While both India and the United States are robust free market democracies where business seems to be conducted in English, there are major differences in the mindsets of business people and political leaders of both countries.
Gaps in understanding each others’ cultures leads to mistrust and breakdowns in relationships.
While bilateral trade between the USA and India has grown rapidly in the last 20 years, we believe that the numbers are far below the true potential. We believe that the major reason for this shortfall is a lack of cross cultural understanding.
In 2022, many Americans chastised India for importing Russian energy products during the Russian invasion of Ukraine. Until the Financial Times published as chart showing that India’s miniscule imports were exceeded by the U.S.
In 2010, President Obama landed in Mumbai on the day after the major festival of Diwali. This is like India’s leader showing up in America on the day after Thanksgiving.
In 2013 India’s Apollo Tyre had a deal to buy Cooper Tire for $2.5 billion in cash but the deal fell through.
General Motors’ second departure from India in 2017 was the subject of a highly acclaimed Harvard Business Review article.
Companies such as Boeing, Coca Cola, Cummins, Deloitte, Pepsico, Whirlpool invested in understanding Indian business culture.
How Indian culture is different from American culture
- Most Indians grow up in “joint families” with three generations living together.
- Many young Indians continue living (rent-free) with their parents when they begin working
- Most Indians speak at least two languages, many speak three
- While Indians use American media such as Facebook, Twitter, WhatsApp and Google, their mindset and way of thinking in stilled steeped in millennia old Indian ways
