Doing Business in India

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Doing Business in India

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Doing Business in India 

As the world's second most populous nation, with more than one billion people, India is projected to become one of its biggest economies. It is tipped to nearly draw level with the United States by 2050.

For foreign executives, doing business for the first time in India can be a bewildering experience. There's the new -- different business customs, bureaucracy and the dizzying scale of the population -- but also the familiar.

You'll likely be dealing with people who speak the Queen's English, and who graduated from top Western universities.

You can get lulled into a false sense of security -- but for people dressing a little different and talking a little different, they are just like me. That's a completely false premise. There are all kinds of nuances in the culture, implicit cultural norms that we don't know about until we run afoul of them.

For companies with any kind of global interest, the writing is on the wall that they need to have a strategy for India.

For USA companies rushing to enter the Indian marketplace, it needs to be recognized that the country is a very different proposition -- both in terms of business practices and consumer preferences -- and must be treated accordingly.

One of the common pitfalls in addressing the Indian marketplace is simply dusting off something you might offer in your home market. Indian consumers are very different -- enormously value conscious and very, very finicky.

Holding to too high a price point could be fatal for foreign businesses, as Indian consumers have less capacity to pay than Western consumers. But by making their products affordable to the mass market, businesses put them within reach of hundreds of millions of potential consumers.

The companies that fare best in the Indian market are those that customize their products to the particular preferences of Indian consumers.

 See also: Doing Business in India for USA Companies 

Articles on Doing Business in India:

Articles for USA Companies Doing Business in India:

Incorporating Corporation in India
Foreign Companies Incorporating in India
Taxes for Foreign Companies in India
Trademarks in India
Joint Ventures
Outsourcing
Agreements
Dispute Resolution

More Articles:

Need some extra help doing business with Indian companies? Here are some topics that may be helpful:

Business Entities in India 

 

Outsourcing

 

Joint Ventures

Doing Business in India for USA Companies 

Trademarks and Patents in India

Cultural Tips for Doing Business in India

When doing business with Indians, Westerners sometimes have a hard time understanding their customs. This can lead to miscommunication and misunderstandings. However, growth can flourish if an effort is made to understand Indians' ethnic values. It pays to follow the adage: "When in Rome, do as the Romans do."  Here are some good Cultural Tips for Doing Business with India:

1. First Names are NO NO: When compared to the numerous vernacular languages spoken in India, English is much less polite. Indian languages, unlike English, differentiate between peers and those who are older and command respect. That's why the average Indian tends to address people as "Sir" or "Ma'am," or affix the title "Mr." "Ms." or "Mrs." before their names: they don't want to come across as disrespectful. English, on the other hand, is more informal: Americans generally prefer the use of first names. Remember that while most younger Indians will welcome the informality of first names, older ones may consider it an affront, especially if the speaker is much younger. 

2. Comfort zone: A casual hug, peck on the cheek, or an arm thrown around a shoulder may not seem out of place in the West. However, in India, even shaking hands with a member of the opposite sex is only in the process of being accepted. The exception to this rule is a handful of metropolitan cities. With the younger crowd drifting to the cities in search of jobs with multinational IT companies and call centers, they're adapting fast to the casual touch. However, their mates and spouses are often uncomfortable with this personal contact. Be mindful that your idea of touch may be too close for Eastern comfort. 

3. Sometimes the office is taken home: Invitations to the home for business discussions are not uncommon. Don't be anxious if you're asked to lunch or dinner. Indians are very hospitable; the woman of the house will go to great lengths to prepare something she knows you'll enjoy. On your part, you'll earn brownie points if you treat your host's family with courtesy and respect. A small gift is greatly appreciated when you're visiting a business partner's home 

4. Small talk is big: If you are hosting the business meetings, remember that Indians are not as direct as their American counterparts. They generally start with small talk and relatively unimportant topics before migrating to the main issue. They also place importance on refreshments during the course of the meeting, either at the beginning, or in the middle during a break, depending on the time of day.

5. Is that English? It's the same language, but it's spoken with a distinctly different flavor in each part of the world. Every country adds to the language or takes words from it for its own tongue. In India, the English language is spoken with an Indian accent, although it is not as pronounced as some other countries. You'll find unusual expressions being used: "cousin brother/sister" (cousin), "co-brother/sister" (brother or sister-in-law), and "What's your good name?" (What's your name?). Most Indians are familiar with the Western accent, but it helps to speak slowly. If you don't understand what they've said, don't worry-they don't mind repeating themselves.

6. Not too good with paperwork: Indians are not very big on documentation; they generally have to be taught to maintain proper records. Official correspondence is usually long-winded with pompous language that the ordinary person does not understand. E-mail has become a replacement for hand-written or printed documents, but there's a general ignorance of email etiquette. However, once shown the right way, Indians are adept at picking up any new technique. 

 7. Pecking orders matter: Most Indian businesses have an order of hierarchy that's very important to those in the chain. When communicating with Indians, it pays to address the more important members first.

8. They mind their Ps and Qs, but differently: "Please" and "Thank You" are matter-of-fact for the polite Westerner, but an Indian may not feel the need to mention them. It does not mean that he's rude or impolite. Indians express their pleasure in a different manner: with a smile or a nod of the head. 

 

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