1.

1-INTRODUCTION
The Globalization and Indian Society 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.

1.2 CONCEPT OF
LIBERALISATION
The term liberalization refers to freedom of business enterprise from excessive
government control. There are less licensing and other formalities to be followed
by business firms due to the reforms introduced by the Industrial Policy, 1991 and
subsequent economic policies of the government. Economic liberalization was a
bold decision by the Prime Minister Rajiv Gandhi.

The major elements of liberalization in India include the following:

1. Delicensing of Industries
The Industrial Policy, 1991 abolished licensing for most industries. Licensing is
required only in six industries, which were of social and strategic importance. The
six industries that required licensing include:

 Alcohol
 Cigarettes
 Industrial Explosives
 Defence Products
 Drugs and Pharmaceuticals
 Hazardous Chemicals

The delicensing enabled Indian companies to concentrate on productive

activities rather than wasting their time, effort and money on unproductive
licensing formalities.

2. Liberalization of Foreign Investment

Prior to 1991, it was necessary to obtain approval from various government
authorities for foreign investment in India. This often caused delays and
bureaucratic hurdles. The IP, 1991 specified a list of high investment and
high tech priority industries wherein automatic approval is provided for
foreign direct investment.
The liberalization of FDI has resulted in certain benefits such as:
 Increase in inflow of foreign capital for expansion and modernization.
 Development of skills of Indian personnel due to training provided
by foreign MNCs
 Transfer of technology by foreign partners to Indian firms.

3. Liberalization of Foreign Technology Imports

The IP 1991 liberalised the import of foreign technology in order to bring
about technological improvement in Indian industry:
a) Automatic permission was given for foreign technology imports in
priority industries upto 2 million US dollars.
 b) No permission was required from government authorities for hiring
foreign technicians and foreign testing of indigenously developed
technologies.
The main objectives of reducing the imports of foreign technology
are:
 Saving foreign exchange
 Building technological capacity for manufacturing
 Developing new skills

4. Liberalization of Industrial Location

Industries subject to compulsory licensing are required to obtain Govt.
approval for industrial location. In cities with the population of over one
million, the polluting industries were required to be 25 kilometers away
from the city limit.
The liberalization of industrial location enabled Indian firms to set up
industries at the right location of their choice without much interference
from Govt. authorities.

5. Liberal Taxation
The govt. of India has introduced liberal tax regime. The direct tax rates and
indirect tax rates have been reduced.
Also, excise duties and custom duties have been reduced over the years.
The reduction in direct and indirect taxes has greatly benefited the firms
operating in India. The customers are also benefited because lower taxes
result in reduction in consumer prices.

6. Autonomy to public sector units

The govt. of India has given autonomy to the Board of Directors’ of PSUs in
decision-making. The autonomy is given through the signing of
Memorandum of Understanding. The freedom in decision-making in certain
 areas has enabled the PSUs to make quick decisions without interference
from Govt. officials.
The navratnas are given autonomy to take their own decisions without
Govt. interference. In 2009, the govt. introduced the concept of
Mahanavratnas including ONGC, SAIL, NTPC and others.

1.3-CONCEPT OF PRIVATISATION
The term privatization implies reduction in the role of public sector and increase
in the role of private sector in business and non-business activities. In India, the
concept of privatization gained importance, especially in the post reform period.

The two main elements of privatization are as follows:

1. Dereservation of public sector

The number of industries reserved for public sector was reduced from 17 to
8 in 1991. There was further dereservation of public sector.
The dereservation of public sector has enabled the entry of private sector
in those industries, which was earlier reserved for public sector. This has
generated competition between the public and private sector firms, which
in turn has improved customer service, and efficiency of the firms.
There are three industries reserved for public sector:
 Railways
 Atomic Energy
 Specified Minerals

2. Disinvestment of Public Sector

In 1991, the govt. announced disinvestment of public sector units,
especially non-strategic ones. Disinvestment is a process of selling govt.
equity is PSUs to private parties. A number of PSUs have been disinvested
such as VSNL, CMC, BALCO, etc. The disinvestment is undertaken to achieve
the following objectives:
 a) To provide good customer service.
b) To overcome political interference in managing the units.
c) To overcome corruption in PSUs.
d) To make effective use of proceeds from disinvestment.
e) To improve efficiency of PSUs.

Q. What are the benefits of Privatisation?

Ans. The advantages of transferring government-owned assets to the private

sector are increased efficiency and profits, largely because competition
incentivizes innovation and improvement. The disadvantages of privatization are
decreased regulation and government revenue.

1.4-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 to 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.

1.5-IMPACT OF GLOBALISATION
A. Positive Impact
a) Competition

Globalisation leads to increased competition in businesses. The

competition can be related to product and service cost or price,
target markets, technological adaptation etc. When a company
produces with less cost it is able to increase its market share (Forsyth,
2011).Due to competition growth companies and foreign brands have
been compelled to improve their standards and consumer benefits
which have positively affected many people globally. Although there
 are a few negative impacts of competition but the positive outcomes
outweigh the negatives.

b) Rise In Technology

Globalisation has also allowed a significant rise in the level of

technology used in today’s world. Many entrepreneurial and
internationally oriented firms have obtained the help of technology to
exploit new business opportunities. A good example of this would be
the increasing usage of E-commerce procedures in majority of
businesses. Technology is also one of main tools of competition and
the quality of goods and services. Globalisation has increased the
speed of technological transfers and improved overall technological
quality. Most companies in capital intensive markets are at risk and
that’s why they need good and efficient technology and R&D
management (Forsyth, 2011).

c) Employment

Due to globalisation people from various countries are provided with

jobs. It has also created the concept of outsourcing. Work such as
software support, marketing, accounting, etc. are given to developing
countries such as India, Pakistan, and Nepal.

B. Negative Impact
a) Fluctuation in Prices

Globalisation has led to fluctuation in price across the globe in

various areas. Due to increase in competition, business firms in
developed countries are forced to lower their prices for their
products. A big example of this is countries like China produce goods
at a much lower cost than other countries which lead other firms and
organizations in other parts of the world lower their prices to
 maintain customer satisfaction and loyalty. This is a negative effect as
it reduces the ability to sustain social welfare.

b) Job Insecurity in Business

In developed countries, the risk of job insecurity is increasing.

Globalisation has led to firms outsourcing their jobs to developing
countries, which have led to lesser jobs in developed countries.
Outsourcing occurs because businesses want to manufacture their
products at a cheaper rate, which is possible in developing countries
such as India, China where manufacturing costs and wages are lower
than highly developed countries. As mentioned earlier, jobs such as
software programmer, accountant etc. are outsourced to developing
countries which has led to a lot of people in the same profession to
lose their jobs.

1.6-CHANGES IN EMPLOYMENT
DUE TO GLOBALISATION
A. Negative Impact/Changes

1. Introduction of Labour Saving Devices

Globalization demands that firms need to be competent. There is pressure
on the firms to improve quality and to be cost-effective. As a result,
business firms resort to labour saving devices such as high speed machines,
computerization for computing, processing and analyzing information.

2. Negative Growth of Employment in Public Sector

 Due to liberalization, the Govt. has disinvested some of the PSUs. This has
resulted in reduction of workforce in the public sector. For instance, the
employment in the public sector was 191 lakh in 1991 but it came down to
176 lakh in 2013. The most affected public sector industry in terms of
employment in the manufacturing industry, followed by construction,
transport and communications, electricity, gas and water supply.

3. Employment in Small Scale Sector

The small scale sector is one of the major sectors providing employment in
India. The micro and small enterprises provided employment to about 7%
of the total workforce in the country. However, the annual growth rate of
employment in this sector has remained more or less stagnant during the
past several years.

B. Positive Impact/Changes

1. Employment in the Services Sector

The employment in the services sector has increased from 20% in 1991 to
over 28% in 2016. The main reason is the growth of services sector on
account of liberalization, privatisation and globalization. For instance, due
to globalization, the share of India’s services export has increased.

2. Impact of FDI on Employment

Due to the TRIMs agreement, the member countries of WTO treat foreign
investment at par with domestic investment. Therefore, a number of
restrictions on foreign investment have been removed. As a result, there
has been increase in FDI in India, which resulted in increase in employment
opportunities, especially in urban areas. Although, the foreign MNCs make
use of capital intensive and labour saving technologies, yet they provide
employment to people, especially, the skilled workforce.

3. Increase in Contractual Workers

 Due to globalization, the share of contractual and casual labour has
increased. The increasing trend of contractual and casual workers has
reduced the grip of trade unions over the management of firms. Apart from
contract workers, some workers, some firms resort to outsourcing jobs,
which has further weakened the role of trade unions in India.

1.7-CAUSES AND IMPACT OF

MIGRATION
Migration is movement of people between regions or countries. It is the process
of moving from the use of one operating environment to other operating
environment that is, in most cases, is thought to be a better one. Immigration and
emigration are usually reserved for migration into and out of countries
respectively. Migration may be temporary, with the intention of returning to the
country of origin in the future, or permanent or migrants may not have decided
between these alternatives at the time of migration. India has become a very
prominent source of skilled labour migration. The flow of Indian professionals is
towards the United States, Canada, the United Kingdom and many other similar
destinations. In 2010, India with an estimated stock of 11.4 million emigrants was
the second emigration country in the world, behind Mexico (11.9 million). An
important place in the flows of well-trained Indian migrants is taken by Indian
students. India, for example, accounts for 5.5% of the 2.8 million students
studying outside their home-country. After China (421,100), the country sends the
greatest number of students abroad 153,300.

Types of migration

1. Local Migration
It involves movement of people from one place to another.
 2. Regional Migration
It involves movement of people from one region to another.

3. Rural to urban migration

It involves movement of people from rural areas to cities. Such migration is
more common in developing countries due to Industrialisation.

4. Urban to rural migration

It involves movement of people from urban areas to rural areas. Such
migration is more common in developed countries due to higher cost of
urban living.

5. Mass migration
It refers to the movement of a large group of people from one geographical
area to another.

6. Forced migration
It refers to coerced movement of people away from their home. It often
connotes violent coercion and may be called as forced displacement.

Causes of Migration

Migration is affected by push and pulls factors. Push factors include lack of
employment opportunities and fears of disorder or of persecution on grounds of
race, religion or politics in the areas people live. Pull factors include favorable
employment opportunities, good health and educational facilities, public order
and freedom, and a favorable climate, particularly for the retirement in the areas
people move to. Some of the major causes as highlighted by the present paper
are presented below:

1. Huge Population
India is known for its huge demographic potential. It has huge population
which is educated, English speaking, computer savvy and efficient. This is
what is required by developed economies because they lack in terms of
 working population. Therefore, they attract Indian skilled labours by
offering lucrative packages. India on other hand fails to provide good
working opportunities to this population. This results in migration of skilled
labours.

2. Rigid Education System

One of the important reasons why many students migrate to developed
nations is for higher education, because Indian educational system lacks the
flexibility which is the need of time. It offers rigid, stereotyped and
traditional courses with less or no scope of shifting or changes across the
subjects, streams etc. People follow a fixed mindset in opting for subjects,
courses and careers. This results in huge demand for some particular type
of courses and professions. There is huge commercialization of these
courses which results in mushrooming of institutes offering similar kind of
courses; this further dilutes the results and quality. The system lacks the
format of standardization. Government needs to take concrete measures to
amalgamate Indian education system with global to achieve uniformity and
standardization and this is what is required today to meet global manpower
demand. There is a need to change the attitude of students, parents also by
counseling, suggestions and guidance.

3. Political Factors
When migration takes place mainly due to political interests, it is called
political migration. Political instability, communalism, regionalism, linguism,
inter-caste and inter-religious rivalries, riots, terrorism, etc. create conflicts
and violence in cities and states. Thus, political fear may motivate a person
to migrate to places where there is proper law and order situation.

4. Environmental Factors
Natural disasters such as floods, famines, droughts, earthquakes etc. may
compel people to migrate to safer places. For example, tsunami in southern
parts of India forced the surviving homeless people to migrate to the other
parts of the country.
Effects of Migration

1. Brain Drain
Human capital flight is an Economics term equivalent to the Sociology term,
brain drain, which refers to the emigration of intelligent, well-educated
individuals to somewhere for better pay or conditions, causing the place
they came from to lose those skilled people, or “brains”. Brain drain occurs
when scientists, engineers, doctors, IT- professionals and other intellectuals
migrate to another country for higher studies, to undertake research
activities, to get better job and work experiences which they are not getting
from their country of origin. India is a very prominent source for supply of
professionals. Elites and highly qualified professionals from India are placed
all over the World. India is very rich in resources including human
resources. India needs to put these resources to optimum utilization to
bring amazing results for the country. The intellectuals which India looses
every year can help in the effective utilisation of our natural resources.
Government needs to take timely and effective efforts to bring these
resources back to India.

2. Talent Shortage
Migration results in to talent shortage in the home country. The educated
crowd instead of serving their own country prefers to work for the
developed nations for the sake of better pay and standard of living or any
other reason. This is evident in India also especially in the field of medical
services. Rural areas face acute shortage of medical practitioners. Also,
there is huge demand of IT professionals in Telecom software companies
which is unfulfilled. Most of the available professionals prefer to go to
abroad to meet the requirements of software companies abroad. This
results in the crunch for professionals in these sectors.

3. Social Problems
Continuous inflow of migrants to a particular city, region, state, or country
results in serious socio-economic problems, such as:
  Over-crowding and congestion
 Growth of slums
 Increase in crime rates
 Spread of diseases
 Social evils like alcoholism, drug addiction, etc.

4. Psychological Problems
People migrating to different places leave behind their families, relatives,
friends and acquaintances. Hence, they may feel lonely, isolated and
homesick. Some people may also experience the feeling of insecurity due to
new and different environment. Some migrants may feel the pressure of
new job, new accommodation, new relationships, etc.

1.8-GLOBALISATION AND
CHANGES IN AGRAIN SECTOR
Agrarian sector refers to the farming or agriculture sector. Marketing
liberalization and globalization have led to significant changes in agriculture and
agro-food markets in developing countries including India.

1. Changes in Food Basket

The food basket is changing rapidly, away from staple food grains towards
high-value food products. Therefore, the agricultural production portfolio
too is changing rapidly, with a higher growth in production of high-value
food products such as fruits and vegetables.

2. Changes in Agricultural Exports

Due to globalization, a shift is taking place in agricultural exports. There is
increasing emphasis on exports of high-value food products. The share of
 fruits and vegetables in the agriculture-related exports is increasing. Also,
the share of processed food products is on the increase.

1.9-GROWTH OF CORPORATE
FARMING
In the post-freedom period, especially, after the introduction of National
Agricultural Policy (NAP) 2000, agricultural reforms are being undertaken. A
significant role is being assigned to private corporate sector in rural development
and poverty reduction. Corporate farming is one such initiative attempted in
many Indian states alongside contract farming.

Some of the firms that undertake corporate farming include:

 IEEFL, Pune. It operates farms in Maharashtra, Tamil Nadu and Goa. It

cultivates plantations. It occupies around 1500 acres of land.
 ADAG. It operates in Punjab. It cultivates fruits and vegetables on farm area
of 3500 acres.
 Agri Gold, Hyderabad. It operates in Telangana. It cultivates farm products
for export.
 SYP Agro, Ahmedabad. It operates in Gujarat. It cultivates onions, spices
and vegetables mainly for exports.

2.0-INCREASE IN FARMERS’
SUICIDES IN INDIA
The farmers' suicides in India, also known as the agrarian crisis, are the
phenomenon of suicides among Indian farmers from 1990 to the present. It has
been exacerbated by the inability to repay growing debt, often taken from
local moneylenders and microcredit banks to pay for high priced high yield
seeds marketed by MNCs and the non-implementation of minimum support
prices (MSP) by state governments. During the duration from 1998 to 2018, it has
resulted in the suicides of 300,000 farmers in the country, often by
drinking pesticides themselves.
Indian government has not published data on farmer suicides since 2015. National
Crime Records Bureau director Ishwar Kumar said that the data is under scrutiny
and the report for 2016 is likely to be published later.
India is an agrarian country with around 70% of its people depending directly or
indirectly upon agriculture. Farmer suicides account for 11.2% of all suicides in
India. Activists and scholars have offered a number of conflicting reasons for
farmer suicides, such as monsoon failure, high debt burdens, government
policies, public mental health, personal issues and family problems. There is also
accusation of states manipulating the data on farmer suicides.
Starting in the 1990s, agriculture in India has declined at a devastating rate. This
has had a calamitous impact on the livelihoods associated with agriculture.
Symptoms of this agrarian distress, unprecedented in post-Independent India, are
a high rate of suicides amongst farmers. The crisis is characterized by low
institutionalised credit to small farmers.
Reasons for Farmers’ Suicides:
Various reasons have been offered to explain why farmers commit suicide in
India, including: floods, drought, debt, use of genetically modified seed, public
health, use of lower quantity pesticides due to less investments producing a
decreased yield. There is no consensus on what the main causes might be but
studies show suicide victims are motivated by more than one cause, on average
three or more causes for committing suicide. Panagariya states, "farm-related
reasons get cited only approximately 25 percent of the time as reasons for
suicide" and "studies do consistently show greater debt burden and greater
reliance on informal sources of credit" amongst farmers who commit suicide.
A study conducted in 2014, found that there are three specific characteristics
associated with high-risk farmers: "those that grow cash crops such as coffee and
cotton; those with 'marginal' farms of less than one hectare; and those with debts
of 300 Rs. or more." The study also found that the Indian states in which these
three characteristics are most common had the highest suicide rates and also
accounted for "almost 75% of the variability in state-level suicides.
 Percent
Reasons for farmers suicides.
(of
(in 2002)
suicides)
Failure of crops 16.84

Other reasons (e.g. chit fund) 15.04

Family problems with spouse, others 13.27

Chronic illness 9.73

Marriage of daughters 5.31

Political affiliation 4.42

Property disputes 2.65

Debt burden 2.65

Price crash 2.65

Borrowing too much (e.g. for house

2.65
construction)
Losses in non-farm activities 1.77

Failure of bore well 0.88