India - Business Etiquette & Customs

India : Business Etiquette & Customs

India is a young country, with a median age of 26.5. Compared to older generations, this younger generation has more liberal and consumerist values and is more confident and ambitious. The population as of July 2012 is 1,205,073,612. India has a large linguistic diversity. There are 18 constitutionally recognized major languages. Hindi is the official national language; however, less than 40% of people in India understand or speak Hindi. English is considered the subsidiary official language, but it is the most important language for political, national, and commercial communication. India also has one of the largest populations of technically qualified manpower, comprising around 15 million scientists, engineers, and doctors. Indians are very conscious of social order and their status relative to other people. All relationships in India involve hierarchies. In school, teachers are referred to as gurus and they are viewed as a source of all knowledge. Usually the father is considered the leader of the family. In business, the boss is seen as the source of ultimate responsibility. Every relationship has a very clear cut hierarchy that must be observed for the social order to be maintained.

Before traveling to India on business, it is advisable to schedule your appointment at least a couple of months in advance. You should also confirm your appointment a few days before the appointment is scheduled. Since India has a certain hierarchy to be followed, you should try to schedule your first appointment with someone who is high in authority in the organization. You should arrive early for your meeting and be prepared for last minute changes in the time and place. You should leave your contact information with the secretary so that in case there are changes, you can be immediately informed. In most Indian cities, the roads are very crowded and it can take quite a long time to reach your destination during high-traffic hours. So you will need to make sure that you leave early enough to reach your destination with time to spare.

The dress code in Indian business settings has undergone a transformation in recent years. It can be difficult to make a generalization about the most appropriate way to dress, however there are certain points that should assist you in making the right decision. Normal business attire for men is a suit and tie, but since India has such a warm climate, a full-sleeved shirt with a tie is also acceptable. You should dress in neutral colors, which are subdued and not very bright. The dress code is more casual in the IT sector. It is not uncommon to find people wearing T-shirts and jeans with tennis shoes. As a visitor however, you should dress conservatively. Women generally wear pant-suits or long skirts that cover their knees. The neckline of the blouse or top should be high. If you are invited to a social gathering, dress can be casual.

Gift giving in India is considered customary and can be seen as a sign of friendship. However, gift giving is generally not expected at the first meeting. You should not give expensive gifts unless you are very close to the person. Large and expensive gifts are usually only given by close relatives and close friends. Indians usually will try to reciprocate gifts as well, so if a gift is too expensive, it may cause embarrassment for the recipient. You should use blue, yellow, green, or red colored wrapping paper. Black and white wrapping paper is considered to cause failure or bad luck. Gifts are generally not opened in the presence of the giver, however, sometimes your Indian host may insist on your opening the gift, and will expect appreciation for their choice. If giving flowers, you should check with a local florist on an acceptable choice as different flowers have different connotations across India. A bouquet of roses is usually the safest choice. You should not give gifts of leather, as many Hindus are vegetarians and will not appreciate items made of leather. Remember, it is not the value of the gift that is important, but rather the sincerity with which it is given.

In the United States, the traditional greeting is a handshake. This is not the case in India. In India, the traditional greeting is done by holding your palms together, as if praying, and saying "Namaste", pronounced [nah-mas-tay], with a slight bow. Since India is a hierarchical culture, you should greet the eldest or most senior person first. While shaking hands may not be the traditional way of greeting, it is an acceptable way of greeting people among urban and westernized Indians. However, you should not shake hands with women, since it involves physical touch. The only time it is considered acceptable to shake hands with a woman is among urban and westernized Indians and only if the woman is offering her hand. The Indian society in general is conservative about physical contact. You should refrain from greeting people with hugs and kisses. When leaving a group, each person must be bid farewell individually.

Another custom to be aware of on your business trip to India is the exchanging