Goldman Sachs has predicted that in fewer than four decades India will be the third-largest economy in the world (behind China and the United States).
As a member of the BRIC group (Brazil, Russian, India and China), India is the second-fastest-growing market in Asia. Businesses around the world increasingly have India on their radar, so much so that booking a room is often difficult in a business-class hotel in major Indian centres like Mumbai, Bengaluru (formerly Bangalore) and New Delhi, even weeks in advance of a planned visit.
To appreciate the volume of international business traffic to India, one need only visit one of these cities.
With the world “beating a path” to India’s door, it is important that Canadian businesspeople understand certain fundamental features of Indian business etiquette.
Titles
In general, Indian businesspeople are more formal than their North American business counterparts, and we should respect that.
It is important to use titles (“doctor,” “professor,” “Mr.,” “Mrs.,” “Miss,” etc.) to address Indian counterparts.
Personal relationships/background research
Indian businesspeople place a greater importance on personal relationships than we do. They want to become acquainted before discussing business. It is not uncommon for an Indian businessperson to conduct due diligence on the person and the organization he or she represents prior to first meeting him or her.
At the first meeting, it is also not unusual for an Indian businessperson to ask questions that we might perceive as being “too personal” (marital status, age, etc.). Indians are usually curious about a prospective business partner’s educational credentials and his or her ties with influential associations and government-affiliated organizations.
It will be perceived as a sign of respect if you conduct due diligence on the background of the Indian businessperson prior to your first meeting. Those who do may be surprised at the appreciation that will be shown if early in the meeting one or two of his or her achievements is mentioned.
Business cards
Unlike the custom of other Asian countries, business cards may be given or received with one hand. However, on receiving a business card, it is important to show interest in it, usually by commenting on some aspect of it.
Also, translating the contents of your business card into Hindi on the reverse side will be perceived as a sign of respect for Indian traditions and culture.
Social activities
Family plays a central role in Indian life, and commitment to family life often leads businesspeople to prefer business lunches to dinners.
If a business dinner must be scheduled, it will be appreciated if the guest’s spouse is invited as well. Most Indian businesspeople do not drink alcohol. However, if they do, they usually do so moderately.
Indian business culture generally does not include attending nightclubs or lounges for after-dinner drinks.
It is also important to sample at least a small portion of any food or drink that is offered during a business meeting. The majority of Indians are vegetarian.
Negotiations/agreements
It is counterproductive to be, or to be seen to be, too aggressive or “bottom-line” oriented.
Respect is paramount during the course of negotiations. “Saving face” is extremely important and visitors should be sensitive to that. Of course, if one deals with counterparts with respect, that will not be an issue.
Resolutions of particularly contentious points should be done in private, out of the view of “junior” persons. In terms of written agreements, Indians are familiar with British-style contracts and will, in respect to larger transactions, retain sophisticated legal counsel.
Negotiations of definitive agreements can often stretch over long periods of time as Indian decision-making is usually consensual, and the fine points and details will need to be canvassed and settled prior to signing the agreement.
Accordingly, patience is the order of the day!
- Indians want to become acquainted before discussing business so be prepared to answer personal questions;
- commitment to family life often leads businesspeople to prefer business lunches to dinners;
- on receiving a business card, it is important to show interest in it, usually by commenting on some aspect of it;
- most Indian businesspeople do not drink alcohol;
- it is counterproductive to be, or to be seen to be, too aggressive or “bottom-line” oriented; and
- Indian businesspeople are more formal than their North American business counterparts.