Presentation on Globalization-Boon or Bane
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Globalization refers to increasing economic integration and interdependence between countries through unrestricted trade and financial flows. India adopted economic globalization policies in 1991 due to issues like mounting fiscal deficits and falling foreign exchange reserves. This led to liberalization of trade, privatization of industries, and allowing foreign investment in India. While globalization has increased India's economic growth and international engagement, it has also benefited large corporations more than small farmers and widened wealth inequality. Both opportunities and challenges exist as India progresses with globalization.
Presentation on Globalization-Boon or Bane
- 2. Meaning: Globalization may be defined as a process associated with increasing openness, growing economic interdependence and deepening economic integration in the world economy
- 3. Globalization is an important component of New economic policy 1991. There were several reasons for this new policy. These are: Mounting fiscal deficit Adverse Balance of Payment(BoP) Fall in Foreign Exchange Reserves High Inflation Above all reasons gave birth to new economic policy 1991. Other components of this policy are Liberalization and Privatization.
- 4. There will be unrestricted flow of goods and services, technology and expertise among different countries in the world. There will be an increased cooperation of Indian economy with different economies across the world.
- 5. It refers to a system of hiring business services from the outside world. These services include call centres, transcription, clinical advice, teaching/coaching, and the like. This is an important outcome of globalization process.
- 6. India is emerging as the important destination of outsourcing because of the following reasons: Availability of cheap labor in India A revolutionary growth of IT Industry in India A developed banking system and financial markets.
- 7. Equity Limit of foreign capital Investment has been raised from 40% to 51 to 100%.
- 8. To achieve the objective of globalization partial convertibility of Indian rupee was allowed. Partial Convertibility was valid for the following transactions : 1) Import and Export of goods and services 2) Payment of Interest and Dividend on Investment 3) Remittances to meet family expenses Under this custom duties and tariffs imposed on imports and exports are being reduced gradually.
- 9. Main Characteristics of this policy is that it is a liberal policy. Under this policy, all restrictions and controls on foreign trade have been removed.
- 10. World Trade Organization (WTO) is expected to play an important role in the context of Globalization of the world economies. What is it supposed to do? It is supposed to promote free trade in the International market by reducing tariff barriers and by removing non-tariff barriers. It is focusing on the competition in the International market and free access to markets across different countries of the world. It is facilitating bilateral as well as multilateral trade agreements.
- 11. Indian economy has benefitted from globalization. Results are evident in terms of an impressive increase in the growth rate of GDP.
- 12. Good amount of forex reserves reflects robustness of the economy and enhances economic confidence of the global Investors in the Indian Markets.
- 13. INDIAS FDI INFLOWS INCREASED OVERTIME Year USD Billion 2003-04 4.3 2004-05 6 2005-06 8.9 2006-07 22 2007-08 30
- 14. Owing to greater flow of goods and services in the economy, there has been a check on the rate of Inflation. Indian Markets are now increasingly shedding its monopolistic character and becoming more and more competitive in nature.
- 15. Consumer Sovereignty has increased widened. Famous International brands(Puma, Gucci, Nike etc.) are investing in the Indian market with the changing of fashion statement of Indians.
- 16. India is the 3rd largest global telecom market. The mobile subscriber base has grown from 0.3 Million in 1996 to over 250 million currently. Lavish Multiplex movie halls, big shopping malls and high rise residential are seen in every cities Telecommunication and Software Industries are booming in India. Foreign Universities are collaborating with different Indian Universities which had a very positive impact on education. Currently the literacy rate of India is 74.04%.
- 17. Some section of people in India, basically poor and very poor, tribal groups, they did not feel the heat of globalization at all. They remain poor & poorest as they were.
- 18. Agricultural sector has suffered a set back due to globalization. It is a growth process that centers around service sector of the economy. Indian farmer is shifting to the production of cash crops for the foreign markets, causing a shortfall of domestic supplies of food grains.
- 19. Globalization has also caused cultural erosion of the Indian society. Everybody wants to be economically independent and well off, regardless of his responsibility towards the family or society.
- 20. : A variety of global brands in the market has lured the masses to become spend thrift, even beyond their means.
- 21. Ethical responsibility of business has been diminished. High growth but problem of unemployment. Price hike of every daily usable commodities. MNCs by selling their new innovative products are dominating the Indian Markets and hence domestic producers are being marginalized.
- 22. MNCs crushing local producers High Inflation
- 24. o Coca-Colas exploitation of labor and resources in India is the perfect example of the destructive powers of transnational corporations, and when Coca-Cola began to set up its factories in India many problems occurred shortly after. Once the factories started being built in India, land had to be cleared for the factories, and this resulted in a devastating loss of agricultural land.
- 25. Coca-Cola also exploits the resources in India, and the most critical example of the resources they are exploiting is water. Coca-Cola factories are very water inefficient, and they take advantage of this resource without considering how it will affect the citizens of India. Nine years prior to the opening of a Coca-Cola factory the level of ground water fell three meters, which is only natural because people in India continue to use it in their daily lives, and nine years after the opening of the factory the level of ground water had dropped a shocking amount 22.36 meters.
- 26. Flowing with globalization ,India is shining in nearly every prospects. India is getting a global recognition and slowly moving towards to become a major economic and political strength. Though the development is progressing rapidly, still many basic problems like rural poverty, corruption and political instability remained unsolved.
- 27. Globalization has had both desirable and undesirable consequences for India. As mentioned, globalization has resulted in the growth of Indian economy which in turn has improved the lives of many people. It has also created many employment opportunities. However, it has also widened the gap between the rich and the poor part from resulting in more oppression for those at the bottom of the social ladder. However, it may be said that globalization is inevitable in the twenty first century despite these disadvantages considering the advances in information technology which has led to more integration between nations.