Chapter 7
India

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Logic and emotion, individuality and social feeling, poverty and affluence, life and lifestyle, value and indulgence, and the past and the future simultaneously coexist in India. All these paradoxes converge to make India what it is.

It Happened in India,1 Kishore Biyani

Introduction

Impressions of India, especially for those who have not yet visited the country, often come from watching movies like Slumdog Millionaire, The Best Exotic Marigold Hotel, and A Passage to India. Although each portrayal captures some aspects, what makes this country so fascinating is the extent to which India defies categorization.

Is India's population largely impoverished? That depends on your criteria. A quarter of the population is considered to be middle-class, according to a survey conducted by the Asian Development Bank, the majority of whom exist on $2 to $4 a day.2 McKinsey's Global Institute projects that by 2025, India's middle class will have swollen to more than 580 million people and will represent the world's fifth-largest consumer market.

Is India successfully nurturing and keeping entrepreneurs rather than losing them to places like Silicon Valley? Yes and no. Most Indian parents still prefer to see their offspring adopt careers in engineering, the law, or medicine. In traditional families, an Indian man's marriage prospects are detrimentally impacted if he's not employed by a big-name company. But as more of India's 430 million 15 to 34 year olds3 aspire to create, not just work for, major companies, the previous “brain drain” is slowing down.4

Is India a homogeneous culture? Not at all. The differences in foods, belief systems, dress, and languages among Indians can be explained by geography and history. The north faced many hostile invasions over the centuries and became a more “mixed” culture. The south—protected on three sides by water—was host to sea-faring traders, such as the Portuguese. Many interviewees expressed the view that northern Indians, historically the “guards of India,” are more assertive in their business dealings than in the south.

Bear in mind these contradictions as you read through this chapter. Much of your experience in India depends on whether you are doing business in the north or the south, with a multinational or family operation, and the extent to which your contacts have been educated or have done business in the West.

Quiz

How much do you know about India? Answer the following questions as True or False to test your knowledge. (The Answer Key at the bottom includes page numbers that refer to the topic):

  1. _____1. Former Prime Minister Indira Gandhi was the daughter of Mahatma Gandhi.
  2. _____2. The date 1/5/20 signifies January 5th, 2020.
  3. _____3. India is bounded to the east, west, and south by the Indian Ocean.
  4. _____4. India has the greatest number of family-controlled businesses in Asia.
  5. _____5. Some of India's biggest financial institutions are headed by female CEOs.
  6. _____6. The highest status within the Hindu varna, or caste, system is given to the Kshatriyas, members of the armed forces and policemen.
  7. _____7. The Indian film industry is affectionately known as Bollywood.
  8. _____8. When Hindus invite people into their homes, they consider them gods.
  9. _____9. Gujarat is one of four states in which the sale and consumption of alcohol is banned.
  10. _____10. Buddhism was founded in India.

Answer Key: 1. F(p. 138); 2. F (p. 131); 3. F (p. 127); 4. T (p. 140); 5. T (p. 146147); 6. F (p. 142); 7. T (p. 139); 8. T (p. 145146); 9. T (p. 137); 10. T (p. 130).

Country Basics

This section provides information in an easy-to-read format to help you quickly grasp some of the basics necessary to navigate this culture.

Historical Timeline

A critical way to show respect for another person's culture is to have knowledge of their country's history and current affairs. Table 7.1 on page 126 outlines a few key events related to India, together with concurrent world events.

Table 7.1 Key Historical Events

Period/Dates Description/Events World Events
1947 India gains independence from Great Britain. Partitioning of India and Pakistan along religious lines. Princess Elizabeth marries Philip, Duke of Edinburgh in Westminster Abbey, London.
1948 Mohandas Gandhi assassinated by Hindu extremist Nathuram Godse. Chiang Kai-shek becomes president of China.
1966–77 Indira Gandhi serves as India's first and only (to date) female prime minister. First human heart transplant operation performed by Dr. Christiaan Barnard in South Africa.
1971 Bangladesh (formerly Bengal in British India, then Pakistani province) becomes independent state. Women in Switzerland get right to vote.
1984 Indira Gandhi assassinated by one of her Sikh bodyguards, Satwant Singh Bhakar. Brunei achieves independence from the U.K.; Desmond Tutu wins Nobel Peace Prize.
1998 India declares itself a nuclear weapons state. Google founded.
2014 Parliament agrees to the creation of a 29th state (formerly part of Andhra Pradesh): Telangana. The XXII Olympic Winter Games take place in Sochi, Russia.
2017 Presidential elections scheduled. Hong Kong, South Korean, and Singaporean presidential elections scheduled.
2019 Legislative elections scheduled. Japan to be the first Asian country to host the Rugby World Cup.5

Full Country Name and Location

The Republic of India is the seventh largest country in the world by area, slightly larger than Argentina and roughly one-third the size of the U.S. India's neighboring countries are Bhutan, China, Nepal, Pakistan, Bangladesh, and Myanmar. India is bounded by the Arabian Sea to the west, the Indian Ocean to the south, and the Bay of Bengal to the east.

Government/Political Structure

India is the world's largest democracy. Their constitution came into effect in January 1950 and is said to be the world's longest written constitution. The Indian parliament operates similarly to the British model. National elections take place every five years. The head of government is the prime minister; the head of state is the president. The last national elections were held in April and May 2014.

Population and Economic Centers

The July 2014 CIA World Factbook estimates the population of India to be approximately 1.24 billion, the second largest in the world. The country has six centrally administered union territories and 29 federal states, each with its own capital. New Delhi is the country's capital. Slightly more than 31 percent of the population lives in urban areas.6

The main ethnic groups are Indo-Aryan (72 percent), Dravidian (25 percent), and Mongoloid and other (3 percent).7

The major business centers and populations (2011) are outlined in Table 7.2 on page 128.8

Table 7.2 Major Business Centers

Business Centers Former (Colonial) Name Population (Millions)
Ahmedabad 6.4
Bengaluru Bangalore 8.5
Chennai Madras 8.7
Delhi 16.3
Hyderabad 7.7
Kolkata Calcutta 14.1
Mumbai Bombay 18.4
Pune 5

Economy

India is ranked 142nd out of 189 economies in terms of ease of doing business, according to the World Bank Group's Doing Business 2015 report.9 Its 2013 GDP was ranked 10th by the World Bank10 and the composition of its GDP by sector was services (56.9 percent), industry (25.8 percent), and agriculture (17.4 percent).11

Corruption Perceptions Index

India ranked 94th least corrupt out of 177 countries and territories with a score of 36 out of 100.12 This annual index, compiled by Transparency International, measures perceived levels of public sector corruption.

The Central Bureau of Investigation is the anti-corruption agency that conducts investigations in India.

Human Development Index

India ranked 135th out of 187 countries and territories.13 The HDI, compiled by the United Nations Development Programme, is a composite index of life expectancy, education, and income statistics.

Global Gender Gap Index

India ranked 114th out of 142 countries in terms of gender equality with a score of 0.6455.14 This annual index, compiled by the World Economic Forum, assesses gender gaps based on economic, political, educational, and health-based criteria.

Climate

The climate ranges from tropical in the south to temperate in the north, with three seasons: summer (hot)—March to May; monsoon (rainy)—June to October; winter (cool)—November to February.

Languages

Hindi is the official language, spoken by 41 percent of the population, with English the lingua franca of business, government, and higher education. According to 2013 People's Linguistic Survey of India,15 there are 780 different languages and dialects in India. The most common include Bengali (8.1 percent), Telugu (7.2 percent), Marathi (7 percent), Tamil (5.9 percent), Urdu (5 percent), Gujarati (4.5 percent), Kannada (3.7 percent), and Malayalam (3.2 percent).

Hindi is not commonly spoken everywhere. For example, in Rajasthan (capital Jaipur), almost 91 percent of the population speaks Hindi. In Maharashtra (capital Mumbai), only 11 percent do; the most commonly spoken language in that state is Marathi. In southern states like Tamil Nadu (capital Chennai) and Karnataka (capital Bengaluru), Hindi is rarely spoken.16

Belief Systems, Philosophies, and Religions

Indians self-identify as Hindu (80.5 percent), Islam (13.4 percent), Christian (2.3 percent), Sikh (1.9 percent), and Buddhist (0.8 percent).17 Note that Buddhism was founded in India.18

For an overview of belief systems, philosophies, and religions, please refer to Chapter 4, pages 6465.

Time Zones/Daylight Savings

India has a single time zone, India Standard Time (IST). It is 5.5 hours ahead of GMT (Greenwich Mean Time)/UTC (Coordinated Universal Time). It does not operate under Daylight Savings.

India is 10 and a half hours ahead of U.S. Eastern Standard Time (nine and a half hours ahead in Daylight Savings Time). See www.timeanddate.com/worldclock.

To calculate time in India, add 5.5 hours to UTC/GMT.

Telephone Country Code and Internet Suffix

The Indian telephone country code is 91 and its Internet suffix is .in.

Currency

Their currency is the Indian rupee (INR). One rupee is divided into 100 paise; however, coins under 50 paise are no longer considered legal tender.

100,000 rupees equals one lakh; 10,000,000 rupees equals one crore. Be aware of the differences in how numbers are written and displayed in India.

Table 7.3 on page 131 shows a comparison between ways of writing Indian and Arabic numerals.

Table 7.3 Indian Numerals Compared to Arabic Numerals

Indian Numeral System Arabic Numberal System
5,05,000 505,000
12,12,12,123 121,212,123
7,00,00,00,000 7,000,000,000

Note use of different separators for numbers.

Business Culture, Etiquette, and Customs

This section covers business culture, etiquette, and customs.

Fiscal year

The Indian fiscal year is April 1 through March 31. Dates are written as day, month, year; for example, April 1, 2020 would be written 01/04/2020.

Working Week

The structure of the Indian working week is outlined in Table 7.4. Central government offices are closed on Saturdays.

Table 7.4 The Indian Working Schedule

Industry Business Hours Days of the Week
Businesses 09:30–17:30 Monday–Friday
Half day Saturday
Banks 10:00–17:00 Monday–Friday
10:00–12:00 Saturday
Lunch 13:00–14:00

Holidays and Festivals

Some Indian holidays are determined by the lunar calendar and change from year to year. In Table 7.5 on page 132, floating holidays are designated with an asterisk. On specific holidays an office may remain open, with limited staff. Check with your embassy or trade office before planning business travel.

Table 7.5 Indian Holidays and Festivals

Date Name
January 1 New Year's Day
January 26 Republic Day
February/March Ramadan (Muslim)*
March Holi (Hindu)*
March 7 Hindu Fire Festival
March/April Good Friday (Christian)*
March/April Easter (Christian)*
May 1 Labor Day
May 5 Buddha Purnima (Buddha's birthday)
End of July Eid al Fitr (Muslim)*
August 15 Independence Day
August/September Ganesh Chaturthi*
October 2 Mahatma Gandhi's Birthday
October Durga Puja (Hindu)*
End of October Muharram, Islamic New Year*
End of October Diwali, Festival of Lights (Hindu)
December 25 Christmas Day

Given the vast number of events and celebrations associated with the different religions in India, the holiday table is limited to a few of the major festivals.

Business Dress/Appearance

Business attire for both men and women is conservative for the first meeting, and then smart casual—depending on the company culture. International organizations with a dress code encouraging suits and ties for men may relax this rule in India because of the temperature and humidity. In major metropolitan areas, Indians are likely to dress in short-sleeved shirts and pants rather than traditional Indian attire.

Women are advised to keep legs covered and avoid wearing sleeveless dresses or blouses. Indians in the south have appreciated Liz attending meetings wearing salwar kameez (baggy pants and a long-sleeved tunic with matching long scarf). It is less typical for Western men to dress in the long tunics (called kurta) commonly worn by some Indian businessmen.

News Sources

Here are some popular news sources in India:19

Most-read Hindi daily: Dainik Jagran: www.jagran.com

Business Cards

Indians tend to be innately curious and, given the hierarchical structure of their lives, look to see where you fit. Include titles and degrees (Ph.D, J.D, M.B.A) on your business card. English is the language of business, so no need to have your cards translated.

Technology

India is one of the fastest-growing global telecommunications markets. Latest figures rank India sixth for the number of Internet users20 and number 17 globally for the number of Internet hosts.21 Expect widespread access in major metropolitan and urban areas, but less in rural areas. Check with your hosts about the likelihood of power cuts and timings of regular power outages that affect even major cities. According to Akamai Technology's State of the Internet Report, India has one of the slowest average Internet connection speeds in the Asia Pacific region.22

Gifts

Indians love giving gifts. If you stay with a business partner's family or visit their home, don't be surprised if you receive a gift, perhaps a local artisan's work, even if you only remained a few hours. Among our Indian business friends who drink alcohol, gifts of liquor have been appreciated as they can be expensive and difficult to buy locally. Other ideas are nice pens or European chocolates. Try to find an item an Indian cannot buy easily at home. Avoid black and white wrapping paper as these colors are associated with funerals and considered unlucky.

Introductions, Greetings, Personal Space, and Eye Contact

The traditional greeting in India is placing hands in a prayer-like position, chest-high, while bowing slightly and saying “Namaste.” You may be greeted with Namaste and/or a handshake; follow the lead of your host.

You may be called auntie (if you're a woman) or uncle (if you're a man) by younger people. Family relationships are important, and these titles are used as a way to allow a stranger to fit in. The word ji (gee) is an honorific used after someone's name in Hindi-speaking regions to signify respect.

At least an arm's length is considered the respectful distance to stand when meeting with Indians.

Useful Phrases

Table 7.6 on page 135 contains phrases useful to know when traveling to India.

Table 7.6 Useful Phrases for Indian Travel

English Hindi Pronunciation
Hello/General greeting Namaste nah-mahss-TAY
How are you? Aap kaise hai AHP kay-seh HAY
Please Kripaya krip-ah-YAH
Thank you Dhanyavaad doohn yah-VAHD
You're welcome Aapakaa svaagat hai AHP-kah SWAHG-aht HAY
Yes Haan haan
No Nahin nah-HEE-n
Excuse me Shama kare shah-MAH kar-EH

Names

When meeting someone whose surname is Chandrasekaran, for instance or referencing former Indian Prime Minister Jawaharlal Nehru in a talk or presentation, be sure to practice the correct pronunciation beforehand. This is not just good manners, but avoids the potential for insulting your Indian counterpart, especially because many names such as Lakshmi and Ganesh are also names of Hindu gods. Several online sites offer written and verbal guidelines.23

Meetings and Negotiations

The higher up in business you are, the greater your status. Your family background or class, education level, formal title, and connections all hugely influence your standing in meetings, as well as an Indians' willingness to do deals with you. (See explanation of the caste system on page 141.)When negotiations begin, be sure not to start off with your best offer, as Indians love to bargain.

Presentation Styles, Conversational Topics, and Humor

One author, Liz, was the keynote speaker at a Rotary regional event in Coimbatore. Many speakers stood behind the lectern and used notes; others were more casual. One member, a motivational speaker, used the whole of the stage and slides to inject humor in a way that would not have been out of place at a Western conference. All had one thing in common—they demonstrated a strong command of their topic. Indians respect expertise.

You may be asked questions that are much more personal than you would expect in your own country, such as “Are you married?,” “Where did you go to school?,” and “Who do you know?” They are trying to figure out where you fit in the hierarchy. Avoid criticism of their infrastructure, such as trash and the state of many roads, discussions about poverty, the dalits or untouchables, and their country's relationship with Pakistan.

Gestures

The Indian head wobble—waving the head from side to side—is a multipurpose signal that ranges from a silent ‘yes’ and ‘thank you’ to an indication that the person you are speaking to understands what you are saying. This does not necessarily indicate agreement.

Notable Foods and Dishes

There are vast regional variations in the foods offered throughout India, depending on both geography (what can be grown) and climate. Here are just some of the specialties on offer:

  1. South India: Rice or rice-based dishes are popular, including idli (steamed rice cakes, typically eaten with pickles and sambhar—a vegetable stew—for breakfast); dosa (pancakes stuffed with spiced potatoes and other vegetables); and chicken or vegetable biriyani.
  2. North India: Bread is more common than rice at meals (for example, naan, stuffed or plain parathas, roti, or chapatti). Given the colder climate, meals are comprised of thick, creamy, moderately spiced gravy dishes such as paneer (cheese) or daal (lentil) makhani.
  3. East India: Strong Chinese and Mongolian influences, for example, momos (steamed wontons). Rice-based dishes served with pickles are also popular.
  4. West India: West India features a diverse range of highly spiced dishes. In Gujarat, Thali—a large number of dishes served on a round metal platter with different compartments for rice, vegetables, sweets—is popular.

Specialty Dishes

Favorite dishes in Indian cuisine include:

  • Tandoori chicken: Chicken marinated in yogurt, seasoned with tandoori masala spices, and roasted in a clay oven
  • Rogan josh: Gravy curry dish with braised lamb or goat and aromatic spices
  • Chole bhature: Spicy curry chickpea dish served with fried flour bread

Dining Etiquette

The following principally applies to eating in the home, where Indians will happily invite you to cement a new relationship. This advice differs somewhat from eating in a restaurant.

Wash your hands directly before and after meals. Most globally experienced Indians will provide silverware, but you may choose to also eat with your right hand, as do many Hindus. Never use your left hand, which is considered unclean. Many dishes make up one course and serving takes place at the table. Items are passed using the left hand to avoid using the right hand that has touched food and been near the mouth. Avoid offering anyone food from your plate or taking food from someone else's.

Your host's wife may take great pride in serving you. Don't be offended or think this is demeaning for her in any way. It is common and polite for a wife to do this for guests in an Indian home.

Food is a big deal in India—never refuse an offer of food. Do not leave food on a plate or leave chai, the spiced milky tea, in a mug. When you are satisfied, say “Thank you, I've had enough for now.”

When inviting business contacts to a restaurant, check everyone's dietary preferences and religious restrictions beforehand. A vegetarian who attends a meal you've arranged at a non-vegetarian restaurant may say something like “Today is a day of fasting. If you don't mind, I will just have water.” It's not necessarily true, but Indians are extremely polite and restrained; they won't want to make a fuss and make you feel bad.

Drinking and Toasting

Alcohol is prohibited in four states: Gujarat, Manipur, Mizoram, and Nagaland, and the union territory of Lakshadweep. Muslims, Sikhs, and approximately60 to 70 percent of Hindus do not drink alcohol. Women normally do not drink, especially in public.

Toasts are usually restricted to formal events—banquets and weddings—but only before dinner, not during or after the meal. A toast in English might be “To your health” or “To your prosperity.”

Tipping and Bill-Paying

With taxi, or auto-rickshaw drivers, hired drivers, and hotel maids, there is no need to use a percentage of your bill to calculate a tip. We were told that in major cities, giving a hired driver even 25 rupees is too much, and that rounding up to the next even amount is appropriate. Five rupees a day is typical for hotel housekeeping. In major metropolitan areas, a 10-percent service charge is usually included at restaurants, plus 10 percent for your server.

On one occasion, a group of visiting Canadian businesspeople was taken to visit local temples and other places of interest. At the end of the day, they tipped their young guide 500 rupees, the equivalent of 10 days' wages. Although $10 did not seem like a lot to the visitors, it caused infighting among other staff members who wanted to be chosen as tour guides in the future. If you are going to be generous, be discreet and ask the recipient to do the same or to share the tip with their coworkers to avoid behind-the-scenes disturbances.

Taboos

The following are taboo in Indian culture:

  • Entering someone's house or a temple wearing shoes
  • Entering a temple with your head uncovered if you are a woman
  • Winking and whistling in public
  • Using hands or fingers to point (use your chin or eyes instead)
  • Harming or disturbing cows (considered sacred to Hindus)
  • Stepping over someone on the ground
  • Not realizing you are being complimented

Heroes and Sports

Knowing about another country's heroes and sports offers opportunities to incorporate culture-specific references into your conversations and presentations.

Heroes

Heroes of India's history include

  1. Mahatma Gandhi (1869–1948): No list of Indian national icons would be complete without Mohandas Karamchand Gandhi, better known as Mahatma Gandhi, who led India to independence from British rule in 1947. He was assassinated by a Hindu fanatic a year later.
  2. Note: Former Prime Minister Indira Gandhi and her son, Rajiv Gandhi, are not related to Mahatma Gandhi. They were the daughter and grandson, respectively, of another prominent Indian politician and prime minister, Jawaharlal Nehru.
  3. Business leaders: Be aware of the high esteem in which Indians hold home-grown business leaders like Ratan Tata, KBE, Chairman Emeritus of the Tata Group as well as powerful female CEOs including Biocon's Kiran Mazumbar-Shaw and Chanda Kochhar, CEO of ICICI Bank.

Sports

Sports

  1. Cricket: A national passion in India and by far the most popular sport.
  2. Football (soccer): The second most-played and -watched sport in India.
  3. Field hockey: A national favorite. India's successful team has won eight Olympic gold medals.
  4. Tennis: A sport growing in popularity with the rise of internationally recognized Indian players.

Sports Figures

  1. Sachin Tendulkar (1973–present): Former cricketer. Known as one of the greatest batsmen of all time, he retired in 2013 after playing in 200 Test matches during which he scored a record 100 centuries.
  2. Saina Nehwal (1990–present): The first Indian to win a medal in Badminton at the Olympics, which she accomplished by earning a Bronze in the 2012 Olympics in London.

Other Cultural Icons

Bollywood—the name for the Indian film industry—is another national treasure. Some of the biggest stars include older actors like the distinctively white-goateed Amitabh Bachchan and Anil Kapoor, who played the game show host in Slumdog Millionaire. Many Indian actors have now become mainstream, thanks to movies like Million Dollar Arm (2014). Top movies in India include ‘the greatest Bollywood movie of all time,’24 Mughal-e-Azam, and the cult hit Anand.

Eight-Question Framework

This section reviews the framework to which you were introduced earlier in this book. Each of these questions address one or more business topics to help you attract and build the relationships upon which today's successful businesses depend.

1. How Do Indians Prefer to Act: Individually or as a Group?

But for differences in language and food, most Indians would feel quite at home within a Chinese family and vice versa. In both cultures, caring for the family (in particular, children) is paramount.

Anil K. Gupta and Haiyan Wang, Getting China and India Right25

Family life is a major influence across all aspects of Indian culture. This includes the way businesses are run and how individual negotiations and decision making are conducted. As a report by Credit Suisse outlined, India has the highest number of family-controlled businesses in Asia, with 67 percent of all listed Indian companies falling under this category.26 Some of India's biggest businesses are associated with a single face, invariably a family member or the founder such as Ratan Tata, Kishore Biyani, Nusli Wadia, and Anil Dhirubhai Ambani. The leadership styles of these patriarchs are typically described as being top-down and hands-on.

Bear two things in mind when it comes to doing business with Indians. First, Indians in senior management positions are comfortable making individual decisions and are not as consensus-seeking as many other Asian cultures. This speaks to the difference between Hinduism, which focuses more on the achievements of a single soul in this life, compared with the collectivistic nature of Confucianism. Second, in established industries and businesses, especially, a sense of paternalism permeates with employees looked upon as part of an extended family. The Theory X or authoritarian management style that works for many Indian businesses aligns with employees' expectations that they will be taken care of, be given clear directions (rather than expecting to show individual initiative), and provided with job security by a paternalistic organization.

Making decisions that take into account the broader social network and group loyalties was reflected by Geert Hofstede's findings on the Individualism Index (See Chapter 2, page 15). As he reported,27 India's intermediate score demonstrated both collectivistic and individualistic traits.

2. How Are Power and Authority Viewed in India?

Consciously or subconsciously, Indians, whether in their own country or abroad, still make judgments based on caste.

Narendra Jadhav28

This is a hierarchical, top-down society in which your various degrees, qualifications, and other accomplishments will be admired. It is quite acceptable to emphasize formal titles as Liz, one of the authors, does when she does business in India, where she is called Dr. Alexander. Nevertheless, what trumps external status symbols and titles links to what we were saying in the previous section about family mindset. Indians will do so much more for a person with whom they have developed a trusting relationship than someone merely well connected or with formal authority over them.

As Hari Ratan of Lateral Management Services in Chennai told us, “The board of directors from a large multinational bank came to India to hold a big meeting. The idea was to communicate their realization that India is the future. But they made themselves look stupid because they flew in, held their meeting, and then walked out. They failed to capitalize on their visit because they thought their presence was enough. The staff were dismayed that these high-ranking guys did not have the respect to walk across the room and say hello to them. If you think that just relying on your position to say to an Indian, “Okay, get it done,” you're not necessarily going to get things done. We all appreciate good relationships; in India, especially so.”

3. How Do Indians Compare Rules and Relationships?

In India, what works are relationships. Once a relationship is built, things will get done, which is contrary to first focusing on a task and “here's how it needs to be.”

Naveen Lakkur, cofounder and director, Compassites SoftwareSolutions Pvt. Ltd.

J.B. is the owner of a mid-sized Indian company that manufactures industrial fans and cooling towers. Throughout his 30 years in business, he has had two joint venture agreements—one with a German partner, the other with a U.S. organization. J.B.'s relationship with the Germans lasted 18 years and was ratified with a two-page document. Eight years into the relationship with his U.S. partners, J.B. told us he “couldn't get out of it quick enough.” Part of the problem was that the contract the U.S. Americans had insisted he sign was 120 pages long.

Trying to cover every possible contingency that might arise in business, while commonly practiced in many countries like the U.S., is contrary to the way Indians view the world. As Naveen Lakkur explained: “In a developed country like the U.S., many things are matured and systematized so a cookie-cutter approach is easily set in place. In a developing country like India with so much diversity, you have to be more adaptive and react in the moment. One of the reasons why Indians can travel to just about anywhere in the world and adapt to different business cultures is because of the flexibility we have learned from living in our own country.”

When it comes to contracts and other legalities, V. Srinivasan, past chairman of the Indo-American Chamber of Commerce for Karnataka, summed it up this way: “Indian businessmen work from their hearts. We believe in building personal relationships and that agreements are more for formality than anything else. We never refer to them, even in the event of a dispute, unless the situation becomes hopeless. For us, anything contractual separates the heart from the purpose.”

One way to think about doing business in India is to consider what happened in family banks years ago. An individual, personally known to the banker, would come in for a loan and be assessed based on the relationship. The process largely relied on the discretion and willingness of the lender to vouch for the person making the request. As Naveen Lakkur pointed out, Western systems now have systematized processes that invariably cannot be changed regardless of who is making the request. But this is not the way things are done in India. Indians prefer applying personal judgment to situations rather than follow established procedures.

4. How Do Indians Regard Time?

There are only two kinds of relationships: long-term and very long-term.

Rajesh Setty, cofounder and president of the cloud-based platform WittyParrot30

Consider the challenges of traveling in Mumbai, whose population is more than twice that of New York. There, as in other Indian metropolitan areas, you'll see road signs clearly asking drivers to observe lane discipline. Yet you'll find five or even six lanes of traffic weaving in and out of highways built to accommodate only three lanes. Traffic that includes three-wheeled auto-rickshaws, entire families perched precariously on scooters, drivers ferrying businesspeople around in sedans and SUVs, not to mention the cattle, stray dogs, and wild pigs that frequently roam unchecked in city centers. The result is nothing short of chaotic and one of the reasons why punctuality in India is more theory than practice.

You may find that although you would prefer to calendar meetings well in advance, your Indian counterparts appear resistant to do so. Although this may not apply when dealing with Westernized multinationals, executives in smaller businesses will give priority to family situations that crop up during the business day. For example, while we were researching this book, several of our Indian business contacts postponed interviews because of sudden, non-emergency family commitments. As explained in an earlier section, the highly family-oriented culture of India places great importance on personal responsibilities and relationships.

Indians take a long-term perspective, which is why they place so much emphasis on relationships that stand the test of time. As one HR executive pointed out, “Work can wait. If it's not taken care of today, it will happen tomorrow. That's the attitude we have.” It will help you considerably if you can adapt to that while doing business in India.

5. How Direct Is Communication in India?

Author and entrepreneur Mahesh Baxi recently launched a talent acquisition and management product called TalentOjo. He reached out to his friend Raj, a senior operations manager who worked for a multinational firm in Pune. Raj recognized that Mahesh's solution would be invaluable to the company and made an introduction to the head of HR, Sameer. After receiving a demo, Sameer said he loved the product but needed to get approval from his boss in the U.S. before he could agree to launch a no-cost pilot program.

After a week of silence, Mahesh e-mailed Sameer and was told he was out of the office but would get back to him the following week. That week came and went with no news. Despite making repeated calls and sending text messages, Mahesh did not receive the response he believed would be forthcoming—even to reject the program. When Raj stepped in several months later to ask Sameer to let Mahesh know what his boss had said, those communications were also ignored.

As Mahesh, who describes himself as an Indian with a Western mindset, explained: “There are two likely explanations for Sameer's lack of follow-up. If his boss in the U.S. had nixed the idea, Sameer would have felt uncomfortable conveying this negative response to me. If he didn't make the call because he wasn't as enthusiastic about the product as he'd led me to believe, he would also have found it hard to tell me that. Most Indians make no distinction between what is being requested and the person who is making the request, which is different to the way things are done in the West. For Sameer to tell me that the company did not want my product would be tantamount to disrespecting or criticizing the relationship I already have with his colleague, Raj. The longer Sameer ignored me, the more confident he would be that I would just give up, as by now that's what most Indians would have done.”

The key point being that in this culture, when a businessperson has an established reputation and is held in high regard by other colleagues, many Indians find it difficult to decline their services and avoid such confrontations by not responding at all. For additional ways that Indians communicate no without expressly using that word, see the article entitled The Seven Ways an Indian Programmer Says No.31

6. How Formal or Informal Do Businesspeople in India Tend to Be?

Nobody can hurt me without my permission.

Mahatma Gandhi

One of the formalities that most Indians exemplify and therefore appreciate in others is emotional restraint. Chennai-based consultant AVIS Viswanathan recalls an occasion when the head of a California-based IT company visiting Bengaluru lost his temper in front of a group of journalists about the state of Indian infrastructure and policy-making: “His inappropriate expression of a factual state of affairs became a big PR blunder. The man was berated by the press the next morning and even the normally lethargic Indian bureaucracy joined in the clamor.”

Few countries welcome outsiders discussing domestic affairs in a public forum. In India, a culture where respect and the control of one's impulses in consideration of others are highly regarded, international visitors need to be wary of speaking out without thinking through the ramifications, especially when doing so in a public forum. In this particular case, some segments within the media took offense and reported the CEO's faux pas. The company's PR machinery had to use their considerable crisis-management skills to try to contain the damage. More importantly, in terms of securing future business in the region, many Indian influencers in charge of IT and infrastructure development within that state made their discontent known to other senior officials within the company, which affected relations going forward.

7. How Aligned Are Indian Social and Business Lives?

“Can the business of business and the business of life be any different? If business becomes merely the means of living, then it loses meaning for us.”

Debashis Chatterjee, Timeless Leadership: 18 Leadership Sutras from the Bhagavad Gita32

Fifteen minutes into a drive with an Indian businessman she had just met, Liz was invited to his daughter's wedding in Bengaluru. Having attended and subsequently visited the family during her frequent visits to India, Liz is now considered an honorary member of the family. Following a presentation on thought leadership that she made to the employees of a software company in Pune, Liz accepted an invitation to dinner at the home of a senior manager. Other requests began to come in from that moment on.

It's unlikely you'll find a country where visitors are so easily and quickly integrated into your hosts' social lives than India. As Naveen Lakkur explained, in the Hindu tradition, the concept of atithi devo Bhava, means the guest is God. Most Indians take great pleasure in extending the hand of friendship by introducing you to their families. Indeed, if you don't receive an invitation to a business colleague or partner's home during your stay in India, you can consider this an indication that your relationship may not progress. If you plan to build trust, inspire respect, and create long-lasting business relationships in India, our advice is to graciously accept all invitations enthusiastically. You will not regret doing so.

8. How Is the Concept of Women in Business Handled in India?

We cannot afford to follow the traditional “jobs for the boys” culture. We have to survive in a very competitive global industry. Our only criterion is to select the best people.

Nandan Nilekani, CEO and cofounder of Infosys33

India is no stranger to strong, powerful women in business. The Forbes World's Most Powerful Women 2014 lists the following Indian businesswomen: Arundhati Bhattacharya, the chair and MD of the State Bank of India; Chanda Kochhar, CEO-MD of ICICI Bank; Kiran Muzumdar-Shaw, founder/Chair of Biocon; and Indra Nooyi, CEO of PepsiCo, who lives in the U.S. And a 2014 survey discovered that although female CEOs account for just three percent of Fortune 500 companies in the U.S., that figure jumps to 11 percent in the case of female CEOs of Indian companies.34

Ms. Sarada Ramani, the founder and president of Chennai-based Computers International, is a role model to younger women and is helping change the gender demographics of the Indian workplace. With respect to the challenges that international businesswomen might face when coming to India, she said, “Although India is a patriarchal society, we also respect hierarchy. Business visitors—male or female—will be exalted because we see you as knowledgeable authorities with a global perspective. As long as you start out with a friendly approach, you will be welcomed warmly.”

Ms. Ramani knows from experience how women in the IT sector have had to be assertive to make their mark and advises caution: “Men in India would take a step back if you used an assertive approach here. You will be given respect and find it more effective to take it gently and put your foot down more slowly.”

When asked what advice Ms. Ramani would give to an international businesswoman visiting, she said, “In the U.S., there are some neighborhoods you know are not safe for women. This is the case in India also. While some areas are totally unsafe for all women, a word of caution for international women visitors: Don't assume a man's mental makeup has changed as fast as women's modes of dress and levels of independence.” She advises it's important to dress discreetly, to be accompanied, and not go out alone late at night. Sharon's additional advice to female clients is to dine in your hotel at night unless accompanied by someone you trust.

Whereas the more conservative northern states have been slower to accept women in education and the workplace, says Ms. Ramani, the number of young women driving around on their scooters and maintaining their independence through work in major southern hubs like Bengaluru and Chennai is helping to shift long-held perceptions about women's roles in India.

Cultural Summary

Here are some key points to remember:

  • Although the U.K. and India share superficial similarities in legal and banking models, significant cultural differences exist.
  • Be patient with scheduling because India is relationship- and family-oriented; which may differ from your country if it is system-based.
  • Check performance with courtesy; realize that environmental factors such as monsoon season impact timing.

Self-Awareness Profile

This simple exercise prompts you to self-assess where you currently stand on topics related to the eight-question framework and compare this with the country culture. This visual will help you discover the extent to which you may need to adapt your current mindset and behavior to develop more robust business relationships. For details on how to complete this graphic, see the instructions given in the Introduction on pages xviiixix.

Consider copying the eight-question Profile or using a pencil so that you can see, over time, how you have adjusted your cultural mindset. You might also wish to create unique graphics related to each of the businesses you work with, as these cultural positions vary depending upon geographic location, industry, generational factors, and corporate profile.

Q1: What is your preferred way of doing business?

As an individual making autonomous decisions As a team member who seeks group consensus
1           2           3           4           5           6          

Q2: How comfortable are you in hierarchies in which power is distributed unequally?

Very uncomfortable Very comfortable
1           2           3           4           5           6          

Q3: How closely do you follow rules and obey the law?

Almost always It depends
1           2           3           4           5           6          

Q4: What is your general attitude toward time?

I prefer agendas, schedules, planning I prefer flexibility, fluidity without scheduling
1           2           3           4           5           6          

Q5: What is your preferred way to communicate?

Very diplomatically Very candidly
1           2           3           4           5           6          

Q6: What is your interpersonal style or level of formality in business interactions?

Very formal Very informal
1           2           3           4           5           6          

Q7: What is your view on socializing within business?

A waste of time Essential
1           2           3           4           5           6          

Q8: Should a woman defer to a man as the lead, if winning business in a certain culture depended on it?

Never Yes, absolutely
1           2           3           4           5           6          
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