Globalization In India

Globalization in India: Effects and Consequences

Subhankar Chatterjee

What is Globalization?
The term globalization means International Integration.

Opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, capital, data and ideas.

It is a process through which the diverse world is unified into a single society.

Wave of Globalization
The wave of globalization hitted India at the end of the last century and still the country is flowing with the current of global changes.

Economic Impact of globalization in India
Multilateral agreements in trade, taking on such new agendas as environmental and social conditions.
New multilateral agreements for services ,Intellectual properties, communications, and more binding on national governments than any previous agreements.
Market economic policies spreading around the world, with greater privatization and liberalization than in earlier decades.
Growing global markets in services. People can now execute trade services globally -- from medical advice to software writing to data processing , that could never really be traded before.

Open Market policy -advantages

Growing Indian Economy

2010
 GDP – USD 1.36 trillion
 GDP growth rate – 9%
 Services contribution –
60-65%
 Balance of Trade – Negative balance should increase with surging imports versus exports
 Investment goal –
USD 370 billion

2008
 GDP – USD 1.16 trillion
 GDP growth rate – 9.5%
 Services contribution – 60%
 Balance of Trade – Negative balance should increase with surging imports versus exports
 Investment goal –
USD 305 billion

2006
 GDP – USD 590 billion
 GDP growth rate – 9%
 Services contribution – 54%

 Balance of Trade –
USD (-)46.2 billion
 Investment goal –
USD 250 billion

Growing GDP
1.200

USD Billion

1.000
800

682

600

398

400
191
200
0

103
105