Background Of Business In India Commerce Essay

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Ms Rosa Smith is a new Project Manager in a company which is a medium-sized business that operates in the field of import and export market. The company is planning to expand its business dealing with India, because in future, India is going to be amongst the company's most important markets. On the other hand, the company has mainly a European background and it has not much previous experience working with India. So the company is not very familiar with the business procedures amongst Indians, but is eager to learn about the business procedures of Indian businesses.

So the main aim of this report is to explain the procedures for business interactions in India. This report is intends to advise her on the way to explain three key important cultural characteristics of Indian business procedures. This include summarises the findings about 3 characterises like Indian business structures, Indian communication styles & Indian meeting style.

The limitation of this report:

Draft report should be given at May 29, 2012

Final report should be given at June 05, 2012

The word limitation is 900-1000 words for this report.

2. Discussion:


As a country, India covers a land area greater than that of Europe. Its inhabitants speak a bewildering array of languages. The people live in twenty-eight states and seven union territories. It is hardly surprising; therefore, that India is a country about which it is very difficult to make sweeping generalisations.

Yet India presents a massive market opportunity for companies who wish to expand their markets internationally. With a population approaching 1.2billion - many millions of whom are reasonably affluent and possess large disposable incomes - the sub-continent is widely tipped to be the second or third largest economy in the world within the next 20 years. (it is already the 3rd largest economy by GDP Purchasing Power Parity).

People often forget that business in India (growing at about 9% per annum GDP in 2011) is powered by a very strong domestic market which has seen strong performances in all three sectors or agriculture, industry and services and that these sectors, couple with high savings rates and a very favourable demographic trend, make India much more than merely a 'low-cost' option.

Any business organisation that wishes to profit from India's rise, would do well to spend a little time studying the cultural norms which drive the thinking of the Indian people.

Although it is difficult to generalise about approach to business in India, there are certain factors which would seem to be almost universal in their applicability and which need to be considered when working with Indian contacts. These issues include the fact that India is a country in which relationships are placed before business and thus the relationship phase of the business cycle could be considered to be the most important.

Background to Business in India, Retrieved may 21, 2012 from:


Hierarchy is more effective in Indian business structures. It is absolutely essential to understand how deeply these hierarchical thought-processes impact on Indian attitudes to business.  This simple fact can make working into India much more costly and inefficient. Companies tend to be run by one very strong individualwho will issue direct instructions down the chain of command. Everybody expects that these instructions will be given in a fairly authoritarian manner and that they will be followed unquestioningly by those further down the chain.

This hierarchical approach means that when doing business in India it usually necessary to liaise as near to the top as possible. A great deal of time can be wasted dealing with middle management who may have very little impact on the final decision. If dealing in the middle, try to deal with those who have some influence over the real decision-maker.

Indian Business Structures, Retrieved may 21, 2012 from:


In India meeting style is heavily depended on the type and size of organisation with which you are engaged in business. Many of highly successful and big industries are actively pursuing Western style business methodology. On the other side more traditional Indian companies will retain more local approaches to meeting and these meeting are likely to be seen very informal with more interruptions, where people will attend their phone call without bothering others and will discuss disconnected issues.

Gift giving is an endemic part of life in India and it is thought that the gift giver is the one who should thank the receiver. Gifts need not be large or expensive but should always be wrapped. Traditionally, gifts are wrapped and not opened in front of the giver. When wrapping gifts, avoid black or white paper which is considered unlucky.

Indian Meetings, Retrieved may 21, 2012 from:

When doing business in India, business cards should be exchanged at the first meeting. It is a good idea to have it translated on one side into Hindi, more as a sign of respect as opposed to linguistic necessity. Be sure to receive and give with your right hand. Make sure the card is put away respectfully and not simply pushed into a trouser pocket.

Doing business in India, date is not mentioned:


English is one of the fifteen official languages in India, spoken by the educated sections of society. As with many Asians, Indians find it very difficult to say 'no' - feeling that to do so would be offensive and lead to difficult on-going relationships. As Indians are highly family-oriented, do not be surprised if many meetings begin with questions about your family. Such small talk is considered to be highly civilised behaviour and a good way to establish meaningful dialogue later in the proceedings. Do not be over-eager to move things onto an empirical business basis too quickly.

Indian Communication Styles, Retrieved may 21, 2012 from:

3. Conclusions:

To conclude, it is of extreme important to understand the background and style of Indian business to handle import and export markets. Because India is a developing country and has a different style of working. So it will be more beneficial to other countries to understand its business culture before dealing with it.

Indian Business Structure:

At the end I conclude that Indian business ha hierarchy, which have only one person has all power to make all decision and no one else can ask him question regarding this decision. So it means if the owner or decision making person is wise and capable to operate the business, then the business will be very successful.

Indian Meeting style:

It is best to be aware of the country's business meeting style and their attitude, so you can begin and maintain a satisfactory professional relationship. So it is very important to understand the meeting style of Indian business, because Indian businessmen are adopting the Western style as well Indian traditional style.

Indian Communication Style:

Every culture has their own communication style. Indian has also a different style to communicate. Because people in Indian speak more than 1000 language. But English is a common language to communicate with foreigner. So it is advantage for them whom want to do business in India.