The most common problems in communication between a European and Indian company include uncritical acceptance of information, lack of caution and lack of decisiveness on the part of Europeans.
It is typical in the first discussions with the joint venture partner that they push for decisions and set tight timelines. He tries to build up pressure and imposes constraints that are supposedly unavoidable. In reality, your “partner” only pursues his own agenda and interests.
This first phase can also be seen as a test, because the future partners assess each other based on their reactions. Is the other person well informed, is he critical of the situation and is he willing or able to act decisively?
With every phase of the negotiations in which the Indian partner realizes that he can expand his demands, the risk that this joint venture will be concluded unilaterally and to your disadvantage increases.
Our recommendation: Take your time and prepare thoroughly for the discussions. Also, seek the opinion of independent contacts for each decision you make. Don't be afraid to ask critical questions or say no if you don't like a request or a request doesn't seem plausible. Do everything you can to ensure that the discussions are held on an equal footing and that you secure your position through good preparation.
If you behave like this, you will notice that some planned joint ventures suddenly appear in a completely different light and the “Super Indian“ is no longer who he initially seemed to be. But the least that will come of it is that you will gain respect and respect for your Indian partner.
More articles on the topic Joint ventures in India can be found on our blog.
