Question

Explain the impact of globalisation in India.

Answer 1

Answer:

Globalization increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the foreign goods. This reduced the amount of profit of the Indian Industry companies.

Answer 2

Globalization has both positive and negative impact on Indian economy :

$\huge \underline{ \rm \red{Positive \: Impacts : - }}$

1. It created greater choices for consumers. For example, the consumers of India can buy international brands like Puma, Nike etc products in their own country at reasonable price.

2. It lead to greater competition among producers and thus improved the quality of products. For example Indian garment companies improved the quality of products in order to compete foreign goods.

3. The prices of products decreased. For example, the prices of good quality mobile phones like MI phones are available at reasonable prices.

4. It created employment opportunities and foreign investment which lead to the development in India. For example, lakhs of Indians are employed in service sectors which operate from other countries, the bullet train project etc.

$\huge \underline{ \rm \pink{negative \: impacts - }}$

1. Most local industries especially the small and traditional ones got closed due to globalization. For example khadi and other local industries got closed.

2. It lead to trade deficit of India. For example India alone owes more than 60 billion trade deficit to China.

3. It lead to the exploitation of labor force of India. Indian labors are hired are at cheap rates by MNCs