Discussion of Whether Globalization is Good Or Bad for The Indian Economy

As a customer in today’s world, all of us have a huge choice of goods and services before us. The most recent models of laptop, mobile phones, camera, tv etc produced by the top manufacturer of the world are available to us. A Huge number of brands can be seen for other goods ranging from shirts to laptop to cars. The availability of such an extensive range of preference of products in the markets is a relatively recent phenomenon. You wouldn’t have encountered such a wide type of goods in Indian markets in a decade back. In a matter of year our market has been changed. So How do these transformations have taken place what are the factors that have bring these changes and how are those changes are affecting the lives of the humans. All of these are happening due to globalization. Globalization can be defined as the process of rapid interconnection or integration between countries. Due to globalization the large number of products, services and technology are exchanging between the countries. MNCs are playing a very important role in globalisation. The technology has played a key role in increasing the globalization process. The improvement in the transportation technology has help the company to transport their products at cheaper rate with faster delivery of the products at long distances. Within the improvement in the information and communication technology it has make the communication work easy and fast due to this the different countries can interact with each other’s easily and are closely connected with each other. The countries were doing exchange with each other for many years back. But globalization has increase in the market within a decade back because the organizations like Monetary Fund, World Bank and World Trade Organization have changed their policies and they are running on the motive of the developed countries like USA and others European countries. These organizations and the developed countries has also forced the developing countries and under developing countries to adopt their policies and open their local market for goods and products of world trade.

The India opened to globalization in the year 1991 when the finance minister of India was Dr. Manmohan Singh and at that year the globalization was fully accepted and implemented in India. He was the main person who framed the economic liberalization proposal. He was the main person who framed the economic liberalization proposal. Since then, the state has regularly moved in advance to emerge as one of the supreme economic leaders in the world. India has get many advantage from the impact of globalization but due to globalization some people and some sectors of Indian economy has also suffered very much. After accepting the globalization, the growth increase to 7% compared to the growth rate of 4% in the 35 years’ time after independence. The reduction in poverty has also taken place in the last 15 years but still the poverty Is too high. The Entrepreneurship has also increased in the country with many new entrepreneurs entering the corporate sector. The new technology and product has come to Indian market due to globalization that have made jobs more productive. The Employment have also increase in India because many MNC’s is opening their company in India due to availability of the cheap labour in Indian market and easy availability of technical person in Indian market. After passing of Special Economic Zones Act, 2005 the new jobs have been available quite effective and later the Export Processing Zones is also established which is employing thousands of people these both act is attracting the MNC’s to open the manufacturing plant or companies in India which will help in increasing employment in India. With the increase in MNC’s manufacturing plants or companies the business of local vendors and shopkeepers will also increase because for the construction of the plant the company should purchase the raw material from local vendor and the local labour should also get the employment and for manufacturing of the products the goods will be transported from the country within which will increase the sale of shopkeepers and businessman in India. The individuals working under the foreign organizations are getting well paid and rewarded which is also giving the message to the domestic organizations to reward their employee higher. The MNC’s has also brought the advanced knowledge and skills which are also motivating the domestic organization to advance their knowledge and skills and create the modification in the Indian structure. Due to the increase in the income of working people the purchasing power of individuals have also increased, and the standard of living has also become better.

India is also exporting the raw material in different countries and in the year 2018 the India has exported the goods of value worth $322.3 billion and in year 2017 the India has exported the goods of value worth $ 295.8 billion resulting in increase of total 9% year-over-year gain. About 18.4 % of Gross Domestic Product (GDP) come from exporting goods and services which shows that Globalization is good for the companies which provide item like Gems, Minerals, Clothing, Iron, Organic chemicals, Pharmaceuticals, Electrical machinery, Knit Clothing, Machinery Including computers etc as these are the major items which are exported from India to different countries. Iron and steel are the fastest growing products among the exports. Exporting these items helps in the economic growth of the country and within the increase in supply of these items the revenue of the company also increases, and the more labour will be required for completing the works which will help in increase in employability. Due to globalization the Indian medical tourism has also emerged as a developing sector in India which is estimated to be more than $3 billion the people from undeveloped countries having less medical facilities comes to India for check-up or operation. There are also many Indian MNC’s which are providing its goods and services in different countries. Companies like Airtel is providing telecommunication services to 20 different countries, TCS operates in 46 different countries, Asian paints is Asian third largest paint’s corporation, Zomato is providing operation to 23 different countries.

Looking from the point of view of the Indian consumer the more products and goods are available in Indian market due to globalization which gives a lot of choices to the Indian consumer to select their product according to their need and the price range. Due to availability of large number of products from different competitors the consumers get a wide variety of choices and get the product at cheaper price and the quality of product is also good. The consumer also gets the products of different culture also.

Globalization has also created problems for many people and the companies. MNC’s garment industry are purchasing the garment from local vendors and after putting their tag the are selling their product at high price so there Is a competition between local vendors to sell their product to MNC’s so they do cost reduction of garment by providing less wages to worker and workers do not get the permanent basis job they only get work on daily basis and are paid accordingly at low wages so globalization at this point have create negative effect on workers and factory owners. The goods and products that are imported from the china are cheap as the same product which are manufactured in India, so the Indian people tends to buy the Chinese products then the Indian product due to cheap price, so this thing is causing trouble to Indian manufacturer. India is importing $61.3 billion worth of Chinese product while it only exports $10.2 billion goods to china.

After the globalization in 1991 the Indian economy has a great impact the average annual rate growth of 3.5% in year 1950 – 1980 has increased to 7.7 % in the year 2002 – 2012 and the increase in economic growth has increases the GDP so globalization has a great impact on the economic growth. The Globalisation has benefitted many producers having skill, wealth and education and consumers are also getting benefited from it as it provides the large choice of variety at cheaper price but there is a section of society which have negative effects of globalization the workers and small producers of society has suffer from globalization due to increase in competition due to which globalization has a negative impact on Indian Society. But on the other hand, globalization allows foreign companies to invest in India to open their manufacturing plants or companies which help in providing job to Indian people which helps in lowering the poverty rate in India and it also help the Indian companies to start working with the MNC’s and expand their companies abroad.

References

1. D. A. Kumar, “Globalization and Its Effects on Indian Economy,” Indian Journal Of Research.
2. “Globalisation and The Indian Economy,” [Online]. Available: https://www.toppr.com/guides/economics/globalisation-and-the-indian-economy/globalisation-and-the-indian-economy/.
3. “Has India Benefited From Globalisation?,” [Online]. Available: https://www.youthkiawaaz.com/2017/10/globalization-and-its-imlication-on-indian-society/.
4. “India's Top 10 Exports,” [Online]. Available: https://www.toppr.com/guides/economics/globalisation-and-the-indian-economy/globalisation-and-the-indian-economy/.
5. ]“What are the world wide famous Indian owned companies ?,” [Online]. Available: https://www.quora.com/What-are-the-world-wide-famous-Indian-owned-companies.
6. “How India Beats China At Trade,” [Online]. Available: https://www.forbes.com/sites/timworstall/2017/07/16/how-india-beats-china-at-trade/#340984b548c8.
7. “Globalisation in India,” [Online]. Available: https://en.wikipedia.org/wiki/Globalisation_in_India.