Getting it Right in India
India has a complex society... understanding the differences and being prepared for unfamiliar situations will greatly enhance the chances of success in this potentially rewarding market
With a population of over 900 million people, India is becoming an attractive market for many international businesses
India has a complex society made up of people with differing beliefs which affect their behaviour, attitude and approach to business. Understanding these differences and being prepared for unfamiliar situations will greatly enhance the chances of succeeding in this potentially rewarding market.
NOT ALL INDIANS ARE THE SAME
The three major cities, Calcutta, Delhi, and Mumbai (formerly known as Bombay) are as disparate as their locations. This has as much to do with their history and role in modern India as the people who live in them.
Calcutta in West Bengal was once the colonial capital. This powerful position was lost when the political centre moved to Delhi. As a result, Calcutta has become a relative backwater where the pace of life is less frenetic, the people enjoy taking time over business, conversation moves easily from business to politics and cultural issues and the old style exclusive clubs thrive. These clubs are the assembly point for owners of business houses.
In contrast, Mumbai on the southern coast is the hub of financial and commercial activity. Here people are more aggressive and focused on achieving business objectives. The city is extremely cosmopolitan, alive with an economic buoyancy and sense of activity.
Business in Delhi, north west India, relies heavily on contacts in governmental and diplomatic circles. Delhi is the political centre of India with thousands of foreign diplomats mixing with Indian politicians and the public sector. Catering for the large diplomatic community is an array of exclusive restaurants and hotels. If you want to be taken seriously in this city, it pays to stay and eat at the right places, drive the right car and wear the right clothes. The quality of your contacts and external show of affluence all add weight to your business case.
THE INFLUENCE OF RELIGION
Religion plays a crucial role in determining the attitudes and values of the people with whom you are dealing. The major religions are Hindu, Sikh, Muslim and Buddhism. Before meeting with contacts in India, it is recommended that you make enquiries about their background and religion.
If your contacts are Sikh, as many of the people who live in Delhi, you will find that their attitudes towards business and western values are liberal and accommodating. Recognisable by their turban and beard, Sikh men make up the heart of commerce in India.
If your contacts are Muslim, however, you should take into consideration their religious festivals and requirement for prayer. If you want to build a good relationship, then it is advisable to be aware of festivals when scheduling meetings and sensitive to their particular needs, such as daylight fasting during Ramadan. Muslims attitudes are dominated by the requirements of their religion and they tend to be less aggressive than the commercially oriented Sikhs. The central Indian city of Hyderabad is dominated by Muslims.
Although Mumbai is also home for many Muslims, the majority of people living in the city are Hindu. It is important to know that recent politicisation of religion by the right wing government has led to strained relationships between the religious communities to the extent that riots have occurred in Mumbai.
For people from the western world, one of the most difficult aspects of Hindu culture to understand is the caste system, which is based on inherited profession. Although you should be aware of this system and the behaviour it demands, your opinion about castes would generally not be welcomed.
Likewise, some rituals and statues of the Hindu religion may appear to be offensive and unpleasant. It is best to simply accept the apparently strange rituals and resist the temptation to outwardly express distaste.
Informal community networks, or jati, based on geographical and social as well as religious backgrounds play a prominent role in Indian business. People of the same background tend to live in the same area and do business together. They are extremely sensitive to situations in which another jati is perceived to be treated more favourably. As a foreign business representative, absolute impartiality is key.
FOREIGN VERSUS LOCAL
Despite the array of beliefs, religions and attitudes across the regions, Indians are united by a common dislike of foreign businesses patronising them with an air of superiority.
When pitching to an Indian company, particularly in the Bengal region, a proposal emphasising the quality of your goods and expertise of your company generally will not create the desired favourable impression. Indians are extremely sensitive about the perceived poor quality of locally produced goods and, although it may be true in some cases, they do not appreciate this point being highlighted.
To be successful, it is important to take the approach of stressing the mutual benefits which can be gained by agreeing to become business partners. After all, Indians are acutely business oriented, clever operators and focused on the goal of making a profit. It helps to acknowledge that quality and supply problems can also occur in your own country.
Another common element in business across the whole India is the presence of tactics, which would be regarded by many as corruption. Although it is not always an issue, this form of business dealing does exist and a company must be aware and prepared to make adjustments to deal with it.
Business in India extends beyond nine to five and well into the evening. Expect to be frequently invited out to dinner and ensure that you return the favour. However, this is also a social event at which the spouse may be present.
ENTERTAINMENT FOR GOOD RELATIONSHIPS
It is not uncommon for visiting business representatives to be invited to share a meal at the family home. On these occasions, it is not normal practice to arrive bearing gifts of food or drink, however flowers would be acceptable. The meal is a social occasion, so although you may arrive in the early evening, do not be surprised if the food does not appear until at least 11 oclock. The intervening time is time to indulge in conversation. Dinner conversations are best kept harmonious by staying with neutral topics such as the food or something interesting that was experienced during the day. Topics about arranged marriages, the caste system or the role of females are best not discussed.
Original article at www.intercultural-training.co.uk