Unlike western societies, in India religion, fatalism and collectivism are all components of daily life and they need to be respected in order to maintain healthy and successful business relationships. The influences of Hinduism still remain strong within day-to-day living in India. Despite the fact of the traditional caste system being dismantled remnants still remain and can be witnessed in the Indian hierarchical structure of business practices and decision-making.
This also ties into the other two elements of Indian society, fatalism and collectivism. As a spiritualistic concept, the notion of Karma and that everything happens because it is supposed happen continues to heavily influence the decision-making process. Decisions which westerns may feel should be made urgently are otherwise treated as “things” that should take their destined course without any coercion. Therefore, be advised that situations may arise in which decision making my take longer than expected and don’t assume that the process will be rushed either.
Though there is a strong sense of tradition tied into daily business practices, signs of change are becoming more and more common. Following the economic reforms of 1999, India’s market has continued to change, strengthening and expanding itself. With its geographical positioning in the Indian Ocean, a major international trade route and its rich center of mineral and agricultural resources, India’s economy continues to witness increased inflows of foreign investments. India is also recognized for its fiercely competitive education system and being a hub for highly qualified labor pools of scientists, engineers and technicians, making it an attractive market for foreign businesses.
No matter what the industry is, foreign businesses should expect some degree of differences in business norms in India. Below we have included some basic business etiquette you should expect when developing and maintaining relationship with Indian firms.
Traditional Indian dress greatly varies across the regions in its colours and styles and depends on various factors, including climate. Popular styles of dress include the sari for women and the lungi or dhoti for men.
India's national sport is field hockey, even though cricket is the most popular sport. In some states, particularly those in the northeast and the states of West Bengal, Goa, and Kerala, football is also a popular sport. In recent times, tennis has also gained popularity. Chess, commonly held to have originated in India, is also gaining popularity with the rise of the number of recognized Indian grandmasters. Traditional sports include kabaddi, kho-kho, and gilli-danda, which are played nationwide. India is home to the age-old discipline of yoga and to the ancient martial arts, Kalarippayattu and Varma Kalai.
Indian festivals come in a vast variety; many are celebrated irrespective of caste and creed. The most popular holidays are Diwali, Holi, Onam, Dussehra, Bihu, Durga puja, the two Eids, Christmas, Ugadi, and Vaisakhi. India has three national holidays. Other sets of holidays, varying between nine and twelve, are officially observed in the individual states. Religious practices are an integral part of everyday life and are a very public affair. Traditional Indian family values are highly respected, although urban families now prefer a nuclear family system due to the socio-economic constraints imposed by the traditional joint family system.
Business Etiquitte
- Do use titles to address your Indian counterparts, such as “Professor” or “Doctor”. If he/she does not have a title, use “Mr”, “Mrs”, or “Miss”.
- Do wait for a female business colleague to initiate a greeting whether it is verbal or physical. Indian men do not generally shake hands with women out of respect.
- Do remain polite and honest at all times in order to prove that your objectives are sincere.
- Don't be aggressive in your business negotiations – it can be interpreted as a sign of disrespect.
- Don't take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands.
- Don't refuse any food or drink offered to you during business meetings as this may cause offence (sample small portions if anything). In addition, it is useful to keep in mind that traditionally, and religiously, majority of Indians are vegetarians and do not drink alcohol or smoke.
Languages
English enjoys associate status but is the most important language for national, political, and commercial communication. The major official language of the Indian Union is Hindi, which is the primary tongue of 30% of the people. Besides Hindi, other official languages include: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, Sanskrit, and Hindustani (a popular variant of Hindi/Urdu spoken widely throughout northern India). 700 dialects are also spoken. English has become a sort of "lingua franca" and is the accepted language for business and government.
