Doing Business in India

Welcome to our comprehensive guide to doing business in India. Traders had been doing business in India long before the East India Company emerged on the subcontinent in the early 1600s. Today, multinational corporations flock to the country to augment their business processes and IT services and to search for growth in the country's burgeoning market.

Growth has slowed in recent years, but businesses continue to invest, and the Indian economy's future remains bright. Like any emerging market, doing business in India comes with its share of risks and challenges.

If you are working in India, you should know how business is conducted in the country and how to conduct yourself in the workplace.

Fast facts

Business hours

Typical business hours in India vary significantly across different industries. The standard workweek usually consists of Monday to Friday, 9am to 6pm, but many don't leave the office until their supervisor does. It's normal in some Indian workplaces to work on Saturdays, too. Working hours can be flexible, with some companies adopting remote work and adjustable schedules.

Business language

English remains the main language of business in India. However, Hindi and other regional languages are increasingly used for marketing and customer engagement.

Dress

Traditionally conservative, business attire in India is evolving, with a noticeable shift towards smart casual and business casual styles. Suits are expected at an executive level, while mid-level managers can opt for smart casual dress. Regional variations exist, with metropolitan areas favouring more formal attire than southern cities, where lighter fabrics are common due to the climate.

Gifts

Gifts are appropriate, but need not be too expensive. Give and accept gifts with the right hand or both hands, and don't open them in front of the giver. Items like sweets, dried fruits or branded merchandise are popular. Invitations to a business associate’s home for dinner are common, reflecting traditional Indian hospitality.

Appropriate greetings

Greet business associates by shaking hands, usually with a light grip. Never use the left hand – it's considered unclean. Men should wait for female associates to initiate a greeting. If a female colleague doesn't initiate a greeting, a nod will suffice. Post-Covid-19, non-contact greetings such as the traditional Namaste are common, with palms pressed together and a slight head bow.

Business cards

Business cards are commonly exchanged in greetings, given with the right hand. Digital business cards are becoming popular, especially among tech-savvy professionals. Traditional cards may be printed in English on one side and Hindi on the other.

Gender equality

Although women have held parliamentary positions as president and prime minister, women's political representation and participation remain low. Women are underrepresented in the workplace, but international businesswomen are typically treated equally. Recent initiatives aim to improve gender equality, with companies adopting diversity and inclusion programmes.

Business culture in India

Business culture in India is diverse, yet there are some key factors to consider, especially regarding communication, networking and building relationships.

Personal relationships

In Indian business, trust is more often established through personal relationships than through legal contracts or a company’s reputation. Establishing a strong business relationship without forming a personal one can be difficult. Sharing information about your family, speaking about personal hobbies and interests, and spending time outside the office with Indian associates will build the trust needed to sustain the relationship when business negotiations heat up.

Recently, personal relationship-building practices have evolved to incorporate more modern elements while maintaining traditional values. Virtual interactions via video calls and messaging apps have become more common, allowing for more frequent communication and relationship-building, even with remote teams. While the overlap between professional and personal spheres continues, there is a growing awareness of maintaining appropriate boundaries.

Communication style

The desire to maintain harmony is a hallmark of communication in India. Locals generally prefer to indirectly communicate bad news, especially with clients and superiors. Subtle disagreement and ambiguous language are common. For instance, Indians might express disagreement through body language or silence rather than openly contradicting others. Phrases like 'maybe' or 'I'll do my best' can be used to politely express uncertainty or refuse requests.

If you are unfamiliar with indirect communication, you may fail to read between the lines, which can cause misunderstandings. People in India rarely express a negative response by directly saying 'no'. Responses like, 'yes, but it will be a bit difficult' or 'that may be possible – what do you think?' are more common and could mean the same as a 'no'.

To navigate this, pay attention to context, including body language and tone. Asking open-ended questions about a proposal's potential problems and actively listening for subtle clues can go a long way toward avoiding miscommunication. Building strong personal relationships and establishing trust can also foster more direct communication over time.

Hierarchy

Most Indian businesses maintain a top-down hierarchy, and locals are often good at negotiating power in business relationships. Status is highly valued in Indian society, and people in positions of power are typically given greater leeway than the average citizen. In recent years, there has been a growing emphasis on clear communication of roles, responsibilities, and decision-making processes within organisations. Some companies, particularly in the tech industry, have adopted flatter organisational structures with fewer hierarchical layers.

If you need something done, partner with the highest possible level of an organisation and anticipate delays from both internal and external politics. Respect the decision-making process within the organisation and ensure that key stakeholders are kept informed and involved. Establishing credibility by showcasing your knowledge and expertise can help you gain the trust and respect of senior executives.

Adapting versus planning

As is the case in many emerging markets, business objectives in India are often accomplished by adaptation and improvisation rather than by implementing carefully constructed plans. While you may prefer to develop contingencies for every foreseeable scenario, locals frequently place greater emphasis on reacting well to emerging circumstances. For instance, during the Covid lockdown, many Indian companies quickly transitioned to remote work arrangements, showcasing their agility and adaptability.

Dos and don’ts of business in India

• Do show respect to authority figures and use appropriate titles like 'Mr', 'Miss', 'Sir' or 'Madam' if unsure how to address Indian counterparts.
• Do be polite and composed at all times to prove sincere objectives. Allow time for small talk to build rapport and establish a friendly atmosphere.
• Do be punctual; being late is seen as disrespectful. Plan ahead for transport and traffic to arrive on time. Factor in potential delays and inform your Indian counterparts if you need to reschedule or change plans.
• Don't be overly aggressive in business negotiations. While Indians are generally tough negotiators, outward displays of aggressiveness will cause them to lose their respect. Focus on building relationships, be patient and persistent, and be prepared to compromise.
• Don't refuse food or drink offered during business meetings, as this may offend your hosts. When dining with Indians, it is best to assume they are vegetarian and that they don't drink or smoke unless they indicate otherwise. Use your right hand when eating or passing dishes, and avoid excessive alcohol consumption.