a framed photograph with them as a gift would be viewed as a warm and friendly gesture.
Different flowers have different connotations across India. If you are planning to give flowers, do check with the florist as to what would be appropriate. A bouquet of roses, however, is the safest choice across the country.
Drinking alcohol is culturally not accepted in most parts of India. Many Indians do not drink at home. However, if your host drinks and keeps drinks at home, a bottle of scotch whisky or wine will be appreciated.
Be cautious in giving a leather item as a gift. Since many Hindus are vegetarians, they may not appreciate items made of leather.
A jewelry item is considered an intimate gift, and would be viewed as inappropriate if given by a man to an Indian woman. It is acceptable if the jewelry is given as a gift by a woman; however, gold jewelry is normally exchanged/given only among family and relatives.
Language
Presenting and exchanging business cards are a necessary part of doing business in India. You must bring plenty since people exchange business cards even in non-business situations.
English is the common language for conducting business, and therefore, it is not necessary to get your card translated into any Indian language. If you are not from an English-speaking country, then you must get your brochures and other promotional material prepared in English.
Intermediaries and Contacts
Foreign joint ventures and technical collaborations are not new in the Indian business environment. Well-known American, European and Japanese companies have been doing business in India for more than two - and even more - decades. Therefore, if you are representing a well-known global company, you will find that, by and large, Indians are comfortable and open to negotiation, and an intermediary is not required to establish one's credentials.
If, however, you are representing a lesser known country or a small company, it will help to get some referrals from your other clients/partners in India.
Indian laws and bureaucracy are quite intricate and cumbersome. Besides the statutes of the Central government, there are numerous pieces of legislation which differ considerably across the states. It is, therefore, advisable to hire an Indian lawyer or liaison person, who can help you to maneuver through these intricacies.
Protocols
Though its importance may vary in degrees across regions and sectors, hierarchy matters in India.
Try to get your first appointment with the person who is high in authority in the concerned department/organisation. It is likely that s/he may later direct you to meet someone in the middle-level hierarchy, who would be actually relevant for your business. However, coming through the superior person is likely to help when it comes to implementation of decisions.
You will often find that, as a sign of respect, the subordinates stand up when the boss enters the meeting room. This is a normal phenomenon in the Indian context. For many people coming from more individualistic cultures, this creates a dilemma - to rise or not. The best option is to get up from your seat and greet him/her personally.
Women executives, in senior positions, are a relatively new phenomenon in the Indian business environment. If you are a woman, you will normally find people respectful and courteous, but not very comfortable in working with you for business deals. You may have to make extra efforts to get them to discuss business with you.
Negotiating Process
The pace of business meetings in India is comparatively far more relaxed than in some of the western countries, such as the United States.
Indians are somewhat lax about time. Even if you arrive on time, it is likely that the scheduled meeting may start with some delay, or that you are kept waiting. This often happens, and does not necessarily mean much. However, a long delay in the meeting can be a signal that you are being given less importance.
Indians do not directly jump into business negotiations; in fact, that may be seen as rude. Building a relationship is often considered a prerequisite to doing business.
Meetings normally start with small talk about non-work-related topics [ranging from weather to whether your journey was comfortable], before people start talking about business issues. Do not feel surprised if you are asked some 'personal' questions about your family, children, etc.
The negotiating process, cont'd
Similarly, showing hospitality is part of the negotiation process. Often meetings start by offering tea/coffee and snacks. It is courteous to accept the offer.
Compared to many other cultures, 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.
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. 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' or 'I will have to check with others about this.'
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.
Do not insist on commitment in the first meeting. Making a decision, in Indian organizations, is often a long-drawn out process. This is not only because of the bureaucratic nature of many Indian organizations, but also because a decision may have to be ratified by people who may not be present at the negotiating table.
Acceptable public conduct
The traditional way of greeting in India is performed by holding your palms together, as in praying, and saying 'Namaste' [nah-mas-tay] or 'Namaskar' [nah-mas-kar], with a slight bow.
While, the Namaste or Namaskar are Hindu ways of greeting, they are also accepted among all other communities. These other communities, however, also have their own traditional greetings. For instance, among Muslims, the traditional greeting is 'Salaam-Wale-Kum', which is responded to by saying 'Wale-kum-Salaam.' Similarly, Sikhs traditionally greet each other by saying 'Sat-Siree-Akaal.'
Shaking hands is also an acceptable way to greet people among urban and westernized Indians.
Among the younger urban Indians, a 'Hello' or 'Hi' with a wave of the hand is also an acceptable form of greeting when making informal contact.
In general, Indian society is conservative about heterosexual physical contact and relationships. Refrain from greeting people with hugs and kisses.
Shaking hands with women, since it involves physical touch, is not universally accepted in Indian society. Among the urban westernized Indians, you may find some Indian women offering to shake hands. However, it is advisable to shake hands only when it is offered. In most other situations, 'Namaste' is the safest way to greet--in fact, it will also be appreciated as a gesture of friendliness.
It is customary to allow women and guests to proceed before yourself.
Standing erect with your hands on your hips is likely to be seen as an aggressive and dominating posture.
Among Indians, it is normal for them to use their hands to gesticulate while talking with each other. Folded hands, or hands in one's pockets while talking are likely to be perceived as arrogant gestures.
Whistling and winking are usually perceived as rude and unacceptable behaviours, as they have sexual connotations.
Talking to a woman who is walking alone is not advisable, since it is likely to be seen as a proposition or other inappropriate gesture.
Seniority, age and authority are respected in India, both in business and in public life.
More tips
Feet are considered unclean in India, so avoid pointing your feet at another person. In the case that your feet or shoes touch another person, you are expected to apologize by saying 'sorry.'
Indians do not maintain continuous eye-contact while talking with others. Direct eye-contact may be seen as intrusive. On the other hand, do not feel uncomfortable if you find an Indian gazing at you; this is because Indians are curious--to the extent of sometimes being intrusive--about foreigners.
The comfortable distance to be maintained during an interaction is much closer in India than in most Western countries. In general, a distance of about 2 or 2 ½ feet is seen as comfortable. However, since India has very high population density, in public spaces [e.g., public transport, a queue, etc.], don't be surprised if you find people almost rubbing against you.
The public spaces [e.g., markets, roads, public transportation, etc.] in India are far more crowded than in the West. You need to be careful while crossing roads, and of pick-pockets who can steal your purse/ wallet.
Being a poor country, you are likely to find beggars in most public places. It is advisable to ignore them, since if you give them alms, you are likely to be pestered by many others.
Most Indians are very courteous to foreigners. However, many also see foreigners as a target for being swindled. You need to be careful about people who try to give you 'great deals'--do check their credentials before giving them money.
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