Bragina Elena
India – Africa: Trade and Investments in the 21st Century
Publication Type:


DOI 10.23932/2542-0240-2018-11-5-182-199

The article discusses commercial relations and investment flows between India and the countries of Africa against the backdrop of globalization in the 21st century. The scale and substance of their economic interaction, determined by the level of development of their domestic economies and the specifics of external demand for the goods produced, significantly differ. African countries continue to require an inflow of foreign investments, especially given the substantial lag the majority of such countries still demonstrates in the development of their own research and development sector. In Africa’s intercontinental contacts, a high degree of involvement is shown by India, whose government adopted the 2002 “Focus Africa” program aimed at promoting consistent development of economic contacts with the continent’s countries. A considerable share of the shadow sector in their GDPs remains an essential negative feature of economic structures of the African countries and India. It not only complicates adequate assessment of the economic processes ongoing in those countries, but also has an adverse effect on the efficiency of their state institutes. One can observe the emergence of the middle class (although uneven by scale) and, as a result, of new types of consumption and demand, and their proliferation. This is making their domestic markets increase and diversify, which, in turn heightens foreign exporters’ and investors’ interest in accessing such markets. Especially important here is India’s economic policy on the relations with the countries of Africa, including its use of “soft power” for further expansion of its position. The article focuses on the main forms of economic relations of India and African countries, the growing activity of large businesses, and high level annual economic summits. African countries’ exports to India retain a high share of raw materials, and, primarily, agricultural produce and hydrocarbons. The share of African oil in India’s total imports in 2016 amounted to 15%. While the leading countries of the West continue their traditional presence in the African and South Asian markets, China, as an exporter and investor, is gaining in economic influence. The role of Japanese and South Korean capitals in the competition for African markets is also on the rise. In February 2018, African countries agreed to create a common market. This prospect will significantly intensify competition for economic positions in trade and investments with the countries of the African continent.


Keywords: globalization | India | Africa | shadow economy | middle class | purchasing power | summits India-Africa | «soft power» | trade | commodity structure | oil | investments | African common market |



OTHER PUBLICATIONS ON THIS TOPIC

Ofitserov-Bel'skiy D.
Instrumental Factors of Soft Power in an Era of Global Turbulence // Russia in Global Affairs. 2024. Vol. 22, Issue 2. P. 179-195. DOI 10.31278/1810-6374-2024-22-2-179-195.

Volodin Andrey
The Geopolitics of Crisscrossing Russia-India Investments [Òåêñò] / A. Volodin // World Affairs. – 2017. – Ò. 21. – ¹ 3. –

Lunev Sergey, Shawlai Ellina
India as a Global Power: The Strategic Culture Problems // India Quarterly: A Journal of International Affairs. 2021. DOI 10.1177/09749284211047750. Vol. 77, Issue 4. – P. 525-541.

Bubnova Natalia
Russia's Policy and International Cooperation: The Challenges and Opportunities of Soft Power // Velikaya A., Simons G. (eds.). Russia's Public Diplomacy: Evolution and Practice. SID book series. Palgrave Macmillan. 2020. P. 79-101. DOI 10.1007/978-3-030-12874-6_5.

Volodina M.
International Economic Strategy of Small African Countries in a Globalizing World

Davydov Alexey, Kupriyanov Alexey
US–Indian Relations: Formation of an Alliance or a Temporary Partnership? // Herald of the Russian Academy of Sciences. 2022. Vol. 92, Issue Suppl. 4. P. S285–S292. DOI 10.1134/S1019331622100069.

Grigoriev Leonid, Salmina A.
The middle class in Russia: an agenda for structured analysis / L. Grigoryev, A. Salmina // Social Sciences. – 2011. – ¹ 1. – P.3-22.

Labetskaya Ekaterina
Russia-EU: “Soft-Power Risks” in the Eurasian-Arctic Context. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2018, no 9, vol. 62, pp. 112-120

Zagashvili Vladislav
The WTO crisis as evidence of a globalization crisis [Text] / V. Zagashvili // Social Sciences. A Quarterly Journal of the Russian Academy of Sciences. – 2019. – Vol. 50. – Issue 2. – P. 60-71. DOI: 10.21146/0134-5486-2019-50-2-60-71

Gontmakher Evgeniy
The Middle class and Democratisation in Russia [Text] / E. Gontmakher, K. Ross // Europe-Asia Studies. – 2015. – V. 67. – Issue 2. – Ð. 269 – 284.

Stepanova Ekaterina
Russia in the Middle East: Back to a “Grand Strategy” – or Enforcing Multilateralism? [Text] / E. Stepanova // Politique étrangère. – 2016. – ¹ 2. – P. 1 – 14

Volodin Andrey
The Logic of Directed Development in Postcolonial India [Text] / A. G. Volodin // Herald of the Russian Academy of Sciences. – 2018. – Vol. 88. – Issue 1. – P. 96-103. DOI: 10.1134/S1019331618010069

Monitoring of direct investments of Belarus, Kazakhstan, Russia and Ukraine in Eurasia / Authors: A.V. Kuznetsov (lead author), Yu.D. Kvashnin, S.A. Lukonin, A.S. Chetverikova, A.V. Shchedrin (IMEMO RAN). Project Manager — A. M. Anisimov, EDB Centre for Integration Studies. (Report 28). Saint Petersburg: EDB Centre for Integration Studies, 2014, 60 p.

Bogdanov Konstantin, Frumkin Boris, Kobrinskaya Irina
A Race for the Global South or a Battle for the World Majority: Russia’s Prospects // Russia in Global Affairs. 2024. Vol. 22, Issue 4. P. 64-81. DOI 10.31278/1810-6374-2024-22-4-64-81.

Varnavskii Vladimir
The Global Transportation and Logistics Infrastructure // Herald of the Russian Academy of Sciences. 2021. Vol. 91, Issue 1. P. 65-72. DOI 10.1134/S1019331621010093.

EAEU and Eurasia: Monitoring and Analysis of Direct Investments / authors IMEMO: A.V. Kuznetsov, Y.D. Kvashnin, A. A. Nevskaya, A. S. Chetverikova; project coord. Ò.V.Tsukarev. Report ¹ 34. St. Petersburg: EDB Centre for Integration Studies, 2015, 66 p.

Volodin Andrey
Russia-India: Problems and Prospects of Cross Investment [Text] / A.G. Volodin // Herald of the Russian Academy of Sciences. – 2016. – Vol. 86. – ¹ 6. – P. 500 – 506.

Volodin Andrey
The "Nuclear Confrontation" in South Asia [Text] / A. G. Volodin, V. Shukla // World Affairs. The Journal of International Issues. – 2019. – Vol. 23. – Issue 2. – P. 56-71.

Bragina Elena
Ðåöåíçèÿ [Òåêñò] / Å.À. Áðàãèíà // Âîñòîê. Àôðî-àçèàòñêèå îáùåñòâà: èñòîðèÿ è ñîâðåìåííîñòü. – 2015. – ¹ 5. – Ñ. 178 – 184. – Ðåö. íà êí.: B.Debroy, A.Tellis, R.Trevor. Getting India back on Track. – Random House India. 2014

Belyanin Alexei
Trust and power as determinants of tax compliance across 44 nations [Electronic resource] / A. Belianin, L. Batrancea, A. Nichita, J. Olsen, C. Kogler and etc. // Journal of Econimic Psychology. – 2019. – Vol. 74. – URL: https://www.sciencedirect.com/science/article/pii/S0167487019301746 DOI: 10.1016/j.joep.2019.102191.
Related publications


Comments (0)

No comments

Add comment







First news
Institute News
13/02/2025

On February 13, 2025, Maria Khorolskaya took part in a Roundtable on the current situation in Germany on the eve of early elections to the Bundestag on the platform of the “Russia Today” news agency.

more...

13/02/2025

On February 13, 2025, the RIAC website published an analytical article by Stepan Golovin “the Economy of Southeast Asian Countries in 2025: How to Maintain Sustainability in a Period of Uncertainty?”.

more...

Recently Published