It is no secret that Asia is booming, with its economy projected to grow by 5.7% in 2013 alone. What is rather less known are the sometimes complicated, but nevertheless important, business practices that are found in different regions in Asia. Giving a gift made out of leather would be a major no-no in India for example and likewise it is not accepted conduct to introduce yourself to female business colleague- one must instead wait for them to initiate a greeting.
This is not to say that doing business in Asia is without its risks, with high profile political issues with Cairn Energy and Vodafone requiring the personal intervention of David Cameron portraying widespread problems of corruption and the rule of law in the emerging economies. Inflation was running relatively wild at 8.23% in 2011 to 2012, that is far higher than the central bank target of 5% to 6% at the time. However, this year has seen inflation fall below 5% which bodes well for the growth prospects of India.
“The first time doing business in India can be slightly perplexing, with differences in customs to contend with. However, the similarities between Asia and the West are significant, as English is the dominant language of the business community and many of the businessmen working in high positions in India have been educated or worked in Western countries.”
Patrick McLoughlin, Director of accountancy marketing specialists Accounting for Growth, has first-hand experience of the contrasting business climate in India, whilst working for a constituent of Bombay Stock Exchange 100 BSE. He explains, “The first time doing business in India can be slightly perplexing, with differences in customs to contend with. However, the similarities between Asia and the West are significant, as English is the dominant language of the business community and many of the businessmen working in high positions in India have been educated or worked in Western countries.”
Whilst there are a number of risks to operating in a foreign county, the rewards are high, especially in emergent countries in Asia that provide many new opportunities to both established and burgeoning companies in the UK. As long as the cultural sensitivities of the host country are taken into consideration, the chance of falling foul in India should be minimal.
By Finbarr Toesland
