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India –The Land of Diversity

Agenda

• Factoids– Geography, climate, demographics, languages, economy andGeography, climate, demographics, languages, economy and

government• Traveling tips• Business and social etiquette

– Communication, decision making and management preferences– Business protocol– Business dress– Greetings and conversation

Names and titles

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– Names and titles– Hospitality and gifts– Eating etiquette and public behavior

• Panel discussion

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ArvinMeritor’s Presence in India

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Why India?

• Tremendous growth and expansion opportunitiesOur customers are doing business in India• Our customers are doing business in India

• Our competitors have a presence in India and have significant business initiatives in place

• Significant cost savings opportunities• As of the year 2003, India's purchasing power parity was U.S.

$3.033 trillion, with a real growth rate of 8.3 percent • ArvinMeritor operates in a global economy – we cannot rely soley

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on North American and European markets to remain profitable and competitive

• A vast number of Indians are fluent in English• The auto component industry has grown by 17 percent in the last

five years

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Given its vastness and variety, y,there is no single wayto understand India

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Geography

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Climate

• Most of India has a tropical or subtropical climate, with littl i ti i t t b tlittle variation in temperature between seasons

• Northern plains have a greater temperature range, with cooler winters and hotter summers

• Mountain areas have cold winters and cool summers – as elevations increase sharply in the mountains,

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climate type can change from subtropical to polar within a few miles

Demographics

• Seventh largest country in the world d l h ld ( f h )• Second most populous country in the world (after China)

• Population of more than 1 billion• Median age of 24 • 40 percent of the population falls in the

range of 20-44 years old• 70 percent of the population lives

in villages

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g• Has one of the largest populations

of technically qualified manpower– 15 million doctors, engineers

and scientists

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Languages

• 18 constitutionally recognized major languages• 1,600 other languages and dialects• Hindi is the official language, spoken by 30 percent of

the population• English is the co-official language

– It is the common language used in business situations

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used in business situations– It is spoken by most of the

educated Indian class

Economy

• The Bombay Stock Exchange has around 6,500 listed companies, which is second only6,500 listed companies, which is second only to NYSE

• Allows and encourages foreign investments in most industries except a few strategic ones

• Holds the third-largest investor base in the world

• Among the only six countries in the world to develop its own satellite-launch technologyWith th 800 i it

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• With more than 800 movies a year, it produces the largest number of movies in the world– There are more than 13,000 movie

theaters in the country

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Economy

• In recent years, India has also emerged as a global l i I f ti T h l d IT E bl dplayer in Information Technology and IT Enabled

Services (ITES)• Since 2001-02, India has emerged as the sourcing hub

for almost all global automobile companies

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Government Structure

• Is the world's largest d ithdemocracy, with an electorate of more than 600 million people

• Federal structure is divided into 28 states and seven union territories

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Traveling to India – Tips

• Passport valid at least six months and Visa required by allCurrency exchange:• Currency exchange:– Exchange can be made at banks, airports or

authorized money changers– Illegal to exchange money through

unauthorized money changers – U.S. dollars and pounds sterling are easiest exchange

• American Express Diners Club MasterCard and Visa are accepted

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• American Express, Diners Club, MasterCard and Visa are accepted• Travelers checks widely accepted and may be changed at banks

– To avoid additional charges, travelers should take checks in U.S. dollars or pounds sterling

• Import of local currency and export of Indian currency is prohibited

Traveling to India – Risks

• It is recommended that travelers drink bottled water while visiting Indiawhile visiting India.

• Milk is not pasteurized in rural areas, but in the cities and towns you can purchase pasteurized milk

• Only eat well-cooked meat and fish, preferably served hot

• Most Indian food may be considered spicy and could upset your stomach if you’re not used to the spices Y t th t l i i d t l t

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• You can request that less spice is used to prepare your meal at restaurants

• Health-care facilities are available in the larger cities – India is a country with a high number of medical doctors

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IndianBusiness Etiquette

Communication Preferences

• Indians use many non-verbal cues when sending and interpreting messagesmessages

• Indians will go to great lengths to avoid public conflict and embarrassment or to save face– Indians rarely use the word “no,” fearing that such direct refusal

appears rude and could ruin the long-term business relationship– Most Indians say “yes” and try hard to please the other person

• Indians may use many physical gestures to complement their verbal communication

I b i l ti d i t i di t h ti

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– In business relations, men and women maintain distance when greeting and speak without physical contact

– Indian men may put their hands together and bow when greeting women

• In business dealings, Indians address their coworkers with titles instead of first names

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Decision-Making Preferences

• In India, the highest-ranking officials make decisions • If top decision makers are absent few if any decisions will be• If top decision makers are absent, few, if any, decisions will be

made• Trust is fundamental to the Indian decision-making process• Indians make decisions only after they have evaluated their

potential business partners by observing them at parties, receptions and dinners– A strong relationship with the top decision maker can

drastically reduce negotiation time

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– It is important to include other team members because even though Indians may defer to the decision maker, offense may be taken if interest is shown to only certain members of the team

• Decision making typically occurs at a slow pace

Management Preferences

• Management style is authoritarian in traditional family-owned businessesbusinesses

• Multinational firms in India support EI management practices• Relationship management

– Teamwork in India is common, and Indians tend to be effective team members

– Very versatile• Task management

– Indians expect to cultivate long-term business relationships

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Indians expect to cultivate long term business relationships– Indians prefer that plans are presented as an integrated system of

interrelated parts (as in a holistic model)– Indians engaged in long-term planning will take cues from the

past in order to construct plans for the future

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Management Preferences

• Time management– When a project is assigned it is more important to complete theWhen a project is assigned, it is more important to complete the

project well than complete it on time– Indians are willing to work on several tasks at one time, since the

number of responsibilities communicates one’s importance– Indians would rather work on projects after they become urgent– Unless it has been specified that the deadline is critical as

opposed to general, Indians assume that timelines are open to change as circumstances arise

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– A foreign businessperson should allow several more days in India than expected to finish business

– Foreign managers in India must emphasize the importance of a deadline if they wish to see a project completed on time. Otherwise, they should be prepared to wait for employees to complete the task on their own terms.

Business Protocol

• Hierarchy matters in India • Seniority, age and authority are respected in India,

both in business and in public life• As a sign of respect, the subordinates stand up when

the boss enters the meeting room • Women executives, in senior positions, are a relatively

new phenomenon in the Indian business environment

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p• If you are a woman, you will find people respectful and

courteous

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Business Negotiation

• The pace of business meetings is far more relaxed than i f th W t t iin some of the Western countries

• Indians do not directly jump into business negotiations• Showing hospitality is a part of the negotiation

process. Often, meetings start by offering tea/coffee and snacks (it is courteous to accept the offer)

• Indians tend to take larger risks with

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ga person whose intentions they trust –one's credibility and trustworthiness are critical in negotiating a deal

Business Dress

• Normal business dress for men is a suit and tie

• Since India is warm, a full-sleeved shirt with a tie is also acceptable

• In most companies, particularly in the IT sector, the dress code is much more casual

• For foreign women, pantsuits or long skirts, which cover the knees, are acceptable to wear

• For women a salwar suit is also

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• For women, a salwar-suit is also acceptable for business dress

• One can wear casual dress if invited to a social gathering• If a foreigner wears an Indian costume (kurta-pajama for men,

and sari or salwar-suit for women), it is appreciated and seen as a gesture of friendship

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Greetings

• The traditional way of greeting is performed by holding your palms together as in praying andholding your palms together, as in praying, and saying “namaste” (nah-mas-tay) or “namaskar” (nah-mas-kar), with a slight bow

• While the namaste or namaskar are Hindu ways of greeting, they are also accepted among all other communities

• Among Muslims, the traditional greeting is “assalaam-wale-kum” (may peace be on you) which is responded to by saying “wale-

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(may peace be on you), which is responded to by saying walekum-salaam” (may peace be on you, too)

• Sikhs traditionally greet each other by saying “sat-siree-akaal” • Shaking hands with women, since it involves physical touch, is not

universally accepted in Indian society

Business Conversation

• In general, Indians are open and friendly• Discussing one's family and personal life is normal

among Indians• Indians seldom express

their disagreement in a direct manner

• Open disagreement is

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p glikely to be interpreted as being hostile and aggressive

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Business Conversation

• Popular conversation topics are politics, cricket, movies d I di i fand Indian economic reforms

• It is important to appreciate India as an ancient and rich civilization, and most Indians are proud of their heritage

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Names and Titles

• It is advisable to prefix the name with a “Mr.”, “Mrs.” “Mi ” th f i l titl f thor “Miss”, or the professional title of the person

(“Doctor” or “Professor”)

• Regional differences:– North India: women adopt the husband’s family name

after marriage

– South India: women adopt the husband’s first name

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– South India: women adopt the husband s first name after marriage

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Names and Titles

• Regional differences:North India:– North India:

• Mr. Praveen Chandra Kulkarni will be addressed as Mr. Kulkarni or as Praveen, if the relationship is informal

– South India: • Men do not have a family name. Instead, the name of one's

father and/or the ancestral village/town is used for the purpose • The name Kamundari Ranganthan Suresh will be written as K. R.

Suresh

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Suresh Ancestral place is KamundariFather's name is RanganathanHis first name is Suresh He will be addressed as Mr. Suresh – or if the relationship is informal, as just Suresh

Hospitality

• Hospitality is a key value in Indian culture• Indians normally go out of their way to accommodate

the requirements of the guests • A foreigner visiting India is likely to receive social

invitations from even minor acquaintances – Indians like to make a visitor feel comfortable

• “Drop in anytime” is a genuine invitation

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p y g• It is normal among Indians to “drop in” for a social

visit

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Business Gifts

• Gift giving is customary and is seen as a sign of friendshipfriendship

• Use red, yellow, green or blue-colored wrapping paper – white and black colors are considered inauspicious

• Normally, gifts are not opened in the presence of the giver

• If you have worked or lived with Indians, a framed photograph with them as a gift would be viewed as a warm and friendly gesture

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viewed as a warm and friendly gesture• If you are invited to an Indian's home for dinner,

you must take some kind of gift, such as a box of sweets (like the ones sampled here today) or flowers

Eating Etiquette

• Eating and drinking are intimately tied to Indian customs and religion• For a large number of Indian Hindus, eating meat is a “religious” tabooFor a large number of Indian Hindus, eating meat is a religious taboo• While planning a meal for your Indian guests (or placing an order in a

restaurant), ask if they are vegetarians or non-vegetarians• Non-vegetarian Hindus do not eat beef, and Muslims do not eat pork • Muslims eat meat that is “halal” or ritually slaughtered • Jains eat cereals and lentils, but do not eat meat, honey or even most

vegetables• Traditional Indian dishes are eaten with the hands – when it is necessary

to use your hands, use only your right hand, as the left hand is

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y , y y g ,considered unclean

• Drinking is prohibited among Muslims, Sikhs and in many other Indian communities

• Among urban educated Indians, this is not strictly observed

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Eating Etiquette

• Even guests who drink will not drink alcohol on certain occasions such as religious festivals or if there is an elder, highly respectedsuch as religious festivals or if there is an elder, highly respected relative present

• Traditional Indian women, regardless of their religion, don't smoke or drink

• Remember, most Indian dishes are quite spicy to the western palate

• While ordering Indian food, you might want to ask the waiter/steward how spicy a given dish will beI I di h d l f hi i t d t

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• In many Indian homes and places of worship, one is expected to remove his or her shoes before entering

• Observing this custom is particularly important if you or your family have received a personal invitation or if the function you are attending is a familial one

“We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery

Unity in Diversity

“India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother

f l d d th t d th f t diti

ou o o d o ycould have been made.”

-Albert Einstein

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of legend, and the great-grandmother of tradition.Our most valuable and most instructive materials in the

history of man are treasured in India only.”

-Mark Twain