Business and Negotiation Practices
India
08
Fall

Prepared by: Andrew B

India: Business and Negotiation Tactics
Facts and Statistics
Location: Southern Asia
Capital: New Delhi
Population: Estimated 1.2 billion
Government: Federal Republic
Main 3 Religions: Hinduism, Muslim, and Sikhism

Business Etiquette
When entering business with people in India, the first important thing to understand is the hierarchy. Of all the cultural influences that affect the Indian business culture, hierarchy plays a key role. Indian society operates within a framework of strict hierarchy that defines roles, status and social order of its people.

Dress Etiquette
When dressing for a meeting it is important to know that business attire must be conservative. This means dark coloured conservative suits for men and conservative suits or dresses for women. Women are also expected to have proper hemlines and skin appropriately covered.

Meeting and Greeting
When doing business in India, meeting etiquette requires a handshake. However, Indians themselves use namaste, which is a Hindu greeting. This is the act where palms are brought together at chest level with a slight bow of the head. Westerners are welcomed to partake in this tradition as it shows a sign of their understanding of Indian etiquette. It is also important to know that genders play a role in greeting. Men are ok to greet other men with a handshake but are not to shake the hand of a woman. They are simply to acknowledge a female with a head nod, however women are ok to greet other women with handshakes.

Business cards are to be exchanged at the first meeting. It is crucial to know that they are to be given and received with the right hand, as doing so with your left is considered rude and disrespectful. This is common in all three main religions of India. You may include education degrees or honours on your business cards, as it shows credibility to you.

Building Relationship
Doing business in India requires building relationships, Indians deal favoruably with those they know and trust. This happens even at the expense of lucrative deals so it is key to have a good working relationship with any partners you may do business with or negotiate with.

As relationships are built upon mutual trust and respect, it is common to have long standing personal relationships prior to doing business. If you are partaking in business with a partner that knows little about you, it is beneficial to go through a third party. This can give you immediate credibility in the eyes of the other partner.

Meetings and Negotiations
It is important to avoid scheduling near or on any major holidays of the religion of the person you are doing business with. Meetings should also be schedule well in advanced and you should be flexible. It is not uncommon for meetings to be cancelled or reschedule, as family is priority in India, even over business. Keep this is mind when scheduling the time of day as well, late mornings and early afternoons are most appreciated because they do not usually interfere with family time after work. Punctuality is expected like in all business but being late is not uncommon for Indian cultures and it will not have severe consequences.

When showing up to a meeting or negotiation you must always approach and greet the most senior member in the room first. This ties back to the importance of hierarchy in Indian cultures. Meeting should also commence with conversation and not business right away. This is part of the “getting to know you” process and is appreciate by the cultures because it allows for trust and a relationship to start building up.

When dealing with negotiations in India, be aware that it can be a slow process. This is common for many reasons trust being one. If it has not being established you must concentrate your efforts on building rapport. Decision-making is always made at the highest level so be aware that if a Director or person of high authority is not present, the negotiation is considered to be in the early stages and a decision will not be made. It is common for Indians to use intuition, feeling and faith in guiding them to make decisions and not necessarily statistics and data. Be sure to exercise patience and never exhibit frustration or anger towards them.

High-pressure tactics must be avoided and do not be confrontational or forceful. If you come across angry or lose your temper, you will be perceived unworthy of respect and trust. Use diplomatic language when disagreeing and never appear overly legalistic. The Indian culture has a general distrust of the legal system so this may cause a negative response towards you. Know that concessions are something that is expected of you in negotiations, whether they are monetary or in regards to terms.

Also be aware in the Indian culture there is an avoidance of the word “no”. It is considered rude to say it because of the possibility it causes disappointment or offense. Be aware of words like “we’ll see”, “I will try” and “possibly”, as they can all be indicators to you as the person is disagreeing and ultimately saying no. This also requires you to look for non-verbal cues in order to realize what is being said. Reluctance to commit to an actual time, enthusiastic responses and body posture are all something you can look for.

Once terms have been agreed upon and a negotiation is considered successful, a celebration dinner is expected. This allows business partners to continue in the process of building their relationship.

Lastly it is not necessary to bring a gift but it won’t be turned down. The Indian culture believes that giving gifts eases the transition into the nest life. They also believe the importance is placed on the sincerity of the gift and not the value. When wrapping a gift, avoid the colours black and white because they are colours associated with death. If you receive a gift, do not open it in the presence of the gift giver but wait till after they have left the room, otherwise it is considered rude. Be aware that gifts should be given and received with two hands, as it respectful.

Know that is a richly diverse and complex country as India, it is difficult to impart generic or stereotypically conclusions when doing business there. Regionalism, religion, language and caste are all factors that need to be considered when making decisions and doing business in India. Realize the key to all business with the Indian culture is based upon building a relationship and creating trust. If you do this business efforts will have a greater chance of success.