India, with its favourable economic and political conditions, continues to attract foreign investors and entrepreneurs. However, doing business in India remains a challenge, not only because of the country's size and diversity, but also because of its culture and codes, very different from those of the West, which, if misunderstood, can have a negative impact on your projects. To maximize your chances of success in this territory, here are 10 tips for working effectively in India and with Indians.
India is made up of 28 States and 8 Union Territories, with most of the States speaking a unique language. Eash state is different in terms of the composition of its communities, food, festivals and pace of development. Today, there is also a widening gap between the rich and the poor, and between urban and rural areas. While discrimination based on caste is prohibited in the Indian constitution, the caste system is still a reality in daily Indian life. However, do not speak about caste, religion or other sensitive topics, especially in a professional setting.
In India, like in other Asian cultures, saying “no” is considered impolite. Though business practices have evolved to become more global, you may still face some instances where your Indian partner will hesitate to categorically refuse a project or a collaboration. In such cases, encourage your partners to be open and transparent and do not hesitate to state your concerns. Also, at the start of the discussions, put in place milestones with the agreement of your partner, so that you can measure the progress of the project.
Religion, traditions and culture play an important role in India. The main religions in India are Hinduism (80%), Islam (14%) and Christianity (2%), followed by Sikhism, Buddhism and Jainism. The diversity of religions and communities includes several festivals, where offices may be closed. Certain events may also be scheduled on auspicious days, according to the religious and astrological calendar. Plan your activities in India around the dates of the major festivals, with the help of your team onsite.
In India, the boundary between personal and professional lives is often blurred. Indians are very hospitable and your local client or employee may invite you home for a meal immediately after meeting you and introduce their family as well. Be open to accepting such invitations and carry a small gift if you’re meeting them for the first time. Don’t hesitate to share personal details about your family and interests and ask your host about their family and interests. Do remember that many businesses in India are family-owned and the next generation is often expected to take over the business. Create a strong bond with your local partner and keep the relationship alive by speaking to them often over the phone or online, or meeting them in person.
To succeed in India, it is important to be patient, rather than expecting overnight success. Returns on investment do not occur immediately in most cases, but take at least two to three years. Once you’ve chosen your strategy, be persistent and continue to build trust and confidence with your clients and partners. Your efforts will pay off in the long-term.
India in 2024 is the 3rd largest startup ecosystem in the world, after the US and China. In India, entrepreneurship is valued - most people are ready to take calculated risks and are willing to try innovative or new projects. Adopt the “Jugaad” method, in other words - frugal innovation, or finding solutions with fewer or cheaper resources. This way of thinking is now also taught in prestigious Schools and Universities. Foreign companies working in India should be ready to move away from solutions that have worked in the past or worked in the West, and think outside the box.
Indian notions of punctuality are not the same as in the West, though things are changing as the workplace becomes more global. Being late for a scheduled appointment is not considered to be impolite in India, especially if it’s a delay of 10-20 minutes. Also, finishing a project is considered important, but it does not always mean that deadlines will be respected. To avoid unwanted delays, ensure that the team manager submits a schedule at the start of the project and is completing tasks on time. Try to keep an extra buffer for all projects to avoid a delay.
Indians have perfected the art of bargaining and negotiating, and are considered experts in this domain. Prepare yourself for long hours at the negotiating table and negotiate firmly. Negotiation techniques practised in Western countries may not be helpful here. Adopt a diplomatic approach, show that you are willing to discuss and ask questions to understand the position and objections of your partners or clients. In most cases, the discussions and the final decision may require time and several follow-ups from your side to reach a satisfactory conclusion.
Generally, Indians are very welcoming towards foreigners and willing to explain their customs and culture. Nevertheless, here are a few tips to follow which will impress your hosts. Saying Namasté (with folded hands) to greet someone is common and you can return the gesture. Shaking hands is also common in a business setting but a weak or a strong handshake does not mean anything in particular. Don’t refuse a cup of chai (Indian tea) if offered, offer to take your shoes off when you enter someone’s house, and make sure to use your right hand to serve or eat food. Many Indians do not drink alcohol, and some Indians do not eat eggs, meat and fish due to religions reasons.
India is a complex country, where success depends on understanding the market, choosing the right strategy and ensuring regular and good communication with clients and partners, which is difficult if there are language barriers and you are not based locally. It is therefore crucial to work with local experts, who can guide you during each step of your project. With its presence in India, its bicultural team, its experience and network, Expandys can support your projects - contact us to know more about our services.