Globalization and market changes in India

Globalization has been a major factor behind the improvement of the market changes in India.
Prior to the liberalization of the market in the country, India suffered a huge market set back and
it led to problems in the balance of payment accounts.
The first wake of globalization was felt in the country in the 1990s when the government
initiated the open market and economic liberalization plan.
This led to huge improvement in the market scenario of the country which significantly changed
from the state controlled market to the consumer market.
Due to the emergence of the consumer market, there was an increase in demand and supply.
The positive change in the market pattern led to the improvement in the standard of living in the
country.
The positive change in the market pattern led to the improvement in the standard of living in the
country.
Today, India is one of the largest growing economies in the world and ranks as the 4th largest in
terms of the purchasing power parity (PPP) after Euopean Union, United States and China.
In terms of the market exchange, it ranks as the 12th largest economy in the world.
The growth rate is expected to be about 9% in the coming fiscal year as it has been 8.6% in
2010-11.
As per the Indian Economic Survey 2011-2012 the Indian Economy is expected to grow at
8.75% to 9.25% in the latest financial year 2012.
World Bank has also expected much optimism that the growth rate of India may even surpass China.

Improvement of various sectors

According to recent surveys, the industrial sector in the country has significantly grown at a rate
of around 6.8%.
The industrial sector has a share of around 29% of the total GDP.
The agriculture sector has also done significantly well over the few years and contributes around
17%. The growth rate in agriculture sector is expected to be 5.4% this year.
The manufacturing segment has also experienced a phenomenal growth from 8.98% to 12%. The
same is the case with the communication and storage sectors which have enjoyed a growth of
16.64%.
Globalization has also given a boost to the equity market of India which is now the third largest
in South East Asia after China and Hong Kong.

Globalization and increase in foreign market

India has turned into a vast consumer market with high demands.
More and more foreign companies and global giants have started entering the Indian market to cater
to the high customer base and high demand.
Today As on August 31, the number of registered FIIs in the country stood at 1,754 and total number
of sub-accounts were 6,333 during the same period.This is a very big factor behind the growth of the
stock market and the overall market conditions.
In case of the foreign direct investments (FDI), there has a large increase of around 85.1% over a
period of few years.
Recent surveys have shown that the amount of foreign direct investments had grown from US$ 25.1
billion in 2007 to around US$ 46.5 billion in 2008.