Impact Of Globalization On India 's Economy

2680 Words Nov 23rd, 2014 11 Pages
India is a nation that in recent years has been affected greatly by processes of globalisation. India has truly felt the forces of globalisation as it has morphed the very nature of the nations’ economic and societal processes.
Globalisation is defined as the integration between different countries and economies leading to the increased impact of international influences on all aspects of life and economic activity.
In order to measure the impact of globalisation on India’s economy one must consider the level of economic development and growth in the nation, and also understand the difference between the two. Economic growth refers to the increase in market value of the goods and services produced in an economy over time. It is generally measured by Gross Domestic Product. Economic development however, is a much broader term that refers to changes in overall well being and is measured using a variety of quality of life indicators such as the Human development index. For hundreds of years India has engaged in trade with far flung nations and as such globalisation is not a foreign concept for the nation. However, in recent years as a nation that is quickly emerging as a new economic superpower, globalisation has taken on an increasingly important role in the economy. As of 2011, India accounted for 1.95 % of world trade , a figure that has only come about due to forces of globalisation having an active impact on the Indian economy. India has been forced to trade extensively…
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