Globalisation : And its Impact on Indian Economy Globalisation We have everything by globalization, we have nothing by globalization. : We have everything by globalization, we have nothing by globalization. What is globalisation? : What is globalisation? Spread of; manufacturing, services, markets, culture, lifestyle, capital, technology and ideas across national boundaries and around the world.
Also the integration of these geographically dispersed economic and social activities.
Huge impacts on people and nations. The whole world is affected by globalisation What are the positive effects of the globalization of India? : What are the positive effects of the globalization of India? Cultural Changes In India : Cultural Changes In India Cultural Changes : Cultural Changes Cultural Changes : Cultural Changes Access to television grew from 10% of the urban population (1991) to 75% of the urban population (1999).
Cable television and foreign movies became widely available for the first time and have acted as a catalyst in bulldozing the cultural boundaries
Indian youths leaving education in mid-way and joining MNC's
There has been a increase in the violence, particularly against women. Slide 12: Extension of internet facilities even to rural areas.
In place of old cinema halls, multiplex theatre are coming up.
Old restaurants are now replaced by Mc. Donald’s. Fast food and Chinese dishes have replaced juice corners and Parathas.
More availability of cheap and filthy material (CD's or DVD's of Hollywood movies, porn movies, sex toys, foreign channels like MTV) in the name of liberalization.
Scientific and technological innovations have made life quite comfortable, fast and enjoyable. Slide 13: More inflow of money has aggravated deep rooted problem of corruption.
More scandals and scams compared to pre-globalization era.
In India, land-line or basic phone was a prestige symbol few years back but now you find people riding bicycle with a mobile in hand, talking or listening music. Economic Changes : Economic Changes A country of savers has become spenders.
Greater employment opportunities for the masses.
Companies and government have changed the way they do business to cut the red tapisum.
The rupee has gained on the dollars so it is less advantage for Indians to live overseas and send money back home.. The Bright Side of Globalization : The Bright Side of Globalization The rate of growth of the GDP of India has been on the increase from 5.6 % during 1980-90 to 7% in the 1993-2001 period. In the last four years, the annual growth rate of the GDP was impressive at 7.5% (2003-04), 8.5% (2004-05),9% (2005-06) and 9.2% (2006-07).
The foreign exchange reserves were $ 39 bn (2000-01), $107 bn (2003-04),$145 bn (2005-06) and $180 bn (in February 2007). Slide 16: India’s trade deficit during 1990-1991 to 2006-2007 ranged between 3.6% to 6.9% of GDP.
The fluctuation in Foreign portfolio Investment were much sharper then FDI, The FPI rate decreases by 36% from period 1990-00 and again shows upward growth rate in period 00-07 was 22.1%.
FDI (net) shows a gradual upward growth from $97 million in 1990-1991 to $3272 million in 2000-2001 and again rising and touching the peak of $8779 million in 2006-2007. Slide 17: Share in world exports raise from 0.52% in 1990 to 1% in 2007.
In the rate of growth of per capita income there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2% p.a. (2003-04 to 2007-08). Darker Side of Globalisation : Darker Side of Globalisation Industrialisation did not take place as per expectation.
Share of agriculture in the GDP went down drastically to 24 per cent and further to 22 per cent in 2006-07.
The number of rural landless families increased from 35 per cent in 1987 to 45 per cent in 1999, further to 55 per cent in 2005. Slide 19: Corruption, lack of efficiency in work and ineffective management became the common features of public sector.
Decreased FDI: The data of FDI shows 50% (approx) gradual upward growth from 90-00. The FDI growth decreased by 20% from period 2000-07. Slide 20: Our progress in education has been slow and superficial , without depth and quality, to compete the international standards.
People depending on agriculture in India is about 60% where as the same for U.K. Is 2% and U.S. Is 2%. Conclusion : Conclusion To conclude the benefits of economic reforms on the Indian economy would get achieved, only if the negative impacts are settled or neutralized. Hence, along with globalisation and restructuring the economy, efforts.