1: Definition of Globalisation

2: Benefits of Globalisation
3: Losses of Globalisation
4: India is the part of Globalisation
5: Role of india in Globalisation
Globalization is the system of interaction among the
countries of the world in order to develop the global
economy. Globalization refers to the integration of
economics and societies all over the world.
Globalization involves technological, economic,
political, and cultural exchanges made possible largely
by advances in communication, transportation, and
infrastructure.

By buying products from other nations customers are
offered a much wider choice of goods and services.
Creates competition for local firms and thus keeps
costs down.
Globalisation promotes specialisation. Countries can
begin to specialise in those products they are best at
making.
Economic Interdependence among different nations
can build improved political and social links.

Employment
Considered as one of the most crucial advantages, globalization has led to the generation
of numerous employment opportunities. Companies are moving towards the developing
countries to acquire labor force. This obviously caters to employment and income
generation to the people in the host country. Also, the migration of people, which has
become easier has led to better jobs opportunities.

Education
A very critical advantage that has aided the population is the spread of education. With
numerous educational institutions around the globe, one can move out from the home
country for better opportunities elsewhere. Thus, integrating with different cultures,
meeting and learning from various people through the medium of education is all due to
globalization. Developing countries or labor-intensive countries have benefited the most.

Product Quality
The onset of international trade has given rise to intense competition in the markets. No
longer does one find limited number of commodities available. A particular commodity
may fetch hundreds of options with different prices. The product quality has been
enhanced so as to retain the customers. Today the customers may compromise with the
price range but not with the quality of the product. Low or poor quality can adversely
affect consumer satisfaction.


Free Movement of Capital
Capital, the backbone of every economy, is of prime importance for the proper functioning of the
economy. Today, transferring money through banks is possible just by the click of a button, all due to
the electronic transfer that has made life very comfortable. Many huge firms are investing in the
developing countries by setting up industrial units outside their home country. This leads to Foreign
Direct Investment, which helps in promoting economic growth in the host country.

Communication
Information technology has played a vital role in bringing the countries closer in terms of
communication. Every single information is easily accessible from almost every corner of the world.
Circulation of information is no longer a tedious task, and can happen in seconds. The Internet has
significantly affected the global economy, thereby providing direct access to information and
products.

Transportation
Considered as the wheel of every business organization, connectivity to various parts of the world is
no more a serious problem. Today with various modes of transportation available, one can
conveniently deliver the products to a customer located at any part of the world. Besides, other
infrastructural facilities like, distribution, supply chain, and logistics have become extremely efficient
and fast.


Cheaper Prices
Globalization has brought in fierce competition in the markets. Since there are varied products to
select from, the producer can sustain only when the product is competitively priced. There is every
possibility that a customer may switch over to another producer if the product is priced exorbitantly.
'Customer is the King', and hence can dictate the terms to a very large extent. Therefore, affordable
pricing has benefited the consumer in a great way.

International Trade
Purchase and sale of commodities are not the only two transactions involved in international trade.
Today, international trade has broadened its horizon with the help of business process outsourcing.
Sometimes in order to concentrate on a particular segment of business it is a practice to outsource
certain services. Some countries practice free trade with minimal restrictions on EXIM (export-
import) policies. This has proved beneficial to businesses.

GDP Increase
Gross Domestic Product, commonly known as GDP, is the money value of the final goods and services
produced within the domestic territory of the country during an accounting year. As the market has
widened, the scope and demand for a product has increased. Producers familiarize their products and
services according to the requirements of various economies thereby tapping the untapped markets.
Thus, the final outcome in terms of financial gain enhances the GDP of the country. If statistics are of
any indication, the GDP of the developing countries has increased twice as much as before.
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.
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 8
th
position in 1991 to 4
th
place
in 2001. When GDP is calculated on a purchasing
power parity basis.


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.


The process of globalization has been an integral part
of the recent economic progress made by India.
Globalization has played a major role in export-led
growth, leading to the enlargement of the job market
in India.


One of the major forces of globalization in India has been
in the growth of outsourced IT and business process
outsourcing (BPO) services. The last few years have seen an
increase in the number of skilled professionals in India
employed by both local and foreign companies to service
customers in the US and Europe in particular. Taking
advantage of Indias lower cost but educated and English-
speaking work force, and utilizing global communications
technologies such as voice-over IP (VOIP), email and the
internet, international enterprises have been able to lower
their cost base by establishing outsourced knowledge-
worker operations in India.
As a new Indian middle class has developed around
the wealth that the IT and BPO industries have
brought to the country, a new consumer base has
developed. International companies are also
expanding their operations in India to service this
massive growth opportunity.
Notable examples of international companies that
have done well in India in the recent years include
Pepsi, Coca-Cola, McDonalds, and Kentucky Fried
Chicken, whose products have been well accepted by
Indians at large.
Globalization in India has been advantageous for
companies that have ventured in the Indian market.
By simply increasing their base of operations,
expanding their workforce with minimal investments,
and providing services to a broad range of consumers,
large companies entering the Indian market have
opened up many profitable opportunities.
Indian companies are rapidly gaining confidence and
are themselves now major players in globalization
through international expansion. From steel to
Bollywood, from cars to IT, Indian companies are
setting themselves up as powerhouses of tomorrows
global economy.











MADE BY:
CHARU
BBA 2
ND
SEM