IMPACT ON GLOBLISATION ON

INDIAN ECONOMY

By
208W1E001-Akshay.T
Tusara
Monica
Yukta
Akshay
Nischal
 INTRODUCTION

• Globalization is the new buzzword that has come to dominate

the world since the nineties of the last century.
• Till 90’s the process of globalization of the Indian economy
was constrained by the barriers to trade and investment.
• Liberalization of trade, investment and financial flows
initiated in the nineties has progressively lowered the barriers
to competition and hastened the pace of globalization
 Globalization
The process of globalization:-
• Includes opening up of world trade,
• Internationalization of financial markets,
• Population migrations,
• More generally increased mobility of persons, goods, capital,
data and ideas.
 Types of globalisation
1.Economic:
 Countries that trade with many others and have few trade
barriers are economically globalised.
2.Social:
 A measure of how easily information and ideas pass between
people in their own country and between different countries
(includes access to internet and social media networks).
3.Political:
 The amount of political cooperation between the countries.
Globalisation involve all these things
 Impact of globalisation in India
1.consumer:
 Globalisation and greater competition among producers has
been advantage to consumers.
 Consumers now enjoy improved quality with low prices for
several products.
 As a result, these people enjoy higher standard of living than

was possible earlier .

2.producer:
 Foreign investment in India
 New technology and production methods
 Rise of Indian multinational co-operation
 Loss to small producers
 Employment opportunities
Impact of globalization of indian
economy
 The impact of globalization has been highly positive in almost
all spheres of economic and social life and virtually no
negative effect.
 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 quantity of products available have improved
substainly and overall India has become progressively vibrant
and internationally competitive.
Impact of globalisation of indian
economy
 Service sector is the lifeline for the social economic growth of
a country.
 The real reason for the growth of the service sector is due to
the increase in urbanization, privatization and more demand
for intermediate and final consumer services.
 In advanced economics the growth in the primary and
secondary sectors are directly dependent on the growth of
services like banking, insurance, trade, commerce,
entertainment, etc.
 Factors responsible for globalisation
1.Technology
2.Development in telecommunication, computer,
internet etc.
Technology:
 Rapid improvement in technology has been one of the major
factors that has stimulated the globalisation process.
 In the last 50 years, the world had witnessed a major
improvement in transportation technology.
 This had made much faster delivery of goods across long
distance at lower cost.
Development in telecommunication, computer,
internet etc.:
 These have given a big boost to the process of globalisation.
 Because of the modern facilities, it is very easy to access
information instantly, and to communicate form remote areas.
 Liberalisation and Foreign trade and
Investment
Liberalisation:- The liberalisation of trade means
allowing foreign companies to start their business as
government restrictions are removed.
Trade barrier:-some restrictions on foreign goods like tax
on imports. Government can use trade barriers to increase or
decrease foreign trade and to decide what kinds of goods and
how much of each, should come into the country.
Investment:- The Indian government after independence
had kept barriers to foreign investment. This was considered
necessary to protect the producer within the country from
foreign competition.
 Positive Aspects of Globalization
 More Efficient market :-The sign of an efficient market is where
there is an equilibrium between what buyers are willing to pay for a good
or service and what sellers are willing to sell for a good
 Increase in competition:-With more competitors to fight over
market share, each company has to constantly look to improve their goods
or services or create more value for their customers.
 Stabilized security:-Globalization has halted many conflicts that
could have turned ugly if their country’s financial health didn’t depend on
other.
 More wealth equality throughout the world:-Globalization
may have stopped you from buying another flat screen TV, but it also
helped countries people in developing countries put food on their table for
their families
 Negative Aspects of Globalization
 Globalization uses up finite resources more quickly:-Due to
use of finite natural resources world will be facing the problem of global
warming & various environmental issues.
 Globalization increases world carbon dioxide emissions:-It
is due to easy availability of goods emitting CFC’S With the dollar as the
world’s reserve currency, globalization leads to huge US balance of trade
deficits and other imbalances:- Example is the latest one with Rupees
 Globalization tends to move taxation away from
corporation, and onto individual:-it is due to industries that
contributes more in GDP. Government somewhere gives the concessions.
But at the same time taxes are collected more from the common people