Question

globalisation and Indian economic summary​

Answer 1

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GLOBALIZATION AND THE INDIAN ECONOMY

Summary

→Globalization :

A globalization is the process in which the countries are linked on each other through goods and services like technology, investments etc. MNCs are playing a major role in the globalization process.

→Factors that have enabled globalization are as follows :-

• Technology:- Rapid improvement in technology has been a major factor that has been stimulated in globalization process.

        Information and communication technology are the examples.

• Liberalization of foreign trade and foreign investment policy :- What is a liberalization ?  liberalization process is the process in which barriers and restrictions on some goods and services are set up by the government . What is a trade barrier? A trade barrier means that some restrictions has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to design what kind of goods & how much of each good is , should come in the country.

1. Why barriers on foreign trade and foreign investment were   removed  to a large extent ?

-The industries in India were just coming up in 1950s and 1960s and the competition from imports at that stage would not have allowed these industries to come up. Thus India allowed imports of only essential items such as machinery, fertilizers, petroleum etc.

-Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of the producers within the country since they would have to improve their quality. This decision was supported by powerful international organizations.

→WORLD TRADE ORGANIZATION [ WTO ]

The World Trade Organization is an intergovernmental organization that is concerned with the regulation of international trade between nations.At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

→Impact of globalization in India

1. Greater number of jobs.
2. More choice to consumer.
3. Higher disposable incomes.
4. Clothing.

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