The Indian market and its one billion plus population, presents lucrative and diverse business opportunities for foreign organizations. With a GDP currently growing at around seven percent, it has one of the fastest growing economies in the world.

According to the U.S. Department of Commerce, the Indo-U.S. relationship is in the midst of a remarkable transformation. The two countries, politically and economically distant for much of the late twentieth century, now find their national interests converging at many points. Indian tariffs have been reduced progressively since the early 1990s. Key factors to doing business successfully in India include: finding good partners who have knowledge of the local market and procedural issues; good planning; due diligence and follow up; and patience and commitment.

Doing Business in India – Cultural Considerations
India is a complex country, and those arriving here to do business will discover that the path to success is often not very smooth. The following tips from Indian-based custom software group, Stylus, Inc., give tips for navigating the business culture in India:

• Aggressiveness can often be interpreted as a sign of disrespect. This may lead to a complete lack of communication and motivation on the part of the Indians. Take the time to get to know them as individuals in order to develop professional trust.



• Indians are very good hosts and will therefore, invite you to their homes and indulge in personal talk often. One is expected to accept the invitation gracefully. Taking a box of sweets, chocolates or a simple bouquet of flowers would definitely be a welcome gesture. Indians respect people who value their family. They will allow family to take priority over work, whenever necessary.



• Criticism about an individual's ideas or work needs to be done constructively, without damaging that person’s self-esteem.



• As Indians are used to a system of hierarchy in the work-place, senior colleagues are obeyed and respected. Supervisors are expected to monitor an individual's work and shoulder the responsibility of meeting deadlines. Therefore, it is important to double-check and keep track of time.



• In a group discussion, only the most senior person might speak, but that does not mean that the others agree with him. They may maintain silence, without contradicting him (or you) out of respect for seniority. Westernized Indians on the other hand can be quite assertive and direct – it is fine to treat them in the same manner.



• Women are treated with respect in the work place. Foreign women working here will find it easy to adapt to an Indian work environment. However, they need to plan their wardrobe carefully, keeping in mind the conservative dress codes in India.

It is important to note that these tips will not apply to all situations. As in any country, people from different socio-economic strata, educational backgrounds, and religions may behave very differently from what is considered the cultural norm.

SOURCES:
www.export.gov
www.buyusa.gov
The World Bank