What is the negative impact of Globalisation in India?

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  • The following are the negative impacts of globalisation :

i) Low wages and long working hours in potentially hazardous conditions due to requirement of cost effective production.

ii) Uncertain terms of employment. Casual workers are hired on contract when demand is high and laid off when demand declines.

iii) Multi national companies are prone to shift their centres of production in accordance with the benefits they receive.


The worst hit by globalisation are small scale industries as they do not have the capital or resources to compete with large MNCs. Casual workers are also affected as they have to work long hours for low wages and uncertain terms of employment. They are not entitled to many benefits enjoyed by regular workers.

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1. The main factors that lead to globalisation in the 21st century are:
i. the gross failure of all closed, command communist and socialist economies to bring in economic properity, better quality life and health and education to the common man, resulting in opening up of China, disintegration of the Soviet Union, merger of two Germanies, the international bankrptcy of India in 1990-91,
ii the rapid growth of telecommunications, computer and internet technologies,
iii. the benefits derived from GATT negotiations
iv. the falling prices of new technology goods available to the poorest man, thanks to multinationasal companies

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negative impact/fears of globalisation are as follows-

  1. it may not help in achieving sustainable growth.
  2. it may lead to widening of income inequalities among various countries.
  3. it may lead to aggravation of income inequalities within countries.
  4. it may lead to loss of autonomy.
  5. it may lead to greater dependence of the underdeveloped countries on advanced countries.
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