Abstract: Now days “Globalisation” is a commonly used term. The word globalisation means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people. Also globalisation has brought in new opportunities to developing countries. On the other hand, globalisation has also thrown up new challenges like growing inequality across and within nations. This paper presents the effects of globalisation on Indian Economy. Various sectors of the Indian Economy are considered for the study. Also this paper tries to innumerate the various challenges set by the globalisation for Indian Economy.
Keywords: Globalisation, Foreign Trade, Exports, Imports, Liberalisation,
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Impact on Industrial Sector: As per recently released national accounts data, industrial growth was much better in 2012-13 and 2013-14 at 2.4% and 4.5% respectively than earlier years. The industrial growth picture suggests that industrial production which had slowed down since 2011-12, reversed the trend in 2014-15. Total FDI inflows from April 2000 to November 2014 were US$ 350.9 billion. Services, construction, telecommunications, computer software and hardware, drugs and pharmaceuticals, automobile industry, chemicals and power have attracted a disproportionality high share of total inflows.
Impact on Service Sector: India’s services sector remains the major driver of economic growth contributing 72.4% of GDP growth in 2014-15. Services sector growth has increased from 8.0% in 2012-13 to 9.1% in 2013-14 and further to 10.6% in 2014-15. This is mainly due to growth acceleration in financial, real estate and professional services. The services sector is also the dominant sector in most of the states of India with a more than 40% share in the gross state domestic product (GSDP).
Impact on Agriculture
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While this provides great opportunities, it also poses challenges before the nation.
• Experts believes that the Indian contribution in world GDP is estimated to be increase 6% to 11% by the year 2025. To grab this opportunity India has to set up the development facilities for its industrial sector.
• India needs to simplify procedures and relaxing entry barriers for business activities and providing investor friendly laws and tax system.
• As per the Labour Bureau Report 2014, the current size of India’s formally skilled workforce is small, approximately 2%. India should start the skill development programmes to create skilled workforce to meet the challenges of globalisation.
• India’s Human Development Index Value for 2013 is 0.586, ranking it 135 out of 187 countries and territories, the lowest among BRICS countries. So it’s essential for India to improve the Human Development Index Value for talent management.
• The government should reduce the budget deficit through proper pricing mechanisms and better direction of subsidies.
• Global opportunities for companies lie in global partnership, creating market and entering into joint ventures. To fulfil this, there is a need for structural changes in product development, marketing and servicing in the ways of doing
Globalisation, in the simplest sense, is economic integration between countries and is represented by the fact that national resources are now becoming mobile in the international market. Globalisation sees: an increase in trade of goods & services through the reduction of trade barriers; an increase in financial flows through the deregulation of financial institutions and markets and floating of currency; an increase in labour
To begin with, this research exposed a FDI puzzle between India and China through analyzing the current economic condition. Prime, Subrahmanyam and Lin (2011) stated, "Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment. Yet, China has received substantially more FDI" (p. 303).
Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.
...fferentiation of fields like production, transportation, consumption and so on. Change in them with respect to time indirectly determines the increase in the dependency on machines which in turn gauge the industrial growth of a nation. With reference to above measures, it can be observed that the onset of Industrial Revolution in India was early but very sluggish. India is neither a developed, nor an underdeveloped nation. The ongoing ‘industrial revolution’ has classified it as a developing nation.
In the book Globalization: A Very Short Introduction by Manfred Steger and the reprint Globalization and the Impact of American Popular Culture Abroad by Carl Guarneri, the point is made how recognized globalization has become and how much it has affected citizens around the world. Some of the debates over the effects of cultural globalization are: the West and its multinational corporations after World War II, what it promotes to the world’s people, the views of consumer capitalism’s effects and the repercussions of the globalization of culture.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
India is serving piping hot construction projects all across the country. With India’s economy getting bigger and bigger. A new study by Global construction perspectives and Oxford Economics says, India will become the world's third largest construction market by 2025, adding 11.5 million homes a year to become a $1 trillion a year market. Infrastructure industry led by some of the established as well emerging companies have constituted a strong domestic market and has displayed a sturdy performance with continuous growth.
Businesses expand to foreign countries to seize marketing opportunities arising due to differences in stages of life cycle for different products, which varies considerably
Construction industry is one of important sector for any country which contributes a lot its economical and global growth. India is not far behind in this sector. Indian construction industry is growing at a rapid rate and contributing to improve its domestic as well as global economy. An estimate amount of Rs. 6708 billion is the contribution of construction industry in Indian GDP (2011-2012). Not only it provides jobs to the people of the country but it also creates investment opportunities for many sectors.
The Associated Chambers of Commerce and Industry of India. (2012). India’s Experience with fdI: Role of a Game Changer. Retrieved from http://www.assocham.org/arb/general/Indias_Experience_with_FDI_Role_of_a_Game_Changer.pdf
Globalization, love it or hate it, but you can’t escape it. Globalization may be regarded as beneficial from an economic and business point of view, but however cannot be perceived the ditto when examined from the social sciences and humanities side of it. Globalization can be argued as a tool for economic growth, advancement and prosperity through co-operation between the developed and developing countries. The pro-globalization critics argue that the benefits that globalization brings to developing nations surpasses or outcasts the negative impacts caused by globalization and may even go a step further to state that it is the only source of hope for developing nations to prosper and stand out. However, the real question to be asked is as to what extent are the positives argued upon without taking into account the negative aspects of globalization towards developing countries. Moreover, how many developing countries out of many are exactly benefiting or even prospering from globalization is another question to consider. Therefore, my paper will dispute that indeed growth and advancement provided by globalization to developing countries is beneficial in short-term, but in the long-run, it will only bring upon negative impacts and challenges due to the obstacles involved such as exploitation of labour and resources, higher increase in poverty, and effects of multi-national corporations on local businesses and the economy, and to an extent the effects on the developing country itself.
The automobile industry is one of the key drivers that boosts the economic growth of the country. Since the de-licensing of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector is towards its boom. Today, almost every global auto major has set up facilities in the country. The automotive industry in India is one of the largest automotive markets in the world. It was previously one of the fastest growing markets globally, but it is currently experiencing flat or negative growth rates. The automobile industry accounts for 22 per cent of the country's manufacturing gross domestic product (GDP).Sales of commercial vehicles in India grew 5.3 per cent to 52,481 units
But still there is a vast skill gap that causes a mismatch between industry needs and institutional output. India being a nation with a high percentage of youth nearly 35% are between the age group of 15 to 21 who after completing their graduation are in a position to enter into a job market. But due to the lack of skills that are required for an industry many people out of that lot fail to enter the job market (Murugaia S. 2014) Employers recognize that “soft” skill development is essential for their employees. These skills are difficult to teach to employees once they are on the job. Therefore, they should be learned through development opportunities such as higher education (Arensdorf,Jill
In India, Construction Industry plays a vital key role in both economic growth and poverty reduction. The industry consumes about 45 to 55% of the national five year plan outlay and contributes to nearly 30% of GDP. A construction industry is the second largest industry next only to agriculture in terms of providing employment in India. Indian Government is targeting an economic growth of around eight per cent during the Eleventh five year Plan (2008-12). Construction projects entire high risk, long construction span, high costs and budget changes. India it is the second most populous country in the world with over one billion people accounting for around 19% of the world’s population. It is estimated that the population living
GDP grew in the year 2001-02 at a rate of 4.5% and was projected to grow by 5.5% in the year 2002-03. In the year 2001-02 contribution of agriculture is 24.6%, industry 26.5% and the balance by services other sectors. It was noted that the share of industrial production in the GDP was growing indicating revival of the economy. Contribution of industrial sector increased from average 11.11% in the year 1999-2000 to 25% in 2001-02 and was poised to account for 30% in the year 2002-03. Conducive policies announced by the government for industrial development led to revival of the economy. Figure 1.1 shows the GDP growth from 1997-2003.