Economic Globalisation and the Role of India in the Process

Topics: Economics, Economy, Investment Pages: 8 (2231 words) Published: June 20, 2013
ECONOMIC GLOBALIZATION AND THE ROLE OF INDIA IN THE PROCESS

BY
Dr V P RAGHAVAN
SENIOR FELLOW
MINISTRY OF CULTURE
GOVERNMENT OF INDIA

e-mail:drvpraghavan@yahoo.co.in

ECONOMIC GLOBALIZATION AND THE ROLE OF INDIA IN THE PROCESS

Introduction

Globalization is the captivating catchword all over the world. Some may praise its gainful fortunes while others denigrate its disfavoring vices. Globalization, as an economic phenomenon, denotes the integration of national economies to global economy through trade, investment and capital flows. Globalization helps move people and flow technology over international boundaries. It removes borders and barriers to trade between nations .In fact globalization deepens international relationships and broadens interdependence among people and the nations in the world. It entails free movement of capital, resources and people across national boundaries. It permits free trade, which helps enhance economic growth , that in turn reduce poverty and unemployment of the people. Economic globalization thus pre supposes free trade, which necessarily enhances economic growth that helps reduce poverty among nations.

The History

Globalization is not a new phenomenon. Trade relations occurred between nations in East and West in the distant past. Explorations of Marco Polo and Christopher Columbus helped European s to come into contact with the people of China and America. The human domestication of large mammals between 8000 and 2500 B.C helped early migrations of Europeans in the Americas. The European discovery of Australia in 17 th century was also a water shed in the history of globalization .. The late 19 th and early 20th century world economy were fully integrated through peoples’ movement and trade and capital flows. It was East India Company’s trade relations with India that led to the British Conquest of India, and the Dutch East India Company’s trade relations paved the y for its occupation of Indonesia. The earlier era witnessed the rapid growth of world trade .There was greater flow of capital and heavy explorations of energy and mineral resources through out the world. The past world economy was integrated by means of technological improvements in transportation and communications rather than by policy changes. improvements in transportation and communications rather than by policy changes. The technological innovations in transportation and communications helped reduce costs of transportation and communication in 19th century

Globalization in the Contemporary Era

In the present day globalization, information technologies favor for the rapid movement of services and resources more speedily around the world. Globalization is not a programme- It is a process .A process of integrating national economies to world economy. Globalization permits free movement of people, capital and technology across national boundaries. It is rather internationalization of economic systems. Economic Globalization presupposes free trade, which necessarily enhances economic progress of the nations. Higher economic growth helps reduce poverty among poor nations.

India in the Process

India as the emerging economy has witnessed unprecedented levels of economic expansion, along with countries such as China, Russia, Brazil and Mexico. India being a cost effective and labour intensive economy , has benefited immensely from outsourcing of work from developed countries, and a strong manufacturing and export oriented frame work.

The global economy seems to be recovering after the recent economic shock. The Indian economy , however , was hit in the latter part of the global recession and the real economy has witnessed a sharp fall , followed by lower exports, lower capital outflow and corporate restructuring . The global economies are expected to continue to sustain themselves in the short term , as the effect of...

References: www.economywatch.com
www.imf.org
www.accessmylibrary.com
www.drnarendrajadhav.info
Economic Times, 28-OCT-
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