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C.10 (b) Examine the impact of globalization in India.

SOLUTION:

Impact of globalisation in India is as follows- 
  1. The reduction of export subsidies and import barriers enabled free trade that made the untapped Indian market incredibly attractive to the international community because of which multi national companies are prone to shift their centres of production in accordance with the benefits they receive.
  2. This has also led to low wages and long working hours in potentially hazardous conditions due to requirement of cost effective production.
  3. If we talk about agricultural sector,  India used to be a large society, with a significant majority of the country’s population depending on this sector either directly or indirectly for their livelihood. Thanks to India opening its doors for globalisation the technological capabilities of farmers have increased which is now helping them drive global exports of Indian products such as tea, coffee and sugar.
  4. Financially speaking, prior to globalization and privatization India’s financial sector had been mismanaged by a combination of corrupt government officials many of whom were quite reluctant to embrace change that globalisation made. By taking control of the financial sector out of the hands of the bureaucracy, market competition enhanced on innovation, creating a much more dynamic financial services sector.
  5. As far as industries are concerned, there has been a massive influx of both foreign capital investment and companies expanding to and offshoring in India, particularly in the pharmaceutical manufacturing, chemical and petroleum industries. They brought with them advanced technologies and processes that have helped modernize the Indian industrial sector.

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  • The following are the negative impacts of globalisation :

i) Low wages and long working hours in potentially hazardous conditions due to requirement of cost effective production.

ii) Uncertain terms of employment. Casual workers are hired on contract when demand is high and laid off when demand declines.

iii) Multi national companies are prone to shift their centres of production in accordance with the benefits they receive.

 

The worst hit by globalisation are small scale industries as they do not have the capital or resources to compete with large MNCs. Casual workers are also affected as they have to work long hours for low wages and uncertain terms of employment. They are not entitled to many benefits enjoyed by regular workers.

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