India is probably one of the most underestimated markets relative to its potential. The reasons for this underestimation are various. The geographic and cultural distance perceived as greater than the real one. The presence of stereotypes that describe the country in ways that don't correspond to its contemporary reality. The country's internal complexity that disorients those seeking a unified mental model. The competition for media attention from China that has dominated the narrative on emerging Asia. The only apparent linguistic barrier — English is widely spread but with specifics that require adaptation.
The real picture is significantly different from many perceptions that still circulate. India is today the most populous nation in the world, it has surpassed China demographically. It's among the top five economies in the world, with growth rates among the highest among the large countries. It has developed sectors of global level — information technology, pharmaceutical services, life sciences, finance, research and development, the space sector. It has a middle class in structural expansion that's measured in hundreds of millions of people. It has progressive commercial relationships with Europe, including the negotiation of a free-trade agreement with the European Union that's underway.
For Italian companies, India represents an opportunity of a different scale from what many imagine. Sectors where "Made in Italy" has a natural positioning (fashion, design, premium food, automotive, precision machinery, luxury) find in India a growing middle class with significant purchasing power for the premium segments. B2B sectors find an expanding manufacturing ecosystem that requires technologies, machinery, components. Services sectors find a sophisticated market in evolution.
It's worth articulating the specifics of business in India for what they are, recognizing both the scale of the opportunity and the real complexity of the market.
India as an economy
A first dimension that deserves to be named is the structure of the Indian economy.
India is the most populous nation in the world with about 1.4 billion inhabitants, among the top five economies in the world by nominal GDP, third or fourth by purchasing power parity. Economic growth has been sustained in recent decades, with rates among the highest of the large countries.
The Indian economy has specific structural characteristics.
The country's internal diversity. India is a continent more than a country. The differences between regions, states, languages, religions, social classes, levels of economic development, are marked. The business culture in Maharashtra (Mumbai) is different from that of Karnataka (Bangalore), which is different from that of Delhi and surroundings, which is different from that of Tamil Nadu (Chennai), which is different again from that of Gujarat (Ahmedabad). Operating in India means operating in different markets that share a national frame but have relevant specifics.
Mumbai as a financial and commercial center. Mumbai is the financial, commercial, and entertainment center of the country. It hosts the Indian Stock Exchange, the headquarters of many large companies, the Bollywood film industry, developed financial sectors. Mumbai's business culture combines commercial dynamism, internationalization, accelerated rhythms.
Bangalore as the Indian Silicon Valley. Bangalore is the country's tech center, home to large Indian IT companies (Infosys, Wipro, TCS — with headquarters elsewhere too), research and development centers of global multinationals, a significant startup ecosystem. The business culture is generally more informal and cosmopolitan than other Indian cities.
Delhi and the National Capital Region. Delhi is the political capital and administrative center. The National Capital Region (NCR) includes cities like Gurgaon and Noida that host headquarters of multinationals, IT sectors, financial services. The business culture combines an institutional dimension with commercial dynamism.
Chennai and the south. Chennai (Madras) is an industrial (automotive in particular), tech, manufacturing center. The culture of Tamil Nadu has linguistic and cultural specifics with respect to northern India.
Ahmedabad and Gujarat. Gujarat has an ancient entrepreneurial tradition with a significant presence of manufacturing, chemical, textile companies. Ahmedabad is a growing economic center.
Hyderabad, Pune, and other cities. Hyderabad has tech, pharmaceuticals (it's one of the main pharmaceutical hubs in the world for the production of generics), biosciences. Pune has automotive, IT, education. Kolkata (Calcutta), Jaipur, Kochi, Coimbatore and other cities have their own economic specifics.
The large entrepreneurial families. The Indian economy is characterized by the presence of large family conglomerates — Tata Group, Reliance Industries (the Ambani family), Aditya Birla Group, Mahindra Group, Adani Group, Bajaj Group, and others. These groups operate in multiple sectors with a dominant presence. For Italian B2B companies in sectors where they're active, understanding their dynamics is relevant. Decisions in these groups can pass through processes that involve the family top as well as the managerial figures.
Sector specialization. India is a global leader in specific sectors — IT and BPO services (India has built a global technology-services industry), pharmaceuticals (it's the main producer of generic drugs in the world), research and development (many multinationals have significant R&D centers in India), the space sector (the ISRO space agency has advanced capabilities), textile manufacturing, automotive (both production and market), food.
The Make in India program. The Indian government has explicit industrial policies to attract manufacturing investments (Make in India, PLI - Production Linked Incentive). The objective is to reduce dependence on imports and develop domestic manufacturing in specific sectors (electronics, semiconductors, automotive, pharmaceuticals, renewable energy). For Italian companies in sectors where the policies operate, there are specific opportunities.
The growing middle class. A structural characteristic of India is the expansion of the middle class — several hundred million people with growing purchasing power, urbanized, exposed to international brands, interested in quality products. It's a market that has transformed many consumer sectors over the last twenty years.
Commercial relationships with Italy. Italy is a trading partner of India with significant flows in specific sectors — precision machinery, automotive, fashion, food, manufacturing sectors. The EU-India free-trade agreement under negotiation, when concluded, will further reduce the barriers.
The cultural values that operate in Indian business
Some Indian cultural values are reflected directly in business practices.
Hierarchy as a structural dimension. Indian culture has an ancient hierarchical tradition that's reflected in contemporary corporate organizations. Respect for authority, for age, for formal roles, is an important operational dimension. Significant decisions pass through the senior levels. Deference toward superiors is codified.
The family as a central institution. The family has a structural role in Indian society, and this is reflected also in business. Many companies are family-run, even large ones. Significant decisions can include family considerations as well as strictly economic ones. Trans-generational continuity is an appreciated value.
Personal relationships and trust. As in many Asian cultures, personal relationships are a prerequisite for significant commercial relationships. Trust is built over time through repeated exposure, demonstrations of reliability, the capacity to respond to difficult situations. Long-term relationships are valued.
Jugaad — the creative solution. An Indian cultural concept that operates in business is jugaad — the capacity to find creative, sometimes improvised, solutions to problems. It combines pragmatism, creativity, flexibility. For Italian companies, jugaad can be a resource (Indian partners often find inventive ways to address complex situations) but also a factor that requires attention (flexibility can sometimes produce approaches that differ from the formalized process standards that other business cultures privilege).
Cultural and religious pluralism. India is a country of deep pluralism — Hinduism (the majority), Islam (the second-largest Muslim population in the world after Indonesia), Christianity, Sikhism, Jainism, Buddhism, Zoroastrianism, and other traditions. Religious practices have a presence in daily life including professional life. Religious dietary restrictions (vegetarianism for many Hindus and Jains, halal for Muslims, specific prohibitions for Sikhs) are daily operational dimensions. Showing awareness and respect for religious diversity is important.
Patience and the long time horizon. Indian culture has an approach to time that combines tactical urgency with long strategic horizons. Relationships are built patiently, decisions take time, long-term investment is appreciated.
Hospitality. Hospitality — atithi devo bhava, "the guest is god" — is a deep cultural value. Indian partners tend to be hospitable, generous, attentive to the guest's well-being. For Italians, it's a generally familiar dimension even if it operates with specific codes.
First meetings: protocols and codes
The first meetings in India have protocols that combine formality with relational warmth.
Greetings. The handshake has progressively established itself in business contexts, particularly with foreigners and in the internationalized metropolises. Among men it's generally standard. Between a man and a woman it's better to wait for the woman to extend her hand first — particularly in more traditional contexts. The namaste (palms joined in front of the chest, a slight bow) is a respectful traditional greeting that remains appropriate in many contexts, particularly when interacting with older people or those of particular rank. Using the namaste as a gesture of cultural respect is generally appreciated.
Names and titles. Indian names have different structures depending on region, religion, caste, family traditions. Some Indians use a family surname in the Western style. Others use different systems (initials, names of the father or the village). In business contexts you generally use Mr., Mrs., Ms., Dr. with the surname when it exists. Sir and Madam are still widely used as forms of respect, particularly with older people or those of higher rank — it's a usage that reflects the Anglo-Indian tradition and isn't considered excessively formal.
Academic and professional titles. Academic titles carry significant weight in India. Dr. (for the doctorate), Engineer (for engineers, particularly in traditional contexts), Professor (for professors), are used with care. Academic qualifications are generally reported on business cards and in signatures.
Business cards. The exchange of business cards is standard practice. They're exchanged at the beginning of the meeting, ideally with the right hand or with both hands (the left hand is considered less pure in some traditions and traditionally isn't used for formal gestures). They're looked at with attention, put away with care.
Clothing. For formal business meetings, a full suit for men is generally appropriate, particularly in the first interactions and in contexts with large companies or institutions. For women, conservative professional clothing. In tech sectors and in less formal contexts, business casual is accepted. An important consideration is the climate — in many parts of India the heat is significant for much of the year, and clothes should be chosen considering this dimension. In more relaxed contexts, Indian ethnic clothing worn by Westerners can be perceived positively as a signal of respect, but only if appropriate for the context and worn knowingly.
Physical distance and contact. Indians generally maintain a personal distance that varies depending on the relationship and the context. Physical contact between men who know each other (a hand on the arm during a conversation, hugs between friends) is normal. Between a man and a woman, particularly in traditional contexts or with older people, physical contact is generally avoided beyond the possible initial handshake.
Communication: hierarchy, diplomacy, indirectness
Indian communication has specific characteristics.
The hierarchical structure of communication. As anticipated, hierarchy operates in conversations. The person of highest rank generally speaks first and sets the tone. Subordinates intervene afterward, with measure, generally without directly contradicting their superiors. For Italian companies, understanding this dynamic helps to calibrate the interactions — addressing yourself primarily to the senior person, even if other figures are operationally involved, is generally appropriate in the first interactions.
Indirectness on delicate matters. As in many Asian cultures, in India the direct "no" is rare on delicate matters. An Indian partner who has reservations rarely expresses them bluntly. Reservations emerge through diplomatic formulas — "we will see", "we'll consider it", "it might be challenging", "let me check internally", possibly through delays in responses or indirect signals. Insisting on obtaining definitive answers when the partner is signaling reservations rarely produces honest answers.
Preserving dignity. The concept of "face" — preservation of the counterparts' personal dignity — operates in Indian culture. Corrections in public, direct contradictions in the presence of others, highlighting of errors that cause embarrassment, are behaviors that significantly damage relationships. When a correction is necessary, it's done in private, with tact.
Indian English. English is widely spoken in India — it's the working language in internationalized companies, in institutions, in universities. Indian English has specifics — specific vocabulary, regional accents, grammatical constructions influenced by the local languages. For Italian companies, operating in English with Indian partners is generally without barriers, although adapting to Indian English requires exposure. Investing in learning some expressions in the local languages (Hindi mainly, but also Tamil, Marathi, Gujarati, Bengali, Telugu, Kannada depending on the region) is appreciated as a signal of respect.
Verbal cordiality. Indian communication is generally cordial, with frequent expressions of courtesy, formulas that soften the interactions. For Italians this dimension is generally familiar.
The "yes" that may not mean assent. A specificity worth knowing is that in some contexts the "yes" can signal "I've heard what you said" more than "I agree." The characteristic Indian head wobble (a gesture halfway between the Western yes and no) can further complicate the reading. Verifying understanding through specific questions helps to avoid misunderstandings.
Hierarchy and decision-making processes
Indian companies have hierarchical structures with specific characteristics.
Decisions pass through the top. Particularly in family-controlled companies and in large traditional companies, significant decisions pass through the top. The managerial figures prepare the decisions but rarely decide autonomously on matters of strategic weight.
The role of the owning family. In the large family groups, understanding who is actually the decision-maker requires attention. The more visible figures (professional CEOs) may have significant operational authority but with consultation of the family top for strategic decisions. The dynamics between members of the owning family (founding generation vs second or third generation, any internal rivalries) can be relevant.
Tech and modern companies. Companies in the IT sector, startups, some multinationals with local management, often have flatter structures and faster decision-making processes than traditional companies. Understanding what type of counterpart you're working with helps to calibrate the approach.
SOEs and public institutions. Indian public companies and institutions operate with structured formal processes that can require long times. Bureaucratic procedures are articulated. For Italian companies that operate with the Indian public sector, patience and documentary preparation are essential dimensions.
The presence of external advisory figures. Lawyers, technical consultants, mediators, can have a significant role in decisions and relationships. Having qualified local consultants is generally a prerequisite for operating effectively.
The timing of Indian business
The timing of relationships and decisions in India has specific characteristics.
Punctuality has variable standards. For business meetings in structured professional contexts — large companies, multinationals, formal contexts — punctuality is appreciated. For meetings in less formal contexts or with counterparts in cities with problematic traffic (Mumbai, Delhi, Bangalore among others have significant traffic), modest delays can be accepted. The Italian arrives on time (it's always the right choice) but accepts the lateness of others with flexibility.
Decision times are generally long. Significant decisions take time. The process includes internal evaluations, multiple consultations, possibly the involvement of the family top or of consultants. Expecting short cycles is generally unrealistic.
Patience in building relationships. Significant commercial relationships are built through repeated visits, prolonged exposure, demonstrations of long-term commitment. Patience is an essential operational dimension.
The Indian calendar. The Indian calendar has important specifics. Diwali (the festival of lights, generally October or November) is the most important holiday with a significant impact on economic activity. Holi (the festival of colors, generally March) is another important holiday. Eid (for the Muslim community) and other religious holidays have a presence. The monsoon season (generally June–September in most of India, with regional variations) can influence operational activities and logistics. To plan commercial activities, considering the local calendar is important.
Visits and presence. Physical presence in India with repeated visits is an important dimension. The Italian companies that have built significant presences in the market generally have dedicated figures who travel regularly or a structured local presence.
Meals and hospitality
The aspect of Indian hospitality has significant specific characteristics.
Hospitality as a value. As anticipated, hospitality is a deep value. Indian partners tend to invite to lunch or dinner, at their home or in restaurants, as an important part of building the relationship. Accepting the invitations is generally the right choice.
Dietary restrictions. An important operational dimension is the presence of multiple dietary restrictions linked to religious traditions. Many Hindus are vegetarian (with different definitions — some eat eggs, others don't, some avoid onion and garlic). Jains have stricter restrictions (vegetarian, they avoid roots, possibly food cooked the evening before). Muslims don't eat pork and follow halal rules. Sikhs generally don't eat beef and pork. For Italian companies that invite Indian partners to lunch or dinner (both in India and in Italy), informing yourself in advance about dietary preferences and organizing accordingly is a significant demonstration of respect.
Indian cuisine as a cultural dimension. Indian cuisine is extraordinarily diversified by region, with its own traditions of the north, south, east, west, and in particular for specific sectors. Showing curiosity and genuine appreciation for the regional dishes, asking informed questions, exploring the specifics, is a topic of conversation that produces connection.
Alcohol and drinking. Alcohol has a variable presence. In internationalized business contexts and in the metropolises, alcohol is present in business meals. In more traditional contexts, or with counterparts for whom religious traditions exclude alcohol, it's generally absent. Verify before the meal whether alcohol is welcome or appropriate. Some Indian states (Gujarat, Bihar among others) have prohibition regimes or significant restrictions.
Chopsticks and cutlery. Unlike other Asian cultures, Indians generally use Western cutlery or sometimes eat with the right hand (never with the left). For Italians this dimension is generally without problems.
Invitations home. Invitations to the home of Indian partners are a significant signal of consideration. Bringing a small gift (see the dedicated section) is appropriate. Showing genuine interest in the family, the children if present, the home, is an appreciated gesture.
Gifts
Gifts in the Indian business context have a present role with specifics.
The appropriate occasions. Gifts at the first meeting are generally not expected in formal business contexts, but small objects representative of your company or your country can be appropriate. Gifts on the occasion of visits home, on special occasions (Diwali in particular), possibly on returning from trips, are appreciated practices.
The presentation. Gifts are offered with the right hand or with both hands (never with just the left). They're accompanied by a brief comment on the meaning or the origin.
The choice. Quality Italian products are generally well received — design objects, craft items representative of your region, products of your brand (for companies with recognizable products). For gastronomic products, attention to dietary restrictions — wine can be appropriate for partners who drink but out of place for others, products containing meat can be problematic for vegetarian partners.
Quantities and colors. Odd numbers are generally preferred for monetary gifts (any "shagun" on some occasions). The colors green, red, yellow are a positive omen. White is associated with mourning in many Indian traditions (unlike Western culture where it can be a neutral color).
Objects to avoid. Leather objects (particularly from cows) can be problematic for many Hindus. Alcohol for those who don't drink. Meat products for vegetarians. Knowing the sensitivities of the individual recipient is generally a prerequisite.
Opening. Gifts received can be opened immediately or later, depending on the context. There's no rigid rule.
Regional specifics
A dimension worth naming is the variability of Indian business by region.
Mumbai and Maharashtra. A more cosmopolitan, international, financial business culture. Accelerated rhythms. Openness to foreign partners.
Delhi and the National Capital Region. It combines an institutional dimension with commercial dynamism. A business culture generally more formal, sometimes more hierarchical.
Bangalore and Karnataka. A tech-oriented culture, generally more informal and modern. Significant openness to international practices.
Chennai and Tamil Nadu. An industrial and tech tradition with the cultural specifics of the south. The Tamil language has a strong identity. Business rhythms are generally more structured.
Ahmedabad and Gujarat. An ancient entrepreneurial tradition with the presence of large family groups. A pragmatic and long-term-oriented business culture. Vegetarianism very widespread.
Hyderabad and Telangana/Andhra Pradesh. Tech, pharmaceuticals, biosciences. A business culture in evolution.
Pune and other growing cities. Automotive, IT, education sectors. A business culture often more dynamic and less hierarchical.
Kolkata and West Bengal. An intellectual and cultural tradition, traditional industrial sectors in evolution, a presence of multinationals.
The operational complexity for Italian companies
A dimension worth articulating honestly is the operational complexity of doing business in India.
The tax system and GST. The Indian tax system was significantly reformed in recent years with the introduction of GST (Goods and Services Tax) which unified many national and state indirect taxes. The system is complex and requires specialized consulting. There are corporate taxes, taxes on dividends, sector-specific taxes.
Corporate structures. Italian companies that operate in India have several options — representative office (Liaison Office), branch (Branch Office), company under Indian law (Private Limited Company, in some cases Public Limited Company), joint venture with Indian partners. Each option has specific regulatory, tax, operational implications. The choice requires qualified consulting.
The regulation of foreign investments. Foreign direct investments (FDI) in India are regulated by sector. Many sectors are completely open (with automatic approval), others require government approval, some have specific limits. The rules evolve periodically.
The labor regulatory framework. Indian labor law is complex, with federal and state regulations, distinctions between different types of contracts, specific rules for different categories of workers. In recent years the government has begun simplifications with the consolidation of multiple laws into Labour Codes, with progressive implementation.
Payment practices. Payment timelines in India can be longer than European ones. For Italian companies that sell in India, managing commercial credit requires structured attention. Credit insurance through SACE and other instruments is a useful dimension for reducing the risks.
The protection of intellectual property. The Indian framework of protection of trademarks, patents, designs has progressively strengthened. Preventive registration in India is important for companies that want to operate in the market. Managing any violations requires qualified local consulting.
Logistics and distribution. India has progressively developed logistics infrastructure but with important specifics for the country's size. Internal distribution requires articulated strategies. There are modern logistics chains alongside more traditional systems.
E-commerce. The Indian e-commerce market has developed significantly in recent years, with the presence of local players (Flipkart, Myntra) and international ones (Amazon India). For Italian companies in consumer sectors, e-commerce is a channel that deserves evaluation.
Import practices. Indian customs procedures have their own complexities. Duties can be significant for some product categories. Customs preparation requires attention and specialized consulting.
Geopolitical tensions. India operates in a complex geopolitical context with significant tensions with some neighbors (Pakistan, to a different extent China). India's relationships with the USA, the EU, Russia, have their own dynamics. For Italian companies in sensitive sectors, maintaining awareness of the framework is important.
What AI tools have changed for those operating in India
Several aspects of operations with India have been significantly transformed by AI tools in ways worth naming.
Managing communication. Even though English is widely used in India, AI tools support the calibration of registers appropriate for specific contexts, the adaptation of the style to local expectations, the identification of cultural nuances. For specific documentation in Hindi or other Indian languages, assisted translation has improved significantly.
Specific cultural preparation. Building detailed briefings on the Indian context for specific sectors, specific regions, types of counterparts (family groups vs multinationals vs startups, traditional vs modern contexts), is today a rapid activity with AI tools.
Monitoring the context. The Indian context evolves rapidly — regulatory reforms, changes in industrial policies, evolutions of the tax framework, developments of the Make in India program, evolutions of the EU-India agreement. AI tools make structured monitoring more sustainable.
Managing asynchronous relationships. The time-zone difference between Italy and India (generally four and a half hours) can be managed better with AI tools that synthesize communications, translate notes, prepare initial responses.
Market analysis. Understanding the competitive structure of specific sectors in the Indian market, identifying positioning opportunities, mapping the main players, is today accessible with tools that have made competitive analysis more sustainable.
Preparing structured documentation. For Italian companies that operate with large Indian groups or with public institutions, structured and detailed documentation is important. AI tools accelerate the production of professional materials.
AI tools don't replace physical presence in the market, the building of trust relationships, strategic judgment, the qualified professional consulting that the Indian market requires — but they significantly amplify the effectiveness of qualified human activities.
India is one of the markets of greatest opportunity for Italian companies that want to significantly expand their international presence. The size of the market, the growth rates, the expansion of the middle class, the growing sector specialization, the progressive openness to international trade, the EU-India free-trade agreement under negotiation, compose a picture of opportunity of a different scale from what many imagine.
Operating well in India requires overcoming the stereotypes and investing in the structured understanding of the market's specifics — the regional and cultural diversity, the complexity of the regulatory framework, the importance of personal relationships, the sensitivity to religious and cultural practices, the relationship-building times. The Italian companies that have built significant presences in India have done so through years of consistent presence, progressive development of relationships, quality maintained over time, the capacity to adapt to the specifics of a market that rewards preparation and patience.
For Italian companies that are evaluating India as a market or that want to strengthen their presence, it can be useful to ask: which India do we want to operate in specifically — which cities, which sectors, which types of partners? Which operating model is consistent with our resources and our objectives? Do we have people with the cultural sensitivity and the willingness to invest in the timeframes the market requires? Do we have qualified local consulting to address the regulatory and operational complexity? The answers to these questions, articulated honestly, orient strategic choices consistent with the specific opportunities of a market of continental scale that deserves serious strategic consideration.