Indian Culture, International Business
By Paul Catiang

The global nature of business in the 21 st century exposes professionals to a broad spectrum of cultures, and despite the growing uniformity in the way these professionals from different cultures interact, certain qualities remain specific to their countries of origin. India is no exception to this. Having emerged into the world of global business only within the past two decades, India's cultural norms and practices—which are, for the most part, translated into the way Indians do business—remain strong despite exposure to Western customs.

This is not to say that one set of practices is better than the other; one only needs to take cultural realities and differences into account and adjust accordingly. With a little effort and an open mind, doing business with Indians can be as efficient as transacting with Americans. The following is a practical guide to smoothen any encounter—professional or social—with companies and individuals that hail from India .

As a disclaimer, the practices and norms listed below do not apply to all Indian firms and individuals. Adherence to traditional Indian culture varies, and more multinational establishments, such as IT corporations and international trade companies, have adopted a more global approach to doing business.

The Indian Company-Family

India 's hierarchical culture can also be seen in many companies in India , where strict hierarchies are adhered to. The head of a company is generally viewed as a father figure. Emphasis in the workplace is often placed on protocol, manners, and obligations. There is also a strictly enforced chain of command, and breaching this chain can have adverse effects.

For example, an employee will always call a superior "Sir" or "Madam," and an employee rarely expects to do tasks outside of their job description unless specifically asked to do so by a superior. Furthermore, requests should be coursed through the most senior person in an organization, even though a subordinate may be delegated the work requested.

Time Management and Punctuality

The average Indian workday is from 9am to 5pm, but a majority of inter-business matters are conducted between 11 AM and 4 PM. Lunch hours usually last an hour. Indian professionals work six days each week, with Sundays off. Some employees have every other Saturday off, or have a shorter workday on Saturday.

The country has numerous government and religious holidays, during which no business is conducted. Given the many regions and states of India , there is also a corresponding variety of official holidays. These dates change with each year, but online research or calling the Indian Tourism Office will easily clear this up. 

Indians appreciate punctuality but don't always practice it themselves. A flexible schedule that takes last-minute changes into account should compensate for this.

Terms of Address

Indians respect titles. As much as possible, professional titles such as Professor and Doctor must be used. For those without professional titles, courtesy titles such as Mr., Mrs., or Miss will suffice. One will also hear common titles and honorifics in Hindi used in printing and in conversation, but using these honorifics are better left to those who are more familiar with them. It is, however, advisable to wait to be invited to address someone by his or her first name.

Interpersonal Relationships and Corporate Politeness

The boss is considered the highest individual in authority, owing to India 's hierarchical culture. Sometimes, employees may rise each time the boss enters the room to show respect. Employees also tend to follow their superiors' lead in other actions and aspects of the work environment.

Disagreeing with the boss is considered inappropriate. The boss makes all of the decisions and accepts all of the responsibility. As a result, subordinates can be reluctant to accept responsibility. In group discussions, the most senior person might speak for the rest, but that does not mean that the others agree with him. They may maintain silence out of respect for seniority and would be more inclined to share their thoughts and opinions in private.

Directly saying no to a request is generally considered impolite, and Indians prefer to say that they'll try to help the asker save face and maintain politeness.

A well-founded relationship with a company can go a long way in India , as a lot can ride on professional trust. Personal contacts can easily expedite an initiative stalled by unnecessary bureaucracy.

Interpersonal skills, such as the ability to form friendships, can be a vital addition to professional competence and experience when doing business with Indians. Personal achievements are also well admired, such as previous successful business ventures or an individual's university degrees.

Criticism is almost always seen as a sign of disrespect, and should only be couched in the most polite and constructive of terms. Indians also take a dim view of criticism from subordinates or from someone unfamiliar. As always, saving face is paramount.

Gender and the Workplace

As more and more Indian women join the ranks of professionals in the country, the professional culture slowly adjusts to their increased presence. It is, however, important to follow the strict dress codes and modest gender interactions detailed below.

Once more, adherence to the above practices varies with each company. More global companies are almost always receptive to other professional and cultural norms.

Attire

Most Indian professionals wear formal business attire as a matter of course. It is common for men to wear business suits and ties to the workplace. When the weather gets warmer, men usually wear a safari suit: a comfortable suit made of lightweight cotton consisting of a button-down shirt that isn't tucked in, and matching pants. Women usually wear pantsuits or conservative dresses that do not reveal too much of the legs.

Casual wear consists of long pants and short-sleeved shirts for men and women. Again,keeping the legs covered is important. Wearing shorts is only allowed for men when working out, and women are strongly advised to wear track pants.

Other formal affairs, like weddings, require a different set of clothes. It is generally a sign of good will if a foreigner wears Indian clothes to such formal events. Women may wear the traditional sari, while men have the kurta, a long, thin kaftan with matching pants.

Food

As a country of diverse cultures and religions, India has several food taboos depending on the religion concerned: majority of Hindus do not eat beef, Muslims refrain from eating pork and other meats that aren't ritually slaughtered, and Jains are largely vegetarian. All these dietary restrictions should be taken into account when having business lunches and dinners.

One should never eat with the left hand, as it is considered unclean and unlucky. Left-handers from more permissive cultures are advised to keep this in mind.

Alcohol

While alcoholic drinks are proscribed by Sikhs and Muslims, not everyone observes these restrictions. Traditional Indian women almost always do not smoke or drink, but those of certain social positions sometimes do.

Of all the liquors, imported whiskey is regarded the highest, with Johnny Walker Black Label being the most prestigious. There are also several excellent local beers and wines.

Not all occasions merit an alcoholic drink, and most Indians who do partake of alcohol will usually refrain from doing so in the presence of an older, respected individual, like one's boss. It is customary to have non-alcoholic beverages available in such circumstances.

Entertaining for Business

It is common practice in India for business associates to gather socially over lunches and dinners. In fact, this kind of socializing is considered part of doing business. One is always expected to accept invitations graciously, and to bring sweets or flowers.

When hosting Indian business guests, it helps to ask politely about any dietary restrictions, although most Indians do not eat beef or pork. Chicken, fish and lamb are all acceptable meats, as well as vegetarian dishes. Labeling the dishes will also inform the guests what they can or cannot eat.

Invitations to such events should be sent out early, and since not all Indians respond to RSVP requests, the host is also expected to make a follow-up call. Married guests will usually bring their husbands or wives, and most guests will bring guests of their own. It helps to be prepared to receive a larger number than expected.

Eating at Restaurants

Over-tipping is frowned upon when eating out. The customary rate is 10 to 15 percent of the bill if there is no service charge.

Being a Houseguest

Visitors to Indian homes usually remove their shoes upon entering a home. As most middle-class Indian homes do not have guest rooms, guests can expect alternative sleeping arrangements.

A guest usually leaves money when staying in a house staffed with servants, especially if they have had extra work because of the guest. While this gesture is always appreciated, one must consult the hosts as to how much to give, as giving too much might cause the hosts to lose face.

Gifts

Gifts are almost never opened in the presence of the giver, but are instead set aside to be opened in private. Gifts are never wrapped in black or white, which are considered unlucky colors. Green, red, and yellow are lucky colors and are therefore preferred when it comes to wrapping gifts.

Muslims find image of dogs unacceptable, so toy dogs or pictures of dogs are inadvisable as gifts. Leather goods also make poor gifts for Hindus.

Common Etiquette

Public displays of affection are frowned upon in India ; one must never greet friends and associates with hugs and kisses.

Physical contact between men and women is also avoided. Handshaking is always best initiated by Indians, with the foreign guest following his counterpart's lead. Foreign women must never initiate handshaking with Indian men. In addition, men should never talk to women who are alone.

In cases where handshaking may be inappropriate, the traditional Hindu greeting and farewell, “Namaste,” will suffice. Most people would be familiar with greeting, which is said while pressing the palms together just below the chin and nodding slightly.

Pointing with one or two fingers is considered rude. Indians prefer to point with the chin. Feet are also considered unclean, and must never be pointed at another person. Whenever shoes or feet accidentally touch someone else, apologies are in order. Whistling under any circumstances is considered rude and unacceptable.

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References:

India Unlimited: An Online Tool for Doing Business in India;
Center for Asian Studies, the University of Texas at Austin.

http://asnic.utexas.edu/asnic/outreach/pages/dbimodule/iu1.html