Doing business in India: why culture matters

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When Indians and Westerners learn to understand each other and work together, new ideas and potential begin to unfold, says Laurie Baum

Originally published on 30 January 2020.

India is widely known for its rich cultural heritage, ancient architecture, vibrant colours, and exotic beauty. India has also been edging itself onto the world stage as a rising global force with enormous economic opportunities and potential. As the era of globalisation increases, so are the partnerships between Western and Indian companies. The possibilities are immense, and the cultural divide is wide. Misunderstanding, misinterpretation, and cultural differences can cause frustration, create roadblocks, and bring success to a screeching halt. 

India welcomes business partners from all over the world. While modern Indian business looks and feels Western in many ways, with a prevalence of the English language and business attire resembling that on Wall Street or the financial hubs of London, India retains a uniquely Eastern character. There are common issues Westerners seem to have when doing business with Indians, and on the flip side, Indians have their own plethora of frustrations when working with Westerners.

Common issues from Westerners

  • Indians say ‘yes’, but they don’t actually mean ‘yes’.
  • Indians don’t like to make decisions on their own, and they will often ask permission or approval before acting on anything.
  • Indians will never admit when they don’t understand something, even if you ask if they have questions.
  • Indians will not be forthcoming if they think a project, suggestion, or idea won’t work.

Common Issues from Indians

  • Why don’t Westerners understand us when we tell them “no”?
  • Why do Westerners expect us to come to them if we have questions?
  • Why do Westerners always expect us to know what they are thinking and how they want us to execute a task?
  • Why are Westerners so abrupt, rude, and impolite?

All of these issues are a result of cultural misunderstandings and can be resolved with awareness, education, practice, and patience. It is the lack of cultural awareness on both sides if left unattended, can lead to confusion and frustration, unraveling and undermining a productive working relationship.

The mistake many Westerners and Indians make in business relationships is to interpret the behavior of others from the perspective of their own culture. And why wouldn’t they, it’s the only perspective they have. The ethos of the culture modeled to you has conditioned your thoughts, habits, and actions. 

Westerners may feel that it is the Indians that should receive training, and the Indians may feel it the westerners who need to learn the ways of India. The responsibility lies on both sides; both are responsible for building their part of the bridge to reach the center point more quickly. 

To become aware of the cultural differences and even to understand them is not enough to bridge the gap of successful progress and achievements. If the misunderstandings are not addressed in the form of action, the results will fall short of success.

When people repeatedly find the behavior of people they work with abnormal, unreliable, or incomprehensible, then communication efforts and relations can quickly deteriorate. The consequences will inevitably diminish, stifle, or destroy anything, and everything both sides are trying to accomplish together. If too much time passes laden with disdain, judgment, criticism, or placing blame on the other, the relationship may become irreparable – and this is why culture matters.

Many of the cultural differences come from the beliefs and attitudes around hierarchy and social perception. In Indian culture, hierarchy is inescapable, and it drives how business interactions are displayed every day. 

Westerners are often frustrated with not knowing what Indians are thinking, and Indians often worry about how to be direct without sounding impolite or offensive to their Western colleagues. Indians are every bit as straightforward as their Western colleagues when working with their “equals” or “juniors” Westerners would do well to encourage their Indian colleagues to communicate to them as they would their peers and reassure them that this way of communication is not considered impolite in the West. Indians would also do well to understand that the extent they go in ‘being polite’ as to not offend often leads to the Westerner not knowing what they are saying or wondering if they are completely off track with understanding the goals. 

Indians are often frustrated when Westerners expect them to ‘read their minds’. In Western culture, it is typical to give an assignment, explained in general, and expect that the colleague will ask for help if they have any questions. For a Westerner, they feel that to give too many details would curtail creativity, or sound insulting or condescending. For an Indian, with consideration to hierarchy, it would feel foreign and awkward to them to ask too many questions, they wouldn’t want the manager to feel they didn’t give instructions well. What might seem like micro-managing to a Westerner, would assure an Indian that they are on the right track. 

Doing business in India may seem overwhelming in the beginning, but it’s certainly not doomed to the demise of a once hopeful partnership. Once both sides navigate through cultural business behaviours and expectations, doing business with Indians can be a mutually rewarding and prosperous experience. When Indians and Westerners learn to understand each other and work together, new ideas and potential begin to unfold. 

Laurie Baum often calls India home where she’s worked with multiple global organisations holding positions within India as International Executive Director with ALL Ladies League, Global Ambassador with the Women Economic Forum, International Programs Director with Rising Star Outreach, Director of Special Events with Days for Girls International and as a Professor of English Communication and Life Skills. She is also co-author of Doing Business in India published by LID Publishing, 2019. 

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