Business etiquette in India
No matter which country you want to do business with, it is always beneficial to learn about the culture and how business is done. Understanding cultural differences will allow you to prevent potential business partners from being offended and will help you build strong relationships.
On this page
- Business practices and culture
- Planning your visit
- Business language and greetings
- Business meetings
- Relationship-building
- Important role of hierarchy
Business practices and culture
Partners
- Partner with a qualified Indian company that has knowledge of the local market and procedures
- Carefully select and appoint regional partners with non-exclusive agreements
- One partner cannot always service the whole country
- Avoid intermediaries when dealing with government projects
- Beware of “Interlocutors” claiming they have a close relationship with decision makers
Due diligence
- Practice due diligence, planning and exercise patience
- Follow proper contracting procedures
- Always seek detailed clarification on any agreements reached
Negotiations and contracting
- Include a buffer in your initial offers and leave room for negotiation
- Budget for import duties and taxes and include them in your costs
- Set deadlines. They are not considered crucial in India and a lot can depend on outside circumstances such as delays due to frequent religious holidays
- A contract is just the starting point
Planning your visit
Check the calendar
- Make the most of your trip and avoid the numerous local festivals and public holidays
Business cards
- Be sure to include your contact details in English
- Have plenty of business cards at the ready. For a week-long trip, 500 is ideal
- Present your business card with your right hand as the left hand can be considered unclean
Before booking your trip
Be sure to consult:
Business language and greetings
Language in India
- English is the most common language used for conducting business
- English language skills are very high
- English and Hindi are the official languages, but India has 14 other major languages and 300 minor ones
Greetings
- A firm handshake is a common greeting amongst urban westernized Indians
- Another greeting is to hold the palms of your hands together and say: "Namaste" while bowing slightly
- Hesitations for handshakes or other physical or verbal contact can occur between men and women
- Men should follow the Indian female business colleague’s lead
- Women should not be surprised if an Indian male business colleague puts his hands together for a Namaste greeting instead of shaking hands
Titles
- Address Indian counterparts by their title, such as "Professor" or "Doctor"
- Use "Mr.", "Mrs.", or "Miss" followed by their last name if they do not have a title
Business meetings
Format
- Large evening receptions are not uncommon on a weeknight, with a full day conference on a Saturday.
- Do not be surprised if other business is being conducted simultaneously to your meeting. This is considered normal and does not reflect a lack of interest.
- Meetings can seem very informal. Sometimes several meetings can be conducted at the same place and time by one person. Try not to be irritated by this practice
- More people might join in your meeting than originally scheduled, especially in government meetings
Time
- Time is fairly fluid
- Be prepared for meetings to start and finish late and for interruptions to occur on a regular basis
- If your timing is tight for the meeting, communicate that to your Indian contact to ensure that the meeting either starts on time or that it is understood you have to leave at a certain time
If the meeting was a success
- Expect immediate follow-up meetings if the first meeting goes well
- Your Indian counterparts will likely want you to meet their superiors immediately
Dining etiquette
- Business lunches are preferred over dinners, and are usually held in higher class restaurants or hotels
- Meals often happen much later than in Canada
- Lunch is between 1pm and 3pm
- Dinner is after 7:30pm
- Refusing drink or food offered during business meetings can seem impolite or discourteous. Consider taking a small sip or bite when offered
- Many Indians do not consume alcohol for religious reasons
- Many Hindus are vegetarian, those who eat meat do not eat beef (cows are very sacred), and Muslims do not eat pork. Vegetables, lentils, chicken, lamb, and/or fish are good menu options
Relationship-building
India places great value on the quality of interpersonal relationships. Relationship-building should be a key element of your India Strategy.
- Take time to develop your relationships and do not try to push things along too quickly.
- Small gifts are often given and received. This is a customary part of the relationship building process.
- Meetings often begin with lengthy small talk. Popular topics include:
- personal life
- experience with Canada
- family
- travel
- cricket
- politics
- economic reforms
Important role of hierarchy
Indians respect a hierarchical structure regardless of gender and level of authority. Understand this dynamic to effectively negotiate with and work with partners and clients:
- Most decisions are made at the top. Don’t spend too much time negotiating at middle levels of a company until top level approval has been given
- The boss is expected to play the part
- Senior managers are expected not to engage in work which could be done by somebody at a lower level
- Managers are expected to give direct and specific instructions
- Subordinates are expected to carry out instructions without question
- Do not expect too much initiative from subordinates and contractors
- Teams expect to perform closely defined tasks under the strong control of a leader
- It is normal for the leader to take a detailed interest in the work of individuals within the team
- Plan in great detail and explain exactly what needs to be done
