Meetings in India generally begin with friendly small talk. This may include personal questions about your family and is seen as a way of building rapport and trust before business. In India, the family unit is highly valued, therefore showing interest and respect towards your Indian counterpart's family is vital for establishing successful relationships.

In Indian culture disagreement is rarely expressed in a direct manner. The word "no" is often avoided and is replaced by other non-verbal cues and indirect communication.

During negotiations, trust and well-established relationships with your Indian counterparts must be in place before any form of business can take place.

Within the system of hierarchy in the Indian work place, senior colleagues and especially elders are obeyed and respected. Discussions are almost always lead by the most senior person. Final decisions rest with the highest-ranking business executives.

Greetings and Courtesy

Indians greet each other (and say good-bye) with the 'Namaste', which is formed by pressing the palms together (fingers up) below the chin and nodding the head. When greeting superiors or to show respect, a slight bow is added. When meeting foreigners, Indian men will shake hands. Indian men do not generally shake hands with or otherwise touch women as a tradition.

Indian women who are educated or familiar with international customs may offer their hands to foreigners as a courtesy. When meeting a woman, a man should wait for her to initiate a handshake, if she does not, then he should just smile and nod slightly.

Meetings

Indians value punctuality in others but sometimes there could be delays in meetings and events. It is useful to reconfirm meetings.

Dress Code

Suits are worn by senior executives in general. But because of the warm condition, many wear safari suits or go without tie and suit. Foreign business women are advised to dress conservatively, to avoid looking strikingly different and attracting unnecessary attention.

Business Gifts

Gifts are generally exchanged after meetings. Alcohol bottles should be avoided with those who do not drink. Don't take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands.

Do's and Don'ts

If you are male introduced to a lady or a grown-up girl, don't take the initiative of offering a handshake. If she extends her hand, you must reciprocate but don't be the first to extend your hand. If you are female and are being introduced to a male: it is up to you "the female" to take the initiative for a handshake. The rule of thumb is: the female extends her hand first, and the male reciprocates.

The Western practice of a peck on the cheek as a form of greeting a lady or a grown up girl is not advisable except in in the case those who are used to such practices.

Indian English has its own accent and these also vary depending upon the region.

Some Indians are in the habit of shaking their head to say yes or no. Please confirm what they mean, if you are not familiar.

While visiting any Indian places of worship, respect should be shown as required.

Making decisions is often a slow and thoughtful process in Indian culture. Deadlines should not be rushed as impatience is seen as aggressive, rude and disrespectful.

Do use titles wherever possible, such as "Professor" or "Doctor". If your Indian counterpart does not have a title, use "Mr", 'Mrs", or "Miss".

Don't refuse any food or drink offered to you by Indians during business meetings as this may cause offence. In addition, Most Indians are vegetarians and do not drink alcohol and this should be kept in mind while dining with them.

Source : http://www.communicaid.com

Replying to All:

Here are some more useful points for everybody's reference:

Appearance


When dressing casual, short-sleeved shirts and long pants are preferred for men; shorts are acceptable only when exercising. Women must keep their upper arms, chest, back, and legs covered at all times.

Women should wear long pants when exercising.

Behavior


Beckoning someone with the palm up and wagging one finger can be construed as in insult. Standing with your hands on your hips will be interpreted as an angry, aggressive posture.

Never point your feet at a person. Feet are considered unclean. If your shoes or feet touch another person, apologize.

Communications


The word "no" has harsh implications in India. Evasive refusals are more common, and are considered more polite. Never directly refuse an invitation, a vague "I’ll try" is an acceptable refusal.

Titles are very important. Always use professional titles.


Source: http://www.cyborlink.com/besite/india.htm