Impact of Globalisation

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INTRODUCTION OF GLOBALISATION

The topic of ‘Impact of Globalisation on Indian Tradition’ reminds me of one of the famous quotes of visionary Swami Vivekananda, who foresaw the hazards of globalization and impact of MNC culture resulted from globalization in India as early as in 1893 when he spoke at the Parliament of World Religions in Chicago. He said “Shall India die? Then, from the world all spirituality will be extinct, all sweet-souled sympathy for religion will be extinct, all ideality will be extinct ; and in its place will reign the duality of lust and luxury as the male and female deities, with money as its priest, fraud, force, and competition its ceremonies, and human soul its sacrifice. Such a thing can never be'. Precisely such a terrible thing is taking place in India today on account of the inexorable and immutable process of Globalization".

'The Globalization' is becoming the preferred term for describing the current times. Just as the Depression, the Cold War Era, the Space Age.

Before we go further in detail, it is important that we understand the concept of globalization and its overall impact on India. Globalization can be defined as the removing of borders and barriers to facilitate easy exchange of ideas, resources and knowledge between countries. Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade.

People around the globe are more connected to each other today than ever before in the history of mankind. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is usual. This phenomenon has been titled 'Globalization.'

Today India is considered as the largest growing nation in the world next to China. The economic boom that is being experienced in India is largely attributed to the globalization and liberalization of the Indian economy.

HOW GLOBALISATION STARTED IN INDIA

The period prior to the 1990s was quite reluctant to the concept of an open market policy and the Indian markets were predominantly closed in nature. Foreign companies were not allowed to carry on their business in India. Indian economy was closed economy for outsider.

The economic reforms were initiated in 1991 in India by prime minister Narsinmha Rao in a demonstrative way. Increased borrowing from foreign sources in the late 1980s, which helped fuel economic growth, led to pressure on the balance of payments. The problem came to a head in August 1990 when Iraq invaded Kuwait, and the price of oil soon doubled. In addition, many Indian workers resident in Persian Gulf states either lost their jobs or returned home out of fear for their safety, thus reducing the flow of remittances. The direct economic impact of the Persian Gulf conflict was deteriorating the domestic, social and political developments. In the early 1990s, there was violence over two domestic issues in India:

*the reservation of a proportion of public-sector jobs for members of Scheduled Castes and
*the Hindu-Muslim conflict at Ayodhya.

The central government fell in November 1990 and was succeeded by a minority government. The cumulative impact of these events shook international confidence in India's economic viability, and the country found it increasingly difficult to borrow internationally.

As a result, in 1991, India made various agreements with the International Monetary Fund and other organizations that included commitments to speed up liberalization and new set of Economic Policies were drafted to facilitate huge inflow of Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) in to the much insulated Indian markets. The Indian government introduced a set of reforms for the ailing Indian...
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