Intercultural Communication:

Doing business in INDIA

Presentation by
Andreas Fuchs and
Walter Jäckisch

12-05-2010 FH Worms, IBA, Business English 6, Mejri 1

Agenda
1. Introduction
2. Stereotypes
3. Indian culture (religion, ethnics, cuisine etc.)
4. Cultural Dimensions
5. Business Culture
- Body language
- In the office
- Business tipps
6. Do´s & Don`ts : In general
7. Indo-German business relations
8. Quiz 2
1. Introduction
Video

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 Question

What comes first to your mind when you

think of INDIA???

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History overview
 16th century: UK established trading posts
 beginning of colonization by the British East India
Company (1612-1947 British India)
 since 1857 under direct control of the British
crown
 from 1920: The Indian Independent Movement
 Mahatma Gandhi and his national campaigns of
non-violent civil disobedience
 15. August 1947: Independence from the UK &
Partition  formation of a seperate State of
Pakistans by the Muslims
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History overview
 Jawaharlal Nehru became India´s 1st Prime
Minister (administration from 1947-1964)
 26. January 1950: New constitution and
foundation of the Republic of India
 1971: Indo-Pakistan War
 since 1991: significant political and economic
reforms
 today: one of the fastest growing economies in
the world

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History impressions

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Facts & Figures
Official Name: Republic of India
Population: 1.2 BLN
Capital: New Delhi
Largest City: Mumbai (20 Mio.)
Official Language: English, Hindi
Currency: Indian Rupee (70 INR~1€)
Religion: 80.5% Hinduism,
13.4% Muslim, 2.3% Christian
GDP (2010 estimate): 1.367 trillion USD
National holiday: 26.1. Republic Day,
15.8. Independence Day
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Facts & Figures
Form of government: Federal republic, Parliamentary
democracy
Current Prime Minister: Manmohan Singh
Political structure:
Consists of 28 states and 7 Union Territories
Flag and National symbol:

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Geography
Total area: 3.287.000 square km
 6 times the size of Europe

Boarders to:
Pakistan
China
Nepal
Bhutan
Bangladesh
Burma
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2. Stereotypes
What do Germans think about Indians?

 less qualified because of poverty

 deadlines seem to be ignored
 unpunctual
 no commitments
 no initiative
 don´t give clear feedback
 never show real opinion
 indirect and vague
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2. Stereotypes
What do Indians think about Germans?

 only monetary business interest

 want only profesional relatiosnship
 meticulous
 punctual
 perfect organized
 disciplined
 only think in absolutes

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3. Indian culture: Religion
 Multi-cultural as usual ?
Multi-cultural, multi-racial India

Hindus
Muslims
Jains
Christians
Buddhists
Sikhs

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3. Indian culture: Religion
Hindu society has traditionally been categorized
into four classes, called Varnas
(Sanskrit: "colour, form, appearance")

1. the Brahmins: teachers and priests;

2. the Kshatriyas: warriors, nobles, and kings;
3. the Vaishyas: farmers, merchants, and
businessmen; and
4. the Shudras: servants and labourers

the Dalits: the Untouchables

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3. Indian culture: Religion
Hindu society has traditionally been categorized
into four classes, called Varnas
(Sanskrit: "colour, form, appearance")

1. the Brahmins: teachers and priests;

2. the Kshatriyas: warriors, nobles, and kings;
3. the Vaishyas: farmers, merchants, and
businessmen; and
4. the Shudras: servants and labourers

the Dalits: the Untouchables

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3. Indian culture: Ethnic groups
 Indo-Aryan peoples  Tamil
 Indo-Mongoloid  Meitei people
 Irani people  Mizo people
 Gurjar  Naga people
 Hmar  Parsi people
 Jat  Punjabi tribes
 Kashmiri tribes  Rajput clans
 Marathi  Tai peoples

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3. Indian culture: Cuisine

Sadya

Dal makhani

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3. Indian culture: Language
 The official language is Hindi while English
is the secondary official language

 22 major languages (Urdu, Marathi, Tamil,

Panjabi, Telugu etc. )

 300 minor languages

 English is widely used in business, politics

and education. 18
4.Cultural Dimensions
Germany India
Long- term orientation 31 61

Power distance 35 77

Individualism
Why ?
67 48

Uncertainty avoidance 65 40

Masculinity 66 56
Cultural Dimensions of Hofstede

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3. Indian culture: Pictures

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5. Business culture: Body language
 eye contact: looking at the person shows interest
and importance  maintain 50% of the time
 facial expression: smiling send a positiv message
 folding hands: “Namaste”
 most common form of greeting
 gesture: „the indian head shaking“
 it can mean anything from "good"
to "I understand”

Video
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5. Business culture: In the office
 flexible office hours
 often open-plan office
 lively atmospehre
 unpunctual in meetings
 take phonecalls during a meeting
 „Headphone Culture“  listening to music during
the work
 pursue privat interests
 love to chat about family, hobbies, etc.
 dress code: „Formal Monday vs. Casual Friday“
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5. Business culture: In the office
 form of address:
call the boss „boss“
senior managment: Sir
 all the others with firstname
 celebrate religious holiday in the office
 company like a big family  many company
events
 various tea breaks
 lunch delivery service: „Tiffins“

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Office impressions

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5. Business culture: Tipps
How to do business in India?

 don´t use a strong, agressive aproach, avoid

high pressure tactics  gentel aproach
 built up a relationship also on the personal level
 listen carefully: aversion to saying NO!
 "We'll see", "I will try" or "possibly"
 learn at least a little bit about culture and history
 acceptable gifts are flowers, chocolate, perfume
 keep in mind that many Indians are vegetarian
and don't drink alcohol
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5. Business culture: Tipps
Meetings:

 set a meeting between 11h and 16h

 make appointments 1 month in advance
 business cards should be exchanged at the
beginning of a business meeting
 short and light, not firm, handshake is the
customary start to a business meeting
 always approach and greet the most senior
person first
 start with „small talk“

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6. Do´s & Don´ts: FOOD

 Take along Imodium pill

 Use bottled water or boiled water for drinking and
brushing teeth. Soft drinks.
Ice is a NO! NO!
 Don’t eat fresh fruit and vegetables
that you cannot peel
 Don’t drink any alcohol or smoke in public,
it’s offensive
 Wash your hands well before eating
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6. Do´s & Don´ts: HEALTH

 For health risks and side-effects ask your doctor

 If you get diarrhea, drink plenty of liquids, eat

rice and bananas.

 Use Lariam as a stand-by pill against malaria

 Most toilets outside the office or hotel will be the

type where you squat, and no toilet paper
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6. Do´s & Don´ts: CLOTHING
 Men wear a suit and tie for business, although the
jacket may be removed
Women should wear conservative dresses

 When dressing casual, short-sleeved shirts and

long pants are preferred for men

 Women must keep their upper arms, chest, back,

and legs covered at all times.

 The use of leather products including belts or

handbags may be considered offensive. 29
6. Do´s & Don´ts: ETIQUETTE
 Shoes/sandals, are considered unclean. Usually
you take them off when entering a home.

 If your foot - with or without shoes – touches

someone accidentally, apologies.

 The left hand is only used for “toilet services.”

 Men and women do not touch in public. Do not

offer to shake the hand of a person of the
opposite sex unless they offer first
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6. Do´s & Don´ts: INTERACTING
 Do not thank your hosts at the end of a meal.
"Thank you" is considered a form of payment and
therefore insulting.
 Do bargain with street hawkers and stores.
 The word "no" has harsh implications in India.
Never directly refuse an invitation, a vague "I’ll
try" is an acceptable refusal.
 Many Indians are in the habit of shaking
their head in the course of conversation or
taking instructions.
Don't show amusement if you witness this.
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7. Indo-German business relations
 Germany is India’s principal trading partner in
the EU
 Volume of bilateral trade to EUR 20 billion by
the end of 2012

 In 2008:

German exports to India: EUR 8.2 billion

Indian exports to Germany: EUR 5.2 billion

Germany was India’s seventh most important

trading partner for imports and eighth most
important for exports.
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7. Indo-German business relations

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7. Indo-German business relations
 India’s main exports: textile, chemical products
and leather goods
 With 3 billion USD direct investments
Germany is on 3rd place among investors in
Europe
 2.700 Indo-German cooperative business
ventures have been set up since 1991
 projects are concentrated in chemicals,
pharmaceuticals, electrical engineering and
software

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7. Indo-German business relations
 German Companies in India ?

65 % of the manufacturing companies have

established manufacturing facilities
30 % are planning to setup a manufacturing
base in the near future.

R&D facilities and Business Process Outsourcing

operations.

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 List of German Companies in India

Abicor, Binzel, Adidas Marketing, Baerlocher

Additives, Bajaj, Allianz, Basf, Baumuller, Bayer
Beiersdorf, Bosch Group, Braun Medical Burgmann
Carl Bechem, Carl Zeiss, Daimler, DHL Express
DMG, Durr, Fichtner, Henkel, Kluber Lubrication,
Knorr,Lahmeyer International, Lapp, Pharmaplan
Schuler, Steag Encotec, Stollberg, Suspa, Wurth,
Zeppelin Mobile Systems, Zwick Roell

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8. Quiz:
You`re responsible for taking care of an international student
from India. After you picked him up at the airport, you ask him if
he likes to check out some clubs tonight. He shakes his head.
What are your plans ?

a.) You get ready for bed.

b.) You go out with your friends and show him where he can sleep.
c.) The two of you go clubbin.

Taj Mahal is a :

a.) … very expensive hotel.

b.) … tomb .
c.) … mosque .
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8. Quiz:

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 Any questions ???
Thank you for your
interest and attention!

12-05-2010 FH Worms, IBA, Business English 6, Mejri 39