Explain the impact of globalisation on india?

1. through globalisaion ,various tecnologies or scientific applications flowed to india .

2.a large no. of diseases also expands throughout the world ,from which peope in india also got affected.

3.The cheap products are importing by the government ,whichcause a worse affect on small scale industries in india.

4.the large MNC's setting their industries in the country .And demanding flexibility in hiring labours.thus,the labour laws are violated ,the are getting low wages, working for long hours .

View Full Answer

In early 1990s the Indian economy had witnessed dramatic policy changes. The idea behind the new economic model known as Liberalization, Privatization and Globalization in India (LPG), was to make the Indian economy one of the fastest growing economies in the world. An array of reforms was initiated with regard to industrial, trade and social sector to make the economy more competitive. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion and inflation was as high as 17%. Fiscal deficit was also high and NRI 's were not interested in investing in India. Then the following measures were taken to liberalize and globalize the economy.

Steps Taken to Globalize Indian Economy

Some of the steps taken to liberalize and globalize our economy were:

1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%.

2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector.

3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%), defense industries (26%) etc.

4. NRI Scheme: The facilities which were available to foreign investors were also given to NRI 's.

Merits and Demerits of Globalization

The Merits of Globalization are as follows:

There is an International market for companies and for consumers there is a wider range of products to choose from.
Increase in flow of investments from developed countries to developing countries, which can be used for economic reconstruction.
Greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers.
Technological development has resulted in reverse brain drain in developing countries.

The Demerits of Globalization are as follows:

The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.
There is a greater threat of spread of communicable diseases.
There is an underlying threat of multinational corporations with immense power ruling the globe.
For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization.

I hope you got the answer if you are sataisfied please thumbs up !!!!!!!!