Cultural Aspects of Doing Business in India
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cultural aspects of doing business in india cyril amarchand mangaldas Index INTRODUCTION 5 INDIA – A DEMOGRAPHIC AND POLITICAL OVERVIEW 6 Where is India located? How many people live in India? How many states does India have? What is the political system followed in India? What kind of legislature does India have? Does India have a President or a Prime Minister? What is the nature of the judiciary in India? What languages are spoken in India? Is English widely spoken? What kind of weather does India have? When is a good time to visit? What is the currency of India? What are the major cities of India? GREETINGS 10 How do I greet someone in India? Do Indians typically shake hands? What are the forms of welcoming guests? Do different religions in India have different ways of greeting others? How should I conduct myself with the opposite sex in India? What are acceptable ways to address my colleagues, associates or clients? How are names written in India? Is there any special way to address government officials? Do Indian women change their surname aer marriage? Why do some young Indians and children call me ‘uncle’ or ‘aunty’? DOING BUSINESS WITH INDIANS 15 What role does hierarchy play in business? What is the impact of family-run businesses in India? What is the role of women in the Indian workplace today? 1 cultural aspects of doing business in india THE ART OF CONDUCTING MEETINGS IN INDIA 17 Is there a protocol to be followed when making appointments? What should I be aware of if I am trying to get an appointment with governmental organizations or agencies? Whom do I contact to schedule or confirm a meeting? What should I be aware of prior to a meeting? What are the key public holidays in India which might affect my meeting dates/schedule? What is the work week and calendar of Indian companies? What are the working hours of Indian companies during which one can have my meeting? When are good times of the day to conduct meetings? How important is punctuality? What language do I use in meetings? Are business cards usually exchanged before or post meetings? Does one need to get a business card and promotional material translated into English if from a non-English speaking jurisdiction? How does one greet people at the start and end of a meeting? How do business discussions commence at a meeting? Is it rude to decline drinks and snacks offered to me at a meeting? What kind of negotiators can one be pitted against? What can one expect during negotiations? What should one avoid doing at negotiations? Is it acceptable to criticize or disagree openly with business partners and other team members? Does “No” really mean “No”? How fast do things progress aer meetings? What steps can one take to avoid unnecessary delays? DRESSING FOR BUSINESS AND OTHERWISE 26 What is the typical business attire of Indians? How should one dress for business in India? Does India follow the ‘Friday dressing’ model? What should one wear at social occasions in India? 2 cyril amarchand mangaldas MEALS & ENTERTAINING 28 What are possible entertainment avenues in India? Are ‘breakfast meetings’ common in India? Is it common in India to be invited for meals at home? Can I ask women colleagues for a meeting over a meal or a drink? What kind of food do Indians prefer? Do Indians get offended by non-vegetarian food on the table? Where can I find places to dine? What time should I arrive for a meal? How should I enter an Indian home? Are alcoholic drinks normally served in Indian homes? Is Indian food eaten in courses? What is the general etiquette for dining? What is the etiquette at the end of an Indian meal? Should I tip a waiter at a restaurant? If so, what is the appropriate percentage? Is there anything else I should be aware of when inviting someone for a meal? INDIAN COURTESY 33 What is the importance of “ji”? What is the practice related to gi-giving? How are elders treated amongst Indians? Why do Indians ask probing questions? What are some of the gestures which might offend Indians? CASTE SYSTEM 35 What is the caste system? What are scheduled castes and scheduled tribes? INDIAN FAMILY SYSTEM 36 Are Indian families patriarchal or matriarchal? Are Indian families close knit? What do marriages symbolize in India? Is divorce and remarriage common? 3 cultural aspects of doing business in india RELIGIONS, FESTIVALS AND CELEBRATIONS 37 What are the main religions followed by the people in India? What are the main festivals celebrated in India? How are weddings celebrated in India? CUSTOMS, BELIEFS AND SUPERSTITIONS 45 Why are some Indians particular about the timing of certain events, like execution or entering into any business discussions? What is vaastu? Why are Indians sensitive to even accidental brushes of the feet? Why do some Indians touch a paper or book if it falls to the floor? What are some of the common superstitions in India? TRAVEL AND TRANSPORT 47 How do I get to India? What are the major ways of travel within India? How do I book tickets? What should I expect at the domestic airport? Can I check-in via the internet, Mobile or by telephone? Can I book connecting flights within minutes of each other? What should I expect at a railway station? How do I get around in some of the major cities in India? In India, which side of the road are vehicles driven on? How do I organize sight-seeing trips? MISCELLANEOUS 50 What is “Indian-English”? General tips for your visit to India SOME USEFUL LINKS 51 4 cyril amarchand mangaldas Introduction India is a diverse country. It is a blend of different cultures, religions, races, and languages and is deeply rooted in years of tradition even today. It is one of the oldest civilizations in the world and has a rich cultural heritage. India is also one of the fastest growing emerging markets today. It is strategically located, has a huge consumer base, a rapidly growing IT services industry and an expanding manufacturing industry. Additionally, it boasts of a skilled workforce, a high turnout of graduates, and a pool of experienced scientists, technicians, engineers and managers – all fairly well-versed in the English language. It is no wonder that it attracts investments from all over the globe - a fact not many other countries can boast of. In fact, India is also treated as an entry-door to the West. Even with all its attractive qualities, doing business in India is no easy task. A simple gesture can easily terminate a lucrative deal if it is the wrong gesture. Cross-cultural differences have posed challenges for managers, staff and customers alike. Understanding these cultural differences could facilitate smoother negotiations, effective transitions and fruitful ventures. It is important to bear in mind that this handbook is only a guide and is not in any way absolute. Foreign visitors to India should bear in mind that given its vastness and variety, there is no single way to understand India. India’s society and culture have numerous nuances that would make it irresponsible to suggest a singular approach to understanding its social/business culture or etiquette. However, we do believe these pointers can assist in a better understanding of its culture and avoiding offense to its people. IMPORTANT NOTICE : All information given in this handbook has been compiled om credible and reliable sources. Although reasonable care has been taken to ensure that the information in this handbook is true and accurate, such information is provided without any warranty, express or implied, as to the accuracy, appropriatness or completeness of any such information. Cyril Amarchand Mangaldas shall not be liable for any losses incurred by any person om any use of this publication or its contents. this book does not constitute legal or any other form of advice om Cyril Amarchand Mangaldas. Mumbai May, 2017 5 cultural aspects of doing business in india India - A Demographic and Political Overview Where is India located? India, officially called the Republic of India, is a country in South Asia. It is bounded by the Indian Ocean in the south, the Arabian Sea in the west, and the Bay of Bengal in the east. It is bordered by Pakistan to the west; China, Nepal and Bhutan to the north-east; and Bangladesh and Myanmar to the east. India’s capital is New Delhi, situated in the north of the country. How many people live in India? India has an estimated population of 1.27 billion, representing 17.3% of the world’s population. It is the most populous country in the world aer China. How many states does India have? India is divided into 29 states and seven “Union Territories”. What is the political system followed in India? e Constitution of India declares India to be a sovereign, socialist, secular, democratic republic. India is both a parliamentary democracy and a republic – the President is the head of State whilst the Prime Minister is the head of the government. e Constitution of India is said to be “unitary in spirit and federal in nature”. It was traditionally described as being “quasi-federal” with a strong centre and weaker states. However, the political structure has grown increasingly federal since the late 1990s as a result of political, economic, and social changes. What kind of legislature does India have? At the centre, India has a bicameral legislature consisting of the Lok Sabha (i.e. the house of the people or the lower house of parliament), directly elected for a period of five years based on adult franchise and the Rajya Sabha (i.e.