Globalisation In India

By, Carol Peters Prabhu

What is Globalisation?
The term globalization refers to the process of integrating various economics of the world. It avoids obstacles to the free flow of goods and services, technology, capital and labour.
1. Reduction of tariff barriers to permit free flow of goods and services among countries. 2. Creation of environment for free flow of capital among countries. 3. Creation of environment for free flow of technology, and 4. Creation environment for free mobility of labour among countries.

Arguments for Globalisation

Promotion of Foreign Direct Investment Restructuring Production and Trade Pattern Utilization of modern technology Promotion of Exports Gains to Consumers Advantage of competition Increase in the efficiency of banking and financial sectors Advantage of Free Trade Improvement of Factor incomes Gains from Migrations

Arguments Against Globalization

Dominance of Multinational Corporations Adverse effects on Domestic Enterprises Indiscriminate Liberalization Ruin of Traditional Industries Transfer of unsuitable Technology Creation of vested interests Nexus between MNCs and Governments Increase in economic inequality Opposition in developed countries Adverse Effects on culture

GLOBALISATION IN INDIA

Opening the Indian economy to foreign direct investment Removing constraints and obstacles to the entry of MNCs Allowing Indian companies to enter into foreign collaborations Carrying out massive import liberalization programmes

Case for Globalization of Indian Economy

Shift from import substitution to export led growth strategy Foreign Capital Inflows Globalization and Transfer of Technology Increased Market Access Faster Economic Growth and Poverty Reduction Employment Argument

Globalization Strategies
i. Convertibility of the Rupee ii. Import Liberalization iii. Opening the economy to foreign capital iv. Exporting v. Mergers and Acquisitions vi. Joint Ventures vii. Licensing and Franchising viii. Strategic Alliance ix. Management Contract

Positive Effects of Globalization for Indian Economy

a) b) c) d) e) f) g) h) i) Expansion of Trade Investment Flows Effects on Employment Inflow of Technology Gains to Consumers Expansion of Markets Growth of Enterprise Educative Effect Development of Money and Capital Markets

Negative Effects of globalization on Indian economy

a) b) c) d) e) f) g) h) i) Inequalities widened Transfer of Inappropriate Technology Encouraged Demonstration Effect Double Standards of Developed Countries Feminization of labour in low wage jobs Weakening of Welfare State Adverse effects on Small Enterprises Adverse Effects on Labour Adverse Effects on Culture

Thank you