The economic reforms in Russia can gain much from the experience India has in state participation in economy for taming market forces to the goals of socio-economic development, forced modernization of economy and acceleration of economic growth. After gaining political independence, India has used state capitalism to overcome the pernicious consequenses of the colonial “open economy” imposed from outside. Hence, the reform of the 90s aimed at greater openness of the economy, more freedom for the market and enterprise has been carried on with maintaining the basic structures of the state sector and state regulation of the economy. It has allowed India to escape fall in production and financial crisis of 1997 and 1998.