Question

Impact of globalisation in indian economic

Answer 1

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ANSWER :-

The adoption of the policy of globalisation in India has resulted initially the following mixed impacts on its economy:

(i) Competition:

As a result of globalisation, Indian companies started to face growing comHpetition from free flow of products produced by multi-national companies (MNCs). Unequal competition between the domestic companies and mighty MNCs has resulted closure of weak industrial units both under large, medium and small scale categories.

(ii) Mergers:

Globalisation has resulted growing number of mergers and collaborations of Indian companies with MNCs or TNCs.

(iii) Exports:

India’s share of world exports has been increasing slowly from 0.55 per cent in 1990 to 0.75 per cent in 1999 and then to 1.01 per cent in 2003. In the current EXIM Policy (2001- 2002), the government has set an ambitious export target of $ 75 billion by 2004-2005 up from the existing level of $ 43 billion in order to capture 1 per cent of the global trade. This would, however, require the exports to grow at the rate of 18 per cent per annum.

(iv) Trade in Services:

As a result of globalisation India has been able to gain in respect of trade in services, especially in respect of Information Technology industry. Indian software professionals have created a brand image in the global market.

(v) Trade Conditions:

Globalisation has been creating an improved condition of trade for agricultural commodities and textiles, especially cotton textiles produced in India.

(vi) India’s Share in World Export of Goods and Services:

It would be better to study the India’s share in world merchandise exports and world service exports separately. The following table (7.8) will clarify the position.

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Answer 2

INTRODUCTION : IMPACT OF GLOBALISATION HAS NOT BEEN UNIFORM . IT HAS AFFECTED BOTH CONSUMERS AND PRODUCERS,

POSITIVE EFFECTS

• NOW CONSUMERS HAVE A WIDE RANGE OF CHOICE AT A COMPARATIVELY CHEAPER RATE .
• THEIR STANDARD OF LIVING HAS RAISED .
• NOW THEY GET GOOD QUALITY PRODUCTS .
• PRODUCERS HAVE ALSO GOT A CHANCE TO COMPETE WITH OTHER COUNTRIES .
• THIS HAVE IMPROVED THE QUALITY OF THE PRODUCTS .
• SOME DOMESTIC COMPANIES HAVE EMERGED AS A MULTINATIONAL COMPANIES LIKE: 1) TATA ( AUTOMOBILES)  (2) RANBAXY ( MEDICINES )  (3) ASIAN PAINTS ( PAINTS )

NEGATIVE EFFECTS

• IT HAS HIT SMALL PRODUCERS BECAUSE THEY ARE UNABLE TO COMPETE WITH MNC'S OR THE BIG PRODUCERS .
• SEVERAL UNITS HAVE BEEN SHUT DOWN RENDERING MANY WORKERS JOBLESS.
• IT HAS WORSENED THE CONDITIONS OF WORKERS BECAUSE NOW THEY ARE APPOINTED ON TEMPORARY BASIS TO AVOID PAYMENT OF PROVIDENT FUNDS OR ANY OTHER FACILITIES .
• THE WORKERS ARE PAID LOW WAGES .
• SOMETIMES TO PRODUCE MORE ELECTRICITY DAMS ARE CONSTRUCTED AND THE LAND GETS  SUBMERGED AND THE PEOPLE ARE LEFT LANDLESS WITH NO PROPER REHABILITATION .

CONCLUSION : FROM ABOVE DESCRIPTION , IT IS CLEAR THAT THE IMPACT OF GLOBALISATION HAS NOT BEEN UNIFORM .