India has rapidly established itself as a top worldwide market. With a growing economy and major conglomerates establishing themselves on not just national but international levels, now is the perfect time to step into the world of business here.
Of course, the negotiation process in India might be very different from what you know back home. As always, we are here to guide you on some of the best tips and tricks we know to help you land on your feet.
India, growing every year
India recently surpassed China as the most populous country on the planet, now home to over 1.4 billion people. It is rapidly expanding its manufacturing and industrial base, supported by government initiatives and global investment. Though economic growth has slowed over the past quarters following pandemic-era highs, it is expected to regain momentum as it shifts towards sustainable, domestically driven expansion.
The largest sector in India is agriculture, with exports valued at US$48.2 billion from 2023-24. Other top industries include pharmaceuticals and IT and digital services. Regardless of the industry you operate in, there should be some interesting opportunities available to explore.
Negotiating with an Indian team
We have previously used the Lewis model to frame our discussions around what to expect from our counterparts at the bargaining table. India is the first country we've visited that is not at the polar end of one of the model's three triangles; instead, it sits somewhere between reactive and multi-active.
As we know from other Asian countries like China and Japan, reactive cultures like to listen and have all the facts in front of them before they make a decision. Multi-active cultures seem to be almost the complete opposite of this. They don't like silence and pauses; they want to keep the conversation moving forward and talking. They may interrupt the other party or lead with feelings over facts, both things that would never happen with reactive cultures.
However, both share a middle ground: relationship-building. Both types of culture put emphasis on not just reaching a conclusion but also establishing a connection that will continue into the future. They can be flexible and adaptive if it means that they can build a rapport with their counterparts, and this is the style of behaviour we typically see from Indian negotiators. They are welcoming and warm and will be keen to develop a relationship with you that will hopefully be long and lasting.
5 tips for negotiating in India
What can you expect from negotiations with Indians? Let's take a look at some of the tips you can use when heading to the boardroom.
1. Remember the relationship
Respect is of the utmost importance. You need to prove that you are a trustworthy individual who is worth building a relationship with. The decision-making process cannot move forward unless you are willing to prove that you care about building a good relationship that will last for years to come.
Some may even expect you to show that you intend to focus on the relationship you share rather than the deal that is currently on the table. Deals and offers will come and go, but it is essential that you stay on good terms with your Indian counterparts. Expect to go out to lunch and dinner with them, and work on developing a personal relationship to complement your professional one.
2. Patience is a must
Whenever there is a reactive element at play in a country's cultural dynamic, you need to anticipate that negotiations will take time. You must have patience if you wish to see a deal through to an end. Reactive cultures need to have all of the information possible in front of them before they even think about making a decision. You cannot rush them or put pressure on them for a result when negotiating. Demonstrate patience at every turn, and your counterparts will take this as a sign that you value your growing relationship with them.
If you come from a linear-active culture like the UK, you may also find yourself getting frustrated at how often the conversation circles back around to something you have already discussed. Stay calm and open; expressing your frustrations or demanding a return to a timetable or schedule could signal that you are inflexible and will be difficult to work with.
3. Place emphasis on value in addition to price
Many Indian business experts will want to consider the full value of the deal in front of them, not just the price being discussed. While you may use a vast range of negotiation skills to whittle down the price to one that best suits the needs of your company, you need to consider the deal beyond the number on the table.
Emphasise the value of the deal overall. Highlight all aspects of the deal, demonstrating where its true value lies beyond just the price. Position yourself as the best option for the other party to choose.
4. Emotional and logical
Remember, India isn't just a reactive nation; they also display multi-active tendencies. This means that you can expect both heart and head to play a role in reaching a conclusion. While Indian negotiators value logic and reasoning, they may also use emotion-driven tactics to influence the outcome. Keep discussions friendly and open, and watch out for responses designed to appeal to your more emotional side.
5. Get ready for bargaining
You must have counteroffers prepared when facing Indian counterparts. The act of bargaining and haggling is built into Indian culture. Head out into the markets and you can expect some fierce haggling taking place. Don't think you will get away with putting an offer down on the table and it being swept up immediately. You will probably have to go through quite a bit of back and forth to get to a price that everyone is happy with. Do your preparation, and make sure you have a BATNA to fall back on if things don't go quite the way you expected.
Trust Scotwork for your negotiation needs
Negotiation in India needs careful preparation, just as it does across many other countries. Respect for Indian business culture is key; approach negotiations with patience, adaptability, and a long-term mindset. Indians value the relationships they form. By setting off on the right foot, you could have a foundation for a long and prosperous partnership that both companies can benefit from for many years to come.
At the heart of all your negotiations are your skills and abilities. Make sure that you keep these up-to-date and as sharp as possible, and you will never be left floundering during a negotiation. Contact us today to find out how we can help you manage your strengths and weaknesses at the bargaining table, no matter what they might be.
