How has globalisation impacted India and how is India, in turn, impacting on globalisation?

India hasn’t been oblivious to globalisation. It adopted a globalised form of economy i.e an open economy in 1991. Various effects of globalisation upon India are-

• Due to the availability of more job opportunities offered by multinational corporations more employment is generated.

• There has been a flow of foreign capital and exchange of goods and services worldwide.

• There has been a significant increase in Foreign Direct Investment. More and more foreign firms are attracted to invest in India.

• Many Indian firms and industries have become multinational themselves and play an important role in the development and expansion of the Indian economy.

India, in turn, has a massive young demographic that provides eligible, qualified and able workforce in different sectors of the economy. India has also provided foreign firms opportunities to invest in India. India opened its economy in 1991 to every other country in the world and abolished the licensing system(only exempting few industries). It made its economy smooth and open to external trade and also reduced restrictions on the import of foreign goods. The private sector was allowed to expand in the country. To sum it up, India adopting an open economy was a major contribution and impact upon globalisation. .