Doing Business in India
With a population of over 1 billion people, India is an important player in the global business arena. India culture is an amalgamation of traditions, religions, and cuisines that are several millenniums old (Malik, 2007). Language, caste and religion have to be considered when doing business in India. This diverse culture often poses a challenge for international managers doing business in India.
The caste system in Hinduism has created a culture with strict hierarchical relationships in India. Often Indians define themselves by the groups they belong to. The family is the most important group and many of Indian businesses are family owned. This has made the Indian business arena to be informal when compared to the western world. Indians do business with friends, and mutual trust is important for any business dealing to succeed. Business attire in India is conservative and formal, with dark colored suits being most suitable for men. Formal titles such as Doctor, Professor or Engineer are used when addressing person (Samovar, Porter & McDaniel, 2012)
Business negotiations in India can be frustrating to international mangers that are not acquainted with the Indian culture. Samovar eta al., notes that the American “time is money” penchant for efficiency and speedy movement through a negotiation to final agreement does not work in India where negotiations are required to follow a strictly formal procedure albeit with a more friendly and relaxed atmosphere (2012). Moreover, the Indian culture does not encourage the use of ‘no’ as it is seen as disappointing to the other party. Punctuality is held highly in the Indian business culture but a flexible approach is required as business meetings can be rescheduled on short notice (Malik, 2007).
References
Malik, M. (2007). The Foundations of the Composite Culture in India. New Delhi, India: Aakar
Books.
Samovar, L., Porter, R., & McDaniel, E. (2012). Communication between Cultures. Hampshire,
UK: Cengage learning.
