Indian business system

Overview
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 your business organisation to succeed, is an understanding of the traditions and ways of communicating with others that form the basis of India’s society.
Business Culture Of India
The business culture of India is a reflection of the various norms and standards followed by its people. Indians have various cultural yardsticks, which extend to their business culture too. Thus, it is important that a person visiting the country has an idea of the business culture of India. Thus, it is important that a person visiting the country has some basic idea regarding the business ethics and customs followed here. Having a good grasp on Indian business culture will ensure that you succeed in maintaining a well-earned affinity with your business counterparts. If you are unsure of how to deal with an Indian when it comes to business, we are here to simplify the task.
Objectives
After studying this lesson, you will be able to:
• explain the Indian business scenario in the past;
• describe the of growth and development of Indian trade and commerce; and
• stages/ parts of business in India and their contributung
Indian Business in the Past Indian Business
in the Past In the early days Indian economy was totally based on agriculture. People used to produce whatever they required for their self-consumption. There was no need for sale or exchange of goods. But later on, needs of the people increased and so did the production. People began to specialise in producing different items of luxury and daily use and did not have skills and time left for producing others items of their use. However, they were able to produce surplus items with increase in their efficiency. So, a system of exchanging surplus items with the items of need was evolved. This was the beginning of trade. It is normally understood that India has progressed a great deal in the modern time, especially after independence, in the field of business and trade.
Indian Business in the Past Indian Business
Now the India belongs to many of factories and industries as ‘temples of modern India’. India has become a strong country in terms of industrial growth so much so that we are able to produce almost all goods of our use indigenously. This however, does not mean that there was no growth and development in these fields in the past in India. In fact, India has a very rich heritage in trade and commerce, which can make any Indian feel proud of People will be surprised to know that India began its journey in the field of trade and commerce as back as 5000 B.C.
Growth and Development of Indian Trade and Commerce
Indian business used to be mostly need based, with least focus on profit in its initial days.
With passage of time, it went through several transformations due to changes in customs and
practice, and patronage by different rulers. Let us learn about our business heritage in three
different phases - Ancient, Medieval and Modern.
Stages of Indian business
India business Part 1 – Working in India (Pre-departure)
• Working practices India
o Indians appreciate punctuality but may not reciprocate it. It is advisable to make appointments at least one month in advance and confirm them when arriving in India. A flexible schedule will prove useful.
o Business appointments should ideally be made for late morning or early afternoon, between the hours of 11 and 4.
o Making decisions is often a slow and thoughtful process in Indian culture. Deadlines should not be rushed as impatience is seen as aggressive, rude and disrespectful.
• Structure and hierarchy in Indian companies
o Within the system of hierarchy in the Indian work place, senior colleagues and especially elders are obeyed and respected. Discussions are almost always lead by the most senior person.
o Final decisions rest with the highest-ranking business executives, therefore it is important to maintain strong relationships with senior figures in Indian business.
• Working relationships in India
o It is the responsibility of the senior management to monitor, check and look after their Indian subordinates.
o Face and self-esteem is an essential part of Indian culture, therefore any individual criticism in business situations must be done carefully and with sensitivity.
o Despite the distinguished hierarchical system, the relationship between an Indian boss and his employee can be similar to that of close relatives. This is a direct influence of the community life experienced for thousands of years in India.
India business Part 2 – Doing business in India
• Business practices in India
o Meetings in India will generally begin with friendly small talk. This may include personal questions about your family and is seen as a way of building rapport and trust before business.
o In India, the family unit is highly valued, therefore showing interest and respect towards your Indian counterpart’s family is vital for establishing successful relationships.
o In Indian culture disagreement is rarely expressed in a direct manner. The word ‘no’ is often avoided and is replaced by other non-verbal cues and indirect communication.
o During negotiations, trust and well-established relationships with your Indian counterparts must be in place before any form of business can take place.
Indian business etiquette (Do's and Don'ts)
• Do use titles wherever possible, such as “Professor” or “Doctor”. If your Indian counterpart does not have a title, use “Mr”, “Mrs”, or “Miss”.
• Do wait for a female business colleague to initiate the greeting. Indian men do not generally shake hands with women out of respect.
• Do remain polite and honest at all times in order to prove that your objectives are sincere.
• Don’t be aggressive in your business negotiations – it can show disrespect.
• Don’t take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands.
• Don’t refuse any food or drink offered to you during business meetings as this may cause offence. In addition, it is useful to bear in mind that traditionally, Indians are vegetarians and do not drink alcohol.