GLOBALIZATION
AND IT’S IMPACT
COOCH BEHAR PANCHANAN BARMA
UNIVERSITY
(DEPT. OF POLITICAL SCIENCE )
SONIKA KEWAT
CONTENTS :
o ABSTRACT
o INTRODUCTION
o ABOUT GLOBALIZATION
o IMPACT OF GLOBALIZATION IN INDIA
o CRITICAL ASSESSMENT
GLOBALIZATION AND ITS IMPACT
o ABSTRACT : Globalization is the new essence that has come to dictate the
world since the nineties .The higher competition and access to developed country
markets and technology allocate offer potential improved productivity and it has left
back its footprints at every sphere of life. Not only in India, but the interchange of
world views and ideas has resulted in a major transformation of lifestyle and living
standards of people globally. Indian culture and economy is not far from this
transformation process. Globalization has not only inculcated the westernization in
India ,but conversely the Indian culture has also spread its impact globally. Therefore
the overall objective of my assignment paper is to basically understand what does
“Globalization” means, why it has become the buzz word and to assess the impact of
globalization with special reference to India because its impact is very much
pronounced when they hit a developing country like ours. It is a secondary data based
content analysis descriptive assignment paper.
o INTRODUCTION:
▪ Globalization has become the buzz word that has came to dominate the world since the nineties of
the last century, since then the process of globalization of Indian economy was constrained by the
barriers to trade and investment .
▪ Liberalization of trade, investment and financial flows initiated the nineties has progressively
lowered the barriers to competition and hastened the pace of globalization.
▪ India was one of the prime nations gained immensely post the introduction and implementation of
globalization. The rise of foreign investment in the retail, cooperative and scientific sector is very
much evident in the nation .
For further understanding about globalization and India , it is crucial to get familiar with the
prime concept , that is Globalization.
o ABOUT GLOBALIZATION:
What is Globalization?
The term “globalization” describes a process by which regional economies, societies, and
cultures have become integrated through a global network of communication, transportation, and trade.
It is a result of the collection of multiple strategies that are directed at transforming the world towards
greater and integration. It includes the creation of networks and pursuits transforming social , economic
and geographical barriers. Globalization tries to build links in such a way that the events in India can be
determined by events happening distances away.
To put in other words Globalization is the method of interaction and union among, people, corporations
and governments universally. This process has effect on the environment, on culture, on political
System , on monetary, communal life and prosperity and on human physical well-being in societies
around the world.
In the age of rapid technical progression, many countries are unified and transformed due to the process
of globalization . In broad sense the term ‘Globalization’ means combination of economies and societies
through cross country flows of information, ideas , technologies, goods , services, capital, finance and
people.
Now the term Globalization represents the growing interdependence of the world’s economies, cultures
and populations brought about cross – border trade in goods and services, flows of investments etc.
o IMPACT OF GLOBALIZATION IN INDIA
The huge impact of globalization can be seen in a developing country
like India in many fields these are as follows:
1. Rise in Employment: With the opening of SEZs or Special Economic Zones, the
availability of new jobs has been quite effective. Furthermore, Export Processing
Zones or EPZs are also established employing thousands of people. Another
factor is cheap labour in India. This has motivated big firms in the west to
outsource work to companies present in this region. All these factors are causing
more employment.
2. Surge in Compensation: After the outburst of globalization, the compensation
levels have stayed higher. These figures are impressive as compared to what
domestic companies might have presented. Why? The level of knowledge and
skill brought by foreign companies is obviously advanced. This has ultimately
resulted in modification of the management structure.
3. Improved Standard of Living and Better Purchasing Power: Wealth generation
across Indian cities has enhanced since globalization has fully hit the nation. You
can notice an improvement in the purchasing power for individuals, especially
those working under foreign organizations. Further, domestic organizations are
motivated to present higher rewards to their employees. Therefore, a number of
cities are experiencing better standards of living together with business
development.
4. Outsourcing: This is one of the principal results of the Globalization
method. In outsourcing, a company recruits regular service from outside
sources, often from other nations, which was earlier implemented internally
or from within the nation (like computer service, legal advice, security –
each presented by individual departments of the corporation,
advertisement). As a kind of economic venture, outsourcing has increased,
in recent times, because of the increase of quick methods of
communication, especially the growth of Information Technology (IT).
Many of the services such as voice-based business processes (commonly
known as BPS, BPO or call centers), accountancy, record keeping, music
recording, banking services, book transcription, film editing, clinical advice
or teachers are being outsourced by companies in advanced countries to
India .
5. LPG Reforms: The 1991 reforms in India have led to greater economic
liberalization which has in turn increased India’s interaction with the rest
of the world.
6. Impact of globalization on Industrial sector: Effects of globalization on Indian
Industry started when the government opened the country’s markets to foreign
investments in early 1990s. The benefits of the effects of globalization in Indian
industry are many-
a. Many foreign companies set up industries in India, especially in the
Pharmaceutical, BPO, Petroleum, Manufacturing and chemical sectors.
b. This helped to provide employment to many people in the country .
c. This helped to reduce some sort of unemployment and poverty in the
country.
d. Another benefit of globalization on Indian industry is that the foreign
companies brought highly advanced technologies with them and this
helped to make the Indian industry more technologically advanced.
7. Impact on Financial sector:
a. The recent economic liberalization measures have opened the door
for foreign companies to enter into our domestic market.
b. Financial intermediaries have come out of their traditional
approach and they are ready to assume more credit risks .
c. The emergence of various financial institutions and regulatory
bodies has transformed the financial services from being a
conservative industry to a very dynamic one.
8. Impact on Export and Import: India’s Export and Import in the year 2001- 02
was to the extent of 32,572 and 38,362 million respectively. Many Indian
companies have started becoming respectable players in the international scene.
Agricultural exports account for about 13 to 18%total annual exports of the
country. In 2000- 01 Agricultural products valued at more than US $ 6 million
were exported from the country 23% of which was contributed by the marine
products alone and have emerged as the single largest contribution to the total
agricultural exports from the country
o CRITICAL ASSESSMENT
( Merits of Globalization )
a. Due to globalization technological developments have resulted in reverse brain drain in
developing countries.
b. Globalization gave access to a bigger consumer base to the countries and companies.
c. Greater and faster flow of information between countries and greater cultural
interactions has helped to overcome cultural barriers.
d. Increase in flow of investments from developed to developing countries, which can be
used for economic reconstruction.
e. Globalization also brought awareness regarding Human Rights and enhanced many
international NGOs which are working effectively against the social issues.
( Demerits of Globalization )
a. Besides, increased trade results to increased transportation and huge
manufacturing the level of pollution has increased to a very dangerous
stage leading climate change which is serious threat to humanity and
future world.
b. There is an underlying threat of MNCs with immense power ruling the
globe.
c. For smaller developing countries at the receiving end , it could indirectly
lead to a subtle form of colonization.
d. With increasing globalization there is greater threat of spread of
communicable diseases like now we are dealing with the COVID19
pandemic etc.
o CONCLUSION
We cannot say that the impact of globalization has been totally
positive or totally negative. It has been both. Each impact mentioned above can
be seen as both positive as well as negative. However, it becomes a point of
concern when, an overwhelming impact of globalization can be observed on the
Indian culture.
Every educated Indian seems to believe that nothing in India, past or present, is
to be approved unless recognized and recommended by an appropriate authority
in the West. There is an all-pervading presence of a positive, if not worshipful,
attitude towards everything in western society and culture, past as well as present
in the name of progress, reason and science. Nothing from the West is to be
rejected unless it has first been weighed and found wanting by a Western
evaluation. This should be checked, to preserve the rich culture and diversity of
India.
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