Prospects of Indian direct investments in Russian economy

Cover Page

Abstract


The article examines major trends and prospects regarding the Indian direct investment in the economy of the Russian Federation. The authors comprehensively analyze key factors, the scale, regional and sectoral composition of the Indian direct investment in the Russian economy, scrutinize the evolution of sectoral and regional composition of the Indian FDI, as well as define main challenges and obstacles that investors from India face in Russia and identify medium-term prospects for the Indian capital in the Russian Federation. The research shows that in the current circumstances the significance of the Indian capital in form of direct investment for Russia is substantially growing; its regional presence is steadily increasing; the sectoral diversification of the Indian investment is intensifying. The important indicator in this case is the quality of the Indian capital, its gradually increasing high-technology component. Not only the scale of the Indian direct investment in the Russian economy is changing, but also there is the rise in number of companies investing in Russia. At the same time, if in the early 2000s those companies were mainly large Indian MNCs, nowadays there is an increased interest in Russia among small and medium-sized high-technology enterprises of India that promote innovative development of the Russian regions. Of utmost importance is the fact that the Indian capital is also invested in small-scale industry, promoting upgrade of technological equipment of small and medium-sized enterprises in Russia. These noticeable changes in the Indian capital movement will substantially contribute to enhanced economic cooperation between the two countries.


About the authors

Olesya A. Maltseva

Moscow State Institute of International Relations (MGIMO-University)

Author for correspondence.
Email: maltseva@hotmail.com
76 Vernadskogo Ave, Moscow, 119454, Russian Federation

PhD in Economics, senior lecturer of the Department of Indo-Iranian and African Languages

Evgeny D. Druzhkin

Moscow State Institute of International Relations (MGIMO-University)

Email: druzhkin.e.d@gmail.com
76 Vernadskogo Ave, Moscow, 119454, Russian Federation

master student (Regional Studies)

References

  1. Aggarwal, R., & Weekly, J.K. (1982). Foreign Operations of Third World Multinationals: A Literature Review and Analysis of Indian Companies. Journal of Developing Areas, 17(1), 13–30.
  2. Akimov, A.V. (2013). Vyderzhit li “kirpich”? Indiya v BRIKS posle krizisa [Will the brick stand? India in the BRICS after the crisis]. Aziya i Afrika segodnya, 5(670), 2–8.
  3. Bhagavatula, S., Mudambi, R., & Murmann, J.P. (2019). Innovation and Entrepreneurship in India: An Overview. Management and Organization Review, 15(03), 467–493.
  4. Bragina, E. (2012). Indiya: Protivorechivye tendencii razvitiya [India: Conflicting development trends]. God planety (pp. 409–419).
  5. Bulatov, A.S., Kvashnin, Yu.D., Kuznetsov, A.V., Pertseva, S.Yu. et al. (2019). Rossiya v mezhdunarodnom dvizhenii kapitala v 2018 – nachale 2019 goda. Analiticheskiy doklad [Russia in International Capital Flows in 2018 – the early 2019. Analytical Report]: monograph. Moscow: MGIMO-University.
  6. Bulatov, A.S., Perceva, S.Yu., Kuznecov, A.V., Ponomarev, A.V. et al. (2014). Rossijskaya model' eksporta kapitala [The Russian model of capital export]: Monograph. Moscow: MGIMO-University.
  7. Chittoor, R., & Sougata, R. (2007). Internationalization Paths of Indian Pharmaceutical firms – A strategic group analysis. Journal of International Management, 13(3), 338–355.
  8. Chittoor, R., Aulakh, P.S., & Ray, S. (2015). What Drives Overseas Acquisitions by Indian Firms? A Behavioral Risk-Taking Perspective. Management International Review, 55(2), 255–275.
  9. Galishcheva, N.V. (2015). Perspektivy razvitiya ekonomik Yuzhnoy Azii [The Development Prospects for the South Asian Economies]. Mezhdunarodniye protsessy, 13(3(42)), 40–67.
  10. Galishcheva, N.V. (2015). Soyuz, proverennyj vremenem. Indijsko-rossijskoe ekonomicheskoe sotrudnichestvo: Osnovnye problemy i perspektivy [The union, time-tested. Indian-Russian Economic Cooperation: Key Issues and Prospects]. Aziya i Afrika segodnya, (3), 2–8.
  11. Galishcheva, N.V. (2017). Globalizatsiya indijskoy ekonomiki: Tendentsii i perspektivy [Globalization of the Indian Economy: Trends and Prospects]. Vestnik MGIMO Universiteta, 2(53), 71–89.
  12. Galishcheva, N.V. (2019). Vzaimnaya torgovlya Rossii i Indii: Osnovnye tendentsii i problemy [The Mutual Trade of Russia and India: Major Trends and Problems]. Rossiyskiy vneshneekonomicheskiy vestnik, (3), 60–73.
  13. Granovsky, A.E. (1983). Nakoplenie i ekonomicheskij rost v Indii [Accumulation and economic growth in India]. Moscow: Nauka Publ.
  14. Hansen, M.W. (2010). In Search of the “Indianness” of Indian Multinational Enterprises: Is There Anything Special about the Indian Path to Outward Foreign Direct Investment? In K. Sauvant, P. Pradhan (Eds.), The rise of Indian Multinationals (pр. 25–56). Palgrave Macmillan.
  15. Hejfec, B.A. (2014). Rossiya i BRIKS. Novye vozmozhnosti dlya vzaimnyh investicij [Russia and BRICS. New opportunities for mutual investment]: Monograph. Moscow: Dashkov i K Publ.
  16. Iqbal, B.A., Turay, A., Hasan, M., Yusuf, N. (2018). India’s outward foreign direct investment: Eerging trends and issues. Transnational Corporations Review, 10(1), 98–107.
  17. Kumar, N. (1994). Multinational Enterprises and Industrial Organization. The Case of India. New Delhi: Sage Publication.
  18. Kuznecov, A. (2012). Transnacional'nye korporacii stran BRIKS [Transnational corporations of the BRICS countries]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, (3), 3–11.
  19. Lall, S. (1983). Multinationals from India. The New Multinationals: The Spread of Third World Enterprises (pp. 21–87). Chichester: Wiley.
  20. Malyarov, O.V. (2010). Nezavisimaya Indiya: Evolyuciya social'no-ekonomicheskoj modeli i razvitie ekonomiki [Independent India: The evolution of the socio-economic model and economic development]: In 2 books. Moscow: Vostochnaya literature Publ. (Russian Academy of Sciences).
  21. Mathews, J.A. (2006). Dragon Multinationals: New Players in 21st century Globalization. Asia Pacific Journal of Management, 23, 5–27.
  22. Medovoj, A.I., & Galishcheva, N.V. (2009). Ekonomika Indii [Economy of India]. Moscow: MGIMO-University.
  23. Narula, R., & Dunning, J.H. (2010). Multinational Enterprises, Development and Globalization: Some Clarifications and a Research Agenda. Oxford Development Studies, 38(3), 263–287.
  24. Nayyar, D. (2008). The Internationalization of Firms from India: Investment, Mergers and Acquisitions. Oxford Development Studies, 36(1), 111–131.
  25. Perskaya, V.V., & Eskindarov, M.A. (2015). Konkurentosposobnost' nacional'nogo hozyajstva v usloviyah mnogopolyarnosti: Rossiya, Indiya, Kitaj [Competitiveness of the national economy in a multipolarity: Russia, India, China]: Monograph. Moscow: Ekonomika Publ.
  26. Pradhan, J.P. (2004). The determinants of outward foreign direct investment: A firm-level analysis of Indian manufacturing. Oxford Development Studies, Taylor & Francis Journals, 32(4), 619–639.
  27. Pradhan, J.P. (2017). Indian outward FDI: A review of recent developments. Transnational Corporations, 24(3), 43–70.
  28. Ramamurti, R. (2016). Internationalization and Innovation in Emerging Markets. Strategic Management Journal, 37(13), 74–83.
  29. Ramamurti, R., & Singh, J.V. (2009). Indian Multinationals: Generic internationalization strategies. Emerging Multinationals in Emerging Markets (pp. 110–165). Cambridge: Cambridge University Press.
  30. Sedov, I.A. (1971). Ekonomicheskie svyazi Indii s razvivayushchimisya stranami Azii i Afriki [Economic relations of India with developing countries of Asia and Africa]. Moscow: Nauka Publ.
  31. Shirokov, G.K. (1984). Tradicionnye struktury i ekonomicheskij rost v Indii [Traditional structures and economic growth in India]. Moscow: Nauka Publ.
  32. Volodin, A.G. (2016). Rossiya – Indiya: problemy i perspektivy perekrestnyh investicij [Russia – India: Problems and prospects of cross-investment. Vestnik Rossijskoj akademii nauk [Bulletin of the Russian Academy of Sciences], 86(12), 1098–1105.
  33. Yashkin, V.A. (1970). Gosudarstvennyj kapitalizm i vosproizvodstvo v Indii [State capitalism and reproduction in India]. Moscow: Nauka, Glavnaya redakciya vostochnoj literatury Publ.

Statistics

Views

Abstract - 42

PDF (Russian) - 23

Cited-By


PlumX

Dimensions


Copyright (c) 2020 Maltseva O.A., Druzhkin E.D.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

This website uses cookies

You consent to our cookies if you continue to use our website.

About Cookies