BUS709: Navigating Indian Business Etiquette & Cultural Nuances

This essay analyzes Indian business etiquette and cultural differences, focusing on how an Australian businesswoman can successfully expand her business into India. It covers aspects such as appropriate attire, greetings, body language, and gift-giving customs. The essay also uses Hofstede's cultural dimensions theory to highlight the differences between Australian and Indian cultures, including power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. By understanding these cultural nuances, the businesswoman can avoid potential conflicts and foster effective communication and business transactions in India. The essay references academic sources to support its analysis and provides practical advice for navigating the Indian business environment.

Business Etiquette in India 1
BUSINESS ETIQUETTE AND CULTURAL DIFFERENCES
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Business Etiquette in India 2
Mary is seeking to expand her business by setting up operations in India. She is
confident that her array of products will do well in the country. India has one of the world's
fastest growing economy and a mostly youthful population which promises a vast market. If
her expansion move to India is to be successful, Mary needs to understand various aspects of
Indian culture and how they relate to conducting business. The trip to India to meet Mr.
Sharma is a step in the right direction as it can be an excellent learning opportunity. It is
essential to make a good first impression during the meeting. This paper analyzes various
aspects of Indian business etiquette as well as how they may conflict with what Mary is used
to Australia.
The first aspect relates to appearance. As a woman, professional appearance requires
achieving the acceptable level of attire, makeup, jewelry, fingernails, perfumes and scents,
and hairstyle. While these may seem to be too many aspects of appearance to consider, they
are vital elements in the Indian culture regardless of whether one is doing business or not.
Indian women wear clothes such as suits, skirts, trousers, and saris (Martin and Chaney
2012). For a professional setup, it is essential to wear suits that are largely dark colored. The
legs and arms need to be as covered as possible. The makeup is acceptable, but it needs to be
light, simple and appropriate. Jewelry needs to be used conservatively. For instance, an
earring can be small and above the earlobe while a necklace can be a small chain with a
pendant. Bracelets are also acceptable. The jewelry worn needs to be minimal and such that it
does not make noise (Kolanad 2008). A complete professional look often requires accessories
such as a purse. One small dark colored, quality purse is an essential accessory. Perfume
needs to be light to ward of sweat odor while not filling the entire room the wearer walks in.
Nail polish is acceptable as long as the nails are clean and well-trimmed (Martin and Chaney
2012). The best polish can be light and plain rather than nail art. The hair can be styled neatly
and conservatively. The hair can be tied with rubber bands or pins to keep it out of the face.
Another aspect of business etiquette that Mary should be aware of is greetings and
titles. In a business setting, a handshake is an acceptable form of greeting. Another alternative
involves greeting a person with ‘Namaste’ accompanied by pressing palms together with
finger pointing upwards and a slight bow (Kolanad 2008). The latter option may be used in
cases where one is meeting with highly conservative business people who may consider a
man shaking hands with a woman as inappropriate (Migliore 2011). It is also essential to
always greet the most senior person first in case there are several people. The right hand is
also used when handing out things such as business cards, drinks, or gifts. Small talk is
considered appropriate before the start of business conversations. It is also recommended that
one uses formal titles and Mr. or Mrs. When one is not sure of the title. It is also vital to
consider the perception that seniority also refers to age.
The third factor involves body language. In India, personal space is valued, and
physical contact is seldom. Indians are also highly expressive and use body language
extensively to complement verbal messages. Pointing feet towards someone is considered
disrespectful and should be avoided. It is also polite to always avoid stepping over things but
instead walk around them (Kumar and Sethi 2016). Pointing with fingers is also found to be
rude. If pointing is a must, the thumb is a better option with the other fingers curled into a fist
and the palm facing upward. Indians do not encourage public displays of affection (Martin
and Chaney 2012).
Business cards and gifts are vital components of business negotiations. A business
card needs to be comprehensive and straightforward. It should contain elements such as
name, title, position, company, and contact information. Gifts are often not given during the
first business meeting. They can be given once the relationship has been established. When

Business Etiquette in India 3
handing out a gift, it is essential to use both hands and refrain from handing the gift with the
left hand only (Budhwar and Varma 2010). In case one receives a gift, they should not open it
in the presence of the giver. It is also essential to avoid gifts that contain products such as
leather or pigskin. The gift wrapping can be created using an array of colors while avoiding
the colors black and white which are often used to denote negativity or mourning (Hill 2008).
India’s official languages are Hindi and English. These can be used in business
settings. In case Mr. Sharma is not fluent in English, Mary can choose to hire a translator.
Indians also value peace and harmony. It is therefore essential to use soft negotiation
techniques and be patient without placing too much pressure on the other team. For instance,
the word ‘no’ is thought of as being too direct and can be considered rude. The phrase ‘I will
try’ can be used instead (Brown and Bandyopadhyay 2011).
Given the contrast between Indian and Australian cultures, it is pragmatic to expect
some conflicts when individuals from these two countries interact with each other.
Contrasting the two countries using Hofstede’s cultural dimensions theory can be used to
anticipate such conflicts and thereby take up steps to minimize or avoid any barriers to
effective communication and business transactions (Minkov and Hofstede 2011). The cultural
dimensions theory was developed by psychologist Dr. Geert Hofstede after his research on
cultural differences. He identified six dimensions that can be used to distinguish one culture
from another (Hofstede 2010).
Power distance explores a society’s perception towards inequalities amongst its
members (Hofstede 2010). India scores 77 in this dimension (Hofstede 2011). This implies
that it readily accepts and embodies hierarchy forms of organization. Communication is often
top-down, and decisions are reserved for high ranked individuals on a particular system.
Australia, on the other hand, scores 36 in this dimension (Hofstede 2011). Hierarchy is only
adopted for convenience and superiors are always accessible to inferiors. Consultation is
acceptable, and communication can be informal, and direct.
Individualism refers to the degree of interdependence that members of society
maintain among themselves (Hofstede 2010). Australia scores 90 in this dimension (Hofstede
2011). This is a high score which implies that the society is less reliant on interpersonal
bonds and more reliant on self-reliance. In business, business people are expected to show
initiative and seek to make decisions based on merit. India scores 48 in this dimension
(Hofstede 2011). The Indian society contains both individualistic and collective traits. Indians
prefer to act according to requirements of social convention while also relying on personal
judgment. Business decisions can be made based on the relationship developed between the
parties involved. It is therefore vital for Mary to develop healthy social relationships with
partners she hopes to do business within India.
Masculinity refers to the degree to which a society embodies traits such as
competition, achievement, and success. Masculine traits are geared towards being the best in
one’s field. Feminine traits are associated with doing what one likes or caring for the quality
of life (Hofstede 2010). Australia scores 61 in this dimension (Hofstede 2011). The society is
therefore guided more by competitiveness than by seeking personal satisfaction that is not
reliant on others situation. India scores 56 in this aspect (Hofstede 2011). As such, both
countries have almost similar preferences to masculinity.
Uncertainty avoidance dimension seeks to identify how a society deals with
uncertainties such as things that occur in the future (Hofstede 2010). Australia scores 51 in
this aspect (Hofstede 2011). This implies that Australians are indifferent to uncertainty and
taking risks. India, on the other hand, scores 40 in this dimension (Hofstede 2011). As such,

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Indians generally have a medium to low preference for avoiding uncertainty. They accept the
imperfection of nature with regard to the human situation. In business negotiations, it is vital
to acknowledge any events that may not be within the control of the business partners.
Long-term orientation relates to how a society incorporates aspects of its past when
dealing with present and future issues (Hofstede 2010). Australia scores 21 in this aspect.
Australians are therefore concerned with immediate results and have a small propensity for
the future. India scores 51 in this aspect (Hofstede 2011). Indians, therefore, give the future
much more thought than Australians. They acknowledge that actions done today will affect
the future.
Indulgence examines a society’s inclination to either indulgence or restraint (Minkov
and Hofstede 2011). Australia has a score of 71 in this aspect (Hofstede 2011). As such,
Australians show little restraint to their desires and impulses. India scores 26 in this aspect
(Hofstede 2011). Indians are therefore restrained and place limited emphasis on leisure and
gratification of desires.
In conclusion, Mary needs to review the cultural as well as the business etiquette
differences between India and Australia. Etiquette relates to issues such as clothing, body
language, verbal language, greetings, and personal space. There are differences between the
cultural dimensions of Australian and India. Awareness of these differences prepares Mary
for a successful meeting and subsequent business in India.

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References
Brown, P. and Bandyopadhyay, D.N. eds., 2011. Landscape, Place and Culture: Linkages
Between Australia and India. Cambridge Scholars Publishing.
Budhwar, P.S. and Varma, A. eds., 2010. Doing business in India. Routledge.
Hill, C.W. and Hernández-Requejo, W., 2008. Global business today. New York: McGraw-
Hill Irwin.
Hofstede, G., 2011. Dimensionalizing cultures: The Hofstede model in context. Online
readings in psychology and culture, 2(1), p.8.
Kolanad, G., 2008. CultureShock! India: A Survival Guide to Customs and Etiquette.
Marshall Cavendish International Asia Pte Ltd.
Kumar, R. and Sethi, A., 2016. Doing business in India. Springer.
Martin, J.S. and Chaney, L.H., 2012. Global Business Etiquette: A Guide to International
Communication and Customs: A Guide to International Communication and Customs. ABC-
CLIO.
Migliore, L.A., 2011. Relation between big five personality traits and Hofstede's cultural
dimensions: Samples from the USA and India. Cross Cultural Management: An
International Journal, 18(1), pp.38-54.
Minkov, M. and Hofstede, G., 2011. The evolution of Hofstede's doctrine. Cross Cultural
Management: An International Journal, 18(1), pp.10-20.