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Negotiations and business strategies with India

By Marian Stetson-Rodriguez, president, Charis Intercultural Training

Handling diversity; intensity, complexity, and paradox are all essential requirements for working with India. “The business opportunity India represents is more complex than a cursory glance at its educated, English-speaking workforce would suggest” says Arjun Batra, Director of Intel Globalization to India, Intel Corporation. With this in mind, below are insights to building business in India. (See: Vietnam and South East Asia manufacturing resources page)

Strategies for communicating

Indian introductions
Establishing one’s place is important in the highly-networked Indian business community. Weave your accomplishments and contacts into conversation with panache to earn respect and gain introductions. Pay attention to family members, especially newly-minted MBA sons, as family-owned businesses are the majority of organizational structures. (Reliance and Tata are prominent examples). “Absolutely critical is building a network and having personal relationships in India”, says Bryan Lawlis, President and CEO of Intero Biopharmaceuticals.

Indian style
Indians may be very direct when confident they are right; however, an indirect ambiguous style is used to show respect; politeness, disagreement, refusal, or avoid confrontation. Indians may overlap each other while speaking, increasing the volume and speed of dialogue – if this is the case, don’t wait for an invitation to speak: jump in and talk over someone to make your points.

Many Indians speak quite rapidly, with an accent unfamiliar to Americans. If you experience difficulty, the best approach is to ask them to please speak more slowly. Indians you’ll meet are multilingual, and may take offense if you imply their English is faulty. (OEM Exclusive: Request list of EMS/ODM providers anywhere in India)

Indian persuasion
Indians expect you have thoroughly researched your proposition, and can provide in-depth data analysis and detail. Indians appreciate a factual and personable delivery style that starts with the ‘big picture’ before getting to implementation specifics. Indians persuade through competitive data; repetition, insistence, and rigorous detail and may make vigorous, emotional appeals to underscore their proposition. A response in kind (avoiding an aloof, rational approach) is most effective.

Find SMT/PCBA services in India
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In your search results, you will be able to further target your options by choosing End Market, then selecting Go.


Indian feedback

Generally, India’s culture promotes pleasing people; thus feedback that might be unpleasing (problems, criticism, confrontation) is generally avoided. Indians are usually conscious of status and feedback is offered from higher to lower rank (based on age or position).

  • Negative feedback – Indians do not want to convey bad news, and will often work hard to remedy a situation before letting you know of any delays or missed goals. Criticism is subtle, “That’s not quite what I was looking for.”
  • Positive feedback – Indians appreciate compliments on their performance, but may deflect direct praise and expect others to do so also, displaying good form and the trait of humility.

Indian agreement
“Yes” often means “maybe” or “we’ll see what happens”, so its important to clarify whether or not you have a solid agreement. A blunt “No” is considered rude and rarely heard, and negative responses are cushioned by offering an alternative; being silent, or being non-committal.

SEE ALSO
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Negotiating with Indian companies

Indian style
Indians are known as keen negotiators, experienced in bargaining and negotiating for themselves and their families as part of life in India. Through their networks, Indians are well prepared with data on competitive scenarios and prices. It is important to maintain an open, gracious style, never openly displaying anger or confrontation. Strong passionate positions or appeals are used strategically to emphasize a position, but one should never appear angry or hostile. If talks reach an impasse, better to resume patiently at a later time. Keep cool.

Building Indian trust
Begin building trust with proper introductions, and demonstrating respect and modesty (in dress and demeanor), and conveying appreciation to your host. You may be preceded by a stereotype of the foreign business person as ‘trader-invader’, coming to India to take advantage. Taking the time to cultivate personal relationships and establish a reputation for integrity is important. Accept social invitations (dinners, weddings) which may last many hours; these are opportunities to experience Indian hospitality, appreciate the culture, and extend your network.

Indian rationale
Indians take the time to understand the logic; competitive advantages, motivating factors, and in some instances, the spiritual timing or location of a business deal. With a population of graduates from India’s famed IIT’s (Indian Institute of Technology) and IIM’s (Indian Institute of Management), and many top universities in the West, Indians are able to draw upon strong business acumen. Indians think long-term while moving quickly to seize opportunities in today’s expanding economy. A bottom line approach or a quick fix may be perceived as simplistic and short-term thinking.

Indian cultural priorities

Indians have a deep sense of duty and obligation to their families and will tend to negotiate to bring the best deal for the family or group rather than for individual advantage.

Find NPI services in India
Go

In your search results, you will be able to further target your options by choosing End Market, then selecting Go.

Compromise
Indians know what they want and are willing to compromise. ‘Give and take’ is a means to building relationships and keep harmony when all possibilities have been explored.

Renegotiating previous commitments

Indians view business decisions more as a process than as a contract, and may revisit items previously agreed upon, continuing to negotiate in case there were any items previously left on the table. If this happens, graciously enter into talks and be well prepared for what you can and cannot do. Prepare your organization there may be have to be changes. If you cannot make changes, apply firmness with grace.

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