What is the impact of the globalisation in India? What are the different factors which have facilitated globalisation?

Globalisation has resulted in greater competition among producers (both global and local) across the world. This has resulted in great benefits for consumers, particularly those in urban areas who are well-off. The consumers have greater choice, and can thus buy quality goods for cheaper prices. This has led to a better standard of living for many people.

For producers and workers, the impact has not been uniform.

a. As a result of MNCs investing more in India, not only has the MNC acquired profit, but many new jobs have also been created. Further, local companies that provide raw materials to producers have prospered.

b. Secondly, many top Indian companies have benefitted from increased competition. They have invested in newer technology and they have increased quality standards. Further, they have had successful tie-ups with foreign companies.

c. As a result of globalization, many Indian companies have also emerged as MNCs. For example, Tata Motors and Ranbaxy.

d. It has led to massive gains for the IT industry and for the services industries in general

However, it has also led to many disadvantages. As a result of increased competition, small-scale companies and small producers often have to shut down as they are unable to compete with the large MNCs. As a result, many people have become jobless. This is a big disadvantage as small industries employ the largest number of workers in India. Further, employees of MNCs are given ‘flexible’ jobs, which means that there is no certainty of employment, and their jobs are not secure. They are also paid poorly.

There are various factors that have facilitated globalization in India. Two of these are:

a. Technology

Rapid improvements in technology have made the process of globalization easier, particularly in the transportation area. As a result, goods are able to travel faster to different locations internationally. Further, IT and communications technology has helped increase connectivity between different countries.

b. Liberalization

As a result of liberalization (i.e. the removal of trade barriers by the government), globalization has been able to spread more rapidly in the country.