Uploaded byGourav Goyal
globalisation
This document discusses the impacts of globalization on the Indian economy. It begins with defining globalization and providing examples of globalization. It then discusses the major economic crisis India faced in 1991 that led to reforms liberalizing and globalizing the economy. These reforms included privatization, fiscal deficit reduction, and opening to foreign investment. The document notes both positive impacts, such as rapid GDP growth and increased foreign exchange reserves, as well as threats, such as increased rural poverty and job instability. It concludes by stating that while globalization provides opportunities, India must manage threats and not rely on it as a solution to all problems.
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globalisation
- 1. Submitted by: Gaurav Goyal B.COM(Prof.)part-3 5th semester Submitted to:- GURPREET MA’AM Roll No.3204
- 2. CONTENTS :- 1)MEANING &EXAMPLES 2)CRITERIA FOR MEASURING GLOBALIZATION 3)GLOBALIZATION IN INDIA 4)MAJOR CRISES AND ECONOMIC REFORMS. 5)POSITIVE IMPACTS OF GLOBALIZATION ON INDIAN ECONOMY. 6)TWO FACES OF GLOBALIZATION IN INDIA. 7)THREATS OF GLOBALIZATION FOR INDIAN ECONOMY. 8)CONCLUSION
- 3. America Japanese noodles JapaneseCuisine in America
- 4. Australia Italian PASTA ITALIANRESTURANT IN AUSTRALIA
- 5. Globalization refers tothe process of integration of various world economies into one huge market through trade, foreign direct investment, capital flows, migration and the spread of technology.
- 7. Designed in Germany Gearing system producedin Korea Pump in USA Engine in Australia.
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- 10. The 19th century issometimes called “The First Era of Globalization”
- 11. That Major crisiswas:- The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion. Capital was flying out of the country and we were close to defaulting on loans. Fiscal deficit was very high and foreign investors and NRIs had lost confidence in Indian economy. Inflation had increased to an annual rate of 17 % .
- 12. The following measures weretaken to liberalize and globalize the economy: Liberalization, Privatization and Globalization Policy (LPG Policy) as New Economic Policy,1991
- 13. Foreign Direct Investment DisinvestmentDevaluation The followingmeasures were taken to liberalize and globalize the economy:
- 14. Globalization has manypositive and innovative aspects, all related to the increased access to market, capital, technology and information which have led to greater income and employment opportunities.
- 15. It is thegrowth of Gross Domestic Product that determines the performance of Indian economy. The rate of growth of the Gross Domestic Product of India has been on the increase from 5.6 % during 1980-92 to 7% in the 1993-2001 period.
- 16. HOWEVER, it hasachieved faster growth from the 1980s. But, this was not only growth higher as compared to its own past, it was also much faster than that achieved by a large number of countries Between 1980 and 2010. India achieved a growth of 6.2 %,while the world as a whole registered a growth rate of 3.3%.
- 17. India’s share inglobal GDP
- 18. Service (54%) Agriculture (17%) India is ranked18th among the world`s leading exporters of services.
- 19. India’s foreign exchange reservehave grown significantly since 1991. The reserve, which stood at $5.8 bn in1991,increased gradually to $294 bn in 2011-12.
- 20. The average dutyon all products reduced from 70% in 1991 to 12% in 2008-09 and quantitative restrictions on imports have been eliminated, and foreign investments norms have been relaxed for a number of sectors. Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA) by finance minister Manmohan Singh.
- 22. The world’s largestretailer Walmart is waiting for the government’s DECICION on allowing FDI in retail.
- 23. India has technicalexpertise and skilled managers and a growing middle class market of more than 300 million and this represents an attractive market.
- 25. The 'Indian' brandis getting more recognition, as India emerges as a global economic powerhouse in terms of acquisition of global assets. In 2008, Tata Motors acquired the British car maker Jaguar Land Rover luxury car brand from Ford Motor Company.
- 26. There has beena sharp acceleration in the growth of per capita income almost doubling to an average of 7.2% p.a (2003-2010) as compare to 1992-03,when rate of growth was 3.7%.
- 28. In the recentyears, a number of international industries such as information technology, agro products, personal and beauty care, health care and other sectors have come into the INDIAN market. With more and more industry segments coming up, there has been a high demand for quality workforce. As a result, lots of young people are taking jobs in all these segments in order to start a good career
- 29. In Open Technologies,has entered into a partnership with Japan-based Benes Holdings to deliver Game- based computer science lessons to students in Silicon Valley schools, Bangalore. As many as 30 colleges across Kerala have signed up for a live, digital distance learning platform.
- 30. In 1991, only10% of the Indian urban population had access to a television. In2009, that has increased to 85% Extension of internet facilities even to rural areas As a result, the new generation of Indians is more knowledgeable, more aware and more interested in the world around them.
- 32. Old restaurants arenow replaced by multinational fast food MNC Like McDonald's, KFCs etc.
- 33. Chanda Kochhar is themanaging director (MD) of ICICI Bank and its chief executive officer (CEO).
- 34. Entertainment sector FamousInternational Brands
- 35. Indian Grand Prix(2011) Thenumber of world wide events are being organized all through the year. Commonwealth games (2010) Cricket World Cup(2010) Farmula-1 Racing events
- 36. We have thebest of times; we have the worst of times. There is sparkling prosperity, there is stinking poverty. We have dazzling five star hotels side by side with darkened ill-starred hovels.
- 37. In 1951, agricultureprovided employment to 72 % of the population and contributed 59% of the GDP. But,by 2001 the population depending upon agriculture came to 58% whereas the share of agriculture in the GDP went down drastically to 17% between 2005-11. This has resulted in a lowering the per capita income of the farmers and increasing the rural indebtedness. The number of landless families has increased from 35 % in 1987 to 55% in 2005. and farmers are still committing suicide.
- 39. Earlier people hadstable, permanent jobs. Now people live in constant dread of losing their jobs due to competition. Increased job competition has led to reduction in wages and consequently lower standards of living. Global recession impact on Indian economy resulted in loss of jobs in IT Sector.
- 41. Some section ofpeople in India, basically poor and very poor, they did not feel the heat of globalization at all. They remain poor & poorest as they were.
- 42. If the Indiancompanies spend a large proportion of their capital abroad, it will restrict the domestic investment. Our exports will suffer – local producers will suffer, this will adversely affect our balance of payment position.
- 43. Youth group ofIndia leaving their studies very early and joining Call centres to earn easy money thereby losing their social life after getting habituated with monotonous work.
- 44. Globally integrated marketshave financial volatility as a permanent feature, the frequency of financial crises increasing with the growth in international capital flows.
- 45. Flowing with globalization,India is shining in nearly every perspects like increase in overall growth rate of the economy and became a 3rd largest economy in the world. So,India is getting a global recognition and slowly moving towards to become a major economic and political strength. On the other hand, India is facing some shocks from global economic crisis but globalization should not only be accused for, It may suffer from internal problems also like rapid rise in population, rural poverty, infrastructure bottle necks, weak financial markets and so on. Globalization should not be thought of as a solution to everything. It merely provides opportunities. Those who take advantage, they flourish and those who do not they sink.
- 46. As Gandhiji said:- Thewestern world has progressed a lot and this made us look up to them as ideals. It should not be viewed an alternative to our own culture but only as a supplement. “I do not want my house to be closed by walls on all sides and windows to be stuffed. Rather, I want all the culture to blow freely through my house. But I do not want to be swept off my feet by any of them”