Economic Impact Of Globalization And Its Impact On Indian Economy

The Indian economy following the 1991 crisis swiftly moved away from central planning economy towards market-based economy with the government having less intervention and control. As a result, companies were operating in what is called emerging

Globalization is the process by which different societies and cultures integrate through a worldwide network of political ideas through transportation, communication, and trade. Generally, globalization has affected many nations in various ways; economically, politically, and socially. It is a term that refers to the fast integration and interdependence of various nations, which shapes the world affairs on a global level. Simply put; globalization is the world coming together. In this essay I will discuss multiple perspectives on globalization through the analysis of these three sources.

Globalization is difficult to simply define due to the variety of changing definitions that have been established over previous decades. Hamilton and Webster (2012) suggest that globalization is the connection between nations, defining globalization as a process in which barriers are reduced in order to encourage exchanges between countries. This view proposes that globalization refers very much so to the trade barriers and the improved communications between countries in order to ensure the world is unified. Globalization increases economic activity across the world and opens up markets for foreign investment.

The worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers.

This chapter gives an over view concept of what globalization entails. The chapter gives a great description and definition of the concept: “Globalization is a holistic, or systematic, set of structures, dynamics, functions or goals, internal constraints, and external impediments”. All of this is relative to the exchange of goods, services, e-goods, information, ect. In other definition, globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by

The theory of globalization today is a field of intensive debate as the efforts towards defining globalization most often highlight its individual aspects. According to Held and McGrew (1999), “globalisation is an idea whose time has come, yet it lacks precise definition”. Despite the ambiguity of the term “globalisation,” the use of the term, according to Held and McGrew, reflects increased interconnectedness in political, economic and cultural matters across the world creating a shared social space. Given this inter-connectedness, globalisation may be defined as: “a process which embodies a transformation in the spatial organisation of social relations and

Many United States products are not sold or distributed in other countries for various reasons such as bans and trade barriers. Amazon, for example, is the largest internet provider for goods and services in the world. But, many of its items are not readily available abroad. In India, the Amazon Dash which is a small device used to order items already pre-selected from Amazon is not available. Since Amazon is a worldwide producer of goods it should ultimately be offered for sale. India has flourished in the past couple of years through their economy and business ethics. Trade is more readily possible and their taxes have lowered due to economic changes in the years 2017-2018. Since their country is rich in culture and vast throughout, business is further possible, and current events have proven that.

I Frank Banda confirm that this work is entirely my own effort, any material used in this document that is not my own has been faithfully and fully referenced and the authorship acknowledged.

India is a developing country. The factors hindering development of the country are many. Some of them can be attributed to the low per capita income and larger chunk of the population living under the poverty line. India is a country with poor people but with rich natural resources. It can be said that the country’s potential is either the human resource or the natural resources are not adequately utilized to the maximum extent and that resulted in low per capita income. India is an agrarian economy. The economy is marred with unemployment and under employment. Since the economy is basically agrarian, disguised unemployment is also rampant among the farmer community.

In an increasingly interdependent financial world the recent Global Economic Crisis has had a cascading effect on the economies across nations. The crisis also impacted the Indian economy, though on the subdued scale and magnitude vis-à-vis the USA and other developed countries.

India’s economy today is thriving with it being the third largest country in the world in terms of its purchasing power. India is predicted by Goldman Sachs the (Global Investment Bank) in the year 2035 to be one of the largest economies in the world just under the US and China. India still has a few hurdles to climb because of its divided economy caused by a population explosion, poverty, unemployment and rural urban divide (http://www.mapsofindia.com/india-economy.html).

With the sweeping economic changes witnessed globally towards more market oriented economies, the government of India too has adopted radical economic policy measures to revitalise its economy. The Indian capital markets, which have attained a remarkably high degree of growth in the last decade, are on the brink for a further leap forward over the next ten years. With the opening of the economy to multinationals and the adoption of more liberal economic policies, the economy is driven more towards the free market economy.

Economic Globalization has been sweeping across the nation since the end of WWII. Slowly but surely all the nations across the world have been impacted by Economic Globalization. India for example has been one of the countries that has been recently hit by the storm and India’s economy can be seen to still be shooting up. In my paper I will be discussing the Economic Globalization of India, the roots of the globalization to occur, the effects it had and the negative effects it had. Effects such as foreign trade, economic growth and GDP. From the mid 90’s to current times India is seeing the effects of globalization, bringing India into one of the top countries in the world in terms of GDP being ranked at 10th in the world.

In June of 1991, India was four weeks away from defaulting on its external balance of payment obligations. India had $600 million in federal reserves, barely enough to pay for three weeks of essential imports. It was during this time that the former Prime Minister of India N. Rao elected Manmohan Singh as the Finance Minister. With the coming of Manmohan Singh came many economic reforms. These reforms helped pull India from massive debt and near collapse. This leads many to the question, “How did the economic policies of Manmohan Singh help India emerge from the 1991 economic crisis?”

After getting independence in 1947, the government of India envisioned a socialist approach based on the USSR system to developing the country’s economy. The last decade of the 20th century witnessed a drastic increase in foreign direct investment (FDI), accompanied by a marked change in the attitude of most developing countries towards inward investment. FDI flows have grown in importance relative to other forms of international capital flows, and the resulting production has increased as a share of world output.. FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development during recession. This money has allowed India to focus on the areas that may have needed economic attention and address various problems that continue to challenge the country. The factors that attracted investment in India are stable economic policies, availability of cheap and quality human resources, and opportunities of new unexplored markets. Mostly FDI are flowing in service sector and manufacturing sector recorded very low investments. The investments in service sector enhanced the benefit of flow of funds to the home country. Presently India is contributing about 17% of