Globalization of Modern Day India

Topics: Economics, Globalization, Economy Pages: 6 (1929 words) Published: December 14, 2012
Globalization of Modern Day India
Globalization can be traced back to the ancient world from the beginning of civilizations to today’s modern age. Trade between cultures, migration from one area to another and intercultural contact (shared knowledge of technology, religion, etc.) have existed for thousands of years. These occurrences prove that many areas of the world were and still are involved in a global network. Globalization describes the process by which different parts of the globe become interconnected by economic, social, cultural, and political means (Hutchinson Encyclopaedia). The concept of globalization is especially broad in the sense that it refers to so many aspects of the world including networks of communication, transportation and trade within diverse regional economies, societies and culture. Global recent advancements in these particular areas have accelerated the growth of international capitalism. As a result, the world is more interdependent now than ever before. Information and money can be transferred with the click of a button. Communication is facilitated with the use of a mobile phone or the Internet. The exchange of data is now occurring at an incredibly rapid pace, almost instantaneously. Fewer trade barriers exist, thus creating a free flow of goods and services. Multinational corporations are producing goods and services in one part of the world and distributing in another. Work can be outsourced to any part of the world. With the progress of merging global economies, markets throughout the world have benefited from increased investment, employment and income growth (Goyal 2006). Many countries have shown remarkable rapid economic growth with the expansion of business methods and companies across national boundaries. Realizing the potential of the world market, India has emerged as an economic superpower. India can be classified as a developing country, but its economy is one the fastest growing economies in the world. India has progressed steadily over the last decade or so to become the eleventh largest economy in the world in terms of growth domestic product (GDP) and its economy ranks the fourth largest in terms of purchasing power parity (PPP). However, poverty still remains a major concern besides disparity in income (Goyal 2006). Some argue that globalization brings great benefits, while others argue that globalization is fundamentally flawed due to its profound consequences. This essay will explore the on-going effects of globalization on the Indian economy today while also taking into consideration its development and history. Furthermore, the benefits and disadvantages of the changing Indian economy will be discussed extensively with the goals of understanding the contradicting implications of globalization. History and Development

In order to understand where the Indian economy is today, the root of its development must be considered. During the late eighteenth century, major metropolitan cities in India such as Bombay (later changed to “Mumbai”) and Calcutta were primarily used as marine supply ports and its early growth was fuelled by imperialist interests, particularly British interests (Gugler 2004). Eventually, several specific economic factors contributed to the growth of India: the development of shipping services, the extension of the railway line to the cotton-growing areas of Bombay; the rise of rise of global cotton prices due to the American Civil War, and the opening of the Suez Canal in 1869 (Gugler 2004). By using the increased wealth that resulted from these events as a catalyst, Europeans were able to partner up with the Indians to establish textile and cotton industries in India (Gugler 2004). In the mid-nineteenth century, extensive networks were established within India and the surrounding areas. While Bombay continued to develop on its strengths as a port city, multilateral trade agreements were initiated by its colonial authorities. Therefore,...

References: "Globalization." The Hutchinson Unabridged Encyclopedia with Atlas and Weather guide. Abington: Helicon, 2009. Credo Reference. Web. 26 February 2011.
Goyal, Krishyn A. "Impact of Globalization on Developing Countries (With Special Reference to India)." Euro Journals 5 (2006). Print.
Gugler, Josef. World Cities beyond the West: Globalization, Development, and Inequality. Cambridge: Cambridge UP, 2004. Print.
Nayar, Baldev Raj. "India 's Globalization: Evaluating the Economic Consequences." Policy Studies 22 (2006). East-West Center Washington. Web.
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