Conducting negotiations and meetings with Indian partners is fascinating but not always simple, a process requiring an understanding of the specifics of their culture, business ethics, and even body language. Business rules and customs in Mumbai can differ significantly from those accepted in Chennai, Delhi, or Bangalore. The southern states are often more formal and punctual, while the northern ones are more emotional and flexible. Victoria Ermakova, Commercial Director for International Sales at Motorica, shared her experience of immersion into the Indian market and some lessons with BRICS Business Magazine. This Russian manufacturer of cybernetic prosthetics entered the Indian market in 2021 and opened an office in New Delhi at the beginning of 2025.
In India, reputation and connections constitute a social fabric that must not be torn. In Russia, however, reputation is more of a tool for influence, requiring constant confirmation through action.
The approaches to partnership also differ. In India, the principle is “first a friend, then a partner”. In Russia, the same principle generally sounds like this: “First a partner, and then, perhaps, a friend”. Moreover, in India, reputation is considered a collective asset of the family, company, or community. In Russia, it is more a personal capital, built on recognition, respect, and proven competence.
For building long-term relations in India, personal connections are key. Trust must be earned here, so Indian businessmen prefer to work with those they know well. One should not rush in and immediately get down to business. Time is perceived differently here, and it is worth investing in informal communication. For example, an invitation from Indian partners to a family event or lunch is a sign of deep trust, not just politeness. It is unacceptable to refuse such invitations as this could seriously offend a potential partner.
In Russia, informal socializing at a banquet, a banya (sauna), or a dinner is part of the business ritual, though it is no longer mandatory. Sometimes, such events are used to test one’s mettle or discuss topics not usually recorded in a contract. Yet, business always remains business: even after the warmest meeting, relations can be abruptly terminated if agreements are breached. In Russia, conflicts often destroy relationships whereas, in India, on the contrary, it is the relationships that soften potential conflicts.
In Indian business culture, it is extremely important to save face, both one’s own and the partner’s. Direct criticism, especially expressed publicly, is considered completely unacceptable there. Conflicts are customarily resolved indirectly, by hints or involvement of third parties. In Russia, however, direct and sometimes sharp feedback is often regarded as a sign of respect (“I tell it like it is because I respect you”). The concept of saving face exists here too, but it is less formalized and rather implies the value of the individual or company’s business reputation. As for conflicts, they are often resolved in a direct manner, especially between partners who have known each other for a long time.
In India, you are expected to show genuine interest in local families, culture, and holidays. If you congratulate your partner, for example, on Diwali or Independence Day, it will be perceived as a sign of deep respect for him personally. In addition, if you make several mentions of the merits of the national cuisine, this can also work in your favour. To establish contact, we usually invite colleagues for a light lunch, during which we try to avoid business topics. The main goal of such an informal meeting is to express admiration for the country, praise the local food, and, in return, share information about our own traditions.
As for gift-giving, in India it is a subtle ritual requiring attention to detail. Traditional Russian souvenirs and quality chocolate, especially if its packaging is made in our traditional style, are considered appropriate gifts. Of course, all gifts should remain within an acceptable cost: approximately up to USD 50 or, in extreme cases, up to USD 100, as a bigger sum might be interpreted as a bribe. Stationery items, such as well-made notebooks, can also be given. Yet, giving gift cards, cash, or personal items such as perfume is considered extremely inappropriate.
In India, attention is also paid to the quantity of items gifted: it is desirable for the number to be odd. For instance, if you give a matryoshka doll, there should be 5 or 7 dolls inside. An even number is associated with a bad omen and a hint of funerals. Present the gift using both hands. If you are the one receiving a gift, you should immediately unwrap it and express modest gratitude. Also, be prepared for a return gift definitely being expected from your next visit.
The pace of conducting business meetings in India can be compared to the leisurely flow of the Ganges River while, in Russia, it more resembles the Moscow metro at rush hour. We say: “time is money”. Indians believe that time is trust, and they value the very process of communication and building personal relationships. Deadlines can shift, with negotiations possibly lasting for weeks or months. This is perceived not as a delay, but as an investment in the stability of the future deal.
Imagine a situation when you urgently need to rent an office because the previous landlord suddenly decided you weren’t suitable. In Moscow, you would find a few options, make some calls, hold a couple of meetings, and a new office would soon be ready to welcome you. In India, everything is different: first, you need to meet with everyone (sometimes more than once), then go and see the premises, after that, communicate again and discuss plans, then decide if remodelling is needed, then consult about something else, look at the office again… and only then will you finally be provided with a contract. Moreover, all these actions are significantly extended over time.
You may encounter a situation where, after several productive meetings, a partner suddenly disappears for several weeks without any explanation. This does not always mean a refusal; the reason may lie in internal approval processes, local holidays, or family circumstances.
If you are negotiating with a middle manager, don’t forget that the final decision often rests with senior management, and sometimes even with the company’s founder. Be prepared that you may have to explain the essence of your proposal to top managers from the very beginning, all over again. There have been cases when our counterpart in meetings was presented as the key person in the company. In practice, it turned out that this was the formal leader, while real decisions were made by completely different people. This is especially characteristic of government structures.
For Indians, signing of a contract is not a time to relax and catch one’s breath but merely the beginning of the relationship. In India, a contract is often viewed as a starting point for further discussions, not as an immutable document. Even after signing, requests might come to revise terms, especially if the situation has changed. Signing a contract may not mean the end of negotiations and they may even continue during performance of the agreement. The document itself might, in the course of your joint work, be changed more than once.
Diplomacy is extremely important in building relations with Indian partners. Directness can easily offend the other side. From our own experience, we have found that Indians themselves almost never say “no” directly. Instead, they use evasive phrases such as “we will think about it”, “this is difficult” or “we’ll see”. In fact, with a high degree of probability, this constitutes a polite refusal. Our first partner, for example, always verbally agreed and said “yes” yet did very little in reality. His favourite expression was: “It is possible”. Now I understand that such a response could mean that the partner was indeed “considering” the possibility but without any intention of moving to active actions.
It is extremely important to pay close attention to body language and gestures during negotiations. Much is conveyed through non-verbal signals, intonation, and pauses, which is why it is so important to be able to read between the lines. I recall how we tried to secure a discount from the office owner during lease discussions. The landlord constantly smiled and nodded, yet refused all our offers. For a long time, we couldn’t understand the essence of what was happening, and only later did it dawn on us that his smiles and nods were a manifestation of politeness, in no way a sign of agreement.
A key concept here is jugaad – a kind of clever and smart improvisation, a creative flight in negotiations. Translated from Hindi and Urdu, this word literally means “improvised solution”, “crutch” or “temporary patch”. In a broader sense, it is a kind of cunning trick: a creative, resourceful and low-cost way to solve a problem with limited means. It is use of available materials, repurposing objects, ability to make something out of nothing. Typical manifestations are phrases like: “We don’t know how this is regulated but we will definitely find a way” or “We offer quick, temporary solutions that can be scaled up later”. Jugaad is even when you use a simple sheet of paper to fold some kind of figure and visually explain your logic. That’s exactly how we once explained to our partners what digital prosthetics is. And it worked effectively.
In the philosophy of jugaad, Indians particularly appreciate when a solution or proposal turns out to be cheap or free, and, most importantly, that it works here and now. What might look like unprofessionalism or chaos to a Western manager is, for us and for an Indian, a sign of ingenuity and outstanding survivability.
There is a stereotype concept that Indian companies work chaotically but our experience proves the opposite. The point is rather that local business and bureaucracy operate according to standards different from those to which we are accustomed. In big companies, everything is, as a rule, strictly structured while, in small firms, flexibility reigns, replacing formality. Moreover, such flexibility can often be very helpful in solving your specific tasks.
Another common stereotype states: “Indians are cunning negotiators who always try to deceive”. At first, one might indeed believe this, as their negotiating manner feels pushy, especially when it comes to price. They are almost always ready to reconsider terms even after signing documents and use many alternative proposals as levers for putting on the pressure. Even so, this is not a sign of cunning but rather their own specific: given huge market competition, they are simply forced to bargain actively and fiercely defend their interests.
Over time, we ourselves began to explain in detail why we insist on certain terms, why we cannot grant a discount, or why we ask for an advance payment. We became more transparent, and the partners, in response, began to trust us more, they started to talk just as honestly about their motivation and explain the reasons for their decisions.
The main things to know before entering the Indian market
- Be patient: negotiations might take longer than you expect.
- Avoid aggressive pressure: it can result in resistance or withdrawal.
- If possible, use an intermediary or a local partner: as this will speed up the process. But do not make any advance payment to an intermediary. Pay out only when a deal is already concluded.
- Be sure to record everything in writing, even if it seems that you have agreed 100% orally.
We prepared for entering the Indian market: we consulted with colleagues in the industry who already had relevant experience and had learned their lessons the hard way.
From what I’ve read, I can recommend two books by practitioners who have a deep understanding of the specifics of doing business in India. Both are in English, so I am giving their titles in the original language.
Although the author compares India and China, this work offers a clear analysis of the Indian economic model, its strengths and weaknesses, and also reveals the role of the state, bureaucracy, and the private sector.
The most important book about the famous jugaad mindset, which I have already talked about. It tells how Indian entrepreneurs create breakthrough solutions and how this approach can be applied globally. This book is precisely for us, those who decide to conquer the business world of this country.
