Hosting 1.23 billion people, which is roughly 17% of the world’s population, India is one of the most densely populated countries in the world (PSUWC, 2021). This places the spotlight on India as it relates to potential future influence in world affairs (PSUWC, 2021). As India could be a force to be reckoned with, slow movement in influencing world affairs may be attributed group division and a suppressive hierarchal system of democracy also known as a caste system.
To understand the complexities of doing business in India, one must understand how India’s caste system influences their democratic processes. Although abolished in 1950, India’s caste system is ever present and continues to categorize Indians based on birth (Sur, 2020).
According to BBC News, a caste system “divides Hindus into rigid hierarchical groups based on their karma (work) and dharma” at birth (2019). Of these groups, the highest group are Brahmins or intellectuals said to be born from the head of Brahma (Wibawa, 2019). These individuals are also known as the priests and academics (Wibawa, 2019). As we move down the hierarchy or body, the Kshatriyas represent the shoulders or warriors/rulers, Vaishyas, the abdomen or farmers, traders, and merchants, Shudras represent the feet or laborers, and finally the Dalits also known as the “untouchables” (Wibawa, 2019).
The wealth divide between the Brahmins and Dalits is quite telling as it relates to the existence of India’s caste system and how each group lives. According to Prateek Gautam, “India’s richest 1 per cent hold more than four-times the wealth held by 953 million people who constitute the bottom 70 per cent of the country’s population” (2020). Of the groups, the “Untouchables” or Dalit live in the slums, and face many restrictions “such as where they can live, sit and visit, who they can and cannot give water to, who they can eat with and who they are allowed to marry” (Chidlow, 2014). Though still prevalent, the younger generation is showing signs of hope and progress.
Signs of change can be seen as more Indians move into the cities and younger people show greater tolerance as it relates to the Caste System (Chaudhary, 2019). This shift in tolerance will allow for greater educational opportunities, a decrease in the wealth divide, and greater opportunities in the world markets. With that said, doing business in India is more than a simple transaction, one must educate themselves on India’s rich history and be sure they know and have researched the person they are attempting to do business with. Are they progressives? Are they traditionalists? Progressives will be more modern and used to Western business practices while Traditionalists are more family business oriented (Moran et al., 2014, p. 377). Understanding India’s Caste System, their religious beliefs, and the traditional versus the modern business person, may be the key to closing the deal.
References:
BBC News (2019). What is India’s caste system? Retrieved from: https://www.bbc.com/news/world-asia-india-35650616.
Chaudhary, A. (2019). India’s Caste System. Quicktake. Bloomberg. Retrieved from: https://www.bloomberg.com/quicktake/india-s-caste-system.
Chidlow, W. (2014). THE INDIA CASTE SYSTEM AND WATER. DROP4DROP. Retrieved from: https://drop4drop.org/india-caste-system-water/.
Gautam, P. (2020). India’s Richest 1% Are 4-Times Wealthier Than Poorest 70%: Oxfam Study. The Logical Indian. Retrieved from: https://thelogicalindian.com/news/oxfam-income-inequality-report-19361.
Moran, R., Abramson, N., Moran, S. (2014). Managing Cultural Differences. 9th ed. Routledge. New York, NY.
Pennsylvania State University World Campus (2021). Mainland Asia. Lesson 10: Focus on China and India. Retrieved from: https://psu.instructure.com/courses/2103357/modules/items/30942222.
Sur, P. (2020). Under India’s caste system, Dalits are considered untouchable. The coronavirus is intensifying that slur. CNN World. Retrieved from: https://www.cnn.com/2020/04/15/asia/india-coronavirus-lower-castes-hnk-intl/index.html.
Wibawa, T. (2019). India’s caste system could play a pivotal role in this week’s upcoming elections — here’s how. NEWS. Retrieved from: https://www.abc.net.au/news/2019-04-07/indias-untouchables-how-caste-system-affects-politics/10900280.
Thank you for your comment. I’m happy you took the time to read my post.
Indeed, equality in India has a long way to go. There is forward thinking on the horizon…or is there? In January of 2019, a Dalit, Kanhaiya Prabhu Nandgiri, “reversed the centuries-old Brahmanical ascetic order at the Kumbh Mela” (Sen, 2019). Though not provided any financial or logistical support, he is now recognized by India’s government as a Priest or Brahmin (Sen, 2019). This was a historic event as it was simply unheard of since the Dalit or untouchables were of the lowest caste and too disgusting to even touch.
As it may seem so long ago, here in the United States, in 1787, we had the Three-fifths compromise to give Southern states more electoral power and representation (Nittle, 2020). In India, Nandgiri is seen as a slave and his appointment more as a political move for the upcoming election (Sen, 2019). Using our own timeline, we can get an idea of where India is as it relates to gender equality, gender recognition, and prejudices continuing to feed their unofficial caste system.
To a greater extent, doing business in India is not so much the transaction, but understanding the complexities of the relationship. Would doing business with a lower caste person be a power move or a financial death sentence?
As mentioned above, strides have been taken to narrow the gap but as with racism and prejudice within the United states, India’s caste system, being so deeply rooted in their culture and religion, may never truly disappear.
References:
Nittle, N. K. (2020). The History of the Three-Fifths Compromise. ThoughtCo. Retrieved from: https://www.thoughtco.com/three-fifths-compromise-4588466.
Sen, P. (2019). How a ‘Low’ Caste Hindu Became a Priest at the Kumbh Mela. The Wire. Retrieved from: https://thewire.in/religion/how-a-lower-caste-hindu-became-a-priest-at-the-kumbh-mela.
Living in the Bay Area I have worked with and have many friends that are Indian. I’ve never heard how suppressive India actually is. It does make sense though to know about the culture of a country one plans to do business in. I’m sure one would probably have to be aware of the differences in India to make sure that nobody got unitentionally offended. It seems that there are some major differences with the culture in India than in the United States and a specific plan would be required to understand the culture before conducting business in India.