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Understanding Indian Business Culture: A Strategic Advantage for European Companies

February 11, 2026 by
Understanding Indian Business Culture: A Strategic Advantage for European Companies
sharon.r@mejuvante.com
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India is no longer a “nice to have” market for European businesses; it is a strategic pillar for growth, innovation, and resilience. The difference between just “entering” India and truly scaling in India is, in most cases, cultural understanding.

Why India matters for European businesses

  • The EU is one of India’s largest trade and investment partners, with bilateral goods trade crossing roughly USD 130 140 billion in 2024-25 and EU investments exceeding USD 100 billion.
  • Over 4,500 EU companies already operate in India, and hundreds of Indian firms are deeply embedded in European value chains, especially in IT, automotive, pharma, and green technologies.
  • As value shifts towards digital, AI, and services, India offers talent density, cost effective scalability, and a large domestic market all in one ecosystem.

For European leaders, cultural fluency in India is no longer “soft”; it is a hard business capability that impacts speed, cost, and risk.

Key cultural differences: Where deals are won or lost

  1. Relationship first vs transaction-first
  • In India, trust and relationships often precede contracts; “trust first, transactions later” is a real operating principle.
  • European teams that push for quick closure without investing in face time, informal conversations, and continuity of relationship-owners often see slower decisions or quiet disengagement.
  1. Communication: Indirect vs direct
  • Indian business communication tends to be indirect and harmony seeking; “we will see” or “possibly” can signal disagreement or hesitation where a European counterpart expects a clear “no”.
  • European directness, while efficient, may be perceived as confrontational if not balanced with context and respect for hierarchy.
  1. Hierarchy and decision making
  • Many Indian organizations remain strongly hierarchical; decisions concentrate at the top, and teams may avoid openly contradicting senior leaders in group settings.
  • Expect decisions to consolidate offline and over time, and design governance so that senior Indian stakeholders feel respected, informed, and involved early.
  1. Time, flexibility, and “last-minute” changes
  • Indian business culture often treats time more flexibly, with meetings starting late and plans changing quickly as new information emerges.
  • For European project managers accustomed to strict schedules, building buffers for ambiguity and change can dramatically reduce friction and escalation.
  1. Negotiation styles
  • Lengthy negotiations, haggling, and detailed scrutiny are common; contracts can be viewed as living documents that may evolve with the relationship.
  • Attempts to “lock everything down” too rigidly, too early, may be interpreted as a lack of trust rather than good governance.

Turning cultural understanding into strategic advantage

European companies that consciously integrate Indian business culture into their operating model outperform those that treat India as “just another market”. Some practical advantages:

  • Faster market entry and execution
  • Stronger partnerships and talent retention
  • Better governance with fewer surprises

An example: a European tech company localised its sales process in India by extending pre-sales discovery, investing in in person relationship-building, and aligning senior level sponsorship on both sides. This added 4 6 weeks upfront but reduced deal churn and post-signature renegotiations significantly.

How Mejuvante can help

Mejuvante operates at the intersection of European and Indian ecosystems, building bridges in both strategy and execution. For European companies, this means:

  • Local insight with European expectations
  • Talent, AI, and organization design
  • Long-term partnership, not one-off projects

For Mejuvante GmbH in Europe and mejuvante.ai in India, the mission is simple: help businesses treat cultural intelligence as a core competency, not an afterthought.

Call to action

If you are a European leader exploring or scaling operations in India whether in technology, manufacturing, or services now is the right time to operationalise your cultural strategy.

  • Start with a short cultural and operating-model assessment of your India plans.
  • Map critical interfaces: leadership, sales, delivery, compliance, and talent.
  • Build a practical action plan that your teams can apply in the next 90 days.

Mejuvante can work with your European and Indian stakeholders to design this journey end to end so your next step in India is not just bigger, but smarter.

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