Globalisation is an expansion of various business, services, and technologies to the global market. Globalisation is a remarkable factor that mobilize the cultural values and belief of a person from any country of the world at a global level. It let you do the business beyond the boundaries of your country.
We can define globalisation as a process of interaction among people, companies, and governments worldwide. In economic terms, globalisation can be described as the interdependence of the different countries to foster the trade beyond their boundaries. Globalisation is not a new concept.
In ancient time as well traders used to visit different countries in order to expand their business. But at that time the whole process used to be lengthy and risky and now connective has made easier for countries to come at one platform and exchange their technologies and services.
Countries abiding by the rules and regulations set by the World Trade Organisation (WTO) are a part of globalisation. Globalisation let the countries to open their economy and let foreign companies invest in it. The impact of globalisation can be seen not only the economy but in culture, social, political and communal life of countries and their citizens.
Globalisation impacts not only the business and services offered by companies but it also affects the culture of different countries as well. Among all the effects of globalisation, financial integration is the most important one as the economy of all countries run on money.
Globalisation in India
The effects of globalisation are very much visible in the economy of all the countries around the globe hence they can be seen on the Indian economy as well. India is one of the countries where competitiveness increases immensely after the advent of globalisation. Globalisation forced Indian companies to opt new business strategies to produce better and on time results.
Globalisation hit India in 1990, that time Mr. Manmoham Singh was the finance minister of India. Since then the country is doing good on the economic front and moving towards to become a strong and powerful economy in the world. Till 1990’s Indian economy was not open for globalisation as it was constrained by the barriers to trade and investment liberalisation in the country.
But after a major crisis in the Indian economy, it removed all the barriers and open its economy for the globalisation to receive a positive push.
Indian government initiated many major measures for globalisation in the 1990’s. Reduction in the number of areas reserved for the public sector, initiating the privatisation programme, and amendment of the monopolies are among a few of them.
Over the year India has been witnessing steady liberalisation and globalisation and more sectors are now opened up for direct foreign investment. Other new sectors like telecom, airports, insurance etc are welcoming the direct foreign investment.
Advantages of Globalisation
Globalisation in India has increased the competitiveness in business. After adopting the LPG model (Liberalisation, Privatisation, and Globalisation) of the economy, India’s economy has witnessed rapid growth. Let’ know about the benefits of globalisation in India.
Transfer of Technology
Globalisation acts as a mechanism for transfer of the technology from the developed countries to the under-developing countries like India. The present economy and technology available in India allow Indian companies to invest a little amount in R&D (Research and Development).
So the Indian companies approach foreign companies from developed for technological up-gradation. Because of globalisation Indian companies get advanced technologies from the developed countries and lead to higher productivity which means a higher rate of industrial growth. So we can consider the MNCs as carriers of technology from the developed countries to the developing countries.
Rise in Employment
Globalisation led the development of SEZ (Special Economic Zones) where more jobs are created. Indian offers cheap labor so many companies from developed countries have started to outsource their work to India. It resulted in a rise in employment. Globalisation has also made medical tourism a popular sector in India and in this sector also rise in employment is being witnessed.
Improved Standard of Living
As we mentioned above that the globalisation impacts the economic, social and culture of any country. In the case of India, the same thing happened and the shopping habits of Indians changed after globalisation hit the country. Living standards of Indians have improved a lot in the past few decades.
Globalisation has played a vital role to reduce poverty in India. We have developed a lot as a country but poverty is still a serious challenge for us. Globalisation helped the Indian economy to grow and give competition to the economy of other developed countries.
With a growing economy, the poverty level becomes better. Although still, India has to take many steps in the direction to make the country poverty free the impact of globalisation so far on poverty should be appreciated.
Globalisation made it easy for those who want to move across the border to acquire better education. People from underdevelopment countries have started to move to developed countries to get a better education. This migration for education opens new doors for the integration of cultures.
Disadvantages of Globalisation in India
After reading the advantages of globalisation if you find it as a great thing that happened on earth for the betterment of human then you should turn the coin and know about its disadvantages as well.
Globalisation has created many new opportunities in terms of job and business but on the other hand, it has become a big reason for unemployment. When a country outsources its services than it actually takes the opportunity from its citizens and gives it to other country’s people to earn more benefit and the same is happening now because of globalisation.
Dominant Global Brands
In the era of globalisation the competition has reached its peak and in such a competitive environment it becomes difficult for the small industries to survive. The dominant global brands don’t let the small industries to grow. Superior technologies hold the most of market share and for new and small industries to hold a good grip on the market becomes a challenge.
In order to attract more inward investment, the nation lowers down their taxes which initiate a rat race among the nations. All the countries have to save money in the condition of low taxes as well. So they have to do the cost cutting which resulted in a lack of basic security and other issues with employees.
India is a country that believes in “vasudhaiva kutumbakam” and globalisation is a live example of this. India has reaped many benefits through globalisation. The modern business strategies that India’s business tycoons follow are offered by the globalisation. Interaction with the economy of other countries has been a great learning experience for India and its business houses so far.
To conclude the effects of globalisation in India we can say globalisation has changed the industrial pattern of the country. Impact of globalisation is visible on the social front of the country and the mindset of the employer. Now the employer offers better salaries to recruit the best talent.
Indian economy has gained stability and trust due to globalisation and now it’s being recognised as a strong economic power of the world. But we need to keep an eye on its disadvantages as well while enjoying its benefits.