The Land of Diversity

India

Agenda
Factoids Geography, 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 Hospitality and gifts Eating etiquette and public behavior Panel discussion

ArvinMeritors Presence in India

Why India?
Tremendous growth and expansion opportunities 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 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 way to understand India

Geography

Climate
Most of India has a tropical or subtropical climate, with little littl variation in temperature between seasons i ti i t t b t 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, climate type can change from subtropical to polar within a few miles

Demographics
Seventh largest country in the world Second most populous country in the world (after China) d l h ld ( f h ) 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 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 It is spoken by most of the educated Indian class

Economy
The Bombay Stock Exchange has around 6,500 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 technology With more th 800 movies a year, it than i 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 player in Information Technology and IT Enabled l i I f ti T h l d E bl d 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 democracy, with an d ith 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 all 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 Express Club 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
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Traveling to India Risks

It is recommended that travelers drink bottled water while visiting India 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 youre not used to the spices Y can request th t l You t that less spice i used to prepare your meal at i is dt l t 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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Indian Business Etiquette

Communication Preferences
Indians use many non-verbal cues when sending and interpreting messages 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 In business relations, men and women maintain distance when greeting l ti d i t i di t h ti 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 absent, few, any, 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 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
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Management Preferences
Management style is authoritarian in traditional family-owned businesses 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 long-term 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 the assigned, project well than complete it on time Indians are willing to work on several tasks at one time, since the number of responsibilities communicates ones 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 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.
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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 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 in i some of the Western countries f th W t ti 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 g a person whose intentions they trust one's credibility and trustworthiness are critical in negotiating a deal

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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 women, salwar-suit 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 and together praying, 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 waleyou), wale kum-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
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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 p g likely to be interpreted as being hostile and aggressive

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Business Conversation
Popular conversation topics are politics, cricket, movies and Indian economic reforms d I di i f 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. or Mi or the professional title of the person Miss, th f i l titl f th (Doctor or Professor) Regional differences:
North India: women adopt the husbands family name after marriage South India: women adopt the husband s first name husbands after marriage

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Names and Titles

Regional differences: 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 Ancestral place is Kamundari Father's name is Ranganathan His first name is Suresh He will be addressed as Mr. Suresh or if the relationship is informal, as just Suresh
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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 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 friendship 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 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

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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 taboo religious 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 y , yy 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 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 be I many I di homes and places of worship, one is expected to In Indian h d l f hi i t dt 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
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Unity in Diversity
We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery ou o o d o y could have been made. -Albert Einstein India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of l f legend, and the great-grandmother of t diti d d th t d th f tradition. Our most valuable and most instructive materials in the history of man are treasured in India only. -Mark Twain
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