Globalization Essay

From 2003-2004 to 2006-2007, annual Real Growth Rate increases from 8.4% to 9.7%. Because of the summer’s credit-market crisis, the Indian GDP Growth decrease to 9.0% from 2007 to 2008 and Indian government estimates GDP Growth for 2008-2009 is 7.1%. The decrease of GDP ascribes the global financial crisis which affects India primarily through trade and capital outflows (The World Bank, 2008:16). On trade, exports are possible to weaken and make its contribution to GDP growth may be drop sharply. However, during

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

The question people are asking themselves is whether globalization is a good or bad thing. For many years, there have been concerns about whether globalization has an impact on language. How exactly can it affect a person, and if it does in what ways? What if nobody is able to understand you? Immigrants find themselves in this situation quite often; this phenomenon is called linguistic isolation, and argues against globalization and how it leads to the extinction of indigenous languages and beliefs. While other people view globalization as an easier way to communicate, evolutioniza, and a technique for everyone to unite and helps bring us closer together. Globalization can be seen to support and strengthen communication between millions who have completely different cultures. Globalization aids us by being able to assist us in communicating across different cultures. There has been an increase debate on how language defines our cultural self. Globalization is eagerly increasing in today’s world quite rapidly taking a toll effect in dialects. This increase in globalization has many effects on language, both positive and negative. Globalization is affecting language in which it is causing it to become endangered because many people seem to be distressed in society and the native language population is decreasing.

In order to finance expenditures on public goods and services that promote growth and increase nations welfare governments often have to borrow this decision of how much to borrow is that of fiscal policy which determines the targeted level of debt based on a sustainability analysis of government debt. The main cause for the increasing domestic debt and its utilization to finance revenue deficit, is the rigidity and the restricted scope for further expansion of the tax receipts and low nontax revenue to meet the growing non-developmental expenditure. This rise in non-developmental expenditure is attributed to interest payments and defense expenditure, accounting for nearly one-third of total expenditure. It is essential to understand the composition of domestic debt, an important feature of fiscal policy. Internal debt, small savings, provident funds, and reserve funds and deposits are the main constituents. With respect to India, internal debt of the central Government is secured under the Consolidated Fund of India and that of the States in the case of the State Governments. The structure of domestic debt has been fluctuating over time in India and the share of internal debt in domestic debt has been declining, but it still accounts for more than half of domestic debt. In India, external debt can only be incurred by the Central

Globalisation is a really widespread topic. There are millions of definitions, opinions, organisations and perspectives because it concerns the whole world. This essay is a try to give some information and to explain my view of the issue.

Globalisation is the process in which all the other nations of the planet come together to expand out exchanges and social trade. This results in a trade of different perspectives, knowledge, items and culture. Many goods and services have increased, because of worldwide trading, throughout the past years.

India is one of the fastest economic growth countries in the world; it is also one of the world’s top ten economics. According to the global purchasing power parity data from the IMF, India is the third largest economy country of the world. As the US dollar to be the monetary unit, India is the seventh largest economy with high speed increase rate. Therefore, many economists forecasting that until 2050, India will become the No.3 largest economy country which just behind US and China. As the growth speed side, the GDP increase rate of India was 7.3% in 2014-2015 fiscal year, It is exceed China to become the fastest economic growth

- Most aid provided by consortium such as: World Bank, Asia Development Bank (ADB), OPEC, Aid to India Consortium and Japan India's largest aid granter and lender - $337 million grants and $2.4 billion loans between period 1984-1993.

Globalization is defined as the worldwide interdependence of resource flows, product markets and business competition that characterize our new economy. It is hardly unnoticeable how countries, organizations, people, resources, money, services and information are all interrelated globally. Thanks to the improvements in communication and transportation technologies, such interrelation is more and more achieved. There are many positive effects of globalization such as the rise of some developing nations through increased employment and technological advances. However, one can never underestimate the negative effects, such as the declining national sovereignty and shift of domestic jobs overseas where labor is much cheaper.

If we look at India’s Balance of Payments since 1970-71, we see that external account mostly balances in 1970s. Infact in second half of 1970s there is a current account surplus. This was a period of import substitution strategy and India followed a closed economy model.

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?”

Balance of Payments (BoP), being a record of the monetary transactions over a period with the rest of the world, reflects all payments and liabilities to foreigners and all payments and obligations received from foreigners. In this sense, the balance of payments is one of the major indicators of a country 's status in international trade. BoP accounting serves to highlight a country 's competitive strengths and weaknesses and helps in achieving balanced economic-growth. It can significantly affect the economic policies of a government and the economy itself. Therefore, every country strives to a have a favorable balance of payments and maintains its long run sustainability. India’s balance of payment position was quite unfavorable during the time of country’s entry into liberalized trade regime. Two decades of economic reforms and free trade opened several opportunities that, of course, reflected in the balance of payments performance of the country. This paper, therefore, attempts to evaluate the trends and emerging challenges of India’s Balance of Payments.

Fortunately India has not been affected to the same extent as the other economies of the world. But our exports have suffered a decline since last 10 months due to contraction in demand in the traditional export markets.

There has been a sharp increase in the Current Account Deficit in Indian economy. In previous years the current account deficit increased moderate rate but in the fiscal year of 2011-12 there was sharp increase in current account deficit, marking a rise to nearly 4.2 per cent of GDP. High current account deficit has always posed serious implications for an economy and therefore for India it is a matter of concern. This research paper deals with the impact of current account deficit on the Indian economy and analyzes the causes and measures to tackle current account deficit. The researcher has studies the current account deficit. This research paper has been divided into 5 sections.

India has certainly reaped these benefits as now the country is recognized as a growing/emerging economy. The country is coming out of the ‘Less Developed Country’ tag. Foreign Capital inflow has given a boost to our industrial and social growth and also provided the savings to undertake essential infrastructure development works. Prior to the nineties decade, the country depended heavily on foreign aid and debt. The huge accumulation of debt from continuous international borrowings put tremendous pressure on the country’s Balance of Payment. We had no other source of repaying debts or covering the growing fiscal and current account deficits, other than more borrowings. The country has done away with that painful situation. Today dependence on aid has vanished. Now FDI (Foreign Direct Investment), FPI (Foreign Portfolio Investment) and NRI (Non Resident Indian) deposits dominate the capital flows in the country.