India – Africa: Trade and Investments in the XXI Century

Abstract

In article commercial relations and investment streams between India and the countries of Africa in the conditions of globalization of the XXI century are considered. Scales and filling of their economic interaction are significantly differ, determined by the level of development of national economy and features of external demand for the made production. High need of the countries of Africa for inflow of foreign investments, especially taking into account strong lag of most of them in development of own research and development remains. In intercontinental communications o f Africa the high activity is characteristic of India which government in 2002 has adopted the program “In focus Africa”, aimed at continuous development of economic contacts with the countries of the continent. The considerable share in their GDP of the shadow sector remains essential negative feature of economic structures of the countries of Africa and India. It not only complicates adequate assessment of the economic processes happening in these countries, but also has an adverse effect on efficiency of the state institutes. It was designated, though uneven on scales, formation of the middle class and, as a result, new types of consumption, demand and their proliferation. Respectively, their domestic markets increase and differentiated that increases interest in access to them for foreign exporters and investors. Special importance is represented by economic policy of India in the relations with the countries of Africa, including with use of “soft power” for further expansion of the positions. The main forms of economic relations of India and the countries of Africa, the growing activity of large business structures, the top-level annual economic summits are considered. In export of the African countries to India the high share of raw materials, first of all agricultural and also hydrocarbons steadily remains. The share of the African oil in the general import of India in 2016 has made 15%. Along with traditional presence in the African and South Asian markets of the leading countries of the West, economic influence of China as exporter and investor amplifies. Influence of the Japanese and South Korean capitals grows in competition for the African markets. In February, 2018 the countries of Africa have agreed about creation of the common market. Such prospect will significantly aggravate the competition for economic positions in trade and investments with the countries of 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