Globalization and Its ImpactOn Indian Economy

What is Globalization?

The term globalization means International Integration.

Openingmeans of markets, migrations

up of world trade, development of advancedcommunication, internationalisation of financial

populationgrowing importance of MNC's,and more generally increased mobility of

persons, goods, capital, data and ideas.

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

Economic Impact of globalization in India

Multilateral agreements in trade, taking on such new agendas asenvironmental and social conditions.

New multilateral agreements for services ,Intellectual properties,communications, and more binding on national governments than anyprevious agreements.

Market economic policies spreading around the world, with greaterprivatization and liberalization than in earlier decades.

Growing global markets in services. People can now executetrade services globally -- from medical advice to software writing to data processing , that could never really be traded before.

Growing Indian Economy

2012

2010

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

GDP – USD 1.36 trillion

GDP growth rate – 9%

Services contribution –62 %

Balance of Trade – Negative balance should increase with surging imports versus exports

Investment goal –USD 370 billion

GDP – USD 1.84 trillion

GDP growth rate – 3.2%

Services contribution –65%

Balance of Trade – Negative balance should increase with surging imports versus exports

Investment goal –USD 430 billion

GDP COMPONENTS SECTOR WISE

Growing Exports

207210

170

130

90

502006-07

2008-09

2009-10

2010-11 2011-12

Source: Ministry of Commerce & IBEF

USD

Bill

ion

161

126.3

103.183.5

Growing FDI Inflows

35

30

25

20

15

10

5

02003-04 2004-05 2005-06 2006-07* 2007-08*

Source: Ministry of Commerce & IBEF

USD

Bill

ion

India is ranked second in AT Kearney’s FDI

confidence index (2007)

30

22

8.9

4.3 6

India's economic position among BRIC countries

Technological & Cultural impact of Globalization in India.

Access to television grew from 20% of the urban population (1991) to 90% of the urban population (2011). Even in the rural areas satellite television has a grown up market.

In the cities Internet facility is everywhere. Extension of Internet facilities even to the rural areas.

Global food chain /restaurants has already found a huge market in the urban areas of India

Lavish Multiplex movie halls, big shopping malls and high rise residentials are seen in every cities.

Telecommunication and Software industries are booming in India.

Entertainment sector in India has a worldwide market. Bollywood movies are accepted and distributed everywhere.

Impact of globalization on agriculture in India

Agriculture acquired 13.7 % of India’s GDP in 2012-13.

60% of population still depends on agriculture for their livelihood.

Occupied 43% of India’s geographical areas.

Agriculture Scientists are applying new technologies and instrumentsin growing crops.

Different state governments of India are taking initiative to literate thefarmers.

Impact of globalization on education in India Literacy rate in India at present is 74.04%

Foreign Universities are collaborating with different IndianUniversities.

Year Literacy Rate Male - Female

Person Male Female Gap

1981 43.6 56.4 29.8 26.6

1991 52.2 64.1 39.3 24.8

2001 65.4 75.8 54.2 21.6

2011 74.04 82.4 65.46 16.94

India‘s problem with GlobalizationSome section of people in India,basically poor and very poor,tribalgroups,they did not feel the heat of globalization at all.They remain poorpoorest as they were.Increased gap between rich and poor fuels potential terrorist reaction.

&

Youth group of India leaving their studies very early and joining Callcentres to earn easy money thereby losing their social life after getting habituated with monotonous work.

High growth but problem of unemployment.Multi party rule, hence political ideology intervenes globalization(reservation, labor law reforms).

Price hike of every daily usable commodities.

What are people talking about India?

India has a fantastic pool ofsoftware professionals. The world needs to benefit from

this.

The dynamism shown by Indiain the last 15 years

phenomenalis

Bill Gates, MicrosoftChairma

n

Paul Wolfowitz, Ex-

President, World Bank

This market (India) is criticalto our plans for building a

Ford Motor Co. for the 21st century

India on its way to becomingIT, manufacturing kingdom

the worldof

Bill Ford,

Chairman and

CEO

Mr Yasukuni Enoki,

Japanese Ambassador to

India

• GDP grew over 6.95% during 1992-93 compared to 5.5 % in 1980s

• Indian Rupee was valued 8.3 per $ in 1985,while in 1993 it valued 31.37 per $

• In 1950s 50% of GDP came from agricultural sector which declined to 28% in 1991 and to around 13% now.

• Fiscal Deficit was 11% of GDP in 1989 which reduced to 7.2% in 1992

• Poverty was declined by 8.9% during 1983-94 while in post reform period rate was 7.9%

• Employment growth in rural areas was lower in 1993-04 in compared to 1983-93

A Comparison

Conclusion

Flowing with globalizationperspects.

,India is shining in nearly every

India is getting a global recognition and slowly moving towards tobecome a major economic and political strength.

Though the developement is progressing rapidly,still many basicproblems like rural poverty,corruption and political instabilityremained unsolved.

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