Startup founder claims foreign client honoured contract after dropping project internally, compares it to India's "adjust kar lo" culture

Startup founder Ananya Narang has sparked discussion on X after sharing an experience in which an international client honoured a six-month contract despite internally deprioritising the project. She contrasted the experience with what she described as common business practices in India, where contracts are often treated as negotiable.

According to Narang, the client informed her team last month that the initiative would be paused because of internal organisational changes. At the time, four months of the six-month contract had already been completed.

Instead of terminating the agreement, the client said the company would honour the remaining two months of the contract, stating that it would not be right for Narang's firm to bear losses caused by the client's internal decisions. Narang said the payment for the remaining period was made without negotiation or dispute.

Founder compares contract culture

Reflecting on the incident, Narang said the experience made her think about how contracts are treated in India.

She wrote that business dealings in India are often relationship-driven, with "everything negotiable" and an "adjust kar lo" approach even after agreements have been signed.

Narang said many service businesses, particularly smaller firms, have experienced payment delays, scope expansion without revised commercial terms, projects being dropped midway, and attempts to renegotiate pricing after work has already been completed.

She clarified that her comments were not intended to portray foreign businesses as better than Indian businesses but to highlight differences in business culture.

According to Narang, contracts are treated as binding commitments in many global markets, whereas they are often viewed as formalities in India. She added that this is one reason many Indian service firms prefer working with international clients. Narang concluded by saying Indian businesses should move beyond a "jugaad" mindset and place greater importance on honouring contractual commitments.

Social media users offer mixed reactions

The post drew varied responses from social media users.

One user disagreed with the comparison, saying the issue was not country-specific and claiming a UK client frequently tried to renegotiate signed contracts in a highly competitive business environment.

Another user attributed the difference to stronger and faster judicial systems in many foreign countries, while pointing to judicial vacancies and a large backlog of pending cases in India.

A third user, who said they had worked with several large MSME firms in India, commented that agreements are often not read thoroughly and personnel changes frequently, making contract pauses inevitable and discouraging businesses from allocating exclusive resources.

Another user argued that India follows a different business culture in which a person's word often carries greater weight than legal agreements. The user added that there are many instances where verbal commitments have been honoured and counterparties' interests protected, including under well-drafted government contracts.

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