India - Business Culture

India is a country of both diversity and continuity. It is a creative blend of cultures, religions, races and languages. The nation’s identity and social structure remain protected by a rich cultural heritage that dates back at least 5,000 years, making India one of the oldest civilisations in the world.

One of the fundamental components of Indian culture, vital for business organisations to succeed, is an understanding of the traditions and ways of communicating with others that form the basis of India’s society.

Indian Culture – Key concepts and values

Hinduism and the traditional caste system - In India, religion is a way of life and must be respected in order to maintain successful business relationships. Despite the elimination of the traditional caste system, that was a direct outcome of Hinduism, attitudes still remain and both aspects of Indian culture still influence the hierarchical structure of business practices in India today.

Fatalism - The concept of fatalism stems from one of the most characteristic traits of Indian culture – spirituality. The notion of Karma and that everything happens for a reason is still significant in the decision making process of many Indians. It also influences the concept of time in India and as a consequence business negotiations may take longer and are never rushed.

Collectivism - India’s strong sense of community and group defined orientation mean a greater acceptance of hierarchical settings. In India, there is a noticeable lack of privacy and a smaller concept of personal space, where several generations often live together under one roof. For Indian business practices this places an additional importance on interpersonal contacts, avoidance of conflict and a more indirect approach to communication.

CULTURE AND BUSINESS

While world market forces have produced certain uniformity in the practice of global business, each country, state, and region retains its individuality in the day-to-day practice of business. In India, for example, business life and home life are largely fused into synthetic cooperation, work and play. The private and the corporate are often brought together in the common thread of the day-to-day.

Understanding the cultural realities that could positively impact your business relationship is the key to success in India. There are some basic facts that can equip you with an understanding of Indian business life to help you optimize your success.

Cultural life in India can be described as a constant negotiation between strongly held traditional values and emerging modern business and personal practices. While this dynamic may sometimes cause frustration to foreigners doing business in India, it is also the means by which India has been defining itself in relation to the global market, protecting its own resources, and attempting to positively benefit Indian interests as much as possible while becoming a formidable player. After India's independence in 1947, the Indian government enacted a number of protectionist laws that made India relatively isolated from the larger free-market global economy. Under the reforms of the last two decades, however, India has emerged onto the world stage as one of the most intriguing and potentially profitable markets of the developing world. Some restrictions and even the pace of business life in India may appear less efficient than their Western counterparts, but this should not deter the forward-thinking businessperson. With a little patience, great profits are possible.

Indian Society and Culture

Hierarchy