Liberalisation, Privatisation and Industrialisation in India

Topics: Investment, International economics, Macroeconomics Pages: 5 (1778 words) Published: September 5, 2012
The concept of globalisation was first introduced by Adam Smith, the father of modern economics in the year 1776 through the book titled, “Wealth of the Nations”, and since then the globalisation has been liked yo-yo. In the days of yore, British, Chinese, Indians and Mughals were involved in global business. The Chinese used to sell silk to the world and buy dynamites. The British used to come to India to buy condiments and in return India used to buy ammunition. So, the point is that - globalisation is not a new concept. In the good old days, globalisation even more prevalent because Indian spices, silk handicrafts, gold, sliver jewellery, etc., were ubiquitous everywhere in Europea. In the past globalisation meant quid pro quo i.e., one thing for another. But in the early 20thcentury, everything changed when France introduced the system of protectionism and every nation began to create boundaries. Protectionism destroyed globalisation in total. But again in the late 20th century the winds of globalisation began to blow. Dr. Allen Green Span as well as Dr. Paul Walker began to egg the nation in favour of globalisation and it was July 1, 1991, when India became the part and parcel of globalisation and today every nation, which happens to be a pursuer of globlisation derives plenty of basketfuls of fruits. The word "goalisation", which connotes where all the nations join their hands d create a kind of synergy to do business or any commercial, cultural or educational activities, in which every participant nation should beneficiary. Globalisation in a nutshell is "one for all and all for no. The purpose behind globalisation has been to open the portals for each and every nation in different fields. A nation can buy from other nation and sell to other nation. At the time when many analysts predict a booming future for Indian economy India remains hesitant to fully embrace globalisation India and its neighbour China have been tagged as the world's next economic super powers. Yet while China industriously makes its economy hospitable to foreign capital, Indian reformers continue to grapple with an intransigent domestic opposition to liberalization. Such are the pitfalls of Indian democracy. "As Nobel Laureate Amartya Sen and many other experts ha pointed out that India, as a geographical, politico-cultural entity has bee interacting with the outside world throughout history and still continues to do so. India has to adapt, assimilate and contribute." There are numerous experts to tell all who listen, that globalisation opens a tremendous potential for growth and poverty alleviation, and an outward looking model frees up entrepreneurs to innovate and invest. Globalisation means many things to the hoi polloi, particularly in India, which is the to probably the widest range of anti-globalisation groups in the world Indian economy needs globalisation because it can reduce the poverty also increase India's forex level which means Indian can manage economic crisis through it. During 1990's India was passing through mammoth economic crisis. The economic crisis of 1991 proved a real turning point for the Indian economy. Indian ambivalence towards markets and free trade has been evident in the way it has dealt with Bretton Woods institutions. The World Bank and the International Monetary Fund were created with the fundamental premise that protecting and expanding the system of liberal international trade would help avert a third major global conflict. India has been a vibrant participant in these institutions, not only as a major client, but also through its brilliant staff members and its commending executive directors. Since the days of 1991, India has come a long way. It has comfortable foreign exchange reserves (despite high levels of domestic debt); booming software and services export market, and a burgeoning knowledge economic Clearly, India has tremendous opportunities to benefit from globalisation but there is also consensus...
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