Globalization and its impact on Indian Economy
Globalization (or globalization) describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade.
- Investments +new jobs,local companies supplying raw materials, etc. to these industries have prospered.
- Indian companies gained from successful collaborations with foreign companies. Ex: Tata Motors, Infosys.
- With big Indian MNCs contributing to world trade, India can raise its voice for fairer trade rules at WTO.
- Exports would potentially increase therefore making our trade more favourable.
- Consumers have an option to choose from a wide range of products- they can have cheapest, best thing.
- Technological development+ Increase in volume of trade will increase world’s GDP.
- Extension of internet facilities +Infra to remotest rural areas>rural development, inclusive growth.
- We can export what we produce in excess. So, less wastage and we can import what we produce in deficient.
- In agricultural sphere, Globalization promotes contract farming which increases the earning capacities of farmers.
- Trade deficit (as in case of India) which hurt most in case of under-developed and developing economies and widen the gap between the developed & not so developed economies.
- Outsourcing of jobs from developed countries to developing countries. It has led to loss of jobs in developed countries and subsequent protectionist measures as recently in USA and Saudi Arabia.
- As the economies are interlinked any financial crisis in one country, especially developed countries will result in slow down in developing economies. Eg-crisis in COVID 19 times
- Agriculture sector not improved as much as services and manufacturing secto- becoming an expensive affairs. + state is withdrawing its extensive role in agriculture.
- Neo-colonialism in smaller developing countries .
- MNC’s ruling the globe and exercising a great political control all over the world+wider economic inequalities.
- Not sustainable growth, development on growing negligence of environment, forests, wildlife etc.
- Destruction of traditional service providers. For example, old restaurants, parathas and lassi are replaced by Mc. Donald’s, Chinese restaurants, etc.
- Advent of a consumer credit society. A person can now buy goods and services even if he does not have sufficient purchasing power at his disposal.