How to Do Business the Indian Way: says orientalist Lidiya Kulik

Trade turnover between Russia and India exceeded a record $70 billion in 2024, according to India’s Ministry of Industry and Trade. This is the highest figure in modern history between the two countries. Russia has become one of India’s main trading partners, and this cooperation is gaining momentum despite the threat of Western sanctions. What cultural characteristics of Indians should be taken into account when entering this rapidly growing market?

Senior Research Fellow at the “Centre for Indian Studies” of the Institute of Oriental Studies of the Russian Academy of Sciences, Candidate of Historical Sciences, and Head of the India Studies Program at the SKOLKOVO School of Management, Lidiya Kulik, believes that the mentality of Indians is very similar to that of Russians. She explained to readers of “Vechernyaya Moskva” how this can help in doing business.

Lidiya, why, despite the risks of Western sanctions, does India continue to cooperate with Russia?

First of all, I would like to point out that any generalizations about India should be made with great caution, because India is an exceptionally diverse and multifaceted country. It combines and accommodates many contradictions that, from our point of view, seem absolutely incompatible. That is why researchers say: “Whatever you say about India, the opposite statement will also be true.”

As for sanctions, India does not consider unilateral sanctions to be legitimate. Moreover, it is interested in maintaining stable relations with Russia. The relationship between our countries is characterized by unique trust, reliability, and stability. Throughout history, Russia’s actions in the broader geopolitical context have never been directed against India, and likewise, India’s actions have not been directed against Russia. Any difficulties that arise between our countries are resolved in a friendly and constructive manner.

Of course, Western sanctions pose additional risks for Indian companies and entrepreneurs. They approach this issue very cautiously, especially if a company has established partnerships in the West. It cannot be said that the full potential of our trade and economic relations has been realized. Our ties would be much broader and more effective if these restrictions did not exist. On the other hand, it is precisely because of the difficulties in the West that Russian business has finally turned its gaze to the East.

All this time, India has been under considerable pressure due to its cooperation with Russia. Yet the country has consistently shown resilience, defending its interests and pursuing an independent foreign policy. The goal of this policy is to ensure stable conditions for the development of its own economy, to preserve and create jobs for Indians, and to develop the country. The vast Indian market is of interest to all Western partners. Companies from around the world want to operate in this rapidly growing market, and it is important for them not to spoil relations with the Indians. Applying pressure in dialogue with New Delhi is completely unacceptable.

It is believed that primarily large Russian businesses have a presence in India. Are there niches for smaller entrepreneurs that could interest Indians?

Indeed, it is mostly the major state projects that are making headlines. They are the foundation of our trade and economic relations with India. Recently, however, we have seen a growing number of inspiring examples of medium-sized companies successfully entering the Indian market and finding their niche. These businesses span a wide range of sectors—from IT and high tech to consumer goods. For instance, there is a highly successful lighting equipment manufacturer that has established production in India and adapted its products specifically for the Indian consumer. In the consumer goods sector, a Russian brand of children’s festive wear is performing exceptionally well. This company entered the Indian market and carved out a unique niche: “not China, not Europe, and not India.” Indian customers appreciate that the products are made in Russia, valuing both the quality and the excellent design. Since children are a top priority in India—and given the cultural emphasis on frequent family celebrations and holidays—the brand has been very well received.

The Indian market is highly price-sensitive. At the same time, a distinctive feature of the local consumer is the constant search for the highest quality at the lowest possible price. Whether in retail or the B2B segment (business-to-business), you have to know how to impress the Indian buyer. The price-quality ratio is of paramount importance, even more so than in our country. When it comes to equipment, for example, it should be machinery that can withstand harsh climates, heavy usage, and power surges. At the same time, in addition to reliability and affordability, a supplier is expected to provide after-sales service, financing options, and a trade-in system for used machinery on the secondary market.

Do we need intermediaries like the Moscow Export Center (MEC), established with the support of the city’s Department of Entrepreneurship and Innovative Development, to break into the Indian market?

Such government agencies are created to help Russian exporters in foreign markets, and they can indeed be invaluable, particularly in the initial stages. For instance, they facilitate participation in international exhibitions by organizing joint stands for Russian and Moscow-based companies, coordinating with the local media, and providing market analytics. Incidentally, exhibitions in India are an ideal platform for a first introduction to industry peers. Indian business circles traditionally take trade fairs very seriously. Therefore, the support of institutions like the MEC in such forums is an exceptionally effective tool for navigating the Indian business landscape and market for the first time.

Does the Indian caste system affect business?

The caste system remains one of India’s most intriguing phenomena that concerns the Russian public. Discrimination based on caste is constitutionally prohibited in India. While caste-based discrimination is constitutionally prohibited, the practice of 'positive discrimination' is widespread and legally enshrined. This provides guarantees for education, employment, and advancement to historically marginalized groups through reserved quotas in government bodies and educational institutions. Among educated Indians, as in most parts of the world, it is considered bad form to acknowledge caste differences or show disrespect toward those from lower social strata. An entrepreneur working in a major city and engaging with professionals is unlikely to encounter overt discrimination. In large cities, rising incomes and social mobility are gradually blurring traditional boundaries. The situation can be more difficult in rural areas and small towns, where one may encounter rather unfortunate cases. However, it is worth noting that charity, philanthropy, and care for those in need are central to Indian life, with traditions of public service being particularly strong among Indian entrepreneurs.

Is it true that connections are so important in India that an entrepreneur must be introduced by a mutual acquaintance?

Yes, connections are paramount. This is due to the incredibly high social density of Indian society. The social fabric is held together by countless 'invisible threads'—obligations, shared ventures, and family ties built over generations. To put this in perspective: an average Indian might have 3,000 to 5,000 friends on social media, a huge portion of whom are relatives. A typical wedding hosts a thousand guests and involves a series of events lasting a week, or sometimes even a month.

If you plan to do business in India, you must weave yourself into this social fabric. Therefore, physical presence and personal interaction are essential. If an Indian introduces you to their friends or business partners, it grants you immediate credibility. It ensures you are treated with far more attention than a 'stranger off the street,' for whom an Indian businessman simply may not have time. After all, every Indian’s calendar is already packed with extensive personal commitments to family, friends, and long-standing partners. 

Indians are known for their enthusiastic self-promotion. It is common for young startups to label themselves as 'market leaders' and 'top-tier professionals.' How can one navigate this without being misled?

While we may be prone to excessive modesty, Indians are accustomed to speaking loudly about their achievements. This is driven by the intense competition within Indian society; from a young age, individuals must fight for their 'place under the sun.' To succeed in India, you simply have to stand out against a backdrop of millions.

For Russian entrepreneurs, this means that every piece of information they hear must be verified. Today, there are numerous tools for this — from digital platforms providing official corporate data to long-standing industry associations. They have existed for decades. Every sector has its own circle of reputable organizations that are worth consulting when starting work in the country. It is also wise to cross-reference facts with official Russian experts on the ground, such as the Russian Trade Representation.

Before entering negotiations, one must research the market, identify the key players, and propose meetings. It is always beneficial to attend trade fairs, get acquainted with the participants, and ask plenty of questions. This large pool will gradually narrow down to two or three potential partners with shared interests. However, expect the negotiation process to take time. Nothing is decided in a single trip. Indians are uncomfortable doing business with people they don't know well. Therefore, when planning any business with Indians, always allocate extra time for preliminary work. Long-term relationships are the ultimate key to success.

What other risk factors should be considered, given the local specifics and mindset?

When it comes to the formal reliability of companies, the risks are relatively low, as corporate data is easily verifiable through digital platforms. The real risks lie in missed deadlines or extreme weather conditions that could damage goods in transit. Unfortunately, no one is completely immune to unscrupulous partners. Therefore, the better you know your counterparts—and the social circles in which they live and work—the more secure your joint business will be. This applies to both the Indian and Russian sides. Once you have found reliable partners, you must cherish those relationships and work diligently to build strong, lasting bonds.

Is it true that because Russia is often portrayed negatively on social media, Indians have a poor perception of us, requiring significant effort to smooth over this impression?

I wouldn't say so. Despite the fact that every effort has been made to damage our reputation, the attitude toward us remains very friendly. While Indians may be wary of sanctions-related risks—especially if they have Western partners—the general sentiment toward Russia in India is overwhelmingly positive. 

Is it true that Indians are relatively open during negotiations, and that their traditions feel more familiar to us compared to the 'high-context' cultures of Iran or China, where different considerations apply?

In general, communicating with Indians is quite easy and comfortable. The formal side of negotiations usually appears at the very beginning. India is rich in traditions and rituals—for instance, lighting ceremonial lamps to mark the start of an important event or conference, or welcoming guests with garlands of fresh flowers. Everyone introduces themselves and exchanges business cards. However, the talks often transition into a friendly, informal atmosphere and can last quite a long time. The conversation might drift across various topics, from Indian landmarks to Russian-Indian relations and local cuisine. When a business meeting turns into a simple human connection, it’s a good sign. Indians may joke about themselves and truly appreciate humor. One challenge, however, is that any form of confrontation is uncomfortable for them; they rarely say 'no' directly. On a practical note, it is best to bring a professional translator with you to meetings, as finding a high-quality specialist on the ground in India is nearly impossible. To conclude a meeting, it is always wise to outline mutually agreed-upon next steps. Ultimately, Indians are open, generous, and hospitable people who value friendship just as much as we do.

What gifts should be avoided when dealing with Indian partners?

As I mentioned, negotiations in India are associated with a vast number of different rituals. For example, every gift is presented by hand, and a photograph is almost always taken at that moment. Therefore, giving and receiving gifts is a significant part of business culture. There are neutral gifts that can be suitable to present at the first meeting, such as souvenirs or sweets. However, under no circumstances should you bring alcohol or leather products to an initial meeting. Indians have a deep reverence for all living things, and many of them are vegetarians.

Is it true that for an Indian, family matters always take precedence over business?

Yes, family always comes first for Indians. Indian men bear great responsibility for their extensive network of relatives. They have numerous family obligations that truly do outweigh business concerns. At the same time, Indian entrepreneurs possess a sharp business acumen and are highly successful, so it cannot be said that they lack interest in commerce. However, in an Indian’s value system, family, spirituality, social service, and even friendship are more important than money or deals. This is perhaps what distinguishes Indian culture, for example, from Chinese culture. These shared priorities actually bring Russians and Indians closer together. If you look past the Western business approach that has taken root in Russia in recent years, you'll find that for our businesses—and Russians in general—traditional family values and a spiritual core are placed first.

DOSSIER

Lidiya Kulik graduated from the Moscow State Institute of International Relations (MGIMO University) of the Ministry of Foreign Affairs of the Russian Federation, Faculty of International Relations, with a dual regional specialization — South Asia (Eastern track) and the United Kingdom (Western track). She defended her PhD thesis on “The Role and Place of India in the System of the United Kingdom’s Foreign Policy Coordinates from 1997–2016.” She holds an MBA from the Moscow School of Management SKOLKOVO, specializing in entrepreneurship and emerging markets. She has participated in international conferences and seminars in Russia, India, China, and the United Kingdom.