Impact of globalisation on indian economy essay

Globalisation has emerged as one of the most frequently used term of which there is no universally acceptable definition. Thus, globalisation means something which covers or relates the whole world instead of being confined to a particular country.

Impact of globalisation on indian economy essay

In this essay we will discuss about Globalisation. After reading this essay you will learn about: Meaning of Globalisation 2. Characteristics of Globalisation 3. Globalisation of Indian Economy 6.

By the term globalisation we mean opening up of the economy for world market by attaining international competitiveness. Thus the globalisation of the economy impact of globalisation on indian economy essay indicates interaction of the country relating to production, trading and financial transactions with the developed industrialized countries of the world.

Accordingly, the term, globalisation has four parameters: Thus taking the entire world as global village, all the four components are equally important for attaining a smooth path for globalisation. In this way, the imperialist nations gained much at the cost of the colonial countries who had to suffer from the scar of stagnation and poverty.

Essay on Effects of Globalization on Indian Economy

However, the advocates of globalisation, especially from the developed countries purposely limit the definition of globalisation to only three components, i. They do not want to include the free flow labour within the parameter of globalisation set by them.

Too few share in its benefits. Too many have no voice in its design and no influence on its course. Now it is to be seen how far the developing countries would gain by adopting the path of globalisation in future.

In the mean time, various countries of the world have adopted the policy of globalisation. Following the same path India had also adopted the same policy since and started the process of dismantling trade barriers along with abolishing quantitative restrictions QRs phase-wise.

Accordingly, the Government of India has been reducing the peak rate of customs duty in its subsequent budgets and removed QRs on the remaining items in the EXIM Policy All these have resulted in open access to new markets and new technology for the country.

Main features of globalisation are as follows: Another characteristic of globalisation is the control of economic activities by domestic market and international market. It also established coordination among the national economy and world economy.

One of the important characteristics of globalisation is free trade between counties. It also means absence of excessive governmental control over trade.

Under globalisation, localities being connected with the world by breaking national boundaries; forging of links between one society and another and between one country and another through international transmission of knowledge, technology, ideas, information, literature and culture.

Essay on Globalisation

It results breaking of national barriers and creation of inter-connectedness. Globalisation is a composite process through which integration of nation-states across the world can be made by common economic, commercial, political, cultural and technological ties.

impact of globalisation on indian economy essay

It also leads to creation of a new world order with no national boundaries. Globalisation is a multi-dimensional process. Economically, it simply means opening up of national market, free trade and commerce among nations, free flow of labour, capital and technology, and integration of national economies with the world economy.

Politically, it means limited powers and functions of state, more rights and freedoms granted to the individual and empowerment of the private sector culturally it means exchange of cultural values between societies and between nations; and ideologically, it means the promotion and spread of liberalism and capitalism.

Globalisation originates from developed countries and MNCs based in those countries. Technologies, capital, products and services are allowed to enter from developed countries to developing countries. It is the developing countries which needs to be adapted with the changing situations and to accept those new ideas for attaining higher level of socio-economic development.

The above characteristics of globalisation simply suggests that there is a great need for global integration under the present global economic scenario. In view of the current global recession and financial crisis, there is a paramount importance of global integration. Following are some of the important advantages of globalisation for a developing country like India: Prolonged protective scenario in the absence of globalisation makes the production system careless about cost effectiveness which can be attained by following the policy of globalisation.

Cost effectiveness and price reduction of manufactured commodities will improve the terms of trade in favour of agriculture. This would result trickle-down effect to reduce the proportion of population living below the poverty line. Globalisation also has many disadvantages also.

Following are some of these disadvantages:Impact of globalization on Indian economy- An overview By: Tanveer Malik Introduction Indian economy had experienced major policy changes in early s.

Essay on Effects of Globalization on Indian Economy! It means to open the Trade and Economy for the international players. In other words, every manufacturer or producer of goods can compete for sale of their products without restrictions or without any imposed control.

Globalization is the process of worldwide integration of economic, financial, cultural, environmental, and communication system. Globalization refers to a scenario where countries and nations around the world becomes inter-connected and interdependent for meeting their needs, both internal and external, characterized by.

In the early s, India unlocked its economy to the world because of the foreign exchange crisis that led to defaults on loans of the economy. There was a sudden policy change in India with the notion of new economic model known as Liberalization, Privatization and Globalization in India (LPG).

“GLOBALIZATION AND ITS IMPACT ON INDIAN ECONOMY.” Indian economy had experienced major policy changes in the early s. The new economic reform popularly known as Liberalization, Privatization, and Globalization (LPG), aimed at.

The effects of globalisation on the Indian economy in the post-globalisation years are clearly visible in the foreign sector - foreign exchange reserves, international trade, inflow of foreign capital, etc.

This paper explores the .

Globalisation and Its Impact on Indian Society