The Role of Culture in Business Relationships with Indians – A Case Study

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This article is part of the "India survival Kit", a collection of articles written by an American expat living in India.

Mumbai’s famous Marine drive glittered as thousands of cars and motorcycles sped homeward. A loudspeaker blared Bollywood film music as though competing with the chaotic din of traffic. Across the road, people strolled along a promenade separating Marine drive from the Arabian Sea, apparently unconcerned by the loud noises. A light, salty breeze caressed the walkers as they relaxed after a long day’s work.

Mike absently watched the people on the promenade from the balcony of his hotel room. He had gone out for a walk on each of his last six nights in Mumbai. But today he could not get himself to leave the room. His hopes for starting a new joint venture in India, which had soared high only a week ago, had now come crashing down. His future in this strange, exotic land suddenly seemed bleak. He did not understand what had happened. He was utterly frustrated.

The Indian economy was booming, and held great promise for the future. Several multi-national firms had already set up offices across the country, encouraged by the opening up of India’s foreign policies. Mike and his American associates had been excited at the prospect of starting a joint venture with a particular reputed Indian firm. Initial negotiations had been positive, but slowly misunderstandings and other problems crept up. Mike had attended several meetings in the past week, expecting to have a finalized deal by that morning. But his Indian counterparts did not appear to feel it was important to close the deal as soon as possible. They had had long, rambling discussions about the project’s objectives and feasibility without making any solid decisions. Even the few decisions that had been reached were not concrete as approval had to be sought from senior colleagues.

An exasperated Mike tried to hasten the process as many other issues remained to be addressed, but the Indians felt that he was only interested in completing the deal, and not in examining the finer aspects of the venture. As a result, they began to question his sincerity and ability. His aggressive manner made him appear rude and tactless. His way of addressing them informally also made them feel disrespected and uncomfortable. The bottom line was that they did not trust him.

In turn, trust also became an issue at Mike’s end as he began to doubt the Indians’ capability of seeing a project through to completion within the deadline. Consequently, he was uncertain if they would make good business partners.

Examining this story in greater detail, it is obvious that cultural differences were the root cause of problems between Mike and the Indians. If Mike had realized that Indians viewed time differently from Americans, he would have tried to be more relaxed in his interaction. If he had known that Indians usually tend to be formal and hierarchical in a professional setting, he would have been more careful while addressing them. On the other hand, if the Indians had been aware of the Americans’ practical approach to problem solving and project implementation, they would not have viewed Mike as a pushy person intent only on signing the deal.

Our cultures color our view of the world and also the way we interact and develop relationships with others. In order to successfully do business in another country, understanding its culture and business practices, appreciating the differences between the two cultures, and adapting oneself is absolutely necessary.

India is a complex country and foreign businessmen will realize quickly that the path to success here is not smooth. The following tips are intended to give those interacting with Indians professionally an idea about business practices in India.

In America, efficiency and adhering to tight deadlines are considered normal and is expected of most workers. Indian culture is a little more laidback. Indians tend to take longer to do a job, for a variety of reasons including their inherent attentiveness to detail. As a result, what is considered a reasonable time and a feasible plan in America may not be right in India.
Aggressiveness is often considered a sign of disrespect. This could lead to a drop in motivation or communication on the part of Indians. It is important to get to know them on a personal level to develop professional trust. Indians are very hospitable. You will be invited to their homes and they will also often talk about personal matters. This is a part of business. While visiting a home, taking a gift of sweets, fruits or a bouquet of flowers is considered a nice gesture. Indians place a great deal of importance on the family and respect those who value their family. When necessary, they will give higher priority to family over work.
Indians are used to a hierarchical and formal system in the workplace. Senior colleagues are respected and generally addressed as “Sir” and not by the first name. Supervisors usually shoulder the responsibility for a deadline and are expected to monitor a lower level worker’s progress. However, in more recent times, with greater western influence, educated Indians have adapted to the practice of monitoring their own work and sticking to schedules. And a more informal work culture is common in the new technology firms.
Indians often hesitate to say “No”. They will sometimes take on too much work or a project that is beyond their scope just because they do not want to disappoint you or put themselves in your bad books by refusing. Hence it is important to create a comfortable work environment where it is okay to say no and make mistakes without fear of negative consequences.
In a meeting or group discussion, only the most senior person might speak. Often others will remain silent out of respect for him or you. This does not necessarily indicate agreement with your views. But westernized Indians can be assertive and frank, and it is okay to reciprocate the same attitude with them. Politeness and honesty are important to demonstrate that your intentions are sincere and genuine.
Women are respected in the workplace. It is probably easy for a foreign woman to adapt to an Indian work environment. But it is important to plan a wardrobe with India’s conservative dress codes in mind.
Many traditional Indians are vegetarians and teetotalers, and their way of life needs to be respected. However, westernized Indians do socialize and drink, sometimes excessively so.

These cultural tips are based on a generalization and may not apply to all situations. When on a business visit to India, you should remember that this is a land of diversity and contrasts. Every person you meet will exhibit a unique blend of Indian and western values. People hailing from different regions, economic strata, educational backgrounds, and religion will often behave very differently.

The pressure of living and working in a different country can be overwhelming for any expatriate. But there are many advantages to living in India – the long-lasting friendships forged with Indians, the values that can be absorbed from Indian culture, the many breathtaking and unique places to visit, the wide assortment of cuisines available to regale your taste buds with, and of course the innumerable exotic knick-knacks that can be bought. An expatriate who is ready to recognize the cultural differences and make the necessary adjustments will certainly taste success in all his Indian business endeavors.

Editor: Nisha Giri

The India survival Kit is divided into four sections:

I) Cultural tips for newcomers to India

II) Doing business in India

III) An American's diary

IV) Street English in India: Indian English and the Indian way of communication

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