Indian Business Culture: Negotiations in India

Think for a moment how many times you negotiate with somebody in one day or within a month in the UK or in any western country?

I hardly remember needing to negotiate at anytime during the last 6 years of my stay in London, except while dealing with estate agents.

Now guess how many times people would have negotiated in a time span of 6 years in India?

Well I would say at least 2000 times and that is not an exaggeration, because in India people negotiate for everything. The moment people wake up in the morning they go to the local food market and they start their day negotiating with vegetable and fruit vendors.

They negotiate with any service provider, whether it is a plumber, a carpenter or a cleaner, etc.

They go shopping and they negotiate for everything, such as clothes, shoes, TV, fridge, computer, etc.

They negotiate while dealing with ad agency suppliers, their charted accounts, lawyers, etc.

There is an underlying feeling in the mind of Indian consumers that if they do not negotiate while purchasing, that means they have over paid, so they negotiate everything. Shopkeepers and service providers also understand this and therefore put higher price on all their products.

If you are a foreigner in India, there is a very high possibility that a shopkeeper or a service provider would instantly increase their prices the moment they saw you unless it is standardised and prices are already marked.

Summary: Indians business person are passionate about negotiations and do lot of research about the person with whom they are dealing with and no matter what price you ask they would always negotiate.

Issued in the interest of businesses that are planning to do business in India by Subodh Gupta, author trainer and India Business consultant.

Subodh Gupta is the author of the best selling book “Understanding Indian Culture and Bridging the communication Gap” available at Amazon, Waterstones, Borders, etc. Visit us online at: Indian Business Culture

The author Subodh Gupta has worked for about 12 years as an entrepreneur, an engineer, a guest professor to various MBA schools in India and about 6 years in the UK as a freelance trainer and consultant.