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Cultural Tips on India: an Interview with Indian Business Author and Journalist, Sandip Sen

India’s business culture is unique in its food, clothes and environment and it takes time and patience to get adjusted to it. After opening retail chains in over 100 nations McDonald’s had to recreate their entire fast food range as per Indian tastes after 3 years of losses. Now with McAloo Tikka and Chicken McGrill they are doing roaring business in the world’s second fastest growing economy.  Same with clothes. Traditionally Indians like bright hues and only the youth working in multinational corporations prefer pastel and dull shades. Indians will not adopt an American name, or food or clothes or religion or lifestyle easily even if they are decades in America.


Similarly in business, unlike China, Korea or Japan, Indians are more focused on relationships and less on exacting professionalism or high profits. However the most unique thing in Indian business culture is patience. Indian’s have a lot of patience and strangely expect others to have it. So if you have to tap the endless inherent demand of the Indian markets you have to be patient and learn about its way of functioning.


Everything is produced competitively in India, but Indian’s are happy to tap domestic markets unlike the Chinese and Japanese who love to export. They make the world’s cheapest car at around $2500 apiece, also the world’s cheapest tablet at $50 apiece. Like in China, the big players come to India (i) to tap the high demand, and (ii) to innovate and create products economically. However India still does import a lot of things because some of the foreign products are cheaper and better.  Broadly speaking anything mass produced is cheaper in China, anything batch produced is cheaper in India. Despite the competition margins are moderate, neither too high nor paper thin.


The best way is to learn the ropes is with an Indian partner in the form of a joint venture. Indian business environment is pretty complex so big multinational companies enter the fray with a tie up with existing Indian companies in the same segment.  You can find potential business contacts in the internet nowadays, and also through social contacts, trade delegation visits, business chamber meets, advertisements in Indian papers etc. Like everywhere else.

( Vivian )20 Mar,2012

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