Describe the impact of globalisation on Indian economy with example.
The Globalisation has impacted Indian economy in the following ways
(i) Increase in foreign investment, Over the past twenty years, the foreign investment has increased.
(ii) Emergence of Indian companies as multinational Several of the top Indian companies like Tata Motors, Infosys, Ranbaxy have been able to get benefit from the increased competition created as a result of Globalisation.
(iii) Creation of new opportunities Globalisation has created new opportunities for Indian companies, particularly providing services like IT.
(iv) Creation of new jobs For those which are Globalisation has created new jobs and has helped in reducing unemployment rate to an extent.
(v) A host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in India.
The impact of globalisation can be understood from below. As we know, globalisation has multiple components like:
Globalisation has affected India under these headings such as:
Economic effect: As the supermarket structure arrived in India, it is very difficult for the farmers to sustain. Due to cheap import, small traders are really suffering. On the other hand, globalisation has given chance to expand Indian IT sector+ pharma sector + Agricultural processed material. But the economy gets foreign currency, hence to get more foreign reserve, all are keeping quiet. It is also true that foreign currency gives us chance to have more development activities.
Cultural effect: More and more people are getting attracted towards western lifestyle because of globalisation. We can see significant changes in the expenditure pattern of public nowadays. Consumption is more as compared to savings. They are eager to buy branded and imported good which ultimately results in the increase in current account deficit or causes a trade deficit. Some say that the cultural aspect of globalisation is destroying our culture and values. Swami Vivekananda used to say that one should learn science from the west and let them have a deep sense of our rich moral values.
Social aspect: Nuclear families are coming more in picture due to globalization. MNC’s are setup in metro cities. A small town guy gets job in these companies and take a house on rent then after some get married. Nowadays foreign deputation is of high value, which youths cannot resist. But in all these things, he finally loses touch with his parents. Nuclear families are more based on utilitarianism, therefore, in case of any dispute relations ends.
Political effect: International organisations such as World Bank, IMF and WTO are interfering in internal matters of a democratic country, which is not always positive. A global accident can affect internal politics. A rise in right-wing leads to formation of govt. This is a global trend.
Philosophical effect: As per experts, globalisation is a philosophically defined by liberalism. In the year 1991, the fall of Russia leads to rise of America. USA supports open market economy. Thus, Globalisation is making most of the big economies easily penetrable. This is not so good in favour of poor and needy population
There are many positive good impacts of globalisation such as more consumer-centric services, fall of caste system, rise of middle class, more brands, better buying options, good and cheap shopping deals etc.