Intersection of culture and business in India

India is one of the most diverse countries in the world. With a population of over one billion, 3.29 million square kilometers of landmass to cover and a multitude of languages and customs, the Indian market can be a daunting place for businessmen. Business success can depend to a large extent on an understanding of the culture, the people, the land and the business environment that a foreign company and investor would be expected to operate within. India is diverse with varied and distinct geographical regions each having its own language, customs and festivals. The country is comprised of a rapidly developing, population. At present, 70% still live in villages and work in agriculture, 13% work in the industry sector and 17% in services. Literacy is highest in the South at almost 90%. This is contrasted with Northern regions where the literacy rate is only about 45%. It is critical to also note the importance religion plays amongst all communities. The four principle religions are Hinduism (80%), Islam (14%), Christianity, and Sikhism with a small fraction of the population also practicing Buddhism, Zoroastrianism, and Judaism. Culture Culture is the systems of knowledge shared by a relatively large group of people. Culture in its broadest sense is cultivated behavior; that is the totality of a person's learned, accumulated experience which is socially transmitted, or more briefly, behavior through social learning. It is the sum of total of the learned behavior of a group of people that are generally considered to be the tradition of that people and are transmitted from generation to generation. Competence around culture in a business context means that people can understand the similarities and also the differences present understand their own lenses, and also take on other lenses to broaden the range of alternatives before them. They can see where there is likely to be tension, and where there is opportunity for cultural synergy. Organizations, employees, and leaders with intercultural competence are better able to anticipate tensions as well as the potential synergies, and can distinguish among the range of cognitive and/or behavioral adaptations they might try in a particular cross-cultural situation in order to yield the greatest dividends. Business culture It refers to the values and behaviors that contribute to the unique social and psychological environment of an organization. Showing hospitality is part of the negotiation process. Often meetings start by offering tea/coffee and snacks. It is courteous to accept the offer. Relationships and feelings play a larger role in decisions in India. In general, Indians tend to take larger risks with a person whose intentions they trust. Thus, one's credibility and trustworthiness are critical in negotiating a deal. In general, Indians are cautious in accepting a new idea or proposal. Openness to a new idea depends not only on its quality, but also on its source and endorsement. That is, information about who else has implemented it or who has proposed it has a major influence on the decision about a new idea. Indians usually do not express their disagreements openly and directly; doing so would be considered discourteous. Instead, when differences arise, they may circumvent them by statements such as 'we will discuss this later' or 'I will have to check with others about this. Bargaining for the price or additional concessions is normal in India. Indian negotiators expect and value flexibility in negotiation. Therefore, sometimes a straightforward offer may be perceived as a rigid stand. It is always advisable to build some buffers in one's initial offer, which allow for bargaining later. One of the most significant cultural influences on Indian culture is that of hierarchy. You will see this manifest in many ways when doing business in India. For example, only the owner or the most superior person of a company will make business decisions. Even if you are dealing with a manager, they will always go to the boss for a final decision.

You may often find that, as a sign of respect, subordinates stand up when the boss enters a room. Women in business, especially in senior positions, executives, are a relatively new development. If you are a woman doing business in India, you will normally find people respectful and courteous, but not very comfortable in working with you for business deals. You may have to make extra efforts to get them to discuss business with you. Different states in India each have different official languages. Central government only recognizes Hindi as the official language of India. However, when doing business in India, English is the language of international commerce. As with most countries, India has its own unique and subtle manner in which business is conducted. Success can depend on an appreciation and understanding of the cultural aspects in addition to patience and a high level of long-term commitment and personal attention and involvement. Establishing and maintaining strong relationships with Indian business associates is fundamental to successful business in India.

Pankaj Singhal 13A3HP007 9642768191