The internationalisation of Indian development finance
Jai’s research examines how the growing internationalisation of finance in the Indian economy has enabled greater international trade and investment, from a South-South cooperation perspective. More specifically, it explores the confluence of development finance and (mainstream/commercial) finance in India and how it has shaped the financial practices of large Indian multinational companies, the financial instruments employed, the relationships among financial institutions, highlighting the critical role of public sector banks, private banks, the stock markets and how the political and institutional structures and regulatory processes influence and are influenced by South-South development partnerships.
India is one of the fastest growing economies in the world. Indian businesses have established a presence in industries in the Global South ranging from pharmaceuticals, automotive, information technology, to telecommunications infrastructure and oil and gas. Some of these companies include Reliance Industries, the Aditya Birla Group, the Tata Group, Bharti Airtel, Dr. Reddy’s, Ranbaxy, Mahindra and Mahindra and Infosys. One aspect that has been understudied in academia is the role that development partnerships play in the financing of international trade and investment from India to the Global South. This study aims to fill the gap in the literature and examine the effectiveness of development partnerships (including bilateral and trilateral agreements) on the various methods, instruments and channels of financing of international trade and investment. Such a study aims to help policymakers better identify the various financial strategies and instruments that Indian businesses use to fund their international expansion, which would further improve the effectiveness of development partnerships. It will also contribute to an understanding of new developments in Indian finance and the challenges it poses to regulations. Likewise, it will provide insights into the contemporary business practices of large Indian multinationals investing in the Global South and their implications for relations between India and Global South countries.
Name of researcher:
Dr Jai Bhatia, University of Cambridge