What is 'Globalization'

Globalization is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets
around the globe, thereby increasing the interconnection of the world. Globalization has had the effect of markedly
increasing international trade and cultural exchange.

BREAKING DOWN 'Globalization'

Proponents of globalization say that it helps developing nations catch up to industrialized nations much faster through increased
employment and technological advances; critics of globalization say that it weakens national sovereignty and allows rich nations to ship
domestic jobs overseas where labor is much cheaper.

Globalization is used to explain the recent integration of domestic economies, industries, cultures and government policies around the
world. This integration has occurred through increases in the technological capabilities and efficiency of world trade, communication and
transportation. Primarily, globalization refers to the economic integration of the global markets, but it is also used to describe the socio-
cultural integration that has been brought on by the rise of the Internet.

Driving Factors of Globalization

Public policy and technology are the two main driving factors behind current globalization. Recent implementations of government
policy, both domestic and internationally, have opened economic borders for countries across the world. Over the past 20 years, world
governments have integrated a free-market economic system into fiscal policies, monetary policies and trade agreements. This
evolution of economic systems has stimulated domestic production potential and opened countries to increased financial opportunities
abroad. World governments now focus on decreasing barriers to trade and actively promote international commerce in relation to
investments, goods and services.

Technology has also been a major reason for the growth in globalization. Advancements in information technology (IT) and the flow of
information across borders have empowered individuals to take control of their financial lives. Technology has helped people become
more informed about economic trends and allows people to transfer financial assets and take advantage of investment opportunities.
Technology has increased the ability to communicate internationally, closing the gap between different cultures.

The Controversy Behind Globalization

At first glance, globalization is an amazing development. Those who believe in globalization as a force of good cite increases
in standards of living in developing countries as benefits of globalization. Those who do not believe in globalization, however, cite the
fact that it has disproportionately benefited corporations in the Western world at the damage of developing economies, cultures and
people. These critics actively work to strengthen domestic economies at the expense of free trade.

Globalization and its effect on Indian society

Dec 10, 2013
Globalization indicates that the world today is more interconnected than before. Globalization in its basic economic sense refers
to the adoption of open and unfettered trading markets (through lowering of trade barriers, removal of capital controls, and
liberalization of foreign exchange restrictions). Large volumes of money movement, increased volumes of trade, changes in
information technology and communication are all integral to a global world. There is also a significant movement of people from
one country to another for trade and work. Such increases in the movement of goods, labor, and services have weakened
national barriers and restrictions that are imposed by a nation state. Some identify a new emergence of a global village. In the
past two decades, economic globalization has been the driving force behind the overall process of globalization.

The effects are:

a)The movements of people from rural to urban areas have accelerated, and the growth of cities in the developing world
especially is linked to substandard living for many.

b)Family disruption and social and domestic violence are increasing. For example, 2004 New Delhi police reports indicate that
deaths in the city of about six women everyday are dowry-related suicides.

c)Concepts of national identity, and of family, job and tradition are changing rapidly and significantly.

d)There is concern that competitiveness introduced by globalization is leading to more individualistic societies.

e)Loss of tolerance for differences in religion and culture.

f)It is believed that the illicit drug trade has grown in recent years to form a significant proportion of the total business v olume in
the world.

g)In a capitalistic market, multinational companies are taking the lead in establishin g themselves and creating a major presence
in almost every part of the world. Coca Cola, McDonalds, and Nike are examples of such growth and proliferation. This process
becomes consumerism within a capitalistic culture.

h)The first is the development of a bicultural identity or perhaps a hybrid identity, which means that part of ones identity is
rooted in the local culture while another part stems from an awareness of ones relation to the global world.

i)The development of global identities is no longer just a part of immigrants and ethic minorities.
j)People today especially the young develop an identity that gives them a sense of belonging to a worldwide culture, which
includes an awareness of events, practices, styles and information that are a part of the global culture.
k)A good example of bicultural identity is among the educated youth in India who despite being integrated into the global fast
paced technological world, may continue to have deep rooted traditional Indian values with respect to their personal lives and
choices such as preference for an arranged marriage, caring for parents in their old age. Although developing a bicultural identity
means that a local identity is retained alongside a global identity, there is no doubt that lo cal cultures are being modified by
globalization. As traditional cultural practices and beliefs change, a bicultural or a hybrid multicultural identity likely develops to
include the elements of the native, local and global culture. This is especially true with immigrants.

l) Migration of younger generations from rural to urban areas and from one urban center to another as well as
transnational migration has resulted results in the elderly being left to fend for themselves at a time when family support
becomes more crucial. With more women joining the workforce system, the care of aged within families has declined. For those
who live within extended families the elderly have to live in harmony with the younger generation that has to face a highly
competitive world of globalization. While the nuclear family system is increasingly becoming the norm, modern life -styles,
changing professional and personal expectations are impacting relationships of marriage and commitment. In cities young people
are starting to choose their own partners. Arranged marriages, however, continue. Meanwhile, as divorce rates increase especially
in cities, the concept of single parenthood has not caught on in the Indian culture. According to the Indias Ministry of Health
reports (1997), teenage pregnancies are reaching an all-time high. In the southern state of Kerala, teenage abortions rose by 20
per cent in a year, while the western state of Maharashtra, one-fifth of all abortion were with girls less than 15.

m) The growth of the computer and technology sector has provided middle class educated women with better wages, flex -
timings, and the capacity to negotiate their role and status within the household and society. On the other hand, women continue
to work in poorly paid, mentally and physically unhealthy, and insecure situations.

n) For most women, their domestic responsibilities are not alleviated. Wage gaps have not showed any significant
changes in most employment sectors other than information technology. Additionally, prostitution, abuse and dowry related
suicides are on the increase despite globalization and some say that the materialistic greed is one of the main causes.

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Effects of Globalisation on Indian Society

Globalization is a significant factor in competitive world that integrate and mobilize cultural values of people at global level. In the age of
rapid technical progression, many countries are unified and transformed due to the process of globalization. Globalization has a huge
impact on cultural, social, monetary, political, and communal life of countries. Abundant theoretical studies demonstrated that
globalization intercedes in a cultural life of populace that raises numerous critical issues (Robertson, 1992). In broad sense, the term
'globalization' means combination of economies and societies through cross country flows of information, ideas, technologies, goods,
services, capital, finance and people. Globalization is described by theorists as the process through which societies and economies are
integrated through cross border flows of ideas, communication, technology, capital, people, finance, goods, services and information.

Aspects of Globalisation
Cross country incorporation has several aspects and can be political, cultural, social and/or economic, all which equal globalization.
Nevertheless, financial integration is the most common aspects. Economic integration involves developing a nation's economy into an
international economy. After World War I and II the early trends of globalization decreased throughout the world due to many barriers
which restricted the movement of goods and services. In fact, cultural and social integration are even more than economic integration.
Globalization increases competitiveness at company level and national level, which leads company management and governments to
embrace strategies designed to increase labour effectiveness with reference to productivity, quality and innovation.
Generally, globalization involves economies that are opening up to international competition and that do not distinguish against
international capital. Consequently, globalization is often accompanied by a liberalization of the markets and the privatization of
productive assets. But globalization also leads to unemployment, increasing casual employment and weakening labour movements.
Theoretical literature denotes that Globalization has made countries to realize that they can share their cultural values and economic
exchanges to promote business and gain competitive advantage. The fervour of globalization has even enforced Governments to be
tuned to the merits of a Global economy. Management studies have defined the process of globalization. Fraser (2007) explained that
Globalization is a word on every commentator's lips nowadays, but is very difficult to define satisfactorily, for it arises in so many
different contexts like economic, sociological, political, cultural and environmental. Akteruzzaman.Md, 2006 stated that globalization is
the interconnectedness of nations and regions in economic domain, in particular, trade financial flows and multinational corporations.

Concept of Globalisation
The concept of globalization means that the world is getting smaller as well as bigger. Akteruzzaman.Md, 2006 described that
globalization can contribute to develop pattern of cross border activities of firms, involving international investment, trade and strategic
alliances for product development, production, sourcing and marketing. These international activities companies to enter new markets,
to exploit their technological and organizational advantages and to reduce business costs and risks. Other theorists stated that
globalization is a social phenomenon that defines the geographical boundary in terms of many different issues. According Brinkman,
2002, globalization as a triumphalism light, as the penetration of capitalism into every corner of the world, bringing with it the
possibility for all of the world's population to participate in the fruits of the international division of labour and market economy. ALI,
2015 explained the globalization as a process of rapid economic, cultural, and institutional integration among countries. This association
is driven by the liberalization of trade, investment and capital flow, technological advances, and pressures for assimilation towards
international standards. Globalization has reduced barriers between countries, thus resulting in strengthening of economic competition
among nations, dissemination of advanced management practices and newer forms of work organization, and sharing of internationally
accepted labour standards.

Challenges of globalization and its effects

Many theorists asserted that change in environment has both positive and negative aspects (Harris, 2002). These stimulate driving or
resisting forces toward the change of the status quo. This is most obvious relative to both globalization, and the resulting spread of the
global organization. There are four factors that accelerate globalization.
The market imperative: Impact on national economies of larger, transnational markets characterized by free, convertible currencies,
open access to banking, and contracts enforceable by law.
The resource imperative: Growing interdependence of nations and their activities on one another, fostered by the depletion of natural
resources, misdistributions of arable land, mineral resources, and wealth, as well as overpopulation. The undeveloped nations need the
capital, technology, and brainpower of the wealthier countries, while the First World economies are progressively dependent on the
natural and human resources of the developing nations.
The IT imperative: Modernizations in glob communications, science and technology contribute toward universalization or planarization.
The ecological imperative: Globalization does have great effect on the ecologies and environments of nations which need to safeguards
that lessen the negative effects rather than exploiting without regard to such concerns.
India was main mover of globalization. The government of India made major modifications in its economic policy in 1991 by which it
allowed direct foreign investments in the country. As a result of this, globalization of the Indian Industry occurred at large scale. In
India, economic expansion was observed in nineteenth century due to major crisis led by foreign exchange. The liberalization of the
domestic economy and enhanced incorporation of India with the global economy helped to step up gross domestic product (GDP)
growth rates which made good position in global scale. Effects of globalization in Indian Industry are observed as this process brought in
large amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries.
As a result, they boosted the Indian economy quite significantly. The benefits of the effects of globalization in the Indian Industry are
that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical
sectors and this helped to offer great opportunities for employment to Indian people. Also this helped to reduce the level of
unemployment and poverty in the country. It is observed that the major forces of globalization in India has been in the development of
outsourced IT and business process outsourcing services. Since last many years, there is an increase of skilled professionals in India
employed by both local and foreign companies to service customers in the US and Europe. These countries take advantage of India's
lower cost but highly talented and English-speaking work force, and utilizes global communications technologies such as voice-over IP
(VOIP), email and the internet, international enterprises have been able to lower their cost base by establishing outsourced knowledge-
worker operations in India. The foreign companies brought in highly advanced technology with them and this made the Indian Industry
more technologically advanced. Globalization in India has been beneficial for companies that have ventured in the Indian market. It is
recommended by researchers that India has to focus on five important areas to enhance its economic status. The areas include
technological entrepreneurship, new business openings for small and medium enterprises, the importance of quality management, new
prospects in rural areas and privatization of financial institutions.
In terms of export and import activities, Many Indian companies have expanded their business and became famous at global level such
as fast food, beverages, and sportswear and garment industries. Records indicated that Agriculture exports account for about 13 to 18%
of total annual export of the country. In 2000-01, agricultural products valued at more than US$6 million were exported from the
country of which 23% was contributed to the marine products alone. Marine products in recent years have emerged as the single largest
contributor to the total agricultural export form the country accounting for over one fifth of the total agricultural exports. Cereals
(mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts for
nearly 5 to 10% of the countries' total agricultural exports. Globalization speeded export of food items in India in the form of increased
consumption of meat, western fast food, sodas and cool drinks, which may result in public health crisis. The rich biodiversity of India
has yielded many healthy foods prepared from locally available entities. But the marketing by MNCs with large advertisement campaigns
lead the people to resort to their products (Mascarenhas, 2003).
Figure: Indian companies going global:
Technological and Cultural impact of globalization in India

With the process of globalization, there is an access to television grew from 20% of the urban population (1991) to 90% of the urban
population (2009). Even in the rural areas satellite television has a grown up market. In the cities, Internet facility is everywhere and
extension of internet facilities even to rural areas. There is an increase of global food chain /restaurants in the urban areas of India.
Excessive Multiplex movie halls, big shopping malls and high rise residential are seen in every cities. Entertainment sector in India has a
global market. After economic liberalization, Bollywood expanded its area and showed a major presence in the global scale. The industry
began to explore new ways to become more global and modern. In India, modernity is observed with the West. Therefore, Western
philosophy began to be incorporated into Bollywood films. As these new cultural messages began to reach the Indian population, Indian
moviegoers were pushed to re-evaluate their traditional Indian cultural ideology. Bollywood movies are also distributed and accepted at
international level. Big international companies (Walt Disney, 20th Century Fox, and Columbia Pictures) are investing on this sector.
Famous International brands such as Armani, Gucci, Nike, and Omega are also making investment in the Indian market with the
changing of fashion statement of Indians.

Impact of globalization on education in India

There is immense effects observed in educational sector due to globalization such as literacy rate become high and Foreign Universities
are collaborating with different Indian Universities. The Indian educational system faces challenges of globalization through Information
technology and it offers opportunities to evolve new paradigms shifts in developmental education. The distinction between formal, non-
formal and informal education will vanish when move from industrial society to information society takes place. Globalization promotes
new tools and techniques such as E-learning, Flexible learning, Distance Education Programs and Overseas training.
It is observed in current Indian society that through globalization, women have gained certain opportunities for job options and to
recognize women's rights as a part of the human rights. Their empowerment has given considerable opportunities and possibilities of
improving employment conditions through global solidarity and co-ordination. It is found that the growth of computer and other
technologies enabled women with better waged, flex timings, and capacity to negotiate their role and status in home and at corporate
level.
There are some negative impact of globalization such as this process made disparity between rural and urban Indian joblessness,
growth of slum capitals and threat of terrorist activities. Globalization increased competition in the Indian market between the foreign
companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the
foreign goods. This reduced the amount of profit of the Indian Industry companies. This happened mainly in the pharmaceutical,
manufacturing, chemical, and steel industries. The negative Effects of Globalization on Indian Industry are that with the coming of
technology the number of labour required are decreased and this resulted increasing unemployment especially in the arena of the
pharmaceutical, chemical, manufacturing, and cement industries. Some section of people in India that are poor do not get benefit of
globalization. There is an increased gap between rich and poor that lead to some criminal activities. Ethical responsibility of business has
been reduced. Another major negative effect of globalization in India is that youngsters of India leaving their studies very early and
joining Call centres to earn fast money reducing their social life after getting habituated with monotonous work. There is an increase of
every daily usable commodities. This has an adverse effect on cultural aspect. The institution of marriage is breaking down at fast rate.
There are more people approaching divorce courts instead of maintaining marital life. Globalization has considerable impact on the
religious situation of India. Globalization has brought about raising a population who is agnostic and atheist. People visiting places of
worship are reducing with time. Globalization has reduced nationalism and patriotism in country.
It can be said that Globalization is motivating factor in current business environment. There are few challenges for companies due to
globalization such as Migration, relocation, labour shortages, competition, and changes in skills and technology. Globalization powerfully
influences the social partners' attitudes since traditional labour relations have to cope with completely new and very dynamic situations.
In political field, globalization helps to eradicate poverty, malnutrition, illiteracy, ill-health and fighting cross border terrorism and global
terrorism. Globalisation in context of status of women implicates the relegation of the stereotypic pattern of duties of the women like
rearing and caring the children to the back ground and taking up the various diversified occupation and thus making their living quite
vibrant and alive. Globalisation benefits the schedule caste people in promoting cultural homogeneity in the way of loosening of the
ideas of pollution and purity and eradication of untouchability and so many socio-cultural and economic disabilities associated with
them. Globalisation of goods has developed enthusiasm in India for western brand names. A consumerist mentality has been carefully
fostered. This leads to an adversative impact on the tendency to save or the domestic accumulation of capital. Lastly, in Indian scenario,
globalization developed a consumer credit society. Today, people can buy goods and services even if they do not have sufficient
purchasing power and the prospect of raising a loan has become easy in the age of globalisation. Credit cards have given boost to
consumerism and pushed many households into indebtedness. At the same time globalization has unfavourable impact on mass-media
in India. Currently, realistic coverage of events and happening doesn't receive much importance because it doesn't determine the
standing of a newspaper or TV channel. Globalisation has brought violation of journalistic ethics in India.
To summarize, the process of globalization has changed the industrial pattern social life of global people and it has immense impact on
Indian trade system. The globalization of the economic, social and cultural structures happened in all ages. Previously, the pace of
process was slow. Today with the start of the information technology, new ways of communication have made the world a very small
place. With this process, there is a big market place. Globalization has resulted in increase in the production of a range of goods. MNCs
have established manufacturing plants all over the world. It has positive effects and India will overcome many obstacles and adopt
global policies to expand business at international scale. India is gaining international recognition and strengthening in economic and
political areas.
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Essay on Effects of Globalization on Indian Economy

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Essay on Effects of Globalization on Indian Economy!

It means to open the Trade and Economy for the international players. In other words, every manufacturer or producer of goods can
compete for sale of their products without restrictions or without any imposed control.

For example, think of a small village market or meal where all are free to come and sell their products at their desired price, irrespective
of places from where they come. There are no restrictions on control on their products or the prices. This is the globalised trade. Any
country can participate to set up, acquire, merge industries, invest in equity and shares, sell their products and services in India.

Therefore, globalisation should not be considered in isolation, but should be considered in totality with liberalisation of the industrial
policy towards lifting of trade control and restrictions, influence of trade block and simultaneous privatisation.

Global market treats the world as a single market. With the advent of information technology and its strategic application, the world is
focussed as a global village and all traders are therefore globalised.

The Earlier (pre 1990s) concept:

Before 1990s India followed a patch of restricted trade. Such restrictions were that certain products would not be allowed to be
imported as they were manufactured in India. For example, General Engineering goods, Food items, toiletries, Agricultural products etc.
were in the banned list of import.

Some other kinds of products which were produced in restricted quantity in the country or are expensive and categorised as luxuries
were subjected to heavy import duty to make them costlier in order to dissuade flow of foreign exchange and give protection to local
producers. For example, VCR, Music sets, Air-conditioners, Computers etc., these items were subject to 150% import duty.

Globalisation in India:
In the 1990s due to change in world economic order and due to heavy pressures from rich countries like USA, Japan, European
countries dominating the WTO (World Trade Organisation having 135 members, established in 1995) and IMF (International Monetary
Fund) and World Bank engaged in development financing activities, the developing and the poor countries all over the world were forced
to open their trade and market and allow foreigners to share their major chunk of a business. Thus, India first started the process of
globalisation and liberalisation in 1991 under the Union Finance Minister, Shri Manmohan Singh.

The first 5 years in globalisation did not yield appreciable results. The coming of Multinational cold drinks manufacturers like Coke,
Pepsi, and others like Mc. Donald, KFC, Boomer Chewing gums, Uncle Chips, Cornflakes only dominated the show. Due to further
liberalization of trade and the privatization, the late 1990s showed the effect to globalisation by the coming of giant car manufacturers
like Daewoo Motors, Ford, Honda, Hyundai which resulted in availability of varieties of cars and reduction of domestic car prices.

Electronic giants like IBM and world leaders in the telecommunication sector like Ericsson, Nokia, Aiwa etc., delivered wide range of
quality products at affordable prices and brought a major revolution in Indian electronic industries. In the power sector Enron, AES-
CESCO are dominating the show. The resultant effects were tremendous boost to industrial sector economy. The price level came down
due to cut throat competition and Indian consumers are so far happy.

Recently in May 2001, the Indian Government also opened the defence sector towards globalisation and privatisation.

Globalisation, but for whose benefit?

Due to globalisation and liberalisation, the Indian market is flooded with quality foreign products, affecting the Indian industries
adversely. This has also resulted in the loss of jobs to many poor workers. Toys, bicycles and motor bikes from China, soaps and
toiletries from Indonesia and Malaysia, cheese and fruits from Australia and many more await the Indian consumers with the lifting of
trade restrictions.

Globalisation has turned out to be a bonanza for consumers but a grave for Indian producers, especially small-scale sectors, because of
their age-old technology and financial bottlenecks to update their machines and technology. The import of edible oils, grains at lower
prices have affected the Indian farmers heavily.

Now farming is no more profitable because of marginal remuneration. Indian manufacturers are no longer able to compete with their
global counterparts. The closing of industries and manpower lay off have become very common.
ADVERTISEMENTS:

Let us study the sector wise effects:

(1) Effect of Globalisation on Students and Education Sectors:
Due to globalisation, the availability of study books and information on the internet or the World Wide Web (www) have increased
tremendously. However, the exorbitant cost factors have made higher and specialised education beyond the reach of poor and middle
class students.

Hundreds of foreign universities have started collaborating with Indian universities and study institutions. This has affected the course
fees. For Engineering, Medical and Management studies, the course fees are hovering around Rs.20 to Rs.50 lakhs. Intelligent students
from middle and poor class may have to settle for daily wages earning in future as they cannot afford for the same.

(2) Effect on Health Sectors:

It is unbelievable that in India, poor people have to spend a minimum of Rs.200 for a mere seasonal cold or minor stomach ailments,
thanks to the multinationals pharmaceutical companies engaged in sky rocketing cost of common medicines under their brand names.

The private sector hospitals like Apollo, Medicare will be only too happy to prepare a bill of Rs.5 lakh to Rs.10 lakh for heart or Kidney
operation. The monitoring of health electronically through the internet will worsen the situation further in the years to come. Death will
be the easiest option for poor following the effect of globalisation in health sector.

(3) Effect on Agricultural sector:

The globalisation of trade in the agricultural sector is perhaps proving to be a big blunder. The farmers will have to pay a very heavy
price, for better variety of imported seeds having resistance to diseases, because of the patent rights imposed by WTO.

Over and above, the Indian farmer cannot export their products to rich countries because of inferior technology and stringent quality
parameters imposed by foreign consumers. The large scale suicide by Indian farmers in Karnataka, Punjab and Haryana under the
burden of heavy loans is directly attributed to this.

The Indian agriculture is almost on its deathbed. The minimum cost of eatable rice is Rs.12 per kg and apples from Australia at Rs. 100
to Rs.150 per kg cannot be afforded by poor.

(4) Effect on Employment sector:

The employment scenario in India is probably the worst in recent years due to globalisation. The restrictions of use of child labour and
fair pay to workers have a badly affected the traditional industries like cottage, handloom, artisans and carving, carpet, jewellery,
ceramic, and glassware etc., where the specialised skills inherited for generations were passed on to the next generation from the early
age of 6 to 7 years. The globalisation and trade restrictions under the influence of WTO have virtually killed business in these sectors.

Conclusion: (Positive aspects):

Though globalisation and liberalisation of trade have resulted in the availability of large number of quality products at reasonable price,
the overall economic benefits are negated due to the slow death of small scale and traditional goods producing sectors employing a
large population.

The rising cost of basic sustenance products like garments, footwear, cereals, edible oils, petrol and kerosene, medicines and health
care items, decrease in farm output, decrease in purchasing power of poor are some of the alarming issues that have given rise to
serious doubts about the benefits of globalisation.

The increasing wide gap between the poor and the rich is a major cause of concern as will attribute to the increase in crime rates,
lawlessness, anti-national activities, terrorism, abduction, black mailing etc. The globalisation process, that enables investment of
foreign money, may turn out to be a serious debt rap in future as was experienced in Indonesia, Brazil, Korea and some other
countries.

Moreover, for a common man, the globalisation is of no meaning. He wants a secured source in terms of earning money, maintains his
livelihood, has reasonable savings and appreciates a trouble free life. Therefore, globalisation may only add to the Indias woes.

Conclusion: (Positive aspects):

The biggest contribution of globalisation is in the field of quality and development of products with various features to suit the Indians.
There are varieties of semi-processed food products to suit every taste in the market which has helped us to save time. Globalisation
has contributed tremendously to have access to important information towards quality education Due to globalisation; the
communication sector has got a tremendous boost.

We have now cell phones; internet and the availability of latest drugs are helping to save valuable lives along with good doctors sitting
across the Web to advice. Due to globalisation, the car manufacturer like Maruti is not able to take us as for ride.

Now, wide choices are available to select electronic goods. Life is more comfortable with cheaper air conditioners. Most importantly, the
unscrupulous Indian manufacturers are not able to take us for a ride. Thanks to globalisation, we are able to dream to send a man to
the moon due to a better economy and technological competence.
.
What are the factors aiding globalisation?

1) Technology has reduced the speed of communication by many folds. The phenomenon of social media in the recent world has
made distance insignificant.

The integration of technology in India has transformed jobs which required specialized skills and lacked decision-making skills to
extensively-defined jobs with higher accountability that require new skills, such as numerical, analytical, communication and interactive
skills. As a result of this, more job opportunities are created for people.

2) LPG Reforms The 1991 reforms in India have led to greater economic liberalisation which has in turn increased Indias
interaction with the rest of the world.

3) Faster Transportation Improved transport, making global travel easier. For example, there has been a rapid growth in air-travel,
enabling greater movement of people and goods across the globe.

4) Rise of WTO The formation of WTO in 1994 led to reduction in tariffs and non-tariff barriers across the world. It also led to the
increase in the free trade agreements among various countries.

5) Improved mobility of capital In past few decades there has been a general reduction in capital barriers, making it easier for
capital to flow between different economies. This has increased the ability for firms to receive finance. It has also increased the global
interconnectedness of global financial markets.

6) Rise of MNCs Multinational corporations operating in different geographies have led to a diffusion of best practices. MNCs source
resources from around the globe and sell their products in global markets leading to greater local interaction.

Economic Impacts on Indian Society

1) Greater Number of Jobs The advent of foreign companies and growth in economy has led to job creation. There are greater number
of jobs in the private sector now. Although these jobs are concentrated more in the services sector. This has led to a rapid growth of
services sector creating problems for individuals with low level of education in the agriculture and manufacturing sector. The last decade
is also known for its jobless growth as job creation was not proportionate to the level of economic growth.

2) More choice to consumers Globalisation has led to a boom in consumer products market. We have a range of choice in selecting a
new car unlike the times where there were just a couple of manufacturers. Electronic goods are being offered by companies from all
over the world. Similarly daily fast moving consumer goods like soaps, perfumes, clothes are being offered by n number of brands.

3) Higher Disposable Incomes People in cities working in high paying jobs have greater income to spend on lifestyle goods. There has
been an increase in the demand of products like meat, egg, pulses, organic food as a result. It has also led to protein inflation.

4) Shrinking Agricultural Sector Agriculture now contributes only about 15% to GDP. The international norms imposed by WTO and
other multilateral organizations has reduced government support to agriculture. Coupled with the greater integration of global
commodities markets leading to constant fluctuation in prices. This has increased the vulnerability of Indian farmers. Farmers are also
increasingly dependent on seeds and fertilizers sold by MNCs like Monsato.

5) Increasing Health-Care costs The greater connectedness of the world has also led to the increasing susceptibility to diseases.
Whether it is the bird-flu virus or Ebola greater investment in health-care system is required to increase its capacity to withstand such
epidemics. It has also led to increasing cost of healthcare for individuals.

6) Child Labour Despite prohibition of child labor by the Indian constitution, over 60 to a 115 million children in India work. While
most rural child workers are agricultural laborers, urban children work in manufacturing, processing, servicing and repairs. Globalization
most directly exploits an estimated 300,000 Indian children who work in Indias hand-knotted carpet industry, which exports over $300
million worth of goods a year. Uncounted other children work in less formal sectors, such as the incense industry, used both
domestically and exported.

Socio-Cultural Impact on Indian Society

1) Access to education On one hand globalisation has aided in the explosion of information on the web that has helped in greater
awareness among people. It has also led to greater need for specialisation and promotion of higher education in the country. On the flip
side the advent of private education, coaching classes and paid study material has created a gap between the haves and have-nots. It
has become increasingly difficult for an individual to obtain higher education.

2) Growth of cities It has been estimated that by 2050 more than 50% of Indias population will live in cities. The boom of services
sector and city centric job creation has led to increasing rural to urban migration.
3) Nuclear Families The increasing migration coupled with financial independence has led to the breaking of joint families into nuclear
ones. The western influence of individualism has led to an aspirational generation of youth. Concepts of national identity, and of family,
job and tradition are changing rapidly and significantly.

4) Old Age Vulnerability The rise of nuclear families has reduced the social security that the joint family provided. This has led to
greater economic, health and emotional vulnerability of old age individuals.

5) Pervasive Media There is greater access to news, music, movies, videos from around the world. Foreign media houses have
increased their presence in India. India is part of the global launch of Hollywood movies which is very well received here. It has a
psychological, social and cultural influence on our society.

6) McDonaldization A term denoting the increasing rationalization of the routine tasks of everyday life. It becomes manifested when
a culture adopts the characteristics of a fast-food restaurant. McDonaldization is a reconceptualization of rationalization, or moving from
traditional to rational modes of thought, and scientific management.

7) Walmartization A term referring to profound transformations in regional and global economies through the sheer size, influence,
and power of the big-box department store Wal-Mart. It can be seen with the rise of big businesses which have nearly killed the small
traditional businesses in our society.

Psychological Impact on Indian Society

1) Development of Bicultural Identity The first is the development of a bicultural identity or perhaps a hybrid identity, which means
that part of ones identity is rooted in the local culture while another part stems from an awareness of ones relation to the
global world. The development of global identities is no longer just a part of immigrants and ethnic minorities. People today
especially the young develop an identity that gives them a sense of belonging to a worldwide culture, which includes an awareness of
events, practices, styles and information that are a part of the global culture. Media such as television and especially the Internet,
which allows for instant communication with any place in the world, play an important part in developing a global identity.

A good example of bicultural identity is among the educated youth in India who despite being integrated into the global fast paced
technological world, may continue to have deep rooted traditional Indian values with respect to their personal lives and choices such as
preference for an arranged marriage, caring for parents in their old age.

2) Growth of Self-Selected Culture means people choose to form groups with like-minded persons who wish to have an identity that is
untainted by the global culture and its values. The values of the global culture, which are based on individualism, free market
economics, and democracy and include freedom, of choice, individual rights, openness to change, and tolerance of differences are part
of western values. For most people worldwide, what the global culture has to offer is appealing. One of the most vehement
criticisms of globalization is that it threatens to create one homogeneous worldwide culture in which all children grow up wanting to be
like the latest pop music star, eat Big Macs, vacation at Disney World, and wear blue jeans, and Nikes.

3) Emerging Adulthood The timing of transitions to adult roles such as work, marriage and parenthood are occurring at later stages in
most parts of the world as the need for preparing for jobs in an economy that is highly technological and information based is slowly
extending from the late teens to the mid-twenties. Additionally, as the traditional hierarchies of authority weaken and break down
under the pressure of globalization, the youth are forced to develop control over their own lives including marriage and parenthood. The
spread of emerging adulthood is related to issues of identity.

4) Consumerism Consumerism has permeated and changed the fabric of contemporary Indian society.Western fashions are coming to
India: the traditional Indian dress is increasingly being displaced by western dresses especially in urban areas. Indian MTV, soap
television, and films set a stage for patterns of behavior, dress codes and jargon. There is a changing need to consume more and
more of everything.

Globalisation is an age old phenomenon which has been taking place for centuries now. We can experience it so profoundly these days
because of its increased pace. The penetration of technology and new economic structures are leading to an increased interaction
between people. As with other things there have been both positive and negative impacts on India due to it.

Globalization and its impact on Indian Economy: Developments and Challenges

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. The term is sometimes used to refer specifically to economic
globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital
flows, migration, and the spread of technology. Globalization as a spatial integration in the sphere of social relations when he said
Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local
happenings are shaped by events occurring many miles away and vice versa. Globalization generally means integrating economy of
our nation with the world economy. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It
also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when
foreign currency reserves went down to $1 billion. Globalization had its impact on various sectors including Agricultural, Industrial,
Financial, Health sector and many others. It was only after the LPG policy i.e. Liberalization, Privatization and Globalization launched by
the then Finance Minister Man Mohan Singh that India saw its development in various sectors.

Advent of New Economic Policy -

After suffering a huge financial and economic crisis Dr. Man Mohan Singh brought a new policy which is known as Liberalization,
Privatization and Globalization Policy (LPG Policy) also known as New Economic Policy,1991 as it was a measure to come out of the crisis
that was going on at that time. The following measures were taken to liberalize and globalize the economy:

1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%.
2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector.
3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%), defense industries
(26%) etc.
4. NRI Scheme: The facilities which were available to foreign investors were also given to NRI's.

The New Economic Policy (NEP-1991) introduced changes in the areas of trade policies, monetary & financial policies, fiscal & budgetary
policies, and pricing & institutional reforms. The salient features of NEP-1991 are (i) liberalization (internal and external), (ii) extending
privatization, (iii) redirecting scarce Public Sector Resources to Areas where the private sector is unlikely to enter, (iv) globalization of
economy, and (v) market friendly state.

Consequences of Globalization:
The implications of globalisation for a national economy are many. Globalisation has intensified interdependence and competition
between economies in the world market. This is reflected in Interdependence in regard to trading in goods and services and in
movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market
conditions. Rather, they are influenced by both domestic and international policies and economic conditions. It is thus clear that a
globalising economy, while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of
policies and developments in the rest of the world. This constrained the policy option available to the government which implies loss of
policy autonomy to some extent, in decision-making at the national level.

Now for Further analysis we take up Impact of Globalization on various sector of Indian Economy.

Impact of Globalization on Agricultural Sector:

Agricultural Sector is the mainstay of the rural Indian economy around which socio-economic privileges and deprivations revolve and
any change in its structure is likely to have a corresponding impact on the existing pattern of Social equity. The liberalization of Indias
economy was adopted by India in 1991. Facing a severe economic crisis, India approached the IMF for a loan, and the IMF granted what
is called a structural adjustment loan, which is a loan with certain conditions attached which relate to a structural change in the
economy. Essentially, the reforms sought to gradually phase out government control of the market (liberalization), privatize public
sector organizations (privatization), and reduce export subsidies and import barriers to enable free trade (globalization). Globalization
has helped in:

Raising living standards,

Alleviating poverty,
Assuring food security,
Generating buoyant market for expansion of industry and services, and
Making substantial contribution to the national economic growth.

Impact of Globalization on Industrial Sector:

Effects of Globalization on Indian Industry started when the government opened the country's markets to foreign investments in the
early 1990s. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical,
textile, cement, retail, and BPO.

Globalization means the dismantling of trade barriers between nations and the integration of the nations economies through financial
flow, trade in goods and services, and corporate investments between nations. Globalization has increased across the world in recent
years due to the fast progress that has been made in the field of technology especially in communications and transport. The
government of India made changes in its economic policy in 1991 by which it allowed direct foreign investments in the country. The
benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the
pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the
country. This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects of Globalization on
Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian
Industry more technologically advanced.

The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased
and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing,
and cement industries.

Impact on Financial Sector:

Reforms of the financial sector constitute the most important component of Indias programme towards economic liberalization. The
recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Innovation has
become a must for survival. Financial intermediaries have come out of their traditional approach and they are ready to assume more
credit risks. As a consequence, many innovations have taken place in the global financial sectors which have its own impact on the
domestic sector also. The emergences of various financial institutions and regulatory bodies have transformed the financial services
sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges. In this
changed context, the financial services industry in India has to play a very positive and dynamic role in the years to come by offering
many innovative products to suit the varied requirements of the millions of prospective investors spread throughout the country.
Reforms of the financial sector constitute the most important component of Indias programme towards economic liberalization.

Growth in financial services (comprising banking, insurance, real estate and business services), after dipping to 5.6% in 2003-04
bounced back to 8.7% in 2004-05 and 10.9% in 2005-06. The momentum has been maintained with a growth of 11.1% in 2006-07.
Because of Globalization, the financial services industry is in a period of transition. Market shifts, competition, and technological
developments are ushering in unprecedented changes in the global financial services industry.

Impact on Export and Import:

India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies
have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of
annual export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23%
of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor
to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati
rice and non-basmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts fro nearly 5 to 10% of the
countries total agricultural exports.

Advantages of Globalization:
There is an International market for companies and for consumers there is a wider range of products to choose from.
Increase in flow of investments from developed countries to developing countries, which can be used for economic reconstruction.
Greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers.
Technological development has resulted in reverse brain drain in developing countries.

Demerits of Globalization (Challenges):

The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.

There is a greater threat of spread of communicable diseases.

There is an underlying threat of multinational corporations with immense power ruling the globe.

For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization.

The number of rural landless families increased from 35 %in 1987 to 45 % in 1999, further to 55% in 2005. The farmers are destined
to die of starvation or suicide.

A Comparison with Other Developing Countries:

Consider global trade Indias share of world merchandise exports increased from .05% to .07% over the past 20 years. Over the same
period Chinas share has tripled to almost 4%.

Indias share of global trade is similar to that of the Philippines an economy 6 times smaller according to IMF estimates.

Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China and 5.5% for Brazil. FDI inflows to
China now exceed US $ 50 billion annually. It is only US $ 4billion in the case of India.

Conclusion:
India gained highly from the LPG model as its GDP increased to 9.7% in 2007-2008. In respect of market capitalization, India ranks
fourth in the world. But even after globalization, condition of agriculture has not improved. The share of agriculture in the GDP is only
17%. The number of landless families has increased and farmers are still committing suicide. But seeing the positive effects of
globalization, it can be said that very soon India will overcome these hurdles too and march strongly on its path of development. The
lesson of recent experience is that a country must carefully choose a combination of policies that best enables it to take the opportunity
- while avoiding the pitfalls. For over a century the United States has been the largest economy in the world but major developments
have taken place in the world Economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two
Asian giants- India and China. Economics experts and various studies conducted across the globe envisage India and China to rule the
world in the 21st century. India, which is now the fourth largest economy in terms of purchasing power parity, may overtake Japan and
become third major economic power within 10 years. To conclude we can say that the modernization that we see around us in our daily
life is a contribution of Globalization. Globalization has both positive and as well as negative impacts on various sectors of Indian
Economy. So Globalization has taken us a long way from 1991 which has resultant in the advancement our country.

Introduction

Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization,
Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally
competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the
economy more efficient.

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus
population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major
sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real
integration of the Indian economy into the global economy.

This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since
Independence in 1947, such as self reliance and socialistic policies of economic development, which mainly due to the inward looking
restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other
problems. This, despite the fact that India has always had the potential to be on the fast track to prosperity.
Now that India is in the process of restructuring her economy, with aspirations of elevating herself from her present desolate position in
the world, the need to speed up her economic development is even more imperative. And having witnessed the positive role that
Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the Southeast Asian countries and most notably
China, India has embarked on an ambitious plan to emulate the successes of her neighbors to the east and is trying to sell herself as a
safe and profitable destination for FDI.

Globalization has many meanings depending on the context and on the person who is talking about. Though the precise definition of
globalization is still unavailable a few definitions are worth viewing, Guy Brainbant: says that the process of globalization not only
includes opening up of world trade, development of advanced means of communication, internationalization of financial markets,
growing importance of MNCs, population migrations and more generally increased mobility of persons, goods, capital, data and ideas
but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through uninhibited
trade and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it also contains free inter-country
movement of labor. In context to India, this implies opening up the economy to foreign direct investment by providing facilities to
foreign companies to invest in different fields of economic activity in India, removing constraints and obstacles to the entry of MNCs in
India, allowing Indian companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad;
carrying out massive import liberalization programs by switching over from quantitative restrictions to tariffs and import duties,
therefore globalization has been identified with the policy reforms of 1991 in India.

The Important Reform Measures (Step Towards liberalization privatization and Globalization)

Indian economy was in deep crisis in July 1991, when foreign currency reserves had plummeted to almost $1 billion; Inflation had
roared to an annual rate of 17 percent; fiscal deficit was very high and had become unsustainable; foreign investors and NRIs had lost
confidence in Indian Economy. Capital was flying out of the country and we were close to defaulting on loans. Along with these
bottlenecks at home, many unforeseeable changes swept the economies of nations in Western and Eastern Europe, South East Asia,
Latin America and elsewhere, around the same time. These were the economic compulsions at home and abroad that called for a
complete overhauling of our economic policies and programs. Major measures initiated as a part of the liberalization and globalization
strategy in the early nineties included the following:

Devaluation: The first step towards globalization was taken with the announcement of the devaluation of Indian currency by 18-19
percent against major currencies in the international foreign exchange market. In fact, this measure was taken in order to resolve the
BOP crisis

Disinvestment-In order to make the process of globalization smooth, privatization and liberalization policies are moving along as
well. Under the privatization scheme, most of the public sector undertakings have been/ are being sold to private sector