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. As a result of this, globalization of the
Indian Industry took place on a major scale.

The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts of foreign
investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. As
huge amounts of foreign direct investments were coming to the Indian Industry, 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 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 various negative Effects of Globalization on Indian Industry are that it 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 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.

The effects of globalization on Indian Industry have proved to be positive as well as negative. The government of
India must try to make such economic policies with regard to Indian Industry's Globalization that are beneficial and
not harmful.

The Indian government in an attempt to further boost the Globalization of the Indian Petroleum Industry
formed the Exploration Licensing Policy by which it tried to attract the foreign and Indian companies to
production and exploration. The incentives that were declared by the government to encourage Globalization
and the Indian Petroleum Industry are that on imports that were required for petroleum operations custom
duty would not have to be paid, state participation is not compulsory, no tax on the production of crude oil,
provisions for liberal depreciation, tax holidays for 7 years from the day that production starts, and the
freedom to sell natural gas and crude oil in the domestic market at prices that are related to the market.

Globalization and the Indian Petroleum Industry has been going together as has been seen for the past
many years. The government of India has taken several measures in order to ensure that the Globalization
of the Indian Petroleum Industry is successful for the industry. In the future, the government is likely to
ensure that Indian Petroleum Industry's Globalization is beneficial for the industry and not harmful.

The various advantages of Globalization of Indian Pharmaceutical Industry are that it brought in huge
amounts of foreign currency into the industry which in its turn helped to boost the Indian economy. With
many foreign pharmaceutical companies entering the Indian Pharmaceutical Industry it increased the
number of jobs that were available to the people of the country. The benefits of Globalization of Indian
Pharmaceutical Industry are that the foreign pharmaceutical companies also brought in highly advanced
technology into the industry and this improved the quality of medicines that were available to the people.
Many Indian pharmaceutical companies took over international pharmaceutical companies such as Ranbaxy
merged with Croslands, Wockhardt with Merind, and Nicholas Piramal with Sumitra Pharma. This helped the
Indian pharmaceutical companies to grow and make even more profits.

The various disadvantages of Globalization of Indian Pharmaceutical Industry are that the competition
increased in the Indian market between the foreign pharmaceutical companies and domestic companies.
This reduced the profit levels of the Indian pharmaceutical companies as a result of which many had to close
down such as Hindustan Ciba Geigy, Park Davis, Boehringer Mannheim, and Abbot. This has resulted in
many people losing their jobs and in Mumbai's Thane region which is in Maharashtra more than 30,000
people lost their jobs between 1997- 1999. Further the disadvantages of Globalization of Indian
Pharmaceutical Industry are that many foreign pharmaceutical companies are taking over the Indian
pharmaceutical companies such as SKB merged with Sterling, Ciba Geigy merged with Sandoz, and Rhone
Poulenc merged with Fashions. This has led to the fear that foreign pharmaceutical companies will take over
the Indian Pharmaceutical Industry.

Globalization of Indian Pharmaceutical Industry has had some positive as well as some negative effects. The
government of India must make sure that the Indian Pharmaceutical Industry's globalization proves
beneficial for the country.

The process of globalization of Indian chemical industry was initiated in the early 1990s. The erstwhile
Indian chemical industry suffered due to the absolute monopoly of the Government of India enterprises.

But with the opening of the Indian markets to Foreign Institutional Investors (FII) and Foreign Direct
Investments (FDI) the monopoly of these Government institutions were curtailed substantially. This gave
rise to the opening up of the Indian chemical industry to host of untapped opportunities. With the
introduction of the open-market economic policy by the Government of India the process of globalization of
Indian chemical industry took a steady rise. The Department of Chemicals & Petrochemicals under
Government of India is the concerned highest authority that regulates the Indian chemical industry and the
allied areas of environmental concern. The chemical Industry of India is at par with world standard and it
shares a good portion of chemical business in world market. Asian countries, African countries and even
Arab world buys Indian chemical products. The demand for Indian chemical products is high across the
world. The reason for this popularity is its high quality and competitive pricing. India's low cost and high end
chemical products manufacturing expertise coupled with world class manufacturing infrastructure is the
main leveraging factor for the rise of this industry. India offers high class chemical products at a substantial
discount than its western counterparts while delivering the same grade of output.

The advantages of manufacturing high class chemical products in India are as follows -
• Friendly Government of India policies
• Low cost labor
• Low and world class infrastructure
• Strong technical education
• Large number of science and engineering graduates
• Quality output
• Highly skilled workforce
• Usage of innovative process
• Good client relationships
• Huge scope for innovation
 • Expansion of existing relationships
• Huge demand in overseas markets
• Availability of more technical work force
• Increased number and quality of training facilities
• Large and very fast growing Indian petrochemical market
• Huge trained talent pool
• Competitive labor cost
Weaknesses of Indian chemical industry -
• Insufficient basic infrastructure for the chemical industry
• High feedstock cost in comparison to Middle East countries
• Prevalence and use of old and outdated technology
• Synthetic fiber industry is unorganized and operates in small clusters
Opportunities of Indian chemical industry -
• Huge demand for polymer and synthetic fiber
• Great opportunity for product development
• Low consumption of polymer in comparison to global consumption rate
• Ever increasing size of domestic markets
Threats to Indian chemical industry -
• Stiff competition from other regional players like, china and the Middle East countries
•
• Stiff rational pricing pressures
• Environmental hazards concerns
• Low market recognition
• Relocation of manufacturing sites to region with abundance of feedstock
Notable points of Indian chemical industry -
• It share stands at 2% of world market
• Annual rate of growth of the Indian chemical industry is 10%
• Its business is worth US$ 30 billion
• Profit incurred is around 14%
• Wide variety of products
• Basic components are petrochemicals, inorganic chemicals and fertilizers
• The Indian states of Gujarat, Maharashtra, West Bengal and Andhra Pradesh have the largest
concentration of chemical and petrochemical units
The Indian textile industry, until the economic liberalization of Indian economy was predominantly an
unorganized industry. The economic liberalization of Indian economy in the early 1990s led to stupendous
growth of this Indian industry. The Indian textile industry is one of the largest textile industries in the world
and India earns around 27% of the foreign exchange from exports of textiles and its related products.
Further, globalization of India textile Industry has seen a paradigm increase in the 'total industrial
production' factor of this Industry, which presently stands at 14%. Furthermore, the contribution of the
Indian textile Industry towards the gross domestic product (GDP) of India is around 3% and the numbers
are steadily increasing. The process of globalization and Indian textile industry development was the effect
of rapid acceptance of 'open market' policy by the developing countries, much in the lines of the developed
countries of the world.
The initiation and its subsequent development of globalization and Indian textile industry respectively, was
effected by the Ministry of Textiles under the Government of India. The aggressive policy that was
undertaken for the rapid development of globalization and Indian textile industry were really praiseworthy.
The most significant step amongst them was introduction of "The National Textile Policy 2000". This policy
envisaged to address the following issues -
• Increased global competition in the post 2005 trade regime under WTO
• Huge import volume of cheap textiles from other Asian neighbors
• High production cost with respect to other Asian competitors
• Use of outdated manufacturing technology
• Poor supply chain management and huge transit cost
• Huge unorganized and decentralized sector
Further, this policy also aims at increasing the foreign exchange earnings to the tune of US $ 50 billion by
the end of the year 2010. It includes rational projections for the overall development and promotion of all
the sectors involved directly or indirectly with the Indian textile industry. Furthermore, this policy also
envisages the inclusion of the huge unorganized and decentralized Indian textile sector under the organized
textile industry. This is because the unorganized textile manufacturing sector in India accounts for 76% of
the total textile production

The introduction and the subsequent development of globalization of the Indian manufacturing sector
respectively helped India to shed its age old tag of being 'an agriculture based country'. The main growth
driver of the Indian manufacturing sector are Information Technology and hardware, telecommunication
hardware, automobile, pharmaceutical, biotechnology, infrastructure, electronic, electrical, textiles, etc. The
effect of globalization of Indian manufacturing industry is reflected in the GDP's share of Indian
manufacturing sector which has grown considerably over the years.

The share of Indian manufacturing industry towards India GDP has grown from 25.38% in 1991 to 27% in
2004. Further, the contribution of the Indian manufacturing sector to the Indian export sector has increased
from 52% in 1970 to 59% in 1980 and 71% in 1990 and 77% in 2000-01. Furthermore, the Indian
manufacturing exports accounted for a little over 5% (in 1990) of the value of output of the Indian
manufacturing sector but today it is close to 10%.

India exports manufactured products worth about US$ 50 billion and a recent study on Indian manufacturing
industry has forecast an annual growth of 17% by the end of the year 2015. In other words at this rate of
increase the quantum of India's manufacturing exports will cross the US$ 300 billion mark by the end of the
financial year 2015. Most of this business would be in the domain of auto components, pharmaceutical,
apparel, specialty chemicals, and electrical and electronic equipment sectors. The Indian sectors which grew
tremendously as a result of globalization of the Indian manufacturing sector are as follows -
• Capital goods
• Engineering goods
• Chemicals
• Petroleum
• Chemicals & fertilizers
• Packaging
• Consumer non-durables
• Electronics
• IT Hardware & peripherals
• Gems & jewelry
• Leather & leather products
• Mining
 • Steel & non-ferrous metals
• Textiles & apparels
• Water equipment
The positive effect of the globalization of the Indian manufacturing sector can be corroborated from the
following facts -
• The Indian industrial growth exceeded 10%
• Manufacturing growth rate exceeded 12 %
• Manufacturing of consumer durables and non-durables have also recorded upswings
• Telecommunication sector with inflows of US$ 405 million has registered the maximum growth of
950%
• Merchandise exports recorded strong growth
• The automotive industry achieved a growth rate of over 20% in 2006-07
• The biotechnology industry witnessed another good year in 2006-07 and registering more than 40%
of growth
• The US$ 47 billion Indian textile industry is expected to grow to US$ 115 billion by the year 2012
• The US$6.4 billion Indian retail industry is expected to grow over 20% annually to US$ 23 billion by
2010
• The robust pharmaceutical market in India ranks 4th worldwide and is expected to cross business
worth Rs 1,00,000 crore in
• formulations and bulk drug production by 2010
Although, the process of globalization of the Indian manufacturing sector have contributed immensely for
the overall development of the Indian economy but it still suffers from some bottlenecks, like the following -
• Use of primitive technology or under utilization of technology
• Poor infrastructure
• Over staffed operations
• Expensive financing and bureaucracy
India is slowly shedding its image from being an agriculture based country to a manufacturing based country
and thus the above-mentioned bottlenecks should be immediately arrested and eradicated to ensure further
growth of this industry. To ensure elimination of the above-mentioned aberrations form the Indian
manufacturing sector the government of India must focus on areas like improving the urban infrastructure,
ensuring fair competition and access to markets, reduction of import duties, quality improvements in
vocational and higher education, increased investment in R&D and support of SMEs.

The manufacturing industry is the backbone of any economy since it helps in the overall growth of
productivity, employment, and it also strengthens agriculture and service sectors. The astronomical growth
in worldwide distribution systems and Information Technology, coupled with opening of trade barriers, has
led to stupendous growth of global manufacturing networks, designed to take advantage of low-waged yet
efficient Indian work force. The globalization of the Indian manufacturing sector has brought down the
percentage of Indians living below poverty line from 40% to 25%. The Indian manufacturing sector is
successfully competing in the global marketplace and registering high growth on year-on-year basis since
the 1990s.

The effects of Globalization on Indian steel industry have been felt more profoundly in the past few
years. The India steel industry is one of the major industries in India.

The effects of Globalization on Indian steel industry are not same throughout the country.
The effects depend on the different regions, the type of raw materials used, the condition of the
markets, technological advancements, the policies of the governmental authorities pertaining to the
trade and business activities of the Indian steel industry, etc. In this age of the globalization, as the
other industries of the developing countries, the Indian steel manufacturing sector needs to restructure
itself, in order to have a sustainable growth. This will be very helpful for providing the correct strategies
for the steel industry in India. The restructuring should depend on the different requirements of the steel
industry.

The government played a very important role in the development of the steel industry in India. The India
steel industry is experiencing a slow but steady growth. The steel industry in India has huge scopes in
the future with massive scale of infrastructural development happening all across the country. The steel
industry in India caters to many other industrial sectors such as construction industry, mining industry,
transportation industry, automobile industry, engineering industry, chemical industry, etc. The steel
segment includes the manufacturing of three different kinds of steel such as carbon steel, ferro-chrome
steel, and stainless steel.

The steel industry in India has further plans of development. Plans are being chalked out on setting up of
three pig iron manufacturing units of the combined capacity of 6 lakh tons per year and a steel
manufacturing unit of the capacity of producing 1 million tons yearly in West Bengal, with the technical
and financial support of China. With all these developments steel industry in India is all set to become
one of the most reputed industries not only in India but also in the international market as suggested by
experts.

In order to survive the immense competition under the globalization, the Indian steel industry plans a
reversal of the production of steel industry. The main objectives of the strategy is the derivation of the
benefit from the optimum utilization of the plant capacity, the nullification of any form of drawbacks, to
track the opportunities in order to get the maximum from it and to tackle the possible threats.

The strategy suggested for the reversal of the steel industry in India is double layered in nature,
effecting the reversal and at the same time sustaining the reversal. The strategy has to be growth and
survival oriented. The survival part would assure the survival of the industry in the fierce competitive
atmosphere and the growth part would boost the sustainable growth of the industry. The two different
parts of the strategy has to be integrated into one to have the expected results.

The reduction of the cost is another major factor in the survival of the Indian steel industry in the age of
globalization. The cost reduction would be the main aspect of the improvement pertaining to the
competitiveness of the industry. The manufacturers under the steel industry in India have to focus their
attention in the areas such as:
• The reduction in the cost of operations
• The reduction in the costs pertaining to the working capital
• The reduction in the costs pertaining to the production inventory or stock that is not sold
• The improvement in the economics operating in the technological aspects of production
• The transposition of basic materials of production
• The sources of the procurement should be different

The Globalization of Indian Cement Industry has helped the industry to restructure itself to coop up
with the alterations in the global economic and trading system. The Indian cement industry is one of the
oldest industries. It has been catering to India's cement requirements since its emergence during the British
Raj in India. Though the majority of the players in the Indian cement industry were private sector
organizations, the industry was highly regulated.

With the rapid growth rate of the Indian economy after the 1990s, the infrastructural developments within
the country has been tremendous. The increase in the construction activities has led to the increase in the
demand for updated quality building materials and other allied products. Cement being one of the major
elements in the construction work, there is a growth in the cement industry in India. The consumption of
cement has increased in India by nearly 7.5%. With the globalization of Indian cement industry many
foreign cement manufacturers are engaging themselves in agreements and deals with their India counter
parts to have a share of the growth.
Globalization of Indian Cement Industry includes several foreign companies engaging in mergers and
acquisitions of Indian cement companies. For example,
• Heidelberg Cement - Indorama Cement Ltd. Heidelberg Cement Company entered into an
agreement for a 50% joint venture with the Indorama Cement Ltd., situated in Mumbai, originally
possessed by the Indorama S P Lohia Group. Heidelberg Cement company is the leading German
cement manufacturing company. The Heidelberg Cement was set up in 1873 and has a long and
prosperous history. Being one of the best in the world the Heidelberg Cement Company has its
bases in different countries. The Heidelberg Cement Company has two manufacturing units in India.
A grinding plant in Mumbai and a cement terminal near Mumbai harbor. A clinker plant is coming up
in the state on Gujarat

• Holcim Cement - Gujarat Ambuja Cements(GACL) Holcim Cement signed an agreement of 14.8%
take over with the Gujarat Ambuja Cements (GACL). With new products, skilled personnel, superb
management, and a outstanding market strategy gives this tie up good edge over the other
competitors. Holcim Cement Company is among the leading cement manufacturing and supplying
companies in the world. It is one of the major employers in the world, having a work force of
90,000.The Holcim Cement Company has units in excess of 70 countries all over the world.

• Italcementi cement - Zuari Cement Limited Italcementi Cement Company with the help of the
Ciments Français, a subsidiary for its global activities, has acquired shares of the famous Indian
cement manufacturer - Zuari Cement Limited. The acquisition was of 50% shareholding and the
deal was of about 100 million Euros. Italcementi Cement is the 5th largest cement manufacturing
company in the world. The production capacity of the Italcementi cement company is about 70
million tons in a year. With the construction boom in India the company looks for a stable future. In
2001 the Italcementi cement entered the Indian market scenario. It took over the plant of the Zuari
Cement Limited in Andhra Pradesh in southern India. The joint venture earned revenues of around
100 million Euros and an operating profit of 4 million Euros.
Lafarge India is the subsidiary of the Lafarge Cement Company of France. It was established in 1999 in
India with the acquisition of the Tisco and the Raymond cement plants. Lafarge Cement presently has three
cement manufacturing units in India. One of them is in Jharkhand which is used for the purpose of grinding
and the other two are in Chhattisgarh used for manufacturing. The Lafarge Cement Company was set up in
the year 1833 by Leon Pavin. Lafarge Cement Company situated in France is the leading cement producing
company in the world. It has plans for increasing the cement production through technological innovations
and maximization of the capacity of the plant. It has a large network of distributors in the eastern part of
India. The Lafarge Cement Company is presently producing nearly 5.5 million tons of cement for the Indian
cement market.

The human society around the world, over a period of time, has established greater contact, but the pace has
increased rapidly since the mid 1980’s.The term globalization means international integration. It includes an array of
social, political and economic changes. Unimaginable progress in modes of communications, transportation and
computer technology have given the process a new lease of life.

The world is more interdependent now than ever before .Multinational companies manufacture products across many
countries and sell to consumers across the globe. Money, technology and raw materials have broken the
International barriers. Not only products and finances, but also ideas and cultures have breached the national
boundaries.

Laws, economies and social movements have become international in nature and not only the Globalization of the
Economy but also the Globalization of Politics, Culture and Law is the order of the day. The formation of General
Agreement on Tariffs and Trade (GATT), International Monetary Fund and the concept of free trade has boosted
globalization.

Globalization in India
In early 1990s the Indian economy had witnessed dramatic policy changes. The idea behind the new economic
model known as Liberalization, Privatization and Globalization in India (LPG), was to make the Indian economy one
of the fastest growing economies in the world. An array of reforms was initiated with regard to industrial, trade and
social sector to make the economy more competitive. 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 and inflation
was as high as 17%. Fiscal deficit was also high and NRI's were not interested in investing in India. Then the
following measures were taken to liberalize and globalize the economy.

Steps Taken to Globalize Indian Economy

Some of the steps taken to liberalize and globalize our economy were:

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.

Merits and Demerits of Globalization

The Merits of Globalization are as follows:

• 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.

The Demerits of Globalization are as follows:

• 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.
Summary
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.

Social, Cultural and Financial Impact of Globalization in India

Socialization of people for improving business and financial activities across the globe can be
referred as globalization. It is not a new phenomena as people kept searching new places and
avenues to increase their business activities as evident by explorations of Vasco degama, Columbus
and East India Company. Bitter experiences from East India Companies & British rule makes Indian
little bit cautious for adventures of globalization. This has been the root cause for delay in
liberalization in India. In literary terms, globalization has been defined in several ways as evident
from definitions reproduced below. In the initial sense of the term, globalization refers to the spread
of new forms of non-territorial social activity (Ruggie, 1993; Scholte, 2000). To make term more
clear, Globalization has been defined as the process of rapid integration of countries and happening
through greater foreign trade and foreign investment. In essence, it refers to increased possibilities
for action between and among people in situations irrespective of geographical considerations as
per the definition of social theorists. Developed countries have been trying to pursue developing
countries to liberalize the trade and allow more flexibilities in business policies to provide equal
opportunities to multinational firms in their domestic market. International Monetary Fund (IMF) and
World Bank helped them in this endeavour. Liberalization began to hold its foot on barren lands of
developing countries like India by means of reduction in excise duties on electronic goods in a fixed
time frame. Indian government did the same and liberalized the trade and investment due to the
pressure from World Trade Organization. Import duties were cut down phase-wise to allow MNC's
operate in India on equality basis. As a result globalization has brought to India new technologies,
new products and also the economic opportunities. Despite bureaucracy, lack of infrastructure, and
an ambiguous policy framework that adversely impact MNCs operating in India, MNCs are looking at
India in a big way, and are making huge investments to set up R&D centers in the country. India has
made a lead over other growing economies for IT, business processing, and R&D investments.
There has been both positive and negative impact of globalization on social and cultural values in
India.There is no denying of the fact that globalization has brought cheers to people's life by opening
new vistas of employment. It has also made inroads in the cultural heritage of this country. The web
article "the impact of globalization on social and cultural values in India" describes it at length.

Changes in social and cultural life:

· Access to television grew from 10% of the urban population (1991) to 75% of the urban
population (1999).

· Cable television and foreign movies became widely available for the first time and have acted
as a catalyst in bulldozing the cultural boundaries.

· All these technologies have changed perceptions and dreams of ordinary people.

· Unmarried boys and girls are sharing same apartment and staying away from their parents.

· Indian youths leaving education in mid-way and joining MNC's

· There has been a increase in the violence, particularly against women.

· Scientific and technological innovations have made life quite comfortable, fast and enjoyable.

· More availability of cheap and filthy material (CD's or DVD's of Hollywood movies, porn
movies, sex toys, foreign channels like MTV) in the name of liberalization.

· In India, land-line or basic phone was a prestige symbol few years back but now you find
people riding bicycle with a mobile in hand, talking or listening music or even clicking cameras of
their phones targeting pretty girls or ladies.

· Society has become more open compared to its earlier conservative look due to exposure to
other cultures through DTH or cable network.

· This has contributed to dating, celebration of friendship days/valentine day, and resulted to
rising number of call girls and make them more prone to sexually transmitted diseases .

· People are less worried for government jobs as MNC's and private or public sector are offering
more lucrative jobs.

· Extension of internet facilities even to rural areas.

· In place of old cinema halls, multiplex theatres are coming up.

· Old restaurants are now replaced by Mc. Donald. Fast food and Chinese dishes have
replaced juice corners and Parathas.

· More inflow of money has aggravated deep rooted problem of corruption?

· More scandals and scams compared tp pre-globalization era.

· Girls being blackmailed by their ex-boy friends using MMS

· Ban on TV channels for showing sex and violence violating all norms

· Girls being raped in moving vehicles

· There is deterioration in social values as evident from less respect for ladies, older people

Notwithstanding what has been listed above, globalization has definitely brought positive changes
and been helpful in improving living conditions of people. Improvement in financial status and
livelihood of people can be understood by the following figures and facts:

Personal Finance:
· Entry of the private sector banks has completely transformed the functioning of public sector
banks

· Opening up of mutual funds; thirty five players; 15 joint ventures

· Commencement of the depository that helped common men to become the retail investors

· Deregulation of insurance industry; Nineteen players; 14 joint ventures in life insurance sector

· Fall in interest rates; smaller monthly installments made life more simple to Indian customer

· ATM's (Automated Teller Machines) made bank transactions more easier to common men
than few years back

· Online trading, online purchanse of various finance products and online banking have helped
common men to participate in investment process.

Job Sector:

· Salaries are now more attractive than in the nineties.Average annual IT salary has increased
from Rs 1.6 lakh in 1998 to Rs 5.5 lakh in 2008

· Students get selected by the companies through campus recruitment an year before the date
of completion of their technical education.

· Large salary hikes than offered few years ago.

· More emphasis on performance and not on number of years in the job

· More flexibilties in timings and work from home arrangements are becoming common

· In the last ten years, annual revenue of software industries has grown by 350%.

· Around 1.16 crore people are employed in BPO sector compared to only few lakh in the year
1998

· Office automation has helped improving effeciency of employees

· More and more recruitments are being made using job portals. Earlier ads were placed in the
newspapers.

Banking sector:

· Number of ATMs has increased from 500 in 1998 to 32300 in 2008; 1st ATM was installed by
HSBC in 1987

· Copmputerization of banks has helped speed up the bank transactions

· Net banking is used by 32% of saving bank account holders in 2008 compared to 1% in 1998.
Likewise mobile banking was offered by 6% banks in 1998 that is now being offered by 90% banks
in 2008

· 1st debit card and 1st credit card were issued by Citibank in 1998 and 1990, respectively.

Tax reforms:

· Tax reforms have given common men more freedom to invest money and more purchasing
power than ever before

· Tax concessions on interest of houising loan, and easy availability of house loans have helped
common men to own a dream house. However, increase in interest rates recently has made life
difficult for salaried people. Housing loan accounts have increased from 4 lakh in 1998 to 45 lakh in
2008.

Some common indicators of change:

· Now most of the households have more than one color TV sets

· Number of people travelling by air or AC class in trains have increased tremendously

· There are 42 million internet users in India in the year 2008 compared to 1.4 m users in 1998.

· The number of mobile phone users has grown to 246 million in 2008 from 1.0 million users in
1998

· There has been a great increase in sales of passenger cars. The sale has increased by 96%
in the last ten years

· Monthly pocket money of 10-17 years old has risen by 500% from Rs 300 in the year 1998

REFERENCES:

1. Ruggie, John Gerard (1993), “Territoriality and Beyond: Problematizing Modernity in International
Relations,” International Organization 47; 139-74.

2.Scholte, Jan Aart (2000), Globalization: A Critical Introduction (New York: St. Martin's).

3. Stanford Encyclopedia.2002. Globalizationhttp: at http://plato.stanford.edu/entries/globalization/

Acknowledgement: Most of the figures (Statistics) presented in this article have been gathered from
the 10th ANNIVERSARY SPECIAL ISSUE of OUTLOOK Money published on July 30, 2008.
Culture and social values: India’s real culture is still preserved in rural life. New advancement of
technology has not much influence in rural areas. People still prefer to wear dresses of old fashion
and celebrate festivals in old styles. Folk dances and folk songs are still popular among villagers.
Culture is still untouched and unaffected by western influence. Globalization has no impact on rural
life as standards of living are suboptimal but migration of people is taking place and poor people are
moving to urban areas in search of employment.

Agriculture: Globalization does not have any positive impact on agriculture. On the contrary, it has
few deterimental effect as government is always willing to import food grains, sugar etc whenever
there is a price increase of these commodities. Government never thinks to pay more to farmers so
that they produce more food grains but resorts to imports. On the other hand, subsidies are declining
so cost of production is increasing. Even forms producing fertilizers have to suffer due to imports.
There are also threats like introduction of GM crops, herbicide resistant crops etc.

Definition:

Globalised World - What does it mean?

Does it mean the fast movement of people which results in greater interaction?

Does it mean that because of IT revolution people can be in touch with each other in any
part of the world?

Does it mean trade and economy of each country is open in Non-Intrusive way so that all
varieties are available to consumer of his choice?

Does it mean that mankind has achieved emancipation to a level of where we can say it
means a social, economic and political globalisation?

Though the precise definition of globalisation is still unavailable a few definitions worth
viewing, Stephen Gill: defines globalisation as the reduction of transaction cost of
transborder movements of capital and goods thus of factors of production and goods. Guy
Brainbant: says that the process of globalisation not only includes opening up of world
trade, development of advanced means of communication, internationalisation of financial
markets, growing importance of MNC's, population migrations and more generally increased
mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution

Impact on India:
 India opened up the economy in the early nineties following a major crisis that led
by a foreign exchange crunch that dragged the economy close to defaulting on
loans. The response was a slew of Domestic and external sector policy measures
partly prompted by the immediate needs and partly by the demand of the
multilateral organisations. The new policy regime radically pushed forward in favour
of amore open and market oriented economy.

Major measures initiated as a part of the liberalisation and globalisation strategy in

the early nineties included scrapping of the industrial licensing regime, reduction in
the number of areas reserved for the public sector, amendment of the monopolies
and the restrictive trade practices act, start of the privatisation programme,
reduction in tariff rates and change over to market determined exchange rates.

Over the years there has been a steady liberalisation of the current account
transactions, more and more sectors opened up for foreign direct investments and
portfolio investments facilitating entry of foreign investors in telecom, roads, ports,
airports, insurance and other major sectors.

The Indian tariff rates reduced sharply over the decade from a weighted
average of 72.5% in 1991-92 to 24.6 in 1996-97.Though tariff rates went up slowly
in the late nineties it touched 35.1% in 2001-02. India is committed to reduced tariff
rates. Peak tariff rates are to be reduced to be reduced to the minimum with a peak
rate of 20%, in another 2 years most non-tariff barriers have been dismantled by
march 2002, including almost all quantitative restrictions.

India is Global:
The liberalisation of the domestic economy and the increasing integration of India
with the global economy have helped step up GDP growth rates, which picked up
from 5.6% in 1990-91 to a peak level of 77.8% in 1996-97. Growth rates have
slowed down since the country has still bee able to achieve 5-6% growth rate in
three of the last six years. Though growth rates has slumped to the lowest level
4.3% in 2002-03 mainly because of the worst droughts in two decades the growth
rates are expected to go up close to 70% in 2003-04. A Global comparison shows
that India is now the fastest growing just after China.

This is major improvement given that India is growth rate in the 1970's was very
low at 3% and GDP growth in countries like Brazil, Indonesia, Korea, and Mexico was
more than twice that of India. Though India's average annual growth rate almost
doubled in the eighties to 5.9% it was still lower than the growth rate in China,
Korea and Indonesia. The pick up in GDP growth has helped improve India's global
position. Consequently India's position in the global economy has improved from
the 8th position in 1991 to 4th place in 2001. When GDP is calculated on a purchasing
power parity basis.
 Globalisation and Poverty:

Globalisation in the form of increased integration though trade and investment is an

important reason why much progress has been made in reducing poverty and
global inequality over recent decades. But it is not the only reason for this often
unrecognised progress, good national polices , sound institutions and domestic
political stability also matter.

Despite this progress, poverty remains one of the most serious international
challenges we face up to 1.2 billion of the developing world 4.8 billion people still
live in extreme poverty.

But the proportion of the world population living in poverty has been steadily
declining and since 1980 the absolute number of poor people has stopped rising
and appears to have fallen in recent years despite strong population growth in poor
countries. If the proportion living in poverty had not fallen since 1987 alone a
further 215million people would be living in extreme poverty today.

India has to concentrate on five important areas or things to follow to achieve this
goal. The areas like technological entrepreneurship, new business openings for
small and medium enterprises, importance of quality management, new prospects
in rural areas and privatisation of financial institutions. The manufacturing of
technology and management of technology are two different significant areas in the
country.

There will be new prospects in rural India. The growth of Indian economy very much
depends upon rural participation in the global race. After implementing the new
economic policy the role of villages got its own significance because of its unique
outlook and branding methods. For example food processing and packaging are the
one of the area where new entrepreneurs can enter into a big way. It may be
organised in a collective way with the help of co-operatives to meet the global
demand.

Understanding the current status of globalisation is necessary for setting course for
future. For all nations to reap the full benefits of globalisation it is essential to
create a level playing field. President Bush's recent proposal to eliminate all tariffs
on all manufactured goods by 2015 will do it. In fact it may exacerbate the
prevalent inequalities. According to this proposal, tariffs of 5% or less on all
manufactured goods will be eliminated by 2005 and higher than 5% will be lowered
to 8%. Starting 2010 the 8% tariffs will be lowered each year until they are
eliminated by 2015.
 GDP Growth rate:

The Indian economy is passing through a difficult phase caused by several

unfavourable domestic and external developments; Domestic output and Demand
conditions were adversely affected by poor performance in agriculture in the past
two years. The global economy experienced an overall deceleration and recorded
an output growth of 2.4% during the past year growth in real GDP in 2001-02 was
5.4% as per the Economic Survey in 2000-01. The performance in the first quarter
of the financial year is5.8% and second quarter is 6.1%.

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.

Where does Indian stand in terms of Global Integration?

India clearly lags in globalisation. Number of countries have a clear lead among
them China, large part of east and far east Asia and eastern Europe. Lets look at a
few indicators how much we lag.

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

•Consider global trade - India's share of world merchandise exports

increased from .05% to .07% over the pat 20 years. Over the same
period China's share has tripled to almost 4%.

•India's share of global trade is similar to that of the Philippines an

economy 6 times smaller according to IMF estimates. India under
 trades by 70-80% given its size, proximity to markets and labour cost
advantages.

•It is interesting to note the remark made last year by Mr. Bimal Jalan,
Governor of RBI. Despite all the talk, we are now where ever close
being globalised in terms of any commonly used indicator of
globalisation. In fact we are one of the least globalised among the
major countries - however we look at it.

•As Amartya Sen and many other have pointed out that India, as a
geographical, politico-cultural entity has been interacting with the
outside world throughout history and still continues to do so. It has to
adapt, assimilate and contribute. This goes without saying even as we
move into what is called a globalised world which is distinguished from
previous eras from by faster travel and communication, greater trade
linkages, denting of political and economic sovereignty and greater
acceptance of democracy as a way of life.

Consequences:

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.

References:

1. Globalisation and Poverty: Centre for International Economics, Australia.

2. WIDER ANNUAL LECTURE 6: Winners and Losers over two centuries of Globalisation: Jeffery G.
Williamson.
3. Globalisation Trend and Issues - T.K.Velayudham, Page 3, 66.
4. Globalisation and India -Lecture : Prof .Sagar Jain, University of N.Carolina.
5. Repositioning India in the Globalised World - Lecture : V.N.Rai.
6. Globalisation and India's Business prospectives - Lecture - Ravi Kastia.
7. "Globalisation and Liberalisation" Prospects of New World Order - Dr.A.K.Ojha, Third Concept - An
International Journal of Ideas, Aug 2002.
 8. The Indian and Global Business - Jan 2004, Page 30.
9. Globalisation: Imperatives, Challenges and the Strategies, Page 39.
This was an entry for The 2004 Moffatt Prize in Economics. See the contest rules for more
information.

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Positive Effects of Globalization

 Globalization has opened up broader communication lines
and brought more companies as well as
different worldwide organizations into India.
This provides opportunities for not only
workingmen, but also women, who are
becoming a larger part of the workforce.
With new jobs for women, there are
opportunities for higher pay, which raises
self-confidence and brings about
independence. This, in turn, can promote
equality between the sexes, something that
Indian women have been struggling with their entire lives.
Globalization has the power to uproot the traditional views
towards women so they can take an equal stance in society
(King).

The Self-Employed Women’s Association (SEWA) in India is a

union of women laborers willing to work hard and seize any work
opportunities they might get. Globalization has aided their
opportunities in various ways. SEWA has established a Women’s
Cooperative Bank with 125,000 members, and through the aid of
globalization, they have even reached the women in the rural
areas of India. Markets in different areas can now be reached by
Indian women who have a part in businesses, or by craft-making
women who have licenses to export their goods. With more
freedoms and opportunities, these women are raising their
standard of living by generating more income (AKF-ISP News).

Technology that may seem out-dated to the United States is

viewed as modern technology to India.
With the aid of satellites and computers,
SEWA has been able to reach more women
to share self-help knowledge. Even the
telephone is an advancement to many
women in their business ventures. After
one of the SEWA women took out a loan of four dollars to buy a
telephone, her income was increased because she could reach
more people (AKF-ISP News).

One of the SEWA women, Mauna Dave, has made

tremendous advancements and is sharing her knowledge of the
global world and economy with other Indian women so they can
establish a better life for themselves. Dave attributes the skills
she has obtained to SEWA since she had the opportunity to speak
and listen to other women in this organization. This UNIFEM
Social Responsibility Award recipient is the director of Kutchcraft,
which is an association of 110 craftswomen’s groups with over
6,000 employees. She helped organize the
craftswomen into an empowered group that
have obtained bargaining power to compete
in the international market. Dave said that
some of the most difficult challenges are to
keep current on the global economy and the
fast-paced changes in India itself.
Globalization has helped her and other Indian
women share ideas and network in the
international markets (UNIFEM).

Different non-profit organizations have been brought to India

from around the globe. These
organizations have given women the skills
they need to advance, such as literacy and
vocational skills. One organization,
Indiacorps, has brought in a range of
programs to help women help themselves.
One program in Ahmedabad, India has
taught poor women how to create different
crafts to generate income. With this
program, women are able to earn their own
personal money and enable the children to
attend school instead of having to work to make more money.
The women also gain business skills that inform them about
career opportunities (Indiacorps).

Media can be viewed as a positive aspect of globalization.

Media has the opportunity to reach people, and convey a
message to people all over the world. A magazine called Femina
is the top women’s magazine for Indian women. It was created in
1959 and since it showcased its website in 1996, it has received
much feedback from Indians all over the world. Femina shows the
accomplishments of different Indian women from all over and
provides inspiration to the women who read it (TSS).

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Negative Effects of Globalization

 Globalization has had negative implications for Indian
women. Their plights are similar to those of women in other
developing regions such as Africa and Asia. Globalization has
made many international corporations richer by the billions.
However, what most people are not aware of is that women in
these developing countries are suffering enormously due to this
expansion of corporate empires. According to estimates from
World Development Indicators, “Women work two-thirds of the
world’s working hours, produce half of the world’s food, but earn
only ten percent of the world’s income, and own less than one
percent of the world’s property (Tomlinson)”. According to
Vandana Shivea, and Indian ecofeminist and scholar, globalization
along with the support of organizations
such as the World Bank and the
International Monetary Fund, have
created slave wages. These wages are
not necessarily the result of “unjust”
societies, but of the fact that global trade
devalues the worth of people’s lives and
work (Aujla). While globalization has
brought jobs to rural, developing areas
such as India where there was previously
no employment, these jobs seem to be
wolves in sheep’s clothing. The work
available to women is almost always
poorly paid, mentally and physically unhealthy, demeaning, or
insecure.

Women are suffering two fold. As

women in developing countries move
into the work force, their domestic
responsibilities are not alleviated.
Women work two full time jobs. One in
a factory, where they are paid next to
nothing, the second is in the home
where they are paid nothing
(Moghadam). According to Merlin A.
Taber and Sushma Batra, editors of
the book Social Strains of
Globalization in India, development for
poor women has meant the migration of men to cities, higher
prices for commodities, poorer job opportunities. “The mixture of
corporate capitalism and Western culture models is dissolving
family and community social controls as witnessed by higher
rates of family violence, rape, divorce, and family breakdown.”

One example of women’s labor being exploited would be the

Noida Export Processing Zone, which is 24 km from New Delhi.
These “zones” prefer to hire women because they are “more
docile and more productive in men.” In short, they are easier to
control and less likely to retaliate against less than ideal working
conditions, which are exactly what thousands of women
encounter 12 hours a day. The zone is dangerous, hot, and
unsanitary. Unnecessary body searches are routine. There are no
maternity benefits and minimum wage is never enforced. Women
who become pregnant or marry are immediately fired. Overtime
is compulsory but women are paid lower rates than men. In order
to avoid being fired, women turn to unsafe abortions performed
by unqualified “doctors.” In the zone, “respiratory problems,
pelvic inflammatory disease, and sever cases of dehydration and
anemia are common.” (Rajalakshmi)

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The same questions have been answered so many times. Also, by putting 5
questions together in one question, you do not get many answers. Any way wait for
all answers.
1. The main factors that lead to globalisation in the 21st century are:
i. the gross failure of all closed, command communist and socialist economies to
bring in economic properity, better quality life and health and education to the
common man, resulting in opening up of China, disintegration of the Soviet Union,
merger of two Germanies, the international bankrptcy of India in 1990-91,
ii the rapid growth of telecommunications, computer and internet technologies,
iii. the benefits derived from GATT negotiations
iv. the falling prices of new technology goods available to the poorest man, thanks
to multinationas\al companies
v. the great benefits that globalisation in the 20th century has brought in as
described below:
Globalization is a buzz word that refers to the trend for people, firms and
governments around the world to become increasingly dependent on and
integrated with each other. This can be a source of tremendous opportunity, as new
markets, workers, business partners, goods and services and jobs become
available, but also of competitive threat, which may undermine economic activities
that were viable before globalisation.
Usually, the term is synonymous with international integration, the spread of free
markets and policies of liberalisation and free trade. The process is not the result
simply of economic forces. The decisions of policymakers have also played an
important part, although not all governments have embraced the change warmly.
The driving force of globalisation has been multinational companies, which since the
1970s have constantly, and often successfully, lobbied governments to make it
easier for them to put their skills and capital to work in previously protected
national markets. Firms enjoying some national protection, and their (often
unionised) workers, have been some of the main opponents of globalisation, along
with advocates of fair trade. Despite all the talk of globalisation during the 1990s, in
some respects the world economy was more integrated in the late 19th century.
The labour market was certainly more global. For example, the flow of people out of
Europe, 300,000 people a year in the mid-19th century, reached 1m a year after
1900. Now governments are much fussier about immigration, and people are no
longer free to migrate as they wish. As for capital markets, only in the 1990s did
international capital flows, relative to the size of the world economy, recover to the
levels of the few decades before the first world war. This early globalised economy
did not last for long, however. Between the two world wars, the flows of trade,
capital and people collapsed to a trickle. Even before the first world war,
governments started to put up the shutters against migrants and imports. Could
such a backlash against globalisation happen again?
There are numerous advantages in the shift to a global economy including the
possibility to increase benefits from economies of scale. The breaking down of
global barriers allows companies to benefit from the largest and cheapest
workforces, raw materials, and technology. For example, “many North American
publishers actually write and produce much of their software in countries such as
India.”[1] Other advantages that companies benefit from include: the opportunity
for smaller companies to quickly expand globally, having more choices when
recruiting a workforce and the opportunity to target a larger customer base (which
translates to greater earning potential).
It is obvious how global economy also helps in promoting international cooperation
and peace for the nations involved in the international trade by increasing mutual-
dependence. For instance, India and Pakistan are often in dispute over land territory
such as Kashmir. It can be argued that it would be less likely that these two
countries will enter into combat due to the severe negative effects on their
economies. However it can alternatively be argued that countries that are shun out
of global trade are more likely to resort to armed combat for the same reasons that
are mentioned above, therefore the subject needs a proper study to draw any
conclusions on globalization’s effect on world peace.
2. Effect on Indian Industry:
Notwithstanding the low level of globalization of Indian economy, the impact of
globalisation has been highly positive in all most all spheres of economic and social
life and virtually no negative effect. It is only because of opening uo of the hitherto
closed, govt.-oppressed and controlled economy to the process of globalisation that
has helped Indian economy to grow rapidly:in the last 10-12 years, India's economic
growth has been high, exports have boomed, incidence of poverty has been
reduced, employment has surged, begging by India for economic aid has stopped,
long-term inflation rate has gone down, scarcity of goods have disappeared, the
quality of products available have improved substantially and overall India has
become progressively vibrant and internationally competititive. Indian companies
are setting up companies abroad, India has better technological development for
the benefit of the common man ( mobiles, road transport, cheap clothes, etc )- only
because of globalisation.
Kindly note that the current teachers in India will ask for negative effects because
that is how they are trained by their foreigner-scared teachers. Better note the
negative effects first (actually not negative but better to write this way to satisfy the
teachers).The so-called negative effects of globalization on Indian industry have
been:
1. Rise in demand for labor and the rise in wage rates leading to some increase in
costs.
2. Effect on Indian farming sector:
3.. Weakening power of the trade unions over labor in emerging industries and
growth sectors like IT, entertainment, internet and mobile services, airlines,
banking, insurance, banking services.
3. Too much competition in the market leading to continuous pressure on raising
productivity, enhancing consumer service, improving product quality, in order to
survive.
4.Voluntary retirement for many public sector units.
5. Too many sales person chasing customers.
6. Too many cars on the road and traffic congestion.
7. Growth of consumerism.
8. Instability in profits due to too much choice among customers.
9. Shortage power and infrstructure affecting industrial expansion.
10. Closure of inefficient units supplying costly and shoddy products and loss of
jobs.
11. Two years of large increase in textile industry jobs followed by large loss of jobs
due to Rupee appreciation making Indian industry uncompetitive.
12. Problems of dealing with uncertainty in the international market in terms of
demand, supply and prices.,
13. The fears in the minds of many people that multi-national companies and the
USA will explouit Indian economy and take away our national soverignty in the same
manner they have done this in China, Russia, Vietnam etc.
You can generate many such ideas to please the teachers. But the fact is there are
hardly any real negative effect of globalisation compared with the pre-globalisation
period.
India has done very little reforms in agriculture to enable private and individual
economic initiative that would help harness the benefits of globalisation. Despite
this govt. created hurdles to globalisation, Indian agriculture has benefited
substantially from whatever little globalisation that has ben allowed in Indian
agriculture.The farmers that got the exposure to global links of markets, technology
and investment, benefited in terms of improving their yields, getting better prices
and secured offtake. In many areas of the country, tomatoe growers, potato farmers
and fruit growersfarmers benefited from tie-up and collaborations with ketchup,
potato chips, fruit juices, etc. Indian agricultural exports have grown where Indian
farmers in selected pockets are competitive: these include spices made from
agricultural produce, flowers, mangoes, other fruitsrice, vegetables, pickels, papads,
tobacco, etc. The e-choupals network created by an Indian company and the spread
of mobile telephones have provided on line market price and climatic information
on on-line real-time basis and helped them to get the best prices and sell to the
most attractive buyers and brought them freedom from the clutches of the
middlemen and traders. Because of the resistance from the traders and the
politicians, more and more farmers are not getting the benefits of globalisation:
vested interests are stopping the entry of more professional and honest buyers of
agricultural produce of high quality for supply to urban areas through network of
malls. Fishermen in Kerala have increased their incomes using mobile phones to
find out the best mandis where the prices are the highest on each day. There have
not been any negative effect of globalisation on Indian farming. But faulty and
restrictive policies of Indian politicians have made it difficult for farmers to
consolidate their holdings for larger scale commercial farming, acess to large, high
paying buyers with retail chains, support of well-organised transparent mandis not
ruled by traders. As a result in many areas farmers have committed suicides
because of crop failuers and high indebtedness. Using the old British Indian laws of
land acquisition, the state govts. are forcing farmers to sell their lands for industries
at prices they consider justified rather than asking industrialists and companies to
bid for agricultural land which will increase the market prices of land,. Once these
policy impediments are removed, globalisation will proceed in Agriculture and
farming in the proper way and benefit Indin agriculture and farming throughout the
country. India does not need all the land under agriculture now for agricultural use:
much less area would suffice to feed the nation and export if agricultural
productivity can be raise substantially through private investment in agriculture by
companies that need agricultural produce for their business growth and India's
economic growth.
To reiterate, There are absolutey no negative effects of globalisation on Indian
farming. The politicians are spreading rumours to get votes from farmers promising
to save them from the threats of globalisation. There is however threat to farmers
to some extent: they may have to sell land against compensation to allow
industrialisation to progress. There would also be displacement of agricultural labor
as a result and they have to be compensated, rehabilitated and absorbed in the
expanding industrial, construction and other service sector. But all these have to
take place whether India globalizes or not. India's economic growth in future will
demand significant rise in agricultural productivity so that some part of agricultural
lands can be diverted for industrial growth and residential accomodation. Without
releasing agricultural land for industry, development of roads etc,. agriculture itself
will suffer along with the farmers. The farmers should be careful that they get fairly
compensated instead of getting fooled by govts. and industries saying that they are
offering more than market price. There is no active market for agricultural land in
India. Industries and Govt. should be in competitive bidding process to buy any
agricultural land to get reakl fair price which may be much higher than what they
are getting now.
Farming in India urgently needs consoldation of holdings, large sized farms and
considerable investments that would raise India's farm output many fold even after
giving up a part of agricultural lands for industrial and infrastructure development.
The foodprices world over are going to shoot up. Indian farming needs to be allowed
to make the maximum gains. Today, politicians are keeping the urban poor happy
by keeping most farmers poor that helps keep food prices low. But this policy will
soon fail and India may have to import grains if farming sector does not radically
improve its productivity.
3. Effect of globalisation on Indian industry has been very positive, though some
industrial firms with the baggage of high cost, inefficient plants and processes
inherited from the past because of closed economy's government dictated industrial
policies and priorities had to face serious problems in the beginning. But soon most
of the industries have become more and more efficient, customer focussed and
improved their international competetiveness in terma of costs, prices, product
quality and variety. Industrial growth has been very high and strong during the past
decade because of globalisation. Exports have increased tremendously. Induan
industries are also expanding abroad. Foreign companies have substantially
increased their investments in Indian industries. Wages of industrial labour has
increased substantially as they have become very productive. Lock out and strikes
have declined to insignificantly low levels because industrial labor is happy. Those
who cannot be efficient and past their prime age tio retrain themselves in modern
methods and processes have been retired with very attractive voluntary retirement
schemes. The trade unions are finding it difficult to influence industrial workers into
agitation because labor has started benefiting from the positive fallout of
globalisation on the prosperity and growth of the industrial sector. Talented and
merited labor is commanding premium compensation in the labor market. Several
new type of industries have also come up. Small scale industries of the past has fast
grown into medium scale companies. Incidence of industrial sickness has gone done
drastically.
4. WTO and globalization
World Trade Organization (WTO) is the only international organization dealing with
the global rules of trade between nations. Its main function is to ensure that trade
flows as smoothly, predictably and freely as possible.
The result is assurance. Consumers and producers know that they can enjoy secure
supplies and greater choice of the finished products, components, raw materials
and services that they use. Producers and exporters know that foreign markets will
remain open to them.
The result is also a more prosperous, peaceful and accountable economic world.
Virtually all decisions in the WTO are taken by consensus among all member
countries and they are ratified by members' parliaments. Trade friction is
channelled into the WTO's dispute settlement process where the focus is on
interpreting agreements and commitments, and how to ensure that countries' trade
policies conform with them. That way, the risk of disputes spilling over into political
or military conflict is reduced. By lowering trade barriers, the WTO’s system also
breaks down other barriers between peoples and nations.
At the heart of the system — known as the multilateral trading system — are the
WTO’s agreements, negotiated and signed by a large majority of the world’s trading
nations, and ratified in their parliaments. These agreements are the legal ground-
rules for international commerce. Essentially, they are contracts, guaranteeing
member countries important trade rights. They also bind governments to keep their
trade policies within agreed limits to everybody’s benefit.
The agreements were negotiated and signed by governments. But their purpose is
to help producers of goods and services, exporters, and importers conduct their
business.
The goal is to improve the welfare of the peoples of the member countries. The
World Trade Organization (WTO) is an international organization designed to
supervise and liberalize international trade. The WTO came into being on January 1,
1995, and is the successor to the General Agreement on Tariffs and Trade (GATT),
which was created in 1947, and continued to operate for almost five decades as a
de facto international organization. The World Trade Organization deals with the
rules of trade between nations at a near-global level; it is responsible for
negotiating and implementing new trade agreements, and is in charge of policing
member countries' adherence to all the WTO agreements, signed by the bulk of the
world's trading nations and ratified in their parliaments. Most of the WTO's current
work comes from the 1986-94 negotiations called the Uruguay Round, and earlier
negotiations under the GATT. The organization is currently the host to new
negotiations, under the Doha Development Agenda (DDA) launched in 2001. The
WTO is governed by a Ministerial Conference, which meets every two years; a
General Council, which implements the conference's policy decisions and is
responsible for day-to-day administration; and a director-general, who is appointed
by the Ministerial Conference. The WTO's headquarters are in Geneva, Switzerland.
The WTO's stated goal is to improve the welfare of the peoples of its member
countries, specifically by lowering trade barriers and providing a platform for
negotiation of trade. Its main mission is "to ensure that trade flows as smoothly,
predictably and freely as possible". This main mission is further specified in certain
core functions serving and safeguarding five fundamental principles, which are the
foundation of the multilateral trading system.
Functions
Among the various functions of the WTO, these are regarded by analysts as the
most important:
It oversees the implementation, administration and operation of the covered
agreements.
It provides a forum for negotiations and for settling disputes.[
Additionally, it is the WTO's duty to review the national trade policies, and to ensure
the coherence and transparency of trade policies through surveillance in global
economic policy-making. Another priority of the WTO is the assistance of
developing, least-developed and low-income countries in transition to adjust to WTO
rules and disciplines through technical cooperation and training.[30] The WTO is
also a center of economic research and analysis: regular assessments of the global
trade picture in its annual publications and research reports on specific topics are
produced by the organization.[31] Finally, the WTO cooperates closely with the two
other components of the Bretton Woods system, the IMF and the World Bank.
The WTO establishes a framework for trade policies; it does not define or specify
outcomes. That is, it is concerned with setting the rules of the trade policy games.
[33] Five principles are of particular importance in understanding both the pre-1994
GATT and the WTO:
Non-Discrimination. It has two major components: the most favoured nation (MFN)
rule, and the national treatment policy. Both are embedded in the main WTO rules
on goods, services, and intellectual property, but their precise scope and nature
differ across these areas. The MFN rule requires that a WTO member must apply the
same conditions on all trade with other WTO members, i. e. a WTO member has to
grant the most favorable conditions under which it allows trade in a certain product
type to all other WTO members. "
Reciprocity. It reflects both a desire to limit the scope of free-riding that may arise
because of the MFN rule, and a desire to obtain better access to foreign markets. A
related point is that for a nation to negotiate, it is necessary that the gain from
doing so be greater than the gain available from unilateral liberalization; reciprocal
concessions intend to ensure that such gains will materialize.
Binding and enforceable commitments. The tariff commitments made by WTO
members in a multilateral trade negotiation and on accession are enumerated in a
schedules (list) of concessions. These schedules establish "ceiling bindings": a
country can change its bindings, but only after negotiating with its trading partners,
which could mean compensating them for loss of trade. If satisfaction is not
obtained, the complaining country may invoke the WTO dispute settlement
procedures.[36]
Transparency. The WTO members are required to publish their trade regulations, to
maintain institutions allowing for the review of administrative decisions affecting
trade, to respond to requests for information by other members, and to notify
changes in trade policies to the WTO. These internal transparency requirements are
supplemented and facilitated by periodic country-specific reports (trade policy
reviews) through the Trade Policy Review Mechanism (TPRM).[37] The WTO system
tries also to improve predictability and stability, discouraging the use of quotas and
other measures used to set limits on quantities of imports.
Safety valves. In specific circumstances, governments are able to restrict trade.
There are three types of provisions in this direction: articles allowing for the use of
trade measures to attain noneconomical objectives; articles aimed at ensuring "fair
competition"; and provisions permitting intervention in trade for economic reasons.
5 Globalization and the future of indian economy:
Globalization is an inevitable, irreversible process despite some vested interests
trying to thwart it and some other vested inteests trying to take better advantage
og globalization than others. This is because the increasing prosperty of people at
large of each and every country in the World is dependent on global trade,
economic coperation and global integran of economic activities in all spheres- trade,
commerce, financial services, technology commercialisation, conservation of
exhaustible resources, information and knowledge acquisition, protection of
environment, ecology, food and health security, enrichment of cultural diversity,
tourism, travel, and so on. This is being increasingly realized by more and more
common citizens of almost every country. The vested interests of military/ dynastic
ideological exploitation and oppression are getting exposed and will not be able to
able to keep common people away from globalization and its benefits for long.
Indian economy will also benfit and grow at a rapid rate, ensuring radical
improvements in standards of living and quality of life for more than 1.1 billion
Indians over the years. The increasing trend towards regional trade agreements and
bilateral trade agreements will make India realize that India is already on the fast
march on the path of globalization. India is becoming more expert in sorting out
issues at WTO. This may create problems for politicians and their parties, they will
not be able to live the comfortable luxurious lives and enjoy the priveleges of power
to control the lives of the masses, keeping them at their mercy for long. In
command economies or liberal democracies, the common people will increasingly
revolt against any move or extant systems that deny them the better life
globalization offers on the basis of "ism'istic/ religious/ racial ideologies or beliefs.
The alternative to globalization will be to perish. Globalize and globalize even more
or perish.

Source(s):
http://en.wikipedia.org/wiki/WTO

Health
Further information: Globalization and disease

Globalization has also helped to spread some of the deadliest infectious diseases known to
humans.[85] Starting in Asia, the Black Death killed at least one-third of Europe's population in
the 14th century.[86] Even worse devastation was inflicted on the American supercontinent by
European arrivals. 90% of the populations of the civilizations of the "New World" such as the
Aztec, Maya, and Inca were killed by small pox brought by European colonization. Modern
modes of transportation allow more people and products to travel around the world at a faster
pace, but they also open the airways to the transcontinental movement of infectious disease
vectors.[87] One example of this occurring is AIDS/HIV.[88] Due to immigration, approximately
500,000 people in the United States are believed to be infected with Chagas disease.[89] In 2006,
the tuberculosis (TB) rate among foreign-born persons in the United States was 9.5 times that of
U.S.-born persons.[90]
Peer Fiss and Paul Hirsch, in an article on the discourse of globalization, suggested using the
notion of framing as a way to study this polarization. By framing, they mean the way “interested
actors and entrepreneurs articulate particular versions of reality to potential supporters…” [130]
They identified three main frames:
1) The positive frame points to the potential gains and benefits of globalization.
2) The neutral frame portrays globalization as a natural, evolutionary, and largely inevitable
development. This discourse, which is associated with the financial community, avoids making
moral judgments.
3) The negative frame points out the increasing potential for economic crisis, the threat to the
livelihoods of workers, and the growing income inequality caused by globalization. This frame
also includes discourse which is primarily concerned with the negative impact of globalization in
the Third World.
To which we should add a fourth, newly emergent frame:
4) The constructive frame is an emerging frame that is more positive and constructive than the
negative frame. This discourse supports global cooperation and interaction while opposing some
of the negative effects of globalization
Critics argue that globalization results in:
• Poorer countries suffering disadvantages: While it is true that
globalization encourages free trade among countries, there are also negative
consequences because some countries try to save their national markets.
The main export of poorer countries is usually agricultural goods. Larger
countries often subsidise their farmers (like the EU Common Agricultural
Policy), which lowers the market price for the poor farmer's crops compared
to what it would be under free trade.[148] (See Agricultural subsidy for more
information.)
• The exploitation of foreign impoverished workers: The deterioration of
protections for weaker nations by stronger industrialized powers has resulted
in the exploitation of the people in those nations to become cheap labor. Due
to the lack of protections, companies from powerful industrialized nations are
able to offer workers enough salary to entice them to endure extremely long
hours and unsafe working conditions, though economists question if
consenting workers in a competitive employers' market can be decried as
"exploited". It is true that the workers are free to leave their jobs, but in
 many poorer countries, this would mean starvation for the worker, and
possible even his/her family if their previous jobs were unavailable.[149]
• The shift to outsourcing: Globalization has allowed corporations to move
manufacturing and service jobs from high cost locations to locations with the
lowest wages and worker benefits. This results in loss of jobs in the high cost
locations.[citation needed] This has contributed to the deterioration of the middle
class[citation needed] which is a major factor in the increasing economic inequality
in the United States .[citation needed] Families that were once part of the middle
class are forced into lower positions by massive layoffs and outsourcing to
another country. This also means that people in the lower class have a much
harder time climbing out of poverty because of the absence of the middle
class as a stepping stone.[150]
• Weak labor unions: The surplus in cheap labor coupled with an ever
growing number of companies in transition has caused a weakening of labor
unions in the United States. Unions lose their effectiveness when their
membership begins to decline. As a result unions hold less power over
corporations that are able to easily replace workers, often for lower wages,
and have the option to not offer unionized jobs anymore.[148]
• An increase in exploitation of child labor: for example, a country that
experiencing increases in labor demand because of globalization and an
increase the demand for goods produced by children, will experience greater
a demand for child labor. This can be "hazardous" or "exploitive", e.g.,
quarrying, salvage, cash cropping but also includes the trafficking of children,
children in bondage or forced labor, prostitution, pornography and other illicit
activities.[151]
In December 2007, World Bank economist Branko Milanovic has called much previous
empirical research on global poverty and inequality into question because, according to him,
improved estimates of purchasing power parity indicate that developing countries are worse off
than previously believed. Milanovic remarks that "literally hundreds of scholarly papers on
convergence or divergence of countries’ incomes have been published in the last decade based
on what we know now were faulty numbers." With the new data, possibly economists will revise
calculations, and he also believed that there are considerable implications estimates of global
inequality and poverty levels. Global inequality was estimated at around 65 Gini points, whereas
the new numbers indicate global inequality to be at 70 on the Gini scale.[152]
The critics of globalization typically emphasize that globalization is a process that is mediated
according to corporate interests, and typically raise the possibility of alternative global
institutions and policies, which they believe address the moral claims of poor and working
classes throughout the globe, as well as environmental concerns in a more equitable way.[153]
The movement is very broad[citation needed], including church groups, national liberation factions,
peasant unionists, intellectuals, artists, protectionists, anarchists, those in support of
relocalization and others. Some are reformist, (arguing for a more moderate form of capitalism)
while others are more revolutionary (arguing for what they believe is a more humane system
than capitalism) and others are reactionary, believing globalization destroys national industry and
jobs.
One of the key points made by critics of recent economic globalization is that income inequality,
both between and within nations, is increasing as a result of these processes. One article from
2001 found that significantly, in 7 out of 8 metrics, income inequality has increased in the twenty
years ending 2001. Also, "incomes in the lower deciles of world income distribution have
probably fallen absolutely since the 1980s". Furthermore, the World Bank's figures on absolute
poverty were challenged. The article was skeptical of the World Bank's claim that the number of
people living on less than $1 a day has held steady at 1.2 billion from 1987 to 1998, because of
biased methodology.[154]
A chart that gave the inequality a very visible and comprehensible form, the so-called
'champagne glass' effect,[155] was contained in the 1992 United Nations Development Program
Report, which showed the distribution of global income to be very uneven, with the richest 20%
of the world's population controlling 82.7% of the world's income.[156]
Distribution of world GDP,
1989

Quintile of Inco
Population me

Richest 20% 82.7%

Second 20% 11.7%

Third 20% 2.3%

Fourth 20% 2.4%

Poorest 20% 0.2%

Source: United Nations Development Program. 1992 Human Development Report[157]

Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with
more financial leverage (i.e. the rich) at the expense of the poor.[158]
Americanization related to a period of high political American clout and of significant growth of
America's shops, markets and object being brought into other countries. So globalization, a much
more diversified phenomenon, relates to a multilateral political world and to the increase of
objects, markets and so on into each others countries.
Critics of globalization talk of Westernization. A 2005 UNESCO report[159] showed that cultural
exchange is becoming more frequent from Eastern Asia but Western countries are still the main
exporters of cultural goods. In 2002, China was the third largest exporter of cultural goods, after
the UK and US. Between 1994 and 2002, both North America's and the European Union's shares
of cultural exports declined, while Asia's cultural exports grew to surpass North America.
Related factors are the fact that Asia's population and area are several times that of North
America.
Some opponents of globalization see the phenomenon as the promotion of corporatist interests.
[160]
They also claim that the increasing autonomy and strength of corporate entities shapes the
political policy of countries.[161][162]