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International Journal of Business Administration and Management.

ISSN 2278-3660 Volume 7, Number 1 (2017),


© Research India Publications http://www.ripublication.com

Impact of Globalization on Sustainable Indian Economy

Amit Sharma
Ph.D Scholar (Management)
(2014-2017)
K alinga University, Raipu r, C.G.
En r ol l me n t No. 1 5 0 2 0 1 5 1 ( K U0 0 2M MX I V0 2 0 10 5 2 4)

Abstract

“Glo balisat io n” ma y means int egrat io n o f econo mies and societ i es t hrough
cross count r y flow o f infor mat io n, ideas, t echno logies, goods, ser vices,
capit al, finance and people. It may benefit even wit hin a count r y t hose
who have t he skill and t he t echno logy. S ince t he eco no mic r efor ms o f t he
ear ly 1990s, t he I ndian eco no my has wit nessed a rapid r ise in t he
econo mic growt h and simult aneously, has brought about an increase in t he
econo mic effic iency.

It is import ant t o recognize t hat a t ransit io n t o a green econo my is


alr eady underway. It began lar gely in r esponse t o t he increased public
awareness and st rengt hened po lit ical will on sust ainable development t hat
were gener at ed by t he Rio Eart h Summit in 1992.

This paper t r ies t o capt ure how t hese Green econo mic changes brought
about by glo balizat io n have affect ed sust ainable development . T he ma in
aim o f t he paper is t o st udy and analyze t he overall view o f glo balizat io n
in I ndia.

Introduction

We live in a wor ld where, science, t echno logy and develo pment play an
import ant roles in changing hu man dest iny. A rapid increase in

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

int er nat ional int erdependence has init iat ed t he process o f glo balizat io n in
t he wor ld. Glo balizat io n is process o f int egrat ion o f econo my societ y and
cult ure wit h t he use of t echno logy and new knowledge. Glo balizat ion is
not a new t er m.

Glo balizat ion is a t er m t hat has beco me ver y popular and used in many
different co nt ext s (Powell, 2015). Norris (2012) links t he definit io n o f
glo balizat ion t o geographical border s. The aut hor dist inguishes bet ween
nat ional, int er nat ional o ffshore and glo bal. On t he ot her hand however,
Amavilah et al (2014) defines glo balizat ion as t he increasing int egrat io n
bet ween t he mar ket s for goods, ser vices and capit al. Redding’s (2000)
definit io n also links glo balizat io n to t he br eakdown of phys ica l
boundar ies. T hose in support of t he globalizat io n wave see it as an
opport unit y for econo mic growt h while o pponent s perceive it as a t hreat
to econo mic prosper it y, po lit ical sovereignt y, and cult ural int egr it y
(Amavilah et al (2014). I n t he case o f developing count r ies, t he pr imar y
concer n is t he t hreat to polit ical so vereignt y and losing co nt rol o f t he ir
econo mies (Glat zer, 2012).

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
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Figur e 1: I mpact of Glo balizat ion Source: Web Resource

The green eco no my is defined as an econo my t hat aims at reducing


environment al r isks and eco logical scarcit ies, and t hat aims for
sust ainable development wit hout degrading the environment . The
background report present ed in Unit ed Nat io ns Conference on Trade and
Develo pment (2011) 1 was aimed t o promote t he green econo my concept in
order t o st imu lat e more rapid glo bal progress on sust ainable development .
However, it is import ant t o recognize t hat a t ransit io n t o a green
econo my is already underway. It began largely in r espo nse t o t he
incr eased public awareness and st rengt hened po lit ical will o n sust ainable
development t hat were generat ed by t he Rio Eart h Summit in 1992. The
challenge for Rio +20 is t o build mo ment um behind t he nascent phase o f a
t ransit io n t o a green econo my t hat is now underway. Market t rends revea l
an advancing green econo my t ransit io n. The number of fir ms wit h IS O
14001 enviro nment al management cert ific at io n rose fro m under 40,000 in
2000 t o over 200,000 in 2009; and over 40 per cent of regist ered fir ms
are in develop ing count r ies.

Research Methodology

Glo balizat ion has impact ed nat io ns’ st at es unevenly across t ime and space
in t he process enhancing opport un it ies and hegemo nies on t he ot her. It has
sever ely affect ed t he nat ure environment . Globalizat ion t oday has raised
var ious issues. Bot h posit ive and negat ive aspect s o f glo balizat ion has
effect ed on enviro nment . Sust ainable development has beco me a major

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“THE GREEN ECONOMY: TRADE AND SUSTAINABLE DEVELOPMENT
IMPLICATIONS”, United Nations Conference on Trade and Development (2011), Geneva,
Switzerland.

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International Journal of Business Administration and Management. ISSN 2278-3660 Volume 7, Number 1 (2017),
© Research India Publications http://www.ripublication.com

necess it y due over explo it at io n o f resources in t he wor ld. Present researc h


is focuses on t his t heme o f Glo balizat ion and it s impact on Gree n
econo my and Sust ainable development .

The basi c objectives of the present stud y are: -

1. To analyze t he impact of glo ba lizat io n process on I ndian Eco no my.


2. Find out t he pros and co ns o f glo balizat io n.

The st udy is based o n a qualit at ive t heoret ical r esearch and t he empir ical
finding consist s o f sur vey per for med in a qualit at ive way, t his will be
discussed. According t o Para suraman et .al.(2005) 2 Secondar y Dat a are
dat a t hat have already been co llect ed by and are r eadily available fro m
ot her sources. T he secondar y dat a consist of var ious document at io n. It is
essent ial t o use seco ndar y dat a in order to get a wider sight . For a
resear cher it is import ant t o see what ot her researcher has done and t he ir
result s wit hin t he research fie ld ( Ar bno r & Bjerke, 1999) 3. In order to
furt her underst anding o f t he research proble m area I st art ed by co llect ing
seco ndar y dat a.

The main advant age o f st art ing t he dat a collect ion process wit h secondar y
dat a was t hat it gave us t he possibilit y t o est ablish a t horough
underst anding o f t he problems relat ed t o t he evaluat io n o f invest ment s in
Aut o mobile Sect or. Furt her more, using secondar y dat a is rela t ivel y
unco mplicat ed and it gave us t he advant age of explor ing t he problem area
on a st ep-by- st ep basis.

The paper will be review var io us papers available so far t his area and wil l
t ry t o conclude wit h t he result s.

2
A. Parasuraman, Dhruv Grewal, R. Krishnan (2005), “Marketing Research”, Chapter 2, pp.43, Biztantra,
New Delhi.
3
ibid

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Results and Discussions

Glo balizat ion has many meanings depending on t he cont ext and on t he
person who is t alking about . Though t he precise definit io n of
glo balizat ion is st ill unavailable a few definit io ns are wort h viewing, Guy
Brainbant : says t hat t he process o f glo balizat ion not only includ es
opening up of wor ld t rade, development of advanced means of
co mmunicat ion, int er nat ionalizat io n of financial market s, growing
import ance of MNCs, populat io n migrat ions and more generally increased
mo bilit y o f per sons, goods, capit al, dat a and ideas but also infect ions,
diseases and po llut ion. T he t er m glo balizat io n refers t o t he int egrat io n o f
econo mies o f t he wor ld t hrough uninhibit ed t rade and financial flo ws, as
also t hrough mut ual exchange of t echnolog y and knowledge. Ideally, it
also cont ains free int er-count r y mo veme nt o f labor. I n cont ext to India,
t his implies opening up t he econo my t o foreign direct invest ment by
providing facilit ies t o foreign co mpanies to invest in different fields o f
econo mic act ivit y in I ndia, remo ving const raint s and obst acl es t o t he
ent r y of MNCs in I ndia, allowing I ndian companies t o ent er int o foreig n
co llaborat ions and also encouraging t he m to set up jo int vent ures abroad;
carr ying out massive import liberalizat ion programs by swit ching o ver
fro m quant it at ive rest r ict io ns t o t ariffs and import dut ies, t herefore
glo balizat ion has been ident ified wit h t he polic y refor ms o f 1991 in I ndia.

Indian eco no my had exper ienced ma jor polic y changes in ear ly 1990s. T he
new econo mic refor m, popular ly known as, Liberalization, Privati zat ion
and Globali zation ( LPG model) aimed at making t he I ndian econo my as
fast est growing econo my and glo bally compet it ive. T he ser ies o f refor ms
undert aken wit h respect to indust r ial sect or, trade as well as financia l
sect or aimed at making t he eco no my more efficient .

Wit h t he onset of refor ms t o liberalize t he I ndian eco no my in July o f


1991, a new chapt er has dawned for I ndia and her billio n plus populat ion.

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This per iod o f econo mic t ransit io n has had a t remendous impact on t he
overall econo mic development o f a lmost all ma jor sect ors of t he eco no my,
and it s effect s over t he last decade can hardly be o ver looked. Besides, it
also marks t he advent of t he real int egrat ion o f t he I ndian eco no my int o
t he glo bal econo my.

This era o f refor ms has also usher ed in a re markable change in t he I ndian


mindset , as it deviat es fro m t he t radit io nal values held since I ndependence
in 1947, such as self r eliance and socialist ic po licies o f econo mic
development , which mainly due t o t he inward looking rest r ict ive for m o f
gover nance, result ed in t he iso lat ion, overall backwardness and
ineffic iency o f t he eco no my, amo ngst a host of ot her pro blems. T his,
despit e t he fact t hat I ndia has always had t he pot ent ial t o be on t he fast
t rack t o prosper it y.

Now t hat India is in t he process o f r est ruct uring her econo my, wit h
aspirat io ns o f elevat ing her self fro m her present deso lat e posit io n in t he
world, t he need t o speed up her economic deve lopment is even mor e
imperat ive. And having wit nessed t he posit ive ro le t hat Foreign Dir ect
Invest ment (FDI) has pla yed in t he rapid econo mic growt h of mo st of t he
Sout heast Asian count r ies and mo st not ably China, I ndia has embarked o n
an ambit ious plan t o emulat e t he successes o f her neighbors t o t he east
and is t r ying t o sell herself as a safe and profit ab le dest inat io n for FDI
(Tanveer Malik).

Dr Dhaval P Dave and Ms. Rina C. Dave (2013) 4 given in t heir paper an
elaborat ive descr ipt ion o f I mpact of Globalisat ion on I ndian Eco no my.
Glo balizat ion has been a recent pheno menon t hat has swept t he wor ld. The
world has beco me increasing ly int erdependent and int egrat ed. It has bee n
t he har binger o f radical change. All t he fort une 100 co mpanies have a

4
Dr Dhava l P Dave and Ms. Rina C. Dave (2013), “GLOBALISATION AND ITS IMPACT
ON INDIAN ECONOMY”, International Journal of Current Research, Vol 5 No 7, pp. 1628-
1630

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foot ho ld in t he wor ld market and reaping large r evenues. T he t rade


barr iers have been lowered wor ldwide result ing in expansio n o f t rade,
foreign direct invest ment , exchange o f t echno logy, great er mo vement o f
people across borders.

Market s wer e open for foreign co mpanies and invest ors more and mor e
pr ivat izat io n began t o t ake place and I ndia t urned int o a more capit alized
for m o f econo my. T he liberalizat ion, pr ivat izat io n and glo balizat ion
police o f 1991 opened up new hor izo ns of opport une for t he Indian
business (source: I ndian business in t he present scenar io in I ndia n
business).

1. Impact on Indian Manufactu ring

The refor ms invo lves put t ing an end t o t he license Raja, reduct ion o f high
indust r ial t ar iffs, t he pr ivat izat ion o f aluminum, car manufact ur ing,
t eleco ms and infor mat ion t echno logy companies, t he liber alizat io n o f t he
exchange Merger s, t akeover s, glo bal all iances jo int vent ures and
co llaborat ions are t aking place, almo st ever y day.

India’s t eleco m sect or is exploding and all t he big handset maker s ar e


t alking about set t ing up manufact ur ing facilit ies here so t hat t hey ca n
cat er to t his st rong do mest ic demand ”, says S hir ish Sankhe, a part ner at
Mckinsey in I ndia. T his shows t hat even in a sect or where import s were
cheaper because o f zero dut ies, “Made in I ndia” is being pr eferred.
Manufact ur ing capacit ies are being expanded t he count r y is emerging as a
glo bal source. Glo balisat ion has incr eased share in GDP. I ndian has bee n
wit nessed of incr easing GDP.

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2. Impact on Wages and the Income Inequalities

Research ind icat es t hat FDI t ends t o increase wage levels and reduce
povert y in bot h developed count r ies. For de veloping ones, it increases
inco me inequalit ies in t he short t erm but decrease t hen wit h great er
invest ment over t ime. For developed count ries FDI t ends t o decrease
inco me inequalit ies. I nco me inequalit ies among t he r ichest and poorest
nat ions seem t o be d ecreasing.

According t o t he liberals, glo balizat io n is an effect ive t ool for eliminat ing
want and for per mit t ing t he poor people t o get hold of a st eady gr ip o f t he
glo bal econo my. For inst ance, as per Wor ld Bank report s, wit hin t he t wo
decades fro m 1980s t o 2001, t hose people living on US$1 or less or less
per day, reduced fro m 1.5 billio n t o 1.1 billio n. Alo ngside t here is a r ise
in t he t ot al populat io n o f t he wor ld. So, it is Glo balizat io n: lt ’s I mpact on
t he Indian Welfare St at e an obvious conclusio n t hat in t he develo ping
count r ies, t he percent age o f t hose people got reduced fro m 40% t o 20%.It
is also cla imed t hat , wit h glo ba lizat io n, capit al can be shift ed t o what ever
count r y o ffers t he most product ive invest ment opport unit ies, creat ing
growt h.

3. Impact on Education

Ent r y of foreign universit ies is t he best example o f it . India has beco me a


hub o f infor mat io n t echno logy out sourcing, aft er t he gover nment decided
to privat ize educat ion t en years ago. The mo st dramat ic impact of t he 21st
cent ur y “for eign Hand” is in t he opening of t he higher educat ion sect or to
foreign inst it ut io ns. Most recent ly; t he Minist r y o f HRD (Human Resource
Develo pment ) is report ed to have wit hdrawn t he requirement for pr ior
approval before I ndian inst it ut io ns ent er int o MOUs w it h foreign
inst it ut io ns. T his is undoubt edly a pr agmat ic st ep, which reinfor ces t he
aut onomy o f univer sit ies and inst it ut io ns.

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4. Impact on Envi ron ment

There is no denying t he fact t hat po llut io n is realit y associat ed wit h


incr eased manufact ur ing shift t o develo ping count r ies. In an empir ica l
st udy, Dande fo und t hat globalizat io n inc rease CO2 emissio n is t he main
culpr it of glo bal war ming. A more posit ive view o f glo balizat io n would be
t hat it has t he pot ent ial t o enhance product ivit y and raise t he living
st andards ever ywhere, since a glo bally int egrat ed eco no my makes for a
bet t er divis io n o f labor and an environment which can be explo it ed by t he
large co mpanies t o achieve econo mies o f scale. It also claimed t hat , wit h
glo balizat ion capit al can be shift ed t o what ever count r y o ffer s t he mo st
product ive invest ment opport unit ies, creat ing econo mic growt h. The
concept of corporat e social respo nsibili t y needs t o beco me a glo bally
accept ed fact alo ngside t he glo balizat io n o f market s, since it wil l
ult imat ely benef it t he business.

5. Impact on Indian Cu ltu re 5

The cu lt ure o f any count r y does not only port ray t he regio n and language
of t he regio n, but it st art s wit h t he mindset and ment alit y o f t he residing
cit izens. I ndian cult ure is quit e r ich wit h respect t o it s he r it age and
resources, and more import ant ly due t o t he welco ming approach o f it s
cit izens. India is bouquet of flower s var ying relig io n, dialect , edibles,
t radit io n, cust om, music, art and archit ect ure et c, bundled int o a sing le
unit o f pat r iot ism and unit y. The commo n fact or wit hin all t hese
diversit ies is t he I ndian mindset of welc oming, greet ing, celebr at ing in a
unit ed way w it h immense affect ion and toget herness. This is t he r ic h
essence o f t he I ndian cult ure t hat has at t ract ed many foreigner s t o st ay
back in I ndia and ming le into it s et ernal fragr ance.

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http://www.careerride.com/view/globalization-and-its-impact-on-indian-culture-15301.aspx , accessed in
July 2016

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When we analyse t his r ich cult ure wit h t he glo balizat ion po int o f view, we
can find many punch ho les o f west erniz at io n and mixing o f ot her t rait s
and cult ures int o our beaut ifully woven blanket . Let us cl osely analyse t he
impact s of glo balizat ion on Indian cult ure:

i. Fami ly St ructu re

Let us st art wit h t he key at tract io n of I ndian jo int family cult ure. The
jo int families have beco me a st range surpr ise t o t he I ndians especia lly t o
t hose resid ing in t he met ropolit an cit ies in t he small flat cult ure wit h t he
nuclear families bloo ming up like mushrooms in t he rain. We have lost t he
pat ience t o get adjust ed int o t he jo int family, imbibing t he values o f t he
elders and get t ing t he young ones brought up under t he shadow of t heir
grandparent s. Children have st art ed t reating gr andpar ent s like guest s or
vis it ors, and such an upbr inging is one of t he ma in reasons of increasing
old age ho mes, as t hose children consider t heir own parent s as burden in
t heir st at e of adult hood.

ii. Marriage Values

S imilar ly, marr iages have also lo st t heir values. It is ver y much evident
fro m t he increasing number o f divorce cases and t he ext ra - mar it al affair s
report ed ever y now and t hen. Marr iage used t o be considered as bonding
of t he souls which will be linked even aft er t he deat h; but today marr iage
is like a pro fessio nal bo nd or a so -called co mmit ment to shar e life wit hout
co mpro mising t heir self- int er est s. T he ego fact or int o t he Indian yout h is
again a product of glo balizat ion.

iii. Adultery

Bot h t he genders were kept at a dist ance, wit h lot many rest r ict ions and
limit at ions t o t he approach for ages in our cult ure. Wit h t he emergence o f

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glo balizat ion and west ern cult ure, yout h have st art mixing up well wit h
each ot her. The fr iendly ap proach and t he socializing feat ure is wort h
appreciable. But t he t ot al breakout of r est r ict io ns have adult er at ed t he
Indian mindset , playing up wit h t he phys ical relat io nship. T his has given
birt h t o new relat io nships in India like live - in r elat ionships. Also t he
incr eased cases o f rape and sexua l abuse cases are a result o f t he
pervert ed mind which again t he import ed values ver y much alien t o our
mot her cult ure.

iv. Social Valu es

We have t he incorporat ed values o f t reat ing t he guest s as God, war m -


heart ed welco ming, greet ing elder s wit h due respect and a celebr at ing
ever y small fest ival wit h gr eat co lour of enjo yment and t oget her ness.
Such a wide gat her ing wit h full hue and light can hardly be seen t oday.
People have highly rest r ict ed t hemselves in social in t eract io n. The
int eract io n in present gener at ion is highly diplo mat ic co nsider ing t he
financial st at us and wealt h. We have lo st our social values and cheer fu l
blessing of t oget herness. The present generat io n are more happ y
celebrat ing Valent ine’s Day r at he r t han Ho li and Diwali.

v. Food, Clothing and Dialect

Indian food, clot hing and languages ar e var ied wit h respect to different
st at es. The food var ies in it s t ast e, but ever y food has it s own nut r ient
value and ever y regio n is specified and r ich in it s me dic inal prepar at ions
wit h t he ho me remedies. E ven t he clot hing var ies in different st at es whic h
is ver y much part icular in ma int aining t he dignit y o f wo man. T he var ie s
cuisines fro m all over t he wor ld t hough have differ ent flavour s t o add,
st ill t he food ingredient s t hat have inflict ed wit h much popular it y are t he
junk food it ems which has increased t he healt h disorders in t he count r y.
Again t he dressing like t he suit ings for t he males are an inappropr iat e

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mat ch for t he I ndian t ype of climat e. T he female dr esses are again a wa y


of dist ract ion t o t he per vert ed minds.

Even t he I ndians are not ver y much in favour of pro mot ing t heir mot her
tongue or our nat io nal language. I nst ead t he yout h t oday consider it t o be
a shameful condit io n t o speak in t heir nat ional language Hind i. T he wa y
t he foreign languages are get t ing prevalent in I ndia like t he French,
Ger man and Spanish, r ight fro m t he scho ol level, is t he example o f how
much we provide import ance t o Indian languages in co mpar iso n t o t he
foreign o nes.

vi. Emp loyment and the Agri cu ltu ral Sector

India was predo minant ly an agr icult ural based count r y. Wit h t he advanced
glo balizat ion and cropping up o f MNCs, t he far ming has lo st it s pr ime
value in I ndia. Agr icult ur al science has t he least focus amo ngst t he
youngst ers who consider far ming as a shameful pro fessio n and look down
upon t he same. E mplo yment t hrough MNCs have lucrat ive deals at t ract ing
t he bulk of manpower who are working for t he ot her count r ies as t heir
cust omer care r epresent at ives. We ar e lo sing our healt h and our st at us and
slowly get t ing t o t he age o f econo mic slaver y due t o t hese MNCs. T his is
what t he globalizat io n has provided I ndia ns t hrough t heir emer gence.

Conclusi on

Making glo balizat io n work in a sust ainable manner will not be eas y.
Those who bene fit fro m t he current syst em will resist change. However, in
t he case o f developing count r ies, t hey must be able t o use available
resources well and t ake advant age o f t he new opport unit ies. A major
det er mining fact or on how well a count r y will do is t he qua lit y o f t he
public and pr ivat e inst it ut ions, which in t urn is r elat ed t o how decis io ns
are made and in whose best int erest , a subject broadly r eferred t o as

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gover nance. Even if barr iers ar e remo ved syst emat ically, not ever yo ne is
equally in a posit io n t o t ake advant age of t he new opport unit ies. It is eas y
for t hose in t he advanced indust r ial count r ies t o seize t he opport unit ies
t hat t he opening up of t he market s in t he developing count r ies affords - and
t hey do so quickly. Glo balizat ion and sust ainable develo pment wil l
remain t opical subject s of debat e for quit e some t ime co me.

Green eco no mics is not just about t he enviro nment . Cert ainly we must
mo ve t o har monize wit h nat ural s yst ems, to make our econo mies flow
benignly like sailboat s in t he wind o f ecosyst em processes. But doing t his
requir es great human creat ivit y, t remendous knowledge, and t he
widespread part icipat ion o f ever yo ne. Human beings and human worker s
can no lo nger ser ve as cogs in t he machine o f accumulat io n, be it
capit alist ic or socialist ic. Ecologica l development requir es an unleashing
of human development and an ext ension o f democracy. Social and
eco logical t ransfor mat ion go hand - in- hand.

References

1. “THE GREEN ECONOMY: TRADE AND SUSTAINABLE DEVELOPMENT


IMPLICATIONS”, United Nations Conference on Trade and Development
(2011), Geneva, Switzerland.
2. Africa Makasi, Krishna Govinder (2015), Mediterranean Journal of Social
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