Rapid Growth and is Globalization Good Or Bad for India's Economy

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Globalization is a generally talked about subject and to clarify it in basic terms I might want to start by building the foundation to globalization. Technology and innovation, for example, cell phones, web, planes and so on have so forward lead to the growth of communication and transport feasible. This suggests individuals over the globe would now be able to trade items all the more rapidly and in a less tangled way. This process is called globalization.

The term globalization consists of the root word globe and means the worldwide coming together of nations including India, by creating economic interdependence among them. Indian economy had encountered many policy changes in the mid-1990s. The new monetary change, known as, Liberalization, Privatization and Globalization (LPG display) for making the Indian economy as the fastest developing economy and comprehensively competitive. The arrangement of changes embraced concerning the industrial sector, trade just as the monetary sector aimed at making the economy progressively effective.

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Globalization has numerous implications relying upon the unique situation and on the individual, who is talking about. In context to India, this suggests opening up the economy to foreign direct investment by providing facilities to foreign organizations to put resources into various fields of monetary action in India, evacuating limitations and impediments to the entry of MNCs in India, enabling Indian organizations to go into foreign collaborations and furthermore reassuring them to set up joint endeavours abroad; doing massive import advancement programs by changing over from quantitative confinements to levies and import obligations, hence globalization has been related to the policy reforms of 1991 in India. The arrangement of changes embraced concerning the industrial sector, trade just as the monetary sector aimed at making the economy progressively effective. For example, two companies from two different countries manufacture the same product in their home country. Their products are in direct competition with each other but both companies pay the same compensations and the cost of production, they have the same customers use similar raw material providers and sell their products at comparable costs. Therefore, the same conditions apply to the same companies so far so good. Due to technical, cultural and economic developments that have come about through globalization of the companies which manufacture products under different conditions can now offer products across different countries too. That is why a company of country B can now sell products in country A at a much lower price because they were produced for less. Many foreign companies-the MNCs are attracted by the inexpensive cost of labour in India and decide to set up their firms in our country. These foreign firms need a wide variety of human labour, ranging from. With the opening of SEZs or Special Economic Zones, the accessibility of new occupations has been very viable. Moreover, Export Processing Zones or EPZs are also settled in the country recruiting a huge number of individuals. Therefore, all these factors provide evidence that globalization helps in reducing the unemployment rate in India and allows every individual to contribute to the country’s economy. The pay dissemination inside the nation is additionally progressively equal with in light of the fact that more individuals have the likelihood to be employed. The connection between foreign organizations and Indian labour makes a financial reliance that puts both the two sides in a profitable position.

After the upheaval of globalization, the compensation levels have remained higher. These figures are amazing when contrasted with what household organizations may have introduced. Why? The dimension of learning and technology brought by foreign organizations is clearly cutting-edge. This has at last brought about an alteration in the administrative structure. The domestic market also reacts to withstand the competition but many times the MNCs set up production units jointly with these local companies in order to eliminate the competition despite that, the domestic companies are also benefited because the MNCs provide them access to new machinery and technology leading to more efficient production processes and development of their company. Foreign trade provides opportunities to producers to reach beyond the domestic markets increasing not only their profits but also providing a wide variety of goods to consumers all over the world.

Wealthy generation crosswise over Indian urban areas has upgraded since globalization has completely hit the country. You can see an enhancement in the purchasing power for people, particularly those working under foreign organizations. Further, local organizations are persuaded to display higher benefits to their employees. Therefore, a lot of towns and cities are experiencing developments in the lifestyle.

All of this has led to the rapid growth of India in the past few years. Due to which, the world grows closer together and there is an active trade of goods between India and various other countries. More affordable products are available for more people. However, not only does a trade of products and services take place but also of, knowledge, social products and even dialects.

But because of globalization and the exceptional trade of products, individuals and the environment regularly endure as well. On the off chance that an organization chooses to move their factories or companies to an economically disadvantaged nation, individuals in industrialized nations lose their source of income. In the meantime, there are job opportunities for some local people in the economically disadvantaged nation. Numerous individuals in these nations work for insufficient or small amount of money in contrast with those in industrialized nations. In this way, they often remain poor and all the more regularly they don’t have adequate social, medical coverage inclusion.

The informal division is intentionally not recorded in the work enactment. For instance, informal labourers aren’t the subject considering the 1948 Factories Act. This arrangement covers principal factors, for instance, essential working conditions, health and safety the restriction on child labour, working hours, etc. Additionally, globalization has caused poor health, disreputable working conditions, similarly to enslavement happening in different parts of the country. Taking a gander at patterns and its uprising since every one of these years, the impact of globalization has been uniform. To be meticulous, globalization has proved to be helpful to proficient and skilled people, essentially from urban areas. The incompetent populace hasn’t achieved enough out of globalization. 

A further drawback of globalization is ecological issues, for example, environmental change. The utilization of planes, boats and lorries to transport merchandise over global fringes is continually expanding. This causes the generation of more carbon dioxide which is dumped into the climate, causing a dangerous increase in temperatures on Earth.

In brief, Globalization in India has led to increment in Foreign exchange, Foreign trade reserves, Foreign joint efforts alongside the extension of the market, advancements in the field of technology, brand, capital market. Also, many MNCs are setting up their production and trading units in India. It has increased employment opportunities for Indians. These MNCs give alluring packages and great working conditions to efficient, Skilled Indians get great employment opportunities in India. It has brought about a reduction in brain-drain.

The negative effects include loss of Domestic industries, foreign competition has increased in India. Because of high quality and very less cost of foreign goods, many domestic industrial units have failed to face competition and have been closed. There is still a problem of Unemployment as foreign or even some Indian companies use capital intensive technology the increasing use of which, leads to lesser employment opportunities and increase the problem of unemployment in Indian economy. Exploitation of unskilled workers by giving lower wages, less job security long working hours and worse working condition. Globalization has been beneficial to foreign companies but small and cottage industries are largely affected by it. It has increased inequalities in India. There has been a bad Effect on Culture and Value System since many global companies sell such products as distorting our culture and value system. The inappropriate advertisements shown by some of the multinational companies pollute the thinking of the young generation in India.

There are along these lines numerous signs to globalization which influence practically all parts of life making me believe that the chain of positive and negative impacts will keep on growing. So, what we need is a policy of globalization which is beneficial, creates opportunities with the objective of growth, employment and equity and raise the welfare of all people throughout the world. The government should adopt various measures which ensure fair globalization policy. What’s important is to realise that globalization itself is neither good nor bad. It just depends on how we deal with all the odds in the future.

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