India is a land where culture and customs have always been an integral part of its way of life. The country has managed to retain its authenticity and hold on to its traditions despite being a rapidly growing economy and the second-largest population in the world. The convergence of ancient cultural norms with modern business practices is something that companies intending to operate in India must understand.
Businesses need to be aware of the factors that influence cultural norms and their impact on the Indian economy. The following are some of the critical cultural norms that have a profound impact on Indian business practices:
1) Hierarchy: Hierarchy is an essential part of the Indian culture and is reflected in business. Business structures in India have a top-down hierarchy where decision-making is centralized. Junior employees are required to show respect to their superiors, which means that the feedback loop is often broken.
2) Relationships: Indian businesses are generally built on relationships. Developing trust is crucial before any business deals can be closed. Building and nurturing relationships takes time, but it is critical to understand how business and personal relationships are intertwined in India.
3) Time: Punctuality and time management are not taken as seriously in India as they are in the West. Being late is not uncommon in India, and meetings can start later than the scheduled time. Businesses need to understand the Indian concept of time and be prepared to be patient.
4) Collective mindset: The collective mindset is something with which businesses need to be familiar. Decisions are often made in groups, and the collective mindset is preferred over individualistic thinking.
5) Communication: Indian communication is generally indirect and relies heavily on tone and body language. It is essential to understand that Indians may not say ‘no’ directly, which can lead to misunderstandings. Indians tend to be polite and respectful in their communication.
It is crucial for businesses operating in India to understand the cultural norms and their impact on business. Failing to do so can have serious consequences on the success of the business. A classic example of this is the retail giant, Walmart, which had to shut down its stores in India due to non-compliance with regulations and a failure to understand the cultural norms.
In conclusion, understanding the cultural norms and practices is a key factor for any organization looking to establish and grow its footprint in India. India is a country that values its customs and traditions, and these have a significant impact on how business is done in the country. By taking the time to understand these cultural factors, businesses can navigate the Indian market successfully.
