Impact of Globalization on Indian Economy: A Report

This report provides a comprehensive analysis of globalization's impact on the Indian economy, focusing on trade, growth, and employment sectors. It begins with an introduction to globalization, defining its key aspects and historical context, particularly concerning India's economic evolution. The report then delves into the effects of globalization on Indian trade, examining factors such as technological innovation, foreign direct investment, and the impact of policies like liberalization, privatization, and globalization (LPG). It further explores the impact of globalization on Indian economic growth, discussing the role of the service sector, foreign investment, and the challenges of inequality and environmental degradation. The report also examines the effects of globalization on Indian employment, including the growth of the IT sector and the impact of digital initiatives. The analysis is supported by critical reviews of various articles, using both the author's own interpretations and academic sources to provide a balanced and informed perspective on the topic. The report concludes with an overview of the key findings and implications of globalization on India's economic trajectory.

Globalisation

INTRODUCTION(FOR THE ENTIRE DIARY)
Globalization is defined as a process of international integration which usually arise from
the exchange of the world views, ideas as-well-as mutual sharing along with carrying the
different aspects of the culture. It also includes advancement in the transportation system,
development of telecommunication system, etc which eventually leads to the interdependence of
the various economic and cultural activities. Further, this concept of economy is quite recent and
was formulated in the late 19th and 20th century as the economies and culture of the world were
growing in rapid manner. Moreover, the International Monetary Fund (IMF) visualized the four
key aspects of the globalization. These were trade and transactions, capital and investment,
migration and movement and spreading knowledge among all the citizens around the globe.
Apart from it, some of the environmental obstacles like global warming and water & air
pollution are also linked with the same topic.
Moreover, if we consider the globalization from the view point of India, then country had
the distinction of being the world's largest economy. Further, India was accounted for almost
32.9% share of world in the Gross Domestic Product (GDP) and approximately 17% of the total
global population. The goods which are produced in India are being exported from different
countries around the globe. However, it can be said that the concept of globalization is quite new
for India.
The term globalization means integrating economy of particular nation with the economy
of the world. However, the change in the financial system had a drastic effect on the growth and
development of Indian economy. From a report, it was revealed that the economy of India was in
major crises in the year 1991. It was evaluated that the foreign currency reserves went down to
almost 1 billion dollar. Further, the impact of globalization can be seen into various sectors like
agriculture, industries, financial, health and various others. By considering the nation
degradation, Finance minister of that time had introduced the concept of liberalization,
privatization and globalization.
Moreover, the current wave of the globalization has been impelled out by different
policies which have economies nationally as well as internationally. Moreover, after the Second
World War and especially within these past two decades, many local body of different countries
have opted free market economic policies. This helps business organization established within
the nation can increase the sale of their products and also develop a good amount of revenue.

Moreover, these business organizations are also focusing on developing new opportunities for
international trade and investment. In order to promote business ventures at global level, the
government also support them and imply established international agreements for promoting
their goods and services. However, some sort of restrictions does exist but it is only for the
proper functioning of the business venture. Moreover, it can be evaluated that globalization plays
a crucial role in the development of country.
GLOBALAISAITION ON INDIAN TRADE
Date of Input 05/03/2016
Reference of the
source
(Harvard style)
Dutta, B., 2016. Globalization may not be the problem affecting poor
countries but neither is it the solution. [Online]. Available through:
<http://www.telegraphindia.com/1160219/jsp/opinion/story_70046.jsp#
.Vt0bLaW1Gko>. [Accessed on 5th March 2016].
IMPACT OF GLOBALIZATION ON INDIAN MARKET. 2016.
[Online]. Available through:
<http://www.abhinavjournal.com/images/Commerce_&_Management/S
ep13/11.pdf>. [Accessed on 5th March, 2016].
Malik, T., 2016. Impact of globalization on Indian economy- An
overview. [Online]. Available through:
<http://www.fibre2fashion.com/industry-article/2993/impact-of-
globalization?page=1>. [Accessed on 5th March, 2016].
Discussion of the content of the articles (in your own words)
According to the article of Dutta (2016), globalization is not affecting the growth of poor
countries but it also not leading to any sort of development for the same. Moreover, he
emphasized on the development and growth of potentially capable countries and developing
relation with the same rather than focus on making contact with low GDP countries. Further, he
focused on stating that country that has good infrastructure along with skilled labour who focuses
on moving from country to country for their development and countries that do not possess the
same are less globalized.
Article Impact of globalization on Indian market (2016) argues that technological
innovation, political dimensions, environment, marketing growth, Foreign Direct Investment
(FDI), etc. are the major factors which have major impact on the globalization. Author of this

article observed that the business enterprise in the country who like to expand their emperor have
to consider these major elements unless it acts as a drawback for the organization .
From the view point of Malik (2016), Indian economy has gone through many downturns
and also has experienced some of the crucial policies in the year 1991. This article of Malik
emphasized on the LPG model which constitutes liberalization, privatization and globalization.
As per his view point, organization considering the reforms and policies will lead into
development of industrial and financial sector which will help in making economy much more
suitable and perfect.
Critical review of the content of the articles using academic sources (Peer-reviewed
journal articles and books)
When discussing the impact of globalization on Indian trade, several methods, policies
and procedures have to be taken into consideration. From the view point of Dutta (2016), he
specifies that the current global environment is dark and helpless. Therefore, business
organizations have to put each and every step in proper and desired manner. Further, he also
stated that the economic globalization is significantly increasing the foreign trade and investment
which is one of the positive signs in developing strong link between two countries.
According to the article ‘Impact of globalization on Indian market’ (2016), globalization
concept was started in early 17th century, as development of steamboats and locomotives engines
reduced the time which took in transportation and lead into increase in the transit volume.
Further, author has also focused on the environmental factors and stated that this is the crucial
factor and all those organizations who want to explore their market size, should not avoid this
factor. Further, the writer discussed some of the factors has enabled the globalization in India
and these are technology, foreign trade and investment policy, WTO, infrastructure development
and financial sector reforms.
On the contrary side Malik (2016) argued that the concept of globalization for India has
been changed after their independence in the year 1947. Many business organization establishes
their foot into the global market and start exporting their products so that they can improve their
brand image and can increase more of the revenue and productivity. Moreover, he also isolated
that now India is planning to modify their economic policy in order to become more imperative
and show their potential that they have large potential to work on prosperity. Malik (2016) also

states that globalization having different meaning and in the context of India it means opening up
of the economy for foreign direct investment which will eventually provide facilities to global
companies.
GLOBALAISAITION ON INDIAN GROWTH
Date of Input 6/03/2016
Reference of the
source
(Harvard style)
Nagy, T., 2016 Nagy: India's growth is dynamically propelling it.
[Online]. Available through: <http://lubbockonline.com/editorial-
columnists/2016-02-28/nagy-indias-growth-dynamically-propelling-
it#.Vt00DKW1Gko>. [Accessed on 5th March 2016]
Local economies point to the future. 2016. [Online]. Available
through: <http://news.bahai.org/story/1098>. [Accessed on 5th March
2016]
Singh, A., 2016. How the services sector is the key growth engine for
India. [Online]. Available through:
<http://www.businessinsider.in/Howthe-services-sector-is-the-key-
growth-engine-for-India/articleshow/51156624.cms>. [Accessed on
5th March 2016]
Discussion of the content of the articles (in your own words) 250 words
From the article Nagy (2016), it has been evaluated that with the growing economy of 7%
in a year leading to increase in equality between rich and poor as with the globalization rich is
getting more rich and poor is struggling to manage their routine life. Further, the writer has given
a rich dialogue about various dimensions of social and economic development in India which is
eventually followed on questions of the local economies. Under this article, writer Kundu
emphasized on the need which will help in strengthening the local and regional economies for
growing inequality and natural degradation which India will face as they have open the door for
the global market.
According to Singh (2016), globalization has helped in to increase FDI, trade, tourism,
shipping and port services, Information Technology (IT) and Research and Development
services (R&D). Further, the writer also concluded that the growth in the service sector will lead
to the development of the country and by providing best of the services to the foreign countries,
it will lead to development of goodwill of India. Moreover, her article also stated that
government also helping them in the preparation of budget and sufficient fund is given to each

and every department for undertaking the development process. Further, globalization was the
focus and she stated its helping a lot in developing effective bond between two or more
countries.
From the article Local economies point to the future (2016), it was evaluated that
thinking at the level of local economies will surely assist India in finding creative solutions to
dealing with the challenges for sustaining economic growth. India is also finding a suitable
source so that they can reduce the carbon emission within the country by implementing best of
the techniques.
Further the author in the article stated that the village economies have their own logic
which will allow certain features of community that need to be maintained. The writer was
emphasized on developing the nature and social cohesion.
Critical review of the content of the articles using academic sources (Peer-reviewed
journal articles and books) 350 words
From the article of Singh (2016), it was understood that they service in India has been
expanded up to global level and the country is focusing on attracting the foreign investment.
Further, she has revealed that the level of study has also been extended and individual are
shifting to foreign countries for their higher studies or for the job purpose. Moreover, her major
concentration on recruitment of person for foreign organizations as she stated that talented
personnel been hired from India because these people are well skilled and multi talented. Further,
the article states that the increasing percentage showing that India is increasingly becoming an
attractive investment place as compared to other countries around the globe. Further, India also
has big industries whose goods are tranferred to different other countries. Therefore, country is
focusing more on developing their own products and focuses on less importing.
Tourism being the major source of outside income as a large number of travellers travels
India throughout the year which increases countries popularity and image. Further, Nagy (2016)
argued that the population of India is increasing through a rapid rate and traffic has become their
major problem because with increase in population, vehicles been increased subsequently.
Moreover, country is importing cars from global auto mobile industries so that they can give best
of the product to the customers. This fair trade policy is only possible with the help of
globalization. Moreover, the article also showcase that the author been to both the countries of

India and China and by comparing, he has found that the youth of India is much more energetic
and they will play a crucial role in developing countries for future time being.
GLOBALIZATION ON INDIAN EMPLOYMENT
Date of Input 07/03/16
Reference of the
source
(Harvard style)
Kannan, S., 2013.Bangalore: India's IT hub readies for the digital
future. [Online]. Available through:
<http://www.bbc.com/news/technology-23931499>. [Accessed on 7th
March 2016]
Thimmaya, P. P., 2016.Digital India will be a big boon for the
country. [Online]. Available through:
<http://www.financialexpress.com/article/industry/companies/digital-
india-will-be-a-big-boon-for-the-country/217264/>. [Accessed on 7th
March 2016]
Vaswani, K., 2015.India and the economy: Your questions answered.
[Online]. Available through: <http://www.bbc.com/news/business-
34063747>. [Accessed on 7th March 2016]
Discussion of the content of the articles (in your own words) 250 words
According to Thimmaya (2016), it has been evaluated that due to the participation and
investments of international companies in Indian market which has highly impacted the local
market conditions and business working of other national businesses and people. Their influence
in the marketplace has created new centers of employment for labors and engineers. They not
only focus on the development of the technology sector and their organization but also to
develop the employees and management engaged in their business.
The Article of Kannan (2013), covers the success story of globalization in India. It
lightens the successive approaches of international companies in creating a million ways and
scope for employment in the country. The developing technology market of India has invited
many international companies from abroad to invest in it. It was beneficial for all the youngsters
engaged in software engineering a new route of getting employment. It also depicts that the
impact of economic liberalization was in the early 90's, when the software export industry has
grown widely. After this, the international industries now adds more than 200,000 jobs a year
and provides employment to nearly 10 million people.

From the viewpoint of Vaswani (2015) was depicting that the impact of globalization on
the employment sector was very influencing because the increasing number of international
industries participating in Indian market are exploiting the local man power. As their main
concern is to maximize the profit by attaining more and more available resources. She also
expressed that the devaluation of Indian currency is decreasing the pay scale of an Indian
employee in an international market.
Critical review of the content of the articles using academic sources (Peer-reviewed
journal articles and books) 350 words
From the article of Thimmaya (2016), focusing on the impacts from international
companies' participation and investments in Indian local market was that it created a new center
of employment for labors and engineers of India. From this article, he tries to express the motive
of overseas industries running their businesses in Indian market. Although, their motive was not
limited up to advancing the technology and providing employment to the Indian labor and
engineers, but to maximize profits and sales by utilizing the Indian resources in their business
operations. However, they have developed the Indian technology sector to attain proper
functioning and performance of their organization. The international companies have improved
the working skills of Indian employees not only to develop their personal abilities but also to
increase their performance level and skills.
The success story of globalization in India by Kannan (2013), only lightens the positive
part of globalization process in India. Through globalization, the international industries
discovered a new source of cheap man power where they can hire a bulk number of workers and
engineers. Instead of successive trends and rate of making new ways for employment, the
international companies were enjoying the huge low cost advantage as they could find many
highly educated workforce which are available at less than a quarter wages paid in US or Europe.
However, the advancing of technological sector in India has gathered high investment from the
world but also resulted in scarce of natural resources. The globalization has also advantaged the
Indian educational institutions by creating more and more computer professionals.
On the Contrary of this, an effective article by Vaswani (2015) about the impact of
globalization on the employment sector stated that the rising participation of international
industries in Indian market is the reason of exploiting the benefits and performance of local man
power. Her article was having a high focus on the activities of international businesses in order

to overcome the desired objectives and maximizing the profit by utilizing available manpower
resources in the country. However, her article also stated affects of devaluation in Indian
currency that is decreasing the pay scale of an Indian employee which is not possible in current
trends of market where the labor is paid full as per his working efficiency.

GLOBALIZATION ON INDIAN FDI
Date of Input 07/03/16
Reference of the
source
(Harvard style)
The guardian, 2012. India offers cautious welcome to western
retailers. [Online]. Available through:
<http://www.theguardian.com/world/2012/sep/14/india-cautious-
welcome-to-western-retailers>. [Accessed on 7th March 2016]
Arnett, G.,, 2014. Foreign direct investment: which countries get the
most?. [Online]. Available through:
<http://www.theguardian.com/news/datablog/2014/jun/24/foreign-
direct-investment-which-countries-get-the-most>. [Accessed on 7th
March 2016]
The guardian, 2015. India must exert its bargaining power over
foreign supermarkets. [Online]. Available through:
<http://www.theguardian.com/commentisfree/2011/dec/07/india-
foreign-supermarkets>. [Accessed on 7th March 2016]
Discussion of the content of the articles (in your own words) 250 words
Globalization has dwindled the boundaries between countries by enabling them to come
closer. With the integration of several sectors, it has significant impact on the FDI. India has
liberalized its rules and law to attract FDI in their country. Sector which has experienced major
influence is retail sector. India has limited the FDI in multi-brand retail sector to 51%. In the
article of (The guardian), it is stated that India is cautiously letting the western companies to
penetrate in the retail sector of the economies. With this rational ratio in the overall investments,
India is extending protection to the domestic retailers along with millions of shopkeepers who
are living their livelihood on this by running markets or borrows, corner stores and stalls. It has
been stated that letting the entry of western retailers in the country will improve the condition
and profitability of retail sector. Such as India's ramshackle supply chain management is the
major hindrance in the growth and development of the industry. It inhibits the optimum
utilization of all the resources available to the country. Hence, with reference to the article given
in (The Guardian), it can be articulated that FDI will get down the escalated prices and food
inflation due to the efficient removal of flaws and drawbacks. Further, the balanced approach
adopted for the FDI in retail sector of India, it helps in managing the balance of payments of the
country. The western retailers are entering the Indian market through treaties and collaborations.

In this way, roofing it with certain limits, it is pushing the growth of economy in effective
manner.
Critical review of the content of the articles using academic sources (Peer-reviewed
journal articles and books) 350 words
FDI in retail sector in the Indian economy has the mix results. Along with enriching
farmers with foreign capital, it also threatening the survival of many retailers who are earning
their livelihood by selling their goods at small shops and stores. According to (Sally & Watts),
Investment of billions of bucks in retail industry particularly in food retail has helped the
different components associated with it such as farmers, traders and producers. It is stated that
food market of country is ridden with number of flaws which negatively affect the growth of
sectors and leads to significant amount of wastage of resources. But with FDI's it has improved
the transportation, logistics and procurement which has enabled the farmers to earn optimum
prices and consumers get the food at cheaper rate. India has liberalized FDI's in other sectors as
well such as airlines, corporate banking sector, industries and other areas. It has troubled the
domestic companies operating in aviation industry and manufacturing. According to (Sally &
Watts), it has troubled the Indian companies. Another Asian country which has welcomed the
FDI's in their economy is china. According to the report of UNCTAD, China has significant
amount of Inflows of foreign investment. With respect to the results of FDI's in china's economy
it is different to that of India. According to (Arnett), it has increased the private and public
investment opportunities in the countries giving rise to the possibility of development in several
sectors. It has induced the growth opportunities in the areas such as power, transport,
infrastructure, water and sanitation and other industrial sectors. Considering the sector
infrastructure and its different components, it is found that in India areas such as Education and
health are getting benefits from FDI's as compared to retail sector. From the point of view with
respect to the FDI's in retail sector, it has laid significant impact on the traders, and consumers.
Companies entering with partnerships are making maximum amount of profits with their
considerable influence on the processing of domestic companies. In contrast, with it, according
to (Arnett), consumers will be the prominent beneficiaries of the FDI's in India.
CONCLUSION
Globalization is the process of unification of countries of world through the exchange of
ideas, factors of productions, culture, transportation activities, infrastructural links and all their

activities conducted by them. It has impacted the countries in several ways. Along with the
interactions in other manner, there has been escalated circulation of capital from one country to
the other in the form of foreign direct investment and inflow of capital. Case study is prepared on
the selected country India. In the present report the impact of globalization has been discussed on
differed section of economy of India such on Indian Trade, Indian growth, employment and FDI.
With the integration of several sectors, it significantly impacts the trade of the country. It
enhances the growth opportunities for the country with the exchange of factors of productions
and other entities. The adoption of landmark policy LPG that is liberalization, globalization and
privatization India has entered into the era of development with the increased connectivity and
networking with foreign traders and suppliers. It has enabled the traders to expand the domain of
their working and increase profitability and revenue generation. Establishment of business
groups in foreign market has led the Indian economy to get foreign exchange earnings in the
lucrative manner. With the expansion of Indian trade and its domain, from the empirical studies
it has been found that India has attained the considerable amount of growth rate since 1991 after
the adoption of globalization policy. Improvement in all the sectors such as financial, industrial,
banking and other is been seen. It has paved the way of development for the country India. India
being facing several challenges after the economic crises occurred in 1980 has decreased the
treasury of country considerably down. With the beginning of globalization, it has directed the
country to find ways for the sustainable growth and development. With the exchange of factors
of production between countries signing and ratifying treaties to leverage the benefits of
globalization there has changes seen in the employment conditions of the country. It has mixed
impacts on the workforce situation. Globalization has significantly changed the scenario of
employments in form of increased appointments and outsourcing. There been increased
movement of labor and efficient workers in every field from one country to the other. UK and
US are among the countries who has the largest ratio of India and let the outsourcing allowed in
their countries. It has provided employment to several capable persons at recognized and
established companies. Apart from the above mentioned. Inflow and outflow of capital is
affected considerably with the adoption of Globalization in the country. It has attracted billions
of dollars in different sectors of the country. With the special reference to retail industry, it has
mixed impacts. It has improved the conditions of operations such as supply chain management,

distribution channels and procurement. In contrast, with it, it has threatened the survival of
domestic companies.

REFERENCES
Arnett, G.,, 2014. Foreign direct investment: which countries get the most?. [Online]. Available
through: <http://www.theguardian.com/news/datablog/2014/jun/24/foreign-direct-
investment-which-countries-get-the-most>. [Accessed on 7th March 2016]
Dutta, B., 2016. Globalization may not be the problem affecting poor countries but neither is it
the solution. [Online]. Available through:
<http://www.telegraphindia.com/1160219/jsp/opinion/story_70046.jsp#.Vt0bLaW1Gko>.
[Accessed on 5th March 2016].
IMPACT OF GLOBALIZATION ON INDIAN MARKET. 2016. [Online]. Available through:
<http://www.abhinavjournal.com/images/Commerce_&_Management/Sep13/11.pdf>.
[Accessed on 5th March, 2016].
Kannan, S., 2013.Bangalore: India's IT hub readies for the digital future. [Online]. Available
through: <http://www.bbc.com/news/technology-23931499>. [Accessed on 7th March
2016]
Local economies point to the future. 2016. [Online]. Available through:
<http://news.bahai.org/story/1098>. [Accessed on 5th March 2016]
Malik, T., 2016. Impact of globalization on Indian economy- An overview. [Online]. Available
through: <http://www.fibre2fashion.com/industry-article/2993/impact-of-globalization?
page=1>. [Accessed on 5th March, 2016].
Nagy, T., 2016 Nagy: India's growth is dynamically propelling it. [Online]. Available through:
<http://lubbockonline.com/editorial-columnists/2016-02-28/nagy-indias-growth-
dynamically-propelling-it#.Vt00DKW1Gko>. [Accessed on 5th March 2016]
Singh, A., 2016. How the services sector is the key growth engine for India. [Online]. Available
through: <http://www.businessinsider.in/Howthe-services-sector-is-the-key-growth-
engine-for-India/articleshow/51156624.cms>. [Accessed on 5th March 2016]
The guardian, 2012. India offers cautious welcome to western retailers. [Online]. Available
through: <http://www.theguardian.com/world/2012/sep/14/india-cautious-welcome-to-
western-retailers>. [Accessed on 7th March 2016]
The guardian, 2015. India must exert its bargaining power over foreign supermarkets. [Online].
Available through: <http://www.theguardian.com/commentisfree/2011/dec/07/india-
foreign-supermarkets>. [Accessed on 7th March 2016]

Thimmaya, P. P., 2016.Digital India will be a big boon for the country. [Online]. Available
through: <http://www.financialexpress.com/article/industry/companies/digital-india-will-
be-a-big-boon-for-the-country/217264/>. [Accessed on 7th March 2016]
Vaswani, K., 2015.India and the economy: Your questions answered. [Online]. Available
through: <http://www.bbc.com/news/business-34063747>. [Accessed on 7th March 2016]