Globalisation, Liberalization, Privatization And Globalization In India

Globalization has been an integral part of India’s progress. It has opened up new avenues for growth.

As a result of these reforms, the world has been opened up to India and globalization had begun. Globalization has given India new opportunities in economics, social, traditional and governmental methods. The economic sector has had the biggest changes in India. As a result of globalization, westernization has become very apparent in Indian society today and has changed the daily life of the Indian. For instance, English language, clothing, and behaviors, which are more western and taking the place of Indian traditions, are the new ways of the younger generation of India. Globalization offers the youth economic liberation With remarkable growth, India is considered one of the fastest growing countries in the world today (Komath, 2010). Outsourcing by IT and BPO (business process outsourcing) has had tremendous growth in India with a rise in trained professionals that are employed by local and foreign companies to service customers in the U.S. and Europe. Globalization has had a good influence overall on the economy (Somalkar, n.d.). Industry has brought many big manufacturing companies to India which has boosted the economy, by offering employment to the Indian people. But in the farming areas or rural areas of India, it is a much different feeling. It is said that the liberation that the youth enjoy has had a negative impact of the rural areas saying the it has lowered the

Globalization is the process of interaction and integration of people, companies and governments of different nations. The process is driven by international trade, investment and information technology. (Globalization 101, 2015). Basically, globalization is what happens when countries do something together and how it is affected throughout the world

After their independences, and de-centralization and re-centralization, Brazil and India have advanced from socialist-inspired policies. These systems were theoretically in favor because they were believed to hold the potential to lift the economy and consequently the people. Unfortunately, these socialist-inspired policies did just the opposite: the economic growth rates in both countries slowed, authority was incoherent, and foreign investment was discouraged. Upon liberation from these systems and entering into the globalization and the free market did these two countries started to thrive rapidly. Interestingly, both Brazil and India decided to stay away from globalization and the free market when the rest of the world was getting

Globalization is defined as a process which, based on international strategies, aims to expand business operations on a worldwide level and was precipitated by the facilitation of global communications due to technological advancements, and socioeconomic, political and environmental

Globalization is defined as the act of globalizing, or extending to other or all parts of the world. In other words, globalization is that the world has experienced two great waves of gobalization driven by the free trade policies of major trading countries and falling transportation costs.

It should be understood that the 1991 economic reforms were not wholly a knee jerk reaction to the economic crisis that shook India in the same

Indian economy had witnessed many key policy changes in early 1990s. The new economic transformation, popularly known as, Liberalization, Privatization and Globalization (LPG model) meant for making the Indian economy as fastest rising economy and globally competitive. The chain of improvement undertaken related to industrial sector, trade as well as financial sector aimed at making the economy more efficient. With the inception of reforms to open the Indian economy in July of 1991, a new episode has been started for India and its billion plus population. This period of economic evolution has had a remarkable impact on the on the whole economic development of almost all key sectors of the economy, and its effects over the last decade can hardly

Globalization is the process by which organizations or different businesses create worldwide impact or begin working on an international scale. It is the process of free movement of goods, services, technology and resources around different parts of the world. Globalization has been in practice from a very early age. Moreover, advancement in infrastructure such as transportation, communication and technology have led to an increase in the relations and integration among people, organizations and governments of different nations. Globalization has a great influence on the economy, culture, trade and the political systems around the world. Globalization has played a key role in the advancement of the world. It has both positive and negative impacts on the social, economic and political aspect of the environment.

Globalization, as a concept, refers to the increased interconnectedness of the world. Globalization is the integration of economic activity across borders. Other forms of integration—above all, the spread of people and ideas—accompany it. Three interacting forces—technology, institutions, and policy—shape it.

According to the U.S. State Department (2012), “India's population is estimated at more than 1.1 billion and is growing at 1.3% annually. India has the world's 12th-largest economy with the third-largest in Asia behind Japan and China”. The improvement in India’s economy was influenced in part by encouragement from the World Trade Organization, which aided in negotiating a decrease in import taxes; allowing India to function from a healthier position economically. This move momentously changed India’s ability to offer goods and services. (U.S. Department of State)

The implications of globalization for a national economy are many. Globalization has intensified interdependence and competition between economies in the world market. These economic reforms have yielded the following significant benefits; Globalization in India had a favorable impact on the overall growth rate of the economy. This is major improvement give that India’s 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 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 pickup in GDP growth has helped improve

Firstly, the need for continued unilateral trade and investment liberalization with emphasis on regulatory reforms, much of inward FDI in India’s manufacturing sectors has been viewed as more of “market-seeking” rather than “efficiency-seeking” FDI that will help to link India with Asian IPNs. While the Indian economy becomes outward-oriented, the perception among trading partners of India as a preferred trade and investment partner needs to improve. It needs to deal with behind-the border restrictions on international trade and investment. Secondly, reducing transaction costs, and improving physical and institutional infrastructure for cross-border trade and investment. The high trade cost is due to export related documentation and high logistics cost from low quality infrastructures involving inefficient ports, complicated bureaucratic procedures and electricity outage. This creates unfavorable business environment. Upgrading of transportation infrastructure (road, railway, etc.) and communications technology services are needed to allow efficiency and reduction in cost. Third, addressing labor market rigidities, since manufacturing sector can provide large-scale employment, and be a key driver for structural change as India grows, it would help India integrate into Asian IPNs because it promotes growth through forward and backward linkages with other sectors, particularly the services sector which has contributed greatly to country’s growth. However, when there are rigidities, India is not able to shift its employment structure towards manufacturing even with its many low-cost skilled labors. Hence, it fails to make use of its human resources efficiently to compete in the international markets. Other than that, labor market rigidities cause “jobless growth” in organized manufacturing and thus the increasing use of contract and temporary workers. Therefore, there is a need for labor reform at national and state

Throughout time individuals in different parts of the world have been able to take part in the spread of both goods and services which has also given rise to the growth of many developing countries. One important process that can describe both these aspects is the process of globalization which is a worldwide phenomenon. Globalization can be referred to as a process that “links all the economies through trade in goods and services and foreign direct investment (FDI). “ (Shahbaz et al., 2015). Although globalization is thought to have many positive aspects because it assists in providing economic growth and value to a country there are also a variety of concerns. Globalization has the power to result in environmental consequences because of the need to continuously increase production. Thus, globalization has changed “the relationship between the community, the state and the economy” and also the relationship between the environment (Shiva, 2015, p. 2). As Shiva (2015) mentions “Globalization is restructuring the control over resources in such a way that the natural resources of the poor are systematically taken over by the rich and the pollution of the rich is systematically dumped on the poor “(p. 3). Therefore, developed countries take advantage of the globalization process by offsetting negative environmental effects to developing countries. For the purpose of this paper, the country of India will be used as a case study to demonstrate how globalization causes various

Economic Globalization has swept across the world 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 (Gross Domestic Product). From the mid 90’s to current times India sees 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.