While world market forces have produced a certain uniformity in the practice of global business, each country, state, and region retains its individuality in the day-to-day practice of business. In India, for example, business life and home life are largely fused into synthetic cooperation, work and play. The private and the corporate are often brought together in the common thread of the day-to-day. The following is cultural and practical information that should aid you in your business and personal interactions.
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Understanding the cultural realities that could positively impact your business relationship is the key to success in India. There are some basic facts that can equip you with an understanding of Indian business life to help you optimize your success. Cultural life in India can be described as a constant negotiation between strongly held traditional values and emerging modern business and personal practices. While this dynamic may sometimes cause frustration to foreigners doing business in India, it is also the means by which India has been defining itself in relation to the global market, protecting its own resources, and attempting to positively benefit Indian interests as much as possible while becoming a formidable player. After India's independence in 1947, the Indian government enacted a number of protectionist laws that made India relatively isolated from the larger free-market global economy. Under the reforms of the last two decades, however, India has emerged onto the world stage as one of the most intriguing and potentially profitable markets of the developing world. Some restrictions and even the pace of business life in India may appear less efficient than their Western counterparts, but this should not deter the forward-thinking businessperson. With a little patience, great profits are possible. |
Chai (Tea) is a common drink at social gatherings. |
Business Transactions and Protocol. In the U.S., the virtues of good business include efficiency, adhering to deadlines, streamlined communications, and a host of similar matters. In India, however, many of these virtues are underplayed or absent. In their place are unique sets of issues that help define business culture in India. Below we review those we think are most essential in seeing to the success of your personal interactions in India.
Not all of the items listed below may apply to all companies and industries in India. In many cases, the larger industries or those companies well-versed in foreign business are often closer to their Western counterparts. For example, the IT industry in India is thoroughly multinational and, as a result, is an exceptionally efficient industry in terms of international trade and business practice.
Timing. In general, the workday is from 9am to 5pm, though most inter-business matters are conducted between 11am and 4pm. Most businesses have a one-hour lunch. The workweek is generally six days long, with Sundays off. Some businesses give their employees every other Saturday off, or make a shorter work day on Saturday.
Business is not conducted during the numerous government and religious holidays. Different holidays are observed throughout the many regions and states of India. As dates for the holidays change from year to year, verify this information with the Indian Tourist Office, Consulate or Embassy before scheduling your visit.
Delays. Indians appreciate punctuality but don't always practice it themselves. Keep your schedule flexible enough for last-minute rescheduling of meetings.
In India delays are inevitable, particularly when dealing with government bureaucracy. The Indian government is well-known for moving at a slow pace, and communication within the country can sometimes be a challenge. (See module 3 on the benefits of procuring an agent.) However, if one knows this in advance and plans accordingly, these delays can be avoided or lessened.
The Indian Company-Family. In many companies in India, strict hierarchies are adhered to, and the CEO of a company takes on the mantle of a father figure. Depending on your position within this hierarchy, you may have to play a variety of roles. Emphasis in the workplace is often placed on protocol, manners, and obligations. The chain of command is often strictly enforced, and breaching this chain can have adverse effects. For example, an employee will always call his or her superior "Sir" or "Madam," and an employee will rarely expect to do tasks outside of their job description unless specifically asked to do so by a superior. Furthermore, one should first approach the senior-most person in an organization, even though a subordinate may be delegated the work requested. If nothing more, this is an opportunity to share a cup of tea with the boss and introduce yourself.
Business Dress. Formal business attire is normal for the workplace in India unless otherwise made explicit. For men suits and ties are appropriate. However, in very warm weather (April-June usually), men may opt for an Indian safari suit, which is a comfortable suit made of lightweight cotton consisting of a button-down, untucked shirt, and matching pants. For casual wear, short-sleeved shirts and long pants are preferred for men. Shorts are acceptable for men only when exercising; women who jog should wear track pants. Businesswomen should wear conservative dresses or pantsuits. Dresses should not reveal too much of the legs. Pants for women are also acceptable. Sandals or chappals are an alternative during the hot months and the monsoon.
Your Indian friends will probably invite you to weddings, naming ceremonies, and related events. For a Western female guest, it would be appropriate to wear a sari on these occasions, if you so desire. Your hosts will interpret it as a gesture of good will and equality if you make the effort to wear an Indian outfit. For men during cultural ceremonies, a well-made kurta and pajama is appropriate. This consists of a long thin shirt, usually made of silk, and thin matching pants. Women often wear a similar outfit called a salwar kamiz. Of course, Indian women often wear a sari for formal occasions.
Names & Titles. There is a reverence for titles in India. Whenever you can, use professional titles such as Professor and Doctor. For those without professional titles, use courtesy titles such as Mr., Mrs., or Miss. One will also hear common titles and honorifics in Hindi used in printing and in conversation. These include affixing to the beginning of a name the word "Sri" or "Shri" for men and "Srimati" or "Shrimati" for women. At the end of names, one will often add, "Ji". Wait to be invited before addressing someone by his or her first name.
To the left, men
model formal attire.
a salwar kamiz.
Interpersonal Relationships and Corporate Politeness. The hierarchical nature of Indian society demands that the boss be recognized as the highest individual in authority. In some offices, employees rise each time the boss enters the room to acknowledge respect. Employees also tend to follow the lead of their superiors in other actions and aspects of the work environment. Even if an employee may think that the boss is wrong, he/she would often find it inappropriate to disagree. The boss makes all of the decisions and accepts all of the responsibility. Consequently, you'll often find that subordinates are reluctant to accept responsibility. If you are the boss, it's often your presence that's important, so that the negotiations can take place at the top level. By and large, subordinates will be able to meet only with a subordinate and bosses with bosses. In a group discussion, only the most senior 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.
Similar to a family, many smaller businesses function on handshakes, verbal agreements, and trust. While it should be obvious that one should not base an international business transaction simply on trust, one should take the time to get to know one's business contacts individually in order to develop professional trust. Professional trust can move mountains, especially mountains of stalled paperwork. Such personal contact in the largely impersonal world of global commerce can be the extra push needed to begin transacting business with a particular company or industry.
Talking about your friends and family is an important part of establishing a relationship with those involved in the business process. Many Indian businesses are run by families. Within family-run businesses, business affairs are often restricted within the family and there is a distrust of outsiders. For example, often no one else is allowed to conduct new business when the head of the family is away. The head of the family usually keeps firm control by limiting business information even within his own family.
Interpersonal skills such as the ability to form friendships are sometimes considered more important than professional competence and experience. Nevertheless, there is admiration for accomplishment, such as previous successful business ventures or an individual's university degrees.
Many Indians are generally too polite to directly answer no. Equivocal answers are considered more polite, rather than a straightforward refusal. For example, when declining an invitation, an Indian may be more likely to answer, "I'll try," rather than "No, I can't." An Indian who hesitates to say no may actually be trying to convey that he is willing to try, but it may also indicate a negative response.
Criticism and Aggressiveness. While moderate aggressiveness is often revered in the Western workplace as a sign of confidence and ingenuity, in the Indian context it can be seen as a sign of disrespect, particularly if it is from a subordinate or from someone unfamiliar. Criticism about individuals, ideas, or work needs to be done carefully and constructively. Supervisors are expected to monitor an individual's work and take the responsibility of meeting deadlines. Educated Indians tend to follow Western methods of monitoring one's own work and completing it on schedule.
All things considered, one should expect a range of experiences in the workplace, ranging from traditional hierarchical and formal environments to less formal, more Westernized workplaces, especially in the entertainment, advertising, and IT sectors.
Gender and the Workplace. As is the case in Western societies, women in India are finding themselves more comfortable in the workplace, but equality between the sexes by no means has been achieved. Men still dominate the working world in India, as in the U.S., but times are changing, especially in new economy sectors. By and large, women feel quite safe and secure in most Indian organizations. Foreign women working in India will probably find it easy to adapt to an Indian work environment. However, it is necessary to bear in mind the conservative dress codes and modest gender interactions.
Food Taboos. Keep in mind that most Hindus do not eat beef, and most Muslims do not eat pork. For Muslims, other types of meat must be ritually slaughtered. Most Jains do not eat meat, honey, or many kinds of vegetables. Some Indians are strict vegetarians, so you should always take this into account.
As is well known, the left hand in India has particular connotations of uncleanliness and inauspiciousness. When dining, be sure to eat, if possible, with your right hand.
Serving Alcohol. Although Islam prohibits drinking and the Sikh religion prohibits drinking and smoking, not everyone is strict in these observances. Traditional Indian women, regardless of their religion, do not smoke or drink, but Indian women of a certain social position sometimes do.
Among those who drink alcohol, the fine liquors are appreciated, especially whiskey, ideally imported. Johnny Walker Black Label has the most prestige. Some of the many brands of Indian beer are good. One can find good Indian wines, especially in the state of Maharashtra.
It is better to ask your guest: "What would you like to drink?" rather than "Can I get you a beer?" Even guests who are drinkers will not drink alcohol on certain occasions such as religious festivals or if there is an older, respected individual present (such as one's boss). Always have juice and soft drinks available for the non-drinkers.
Entertaining for Business. In India, the host-guest relationship is quite important, and it is normal for business contacts to 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 be a welcome gesture.
Businesswomen can take Indian businessmen out for a meal without causing awkwardness or embarrassment to the men.
If you are planning to host an Indian business guest, be sure to find out about any dietary restrictions prior to planning an event. Some Indians do not drink alcohol or eat meat or fish. However, many Indians do drink alcohol and eat meat, though beef and pork should always be avoided. In most cases, if a large event is planned both vegetarian and non-vegetarian options can be made available. An easy and inexpensive option is to have the event catered. This insures religious customs are maintained.
Lamb, chicken, and fish are the meats eaten by all Indians who are not vegetarians. The food at the buffet table should be clearly labeled so everyone finds it easy to decide what they can eat. Ensure that you have plenty of vegetarian dishes.
When you are hosting a social event, every guest should be contacted personally by phone, even if you have already sent a printed invitation. Be aware that Indian guests will not always respond to an R.S.V.P. request, or attend even after insisting that they will. Invitations should be sent out early and phone calls should be placed closer to the party day.
Husbands or wives should be invited to bring their spouses to a social function, though it is not uncommon that the spouse will not attend. Some guests bring their own guests, so be prepared for a larger number than expected.
Business Lunches/Dinners. Many of your business interactions will not be as formal as hosting an event or attending one. As in the West, much business takes place over a meal at a restaurant. One note on tipping may be in order: over-tipping is discouraged. In better restaurants, 10-15% is a sufficient tip, if the service charge hasn't been added to the bill. When in doubt, you may certainly ask your dinner companion what would be appropriate.
For more on Indian food and drink, see: http://www.foodguideindia.com/
DAY TO DAY CONCERNS
This is the kind of meal one would be served
on a special occasion; it is called a thali.
Many websites list cultural information on day-to-day life in India. Below are a few selected topics that are relevant to business travel:
Being a House-Guest. Most Indians will remove their shoes when entering a home, as well as a temple or mosque. So be prepared to slip off your shoes when invited in to someone's house. If you stay overnight in an Indian home, you may not always have your own room. The "guest room" is a concept known only to the rich. In most middle-class homes, the bedroom is wherever the bedding is rolled out.
When you stay in a house with servants, and the servants have had extra work because of your presence, it is an appreciated and thoughtful gesture to give them money as a gift when you leave. Nevertheless, consult with your hosts and let them tell you the appropriate amount to give. Giving too generously, in relation to the servants' monthly pay, may put your hosts in an awkward position.
Exchanging Gifts. Gifts, in general, are not opened in the presence of the giver. If you receive a wrapped gift, set it aside until the giver leaves. Don't wrap gifts in black or white, which are considered unlucky colors. Instead, use green, red, and yellow, since they are considered lucky colors. When invited to an Indian's home for dinner, bring a small gift of imported chocolates or flowers. If you are staying with a family, feel free to ask them what they would like.
Images of dogs are considered unacceptable to Muslims, so never give toy dogs or gifts with pictures of dogs to Indian Muslim friends. Many Hindus do not use products that are made from cattle. Consequently, most leather products may not be appropriate gifts for Hindu friends.
Daily Etiquette. In India public intimacy is not common. Indians of all ethnic groups disapprove of public displays of affection between people of the opposite sex. Refrain from greeting people with hugs or kisses. Outside of the work setting, if you are male it is prudent to avoid talking to a woman who is alone.
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Most Indians avoid physical contact between men and women in public. Westernized Indians will shake hands with the opposite sex. If you unsure of whether to offer your hand, the best policy is to follow your counterpart's lead. Western women should not, however, initiate handshaking with Indian men. The traditional Hindu greeting and farewell is "namaste." To perform the "namaste," hold the palms of your hands together (as if praying) below the chin, nod or bow slightly, and say "namaste" (nah-mas-tay). This greeting is useful for foreigners in any circumstance in which a handshake might not be appropriate. Moreover, it's a sensible alternative to a handshake when a Western businesswoman greets an Indian man. Pointing with your finger is considered rude; Indians prefer to point with the chin. Feet are considered unclean, so never point your feet at another person. You will be expected to apologize whenever your shoes or feet touch another person. Whistling under any circumstances is considered rude and unacceptable. |
Gratuity & Alms. If you want to tip a taxi driver, simply round up the fare. Tipping for taxis, however, is wholly optional, unlike at a restaurant where it is expected. When making purchases at a store, your change is often simply placed in your hand without explanation of the amount. Keep plenty of small change on hand, as street merchants and taxi drivers will often claim that they don't have change.
The average visitor to India will not only marvel at the beauty and complexity of its culture, but also at the depth of the poverty it holds. If you are moved to give money to the poor, it is our recommendation that you do so by donating funds to a known and reputable charity, rather than distributing change to beggars on the street. Often children who beg have a "manager" who will take the money from them. If you want to give directly to the poor on the street, we suggest you give food.