Foreign nationals venturing in the Indian business market for the first time may report a bewildering experience. There are lots of different business customs and bureaucracies that hinder the ease of doing business. As the second-most populous nation in the world, and with more than one billion people, India is projected to be one of the world’s biggest economies in coming decades.
Experts say it’s business practices are entirely different from those of the west. To succeed in the Indian market, products need to be specifically tailored to the local customer. You can not have a successful towing service business in the United States and introduce the same in India while expecting similar success if whatever you are offering is not tailored for the local Market.
Indian Business Practices
Business practices are a bit different when compared to those of the west. Many foreign companies underestimate the bureaucratic hurdles that they face. Business registration has always been a primary concern and a big hassle for entrepreneurs who are looking to set their businesses in India. It is no wonder this country is ranks position 142 in the ease of doing business, out of the possible 158 positions.
The Ministry of Corporate Affairs introduced a new INC-29, which is a five-in-one form that will help in improving the ease of doing business in India. Regardless, the form does not replace the old procedure, but it significantly reduces the interaction with authorities, thus saving a valuable amount of time wasted on back and forth.
Business Culture in India
Having a good understanding of the underlying values, assumptions, and beliefs of the Indian culture, and the influences these play in the market and workforce will go a long way towards determining success or failure of business. India is a diverse and vast nation with different identities, cultures, languages, and religions. It is challenging to generalize about the Indian culture.
To succeed in India, you need to have a flexible approach guided by introduction and greetings. Etiquette requires a handshake, although Indians may use a common technique of pressing palms together with fingers pointing up. When entering a business meeting, always greet the most senior members first. When exchanging business cards, ensure that you receive back with your right hand and do so respectfully.
Concerning business language and communication, English is widely used and is one of the official languages. Indians have a particular difficulty of saying ‘no’ as it might be seen to be offensive. Instead, they prefer making statements such as ‘will see’ or ‘will try’, as an indication for ‘no’.