TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

A
Project ProposalOn

“TO STUDY THE IMPACT OF GLOBALISATION IN INDIA”

Submitted by
Parbat Mori(5133)

Under the guidance of

DR. PRASHANT VADIKAR
In partial fulfilment of the requirements of the subject in
SSBBA- III, BBA Programme

Submitted to,
BBA Programme,
Faculty of Commerce,
The Maharaja Sayajirao University of Baroda, Vadodara
Academic Year(2022-23)
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

DECLARATION

I PARBAT TABHABHAI MORI FROM THE KAMLABEN RAMANLAL SHAH

COLLEGE OF COMMERCE FACULTY STUDENT OF T.Y.BBA SEM 6 HEREBY
SUBMIT MY PROJECT ON

“A STUDY ON IMPACT OF GLOBALISATION IN INDIAN”

I ALSO DECLARE THAT THIS PROJECT WHICH IS A PARTIAL FULLFILLMENT FOR

THE DEGREE T.Y. BBA OFFERED BY UNIVERSITYOF BARODA IS THE RESULT OF
MY OWN EFFORTS WITH THE HELP OF EXPERTS.

PARBAT TABHABHAI MORI

Certified By
Name and Signature of Guiding Teacher
DR. PRASHANT VADIKAR

Date:
Place:
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of baroda for giving me chance to do this project.

I would like to thank my associate director, Dr. K.R badoala for providing the necessaryfacilities
required for completion of this project.

I take this opportunity to thank our Coordinator, Dr. shital vekariya for his moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide, Mr. Prashant vadikar
whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially my Parents and Peers who supported.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

INDEX

CHAPTER NO. TOPIC PAGE NO

1 INTRODUCTION 05-27

2 REVIEW OF 28-36
LITERATURE

3 RESEARCH 37-45
METHODOLOGY
4 DATA ANALYSIS 46-57

5 FINDING OF THE 58-59

STUDY

6 CONCLUSION AND 60-63

SUGGESTION
7 BIBLIOGRAPHY 64-65

8 APPENDIX 66-67
TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

INTRODUCTION
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

The evolution of the concept of globalisation in the Indian context was for thefirst time conceived by
India's late Prime Minister Rajeev Gandhi during the 1980s. The Indian economy was then opened-up
selectively. Foreign investment in India was regulated by Foreign Exchange Regulation Act (FERA) in
1972
The influx of technology has changed the way of human life. In modern times,everything is accessible
within the range of a single click. However, this was not the case 2-3 decades ago. The world was not
open, and cross border trading and investments were not plentiful.
However, the introduction of globalisation changed this concept. It promoted foreign investments and
helped countries to prosper rapidly. Developing countries like India stimulated its economic growth via the
benefits of globalisation. Thus, globalisation and the Indian economy have a tightly knittedconnection.
Globalization has had a profound impact on India in the past few decades. India's economy has become
increasingly integrated with the global economy,as the country has opened up its markets and liberalized
its policies. This has led to a number of significant changes in India's economic, social, and cultural
landscape. In this response, we will explore some of the key impacts of globalization on India.

The process of globalization in India started in the early 1990s, when the government of India adopted a
series of economic reforms aimed at liberalizing the economy and attracting foreign investment. These
reforms included reducing trade barriers, deregulating industries, and privatizing state-owned enterprises.
These changes were made in response to the country's economic crisis and the need to revitalize its
economy.

Since then, globalization has had a significant impact on India in many areas,including trade,
investment, technology, and culture. It has led to both opportunities and challenges for the country,
which we will explore in the following sections.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

I. HISTORICAL BACKGROUND:-

Globalization refers to the increasing interconnectedness and integration of economies, cultures, and societies
on a global scale. In the case of India, globalization has a rich historical background that spans over centuries.
Here are some key historical events that shaped the process of globalization in India:

Ancient and Medieval Trade: India has a long history of trade and economic relations with various regions of
the world. From ancient times, Indian merchants traveled to different parts of Asia, Africa, and Europe,
establishing trade links and cultural exchanges. Indian spices, textiles, and precious metals were highly
sought after in the global market, leading to extensive trade networks with the Roman Empire, China,
Southeast Asia, and the Middle East.

Colonial Rule: During the colonial period, which lasted for several centuries, India came under the influence
of European powers, particularly the British East India Company and later the British Raj. The British
colonial rule brought significant changes to India's economy, society, and culture. British policies and
practices, including the introduction of railways, telegraph, and modern education, led to the integration of
Indian markets into the global economy, albeit in a controlled and exploitative manner.

Post-Independence Policies: After gaining independence from British rule in 1947, India adopted a planned
economy and pursued a policy of self-reliance and import substitution. However, in the 1990s, India
underwent a major shift in its economic policies, opening up its markets to foreign investment and
liberalizing trade and investment regulations. This policy shift aimed to integrate India into the global
economy, attract foreign capital and technology, and promote export-oriented growth.

Information Technology and Outsourcing: In the 1990s and 2000s, India emerged as a global hub for
information technology (IT) and business process outsourcing (BPO) services. India's large English-speaking
workforce, low labor costs, and investment in IT infrastructure made it an attractive destination for global
corporations seeking cost-effective solutions for their IT and back-office operations. This led to the growth of
India's IT and BPO sectors, which have become major contributors to India's economy and global integration.

Foreign Direct Investment (FDI) and International Trade: In recent decades, India has seen a significant
increase in foreign direct investment (FDI) and international trade. The Indian government has implemented
various policy reforms to attract FDI, liberalize trade, and improve the ease of doing business. India has also
been actively engaged in regional and multilateral trade agreements, such as the World Trade Organization
(WTO) and the Regional Comprehensive Economic Partnership (RCEP), to expand its trade links with other
countries and regions.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

Cultural Exchanges: Globalization has also brought about cultural exchanges in India. The spread of global
media, technology, and ideas has led to the exchange of cultural practices, values, and lifestyles. Western
music, films, fashion, and cuisine have become popular in urban India, while Indian cultural products such as
Bollywood films, yoga, and Ayurveda have gained global recognition and popularity

i) India’s economic trajectory since independence

Before getting into a discussion of India’s trajectory, let us begin with a quick overview of where
India stands among the Asian economies. This is captured in Table 1. In the cluster of 10 Asian
countries on display, India is the eighth poorest in terms of per capita GDP, ahead of Pakistan and
Bangladesh. At least two nations in this group, South Korea and Singapore, are actually high- income
nations. Given that all the countries in this cluster were roughly in the same per capita income band
in the 1950s, this shows what persistent good growth and the magic of compounding can do.

Table1: The Asian Landscape 2017

Country Population GDP (billion GDP per capita GDP per capita GDP growth rate
(million) current US$) (current US$) PPP (US$) 2016–17 (%)
Singapore 6 324 57,714 93,905 3.6
Korea, Rep. 51 1,531 29,743 38,260 3.1
China 1,386 12,238 8,827 16,807 6.9
Thailand 69 455 6,594 17,871 3.9
Indonesia 264 1,016 3,847 12,284 5.1
Philippines 105 314 2,989 8,343 6.7
Vietnam 96 224 2,343 6,776 6.8
India 1,339 2,598 1,940 7,056 6.6
Pakistan 197 305 1,548 5,527 5.7
Bangladesh 165 250 1,517 3,869 7.3

Source: World Bank World Development Indicators, 2017

In this the poorer nations seem to have the higher growth. The economies growing at the fastest rates
in 2016–17 are Bangladesh, with a growth rate of 7.3 per cent, followed by China (6.9 per cent), Viet
Nam (6.8 per cent), Philippines (6.7), and India (6.6) (Table 2). Singapore and South Korea now have
the slowest growth rates in this cluster, as is only to be expected of countries that have become rich.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

Table 2: India’s annual GDP growth rate and investment rate, 1950–2018

Year Annual GDP Investment Savings Year Annual Investment Savings

growth rate rate rate GDP rate rate
growth rate
1950–51 9.3 1984–85 4 19.1 16.0
1951–52 2.3 11.4 1985–86 4.2 20.6 15.2
1952–53 2.8 8.5 1986–87 4.3 20.1 16.5
1953–54 6.1 7.9 1987–88 3.5 21.9 18.2
1954–55 4.2 10 1988–89 10.2 22.8 20.1
1955–56 2.6 12.8 1989–90 6.1 23.7 21.5
1956–57 5.7 15.2 1990–91 5.3 26 21.8
1957–58 -1.2 14 1991–92 1.4 21.8 23.2
1958–59 7.6 11.7 1992–93 5.4 23 23.4
1959–60 2.2 12.4 1993–94 5.7 22.2 24.6
1960–61 7.1 14.3 1994–95 6.4 24.7 25.6
1961–62 3.1 13.4 1995–96 7.3 25.3 25.0
1962–63 2.1 14.9 1996–97 8 23.7 24.9
1963–64 5.1 14.3 1997–98 4.3 25.6 24.1
1964–65 7.6 14.5 1998–99 6.7 24.2 23.7
1965–66 -3.7 16.2 1999–00 8 26.6 24.2
1966–67 1 16.7 2000–01 4.1 24.3 23.9
1967–68 8.1 14.3 10.0 2001–02 5.4 24.2 25.5
1968–69 2.6 13.1 11.2 2002–03 3.9 24.8 27.5
1969–70 6.5 14.6 11.4 2003–04 8 26.8 31.1
1970–71 5 15.1 10.0 2004–05 7.1 32.8 32.0
1971–72 1 16 10.4 2005–06 9.5 34.7 33.2
1972–73 -0.3 14.7 12.1 2006–07 9.6 35.7 33.9
1973–74 4.6 17.3 9.8 2007–08 9.3 38.1 32.5
1974–75 1.2 17.5 12.8 2008–09 6.7 34.3 32.0
1975–76 9 17.2 15.2 2009–10 8.6 36.5 33.7
1976–77 1.2 17.4 14.5 2010–11 8.9 36.5 32.7
1977–78 7.5 17.8 14.0 2011–12 6.7 35.5 32.9
1978–79 5.5 21.1 14.3 2012–13 5.4 39 32.1
1979–80 -5.2 20.4 12.5 2013–14 6.1 38.7 31.4
1980–81 7.2 19.2 14.2 2014–15 7.2 33.8 30.8
1981–82 5.6 18.9 14.6 2015–16 7.9 34.4 30.1
1982–83 2.9 19.1 14.3 2016–17 6.6 33.3 29.8
1983–84 7.9 18.2 15.0 2017–18 6.7
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA
Notes: The GDP growth before 2011 shown is at factor cost, at
constant prices, with 2004–05 as base. The GDP growth after 2011
shown is at factor cost, at constant prices, with 2011–12 as base; and
Investment Rate refers to gross capital formation as a percentage of
GDP.

Source: Economic Survey 2017–18, Government of India, 2018.

Good growth is the outcome of various factors, from the nature of institutions in the
nation, the prevalent social norms, the positioning of the nation in the global polity,
and the nature of economic policy pursued by the respective governments, to the size
of the nation’s population.

It is arguable that none of these factors driving growth is binding in itself; and so there
is always hope that a lack in one particular dimension can be compensated for by good
performance on some other dimension that may be more under the control of
policymakers.

Some of the drivers of growth are beyond the control of any individual or organization.
But there are also some that can be shaped by the government and individuals in the
nation. The purpose of economic analysis is to identify the latter and help nations
achieve higher growth and all-round development.

Barring the growth spike in 1975 mentioned above, the nation chugged along at a fairly
steady low-growth rate, of around 3.5 per cent per annum, for the first three decades.
Given that India’s population was initially growing at over 2 per cent per annum, this
meant a snail’s pace growth of barely over 1 per cent for per capita income. Table 3,
based on the data in Table 2, summarizes some of the essential numbers. The annual
GDP growth rate, averaged over decades, shows India growing at 3.91 per cent, 3.68
per cent, and 3.09 per cent over the 1950s, 1960s, and 1970s, respectively. In decadal
terms, the big break was in the 1980s, when the growth breached the 5 per cent mark
for the first time.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

Table 3: India’s decadal GDP growth and investment rates

Annual Investment Savings

Year
GDP rate rate
growth rate

1951–61 3.91 11.82 -

1961–71 3.68 14.71 9.03
1971–81 3.09 17.86 12.96
1981–91 5.38 21.04 17.32
1991–2001 5.71 24.14 24.27
2001–11 7.68 32.44 31.42
2011–18 6.61 35.78 31.17

Notes: The GDP growth rate before 2011 is shown at factor cost, at
constant prices, with 2004–05 as base; the GDP growth rate after
2011 is shown at factor cost, at constant prices, with 2011–12 as base;
and Investment rate refers to gross capital formation as a percentage
of GDP.

Source: Economic Survey 2017–18, Government of India, 2018.

About 15 years ago in 1991 India had to experience a severe balance of payments crisis.

A default on payments, which would have a disastrous consequent for the Indian economy, had
become for the first time in our history a serious possibility in June 1991. It was at this time that new
Congress Government with Dr. Manmohan Singh as our Finance Minister took several short- term
and long-term measures to overcome the balance of payments crisis.

The balance of payments on current account of India has been in deficit for most of the years

. Deficit on current account implies that the residents of a country are spending more on imports of
goods and services than the incomes they are earning from exports of goods and service.

If the value of its imports exceeds the value of its exports, the country is said to have-a deficit or an
adverse balance of trade.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA
The economic liberalisation in India refers to the economic liberalisation of the country's economic
policies, initiated in 1991 with the goal of making the economy more market- and service-oriented,
and expanding the role of private and foreign investment. Most of these changes were made as part
of the conditions laid out by the World Bank and the IMF as a condition for a $500 million bail out
to the Indian government in December 1991.

The economic liberalization of India had a multitude of impacts, some of which were positive and
others negative for its people. The foreign investment in the country increased. Annual growth
in GDP per capita accelerated from just 1¼ per cent in the three decades after Independence to 7½
per cent currently, a rate of growth that will double average income in a decade In service sectors
where government regulation has been eased significantly or is less burdensome—such as
communications, insurance, asset management and information technology—output grown rapidly,
with exports of information technology enabled services particularly strong. In those infrastructure
sectors which were opened to competition, such as telecoms and civil aviation, the private sector
has proven to be extremely effective.

The economic liberalisation and globalisation in India in 1991 lead to economic growth by expanding
the role of private and foreign investment. Specific changes include a reduction in import tariffs,
deregulation of markets, reduction of taxes, and greater foreign investment. The fruits of liberalisation
reached their peak in 2006, when India recorded its highest GDP growth rate of 9.6%. With this, India
became the second fastest growing major economy in the world, next only toChina.

India's economy has grown drastically since it integrated into the global economy in 1991. It has
drastic impact on India's economic condition.

Foreign direct investment (FDI) in India has reached 2% of GDP, compared with 0.1% in 1990, and
Indian investment in other countries rose sharply in 2006.

As the third-largest economy in the world in PPP terms, India is a preferred destination for FD
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

India's liberalised FDI policy as of 2005 allowed up to a 100% FDI stake in ventures. Industrial policy
reforms have substantially reduced industrial licensing requirements, removed restrictions on
expansion and facilitated easy access to foreign technology and FDI. The upward moving growth
curve of the real-estate sector owes some credit to a booming economy and liberalised FDI regime
Table 4: India’s foreign exchange reserves

Total reserves
Year
₹ US$
Billion million

1954–55 9 1,873
1959–60 4 762
1964–65 3 524
1969–70 8 1,094
1974–75 10 1,379
1979–80 59 7,361
1984–85 72 5,952
1989–90 63 3,962
1994–95 798 25,186
1999–00 1,659 38,036
2004–05 6,191 141,514
2009–10 12,597 279,057
2014–15 21,376 341,638
2017–18 27,930 405,810
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Source: Reserve Bank of India & Centre for Industrial & Economic Research (CIER); Economic
Survey 2013–14.

What this wisdom missed out on was the fact that if you do not allow people to take
their foreign currency out of the country, they will not bring their foreign currency into
the country in the first place. Hence, it is likely that one reason India had so little
foreign reserve is that there were such severe restrictions on taking foreign money out
of the country. This was changed during the reforms of 1991–93 and the results were
visible within three or four years.

What arguably gave a boost to savings and therefore investment was Indira Gandhi’s
controversial decision to nationalize all banks in 1969. It may have had other,negative,
effects, but one consequence of this was that there was a sudden rise in the number of
bank branches in relatively remote rural areas (a consequence of a directive from the
government to the state-owned banks). This made it easier for people to save money,
and through the 1970s there was a steep and unprecedented rise in India’s savings rate
(Basu and Maertens 2008). A comprehensive study by Athukorala and Sen (2004) also
found that the ‘spread of banking facilities’ in India played a positive role in promoting
savings. They also showed that public savings tend to boost overall savings because,
although public savings displace private savings, this displacement effect is muted.

What India saw subsequently was a most unusual growth pattern for a developing
country. It was not the manufacturing sector that led India’s growth but the services
sector. Over the next 15 years India topped the chart of nations in terms of services
sector growth and this was primarily because of the information technology sector, in
which the country excelled, but there is more to the story.

The growth story of India’s services sector is an outlier in terms of the experience of
developing countries across the world. It has been argued that the services sector
growth tends to occur in two waves: one which takes an economy from the low- to
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA
middle-income category, and a second one which occurs in middle-income economies,
giving them a further boost (Eichengreen and Gupta 2009). The first consists of
various informal sectors growing rapidly, whereas the second gets its boost from more
sophisticated sectors, such as information technology and finance, triggering the
overall services sector growth.

It is this second-stage services sector growth that happened in India, rather early and
with a vigor rarely seen anywhere else. As Nayyar’s (2012) estimation shows, between
1980 and 2009, India’s services sector growth was so large that it picked up 85 per
cent of the decline in share of agriculture. That the share of agriculture will decline in
the process of development is normal. What this statistic shows is both theremarkably
good performance of India’s services sector and the remarkably poor performance of
India’s manufacturing sector.

The factors that drove India’s success in the services sector are several and make for
interesting economic analysis. First, there was an early policy shift that was rooted in
politics but had an unintended, beneficial effect. This had to do with the computing
sector. Following a spat with IBM in 1977, India asked the company to leave the
country. This caused big disruptions to the computing sector in India, but it also
became an inadvertent application of the infant industry argument, whereby India was
forced to make its own innovations and advances in this sector (Murthy 2005). This
prepared the initial ground and then, when the economic reform of 1991–93 happened,
India’s information technology sector was ready for take-off. As has been emphasized
by Narayana Murthy (2004), the reforms were critically important because they cut
down government bureaucracy and enabled speed in a sector that depends on that.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

The services sector, and in particular IT products, on the other hand, was initially
largely tax exempted and so did not have to interact much with the bureaucracy.
Further, its outputs did not, for the most part, have to be carted across roads or
negotiate ports since they could be digitally sent to the user. Hence, this sector could
bypass the nation’s two big stumbling blocks

All these drivers had fallen into place by the early years of this millennium and, by
2003, India seemed to have moved another step up the growth ladder. In 2003–04,
India’s GDP grew by 8 per cent and then from 2005 to 2008 it grew at over 9 per cent
for three consecutive years. It is likely that India has moved up to a higher growth path,
even though there have been some trying years since. Immediately after2008, the great
global recession had its effect on India. After 2010, major corruption scandals rocked
the entire economy and in 2016 a totally ill-conceived demonetization put the brakes
on the economy. It is, however, arguable that India is now on a higher growth path
overall and, unless it becomes a serial blunderer, the economy will be able to maintain
a growth of over 8 per cent per annum

To complete the picture of how India has developed overall, it is important to look at
other primary indicators of progress: literacy, poverty, inequality, and health. The
story here has been less encouraging.

For a nation committed to equality and socialism, India did surprisingly poorly on
these important indicators of overall development. Literacy is a striking example. In
higher education, India did remarkably well for a developing economy (though it has,
of late, been losing rank), as could be seen from the large presence of Indians in
international gatherings of science, engineering, and other areas of higher learning and
research. Yet, in terms of basic literacy, it trailed behind much poorer nations. Table 5
shows the basic numbers for adult literacy since Independence, as per censusdata.
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA

Table 5: Adult literacy

………………
Year Adult
literacy(%)
1951 18.33
1961 28.30
1971 34.45
1981 43.57
1991 52.21
2001 64.87
2011 74.04
Source: Census of India.

The above numbers are symptomatic of other social indicators, like poverty, health,
and malnutrition. Table 6 gives India’s poverty rates.

Poverty has been declining, with an especially sharp fall after 2009, but with over 20
per cent of the population living on less than $1.90 a day and 60 per cent living on
$3.20 a day or less, there is still a great distance to go.

Table 6: Poverty: Percentages of population consuming less than $1.90 and $3.20(PPP adjusted)
per day

Poverty head
count (% of
population)
Year < $1.90 / da < $3.20 /
day
1977 60.00 87.35
1983 53.90 84.90
1987 44.80 80.40
1993 45.90 81.10
2004 38.20 75.20
2009 31.10 70.00
2011 21.20 60.40
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Source: World Bank Development Research Group.

For a nation growing as well as India has in recent years, these indicators provide little
comfort and the nation cannot be unmindful of the fact that they can become a drag on
overall development and even GDP growth.

As India is one of the fastest-growing economies in the world, poverty is on the decline
in the country, with close to 44 Indians escaping extreme poverty every minute, as per
the World Poverty Clock. India has been able to lift a significant percentage of its
population out of poverty, but many still live in it. India had 73 million people living
in extreme poverty which makes up 5.5% of its total population, according to the
Brookings report

The Indian government and non-governmental organizations have initiated several

programs to alleviate poverty, including subsidizing food and other necessities,
increased access to loans, improving agricultural techniques and price supports,
promoting education and family planning. These measures have helped to eliminate
famines, cut absolute poverty levels by more than half and reduced illiteracy and
 TO STUDY THE IMPACT OF GLOBALISATION IN INDIA
malnutrition.
Unemployment is a major social issue in India. As of September 2018, according to
the Indian government, India had 31 million jobless people. While the Indian economy
has been shifting from being predominantly agriculture employment-based to one
where the employment is a mix of agriculture, manufacturing and services, the
economy has largely seen a "jobless growth" between the 1980s and 2007.

This jobless growth in the Indian manufacturing has been puzzling and is in part linked
to the productivity growth. The major industries that have seen growth in formal
employment have been export-oriented manufacturing, software, and local services.
However, the services-based industry has not been "particularly employment-
intensive", and its rapid growth has not addressed the unemployment and under-
employment problems in India – and the job needs of its growing population – between
1983 and 2010.
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Finally, let me briefly turn to inequality.
The Gini coefficient of income or consumption inequality is high but there are other
measures, based on wealth and the tracking of the difference between the super-rich
and the median person. This shows very high and worsening inequality (Bardhan 2007;
Mishra 2012), which is likely to have negative spillovers in the long-run, and maybe
not that long. In a nation that now has several individuals listed among the world’s
wealthiest individuals, the numbers on poverty quoted above tell us that India does
have work to do in reversing some of these inequality trends.
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ii) Contemporary Challenges

While India’s growth has picked up in the last few decades, and especially since
2005, as just discussed, India still faces formidable challenges—of deep-seated
poverty, endemic corruption, growing inequality, and other anxieties of early
growth. How should the nation deal with these challenges? How should India
turn the march of technology that is happening around the world and creating
turmoil in so many places to its advantage? Is that at all possible?

There are 4 problems that needs to be tackled:

o Bureaucratic costs
o Corruption
o Technology and labor
o GST

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• Reducing Bureaucratic costs

In Table 7, I provide a snapshot of how India performs in comparison with a
group of Asian economies in terms of specific indicators that are particularly
important in facilitating business and enterprise. Consider, for instance, the
number of days it takes to get the basic permits to start a small enterprise. In
Singapore it takes 3 days, in South Korea 4 days, in Bangladesh 20 days, and
in India a full month.

Table 7: Bureaucratic efficiency, 2017

No. of No. of No. of Border Border
days to days to years to compliance compliance for
Country start enforce a resolve for exports imports (hours)
business contract insolvenc (hours)
y
y

India 30 1,445 4.3 106.1 264.5

China 23 496 1.7 25.9 92.3
Vietnam 22 400 5 55 56
Bangladesh 20 1,442 4 99.7 183
Malaysia 18 425 1 45 69
Pakistan 18 1,071 2.6 75 129.3
Thailand 5 420 1.5 51 50
South Korea 4 290 1.5 13 6
Singapore 3 164 0.8 10 33

Source: Author’s construction, using World Bank data (World Bank 2018).

Finally, the need to eliminate unnecessary hurdles must not be equated with a call for doing
away with regulation. No modern economy can run well and for the well-being of its overall
population if it is left entirely to the dictates of profit making. We need regulation to direct the
economy, and we certainly need laws and controls to curb environmental damage. We cannot
allow enterprises to choke our rivers, lakes, and oceans with plastic and chemicals on the
grounds of free-market efficiency. But what has happened in India is a stacking-up of old and
new rules, many of which serve no purpose other than to slow down decision making and fuel
corruption as people are forced to cajole and bribe those in authority to get the necessary
permissions
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• Corruption Control
On 8 November 2016, the Government of India announced the demonetization of
all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance
of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes.[1] The Prime
minister of India Narendra Modi claimed that the action would curtail the shadow economy
and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism. The
announcement of demonetisation was followed by prolonged cash shortages in the weeks that
followed, which created significant disruption throughout the economy. The BSE SENSEX
and NIFTY 50 stock indices fell over 6 percent on the day after the announcement.[15] The
move reduced the country's industrial production and its GDP growth rate.

Objectives were as follows:

i) Reduce black money

ii) To check evasion
iii) Reduce counterfeit currency
iv) Digitalisation
v) Tax collection (increase govt revenue)
vi) Curb corruption

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• Technology and labor

Turning finally to the challenge of technology and labor, for India this is as yet
a problem in its early stages, but it may come to be the dominant problem in the
medium to long term. Worldwide and in high- and upper-middle-income
countries the problem is acute. Thanks to the rise of two kinds of technology—
the ‘labor-saving’ kind, which is leading to machines and robots replacing labor,
and the ‘labor-linking’ kind, which is allowing workers in low-wage nations to
do some of the work for rich economies without having to leave their shores—
there is a clear trend of wage shares falling and inequality rising.
Growth has been higher but job creation has lagged behind growth quite
significantly (Ghose 2016; Nayyar 2017). During the real-high growth period
for India, from 2005 to 2008, for instance, when GDP was growing at roughly
9.5 per cent per annum, annual job creation was barely 2 per cent.

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• GST

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the
supply of goods and services. It is a comprehensive, multistage, destination based tax:
comprehensive because it has subsumed almost all the indirect taxes. Goods and services are
divided into five different tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28%.
However, petroleum products, alcoholic drinks are not taxed under GST and instead are taxed
separately by the individual state governments, as per the previous tax system. In addition
a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks,
luxury cars and tobacco products. The tax came into effect from 1 July 2017 through the
implementation of the One Hundred and First Amendment of the Constitution of India by the
Indian government.

Impacts of GST reforms are very positive for growth, capital formation, investment,
consumption and employment in the Indian economy. By eliminating the cascading effects of
multiplicity of taxes and by removing the red-tape in the tax administration, GST reduces the
cost of supply of goods and services. . Consumers are better off as they get commodities at
lower prices, producers also gain as the cost of capital decrease. Economy becomes more
competitive in the international market. Economy creates more employment in the service
sectors including the transport and storage, hotel and restaurant, food and beverages and
textiles, health and education and community services sectors after the GST reforms.

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The future years

Given that it is a nation that made some sophisticated choices in terms of its politics earlier
than almost any other nation achieving independence, with a substantial economic growth to
back this up, India could be a global leader.

Despite India’s remarkable growth performance over the last decade and a half, there are still
many vulnerabilities. First, agriculture as a share of value-added in GDP has over the last 50
years become quite small but it is still a vital sector that employs around half of the nation’s
labour force. Even a small decline in its production can cause food inflation, large welfare
losses among the poor, and even political instability. Therefore, agriculture as a sector will
continue to need nurture.

While technology will eventually create a global challenge that will affect India as well, for
some time still to come India will be able to take advantage of its cheap labour and boost its
manufacturing sector, which is a powerful absorber of labour. But to nurture this sector more
investment is needed in infrastructure, the reduction of bureaucratic costs, and also good
macroeconomic policy, because a wrong exchange rate policy can blight the nation’s scope for
greater manufacturing exports.

But thereafter, as India’s own labour costs rise and artificial intelligence and robotics arrive
in a big way, the country’s (along with the whole world’s) growth strategy will have to change.
For this it will need major upgradation in the quality of education.

All drudge work will be taken by new-generation machines, and human beings will have to
find work in research, innovation, and creative fields like art and philosophy. India had a head
start in higher education. The nation will need new investments in this.

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Then there is matter of inequality. If the working classes are not endowed with more creative
skills, there is the danger that, even if India continues to grow, all its growth will be
concentrated at the top end.

India should invests in health and education, and also taxes the rich more and use money for
welfare of poor.

Some of these prospects and problems are not exclusive to India, but global.

The world can get there and India can play a leadership role in ushering in such an age. With
its early investment in the political institutions of democracy, secularism, and openness to
ideas, as well as in good universities and institutes of higher learning, including science and
engineering, and in its more recent improvements in savings and investment rates, India, with
its enormous size, has the potential to be in the frontline. There are policy corrections to be
made, there are pitfalls to be avoided but, with all those caveats, the prospects look good for
what lies ahead.

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REVIEW OF LITERATURE

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Theoretical understanding of the concept of Globalization.

Ronald Robertson- one of the pioneers of globalization describes globalization as “the compression of
the world and rapid increase of consciousness of the world as a whole”. This implies that world is easily
accessible by email and mobile phones. For him globalization is a revolutionary process of change and has
affected the economic,social cultural and political life aspects of individual and groups. He also said that
the world becomes united and integrated by Globalization.
Thus interconnectedness and interdependence are the main characteristics of globalization according to
Robertson.
Globalization is ever increasing cross border flows of goods, services money, people information and
culture. ( Held McGrew Goldblatt and Perraton 1999)
McLuhan says we are living in a global village i.e. our life is governed by products originating from all
the corners of the world.
Anthony Giddens has defined globalization as intensification of worldwide social relations which links
distant localities in such a way that local happening are shaped by events occurring many miles away and
vice versa.
For Giddens globalization is the extension of modernization.
Malcom Waters have developed a theory of globalization- material exchanges localize, political changes
internalize & symbolic exchanges globalize.
European commission defined globalization as “Globalization is the process by which markets and
production in different countries are becoming increasingly interdependent due to dynamics of trade,
goods and services and flow of capital and technology.
Manual Castell explains global economy by saying that it is capitalist without a capitalist class structure.
Castells and other post modernists say that now there is no class system. He gave importance to
information technology which forms the material basis for new society. For him global economy is
basically an economy of capitalism.
Anthony Giddens says that social relationships are becoming stretched across great distances. Inother
words new communication technologies are ensuring that social relationships are becomingmore intense
and robust.

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Stuart Hall et al (1992) have emphasized on consumer culture. He says that through mass
mediated advertising, people get encouraged to want more than they actually need. They consume
and get symbolically satisfied. Consumer culture depends on simulation which exercises
sovereignty on the consumers.
For Ulrich Beck the multi dimensionality of global development- ecology, politics, culture and
civil society should also be emphasized along with the economic dimension.
Mcgrew also spoke of globalization as simply the intensification of global interconnectedness and
stress the multiplicity of linkages it implied- Goods, capital, social institutional relationships,
technological developments, ideas all readily flowed across territorial boundaries.
G. Satyanarayan has said “the major feature of globalization is the growing concentration and
monopolsation of economic resources and power by transnational corporations and by global
financial firms and funds”.
R.S. Bawa and Manjit Singh have described globalization as a process by which the economies of
the world increasingly get integrated leading to global economy and global economic policy
making. Globalization also refers to increased openness of economies to international trade,
financial flow and direct foreign investment and involves integration of national economies though
international market for products and factors resulting in enhanced cross border flows of goods,
capital and labour and flows of information technology and management knowhow.
Ram Mohan Verma in his book on Development and challenges of globalization has
emphasized on the impact of globalization on developing countries. He discussed about migration:
its advantages and disadvantages. He talked about the positive benefits of migration

(a) Migrants to other countries send back money (b) the opportunity to work in the industrialized
countries is a valuable source of skills and experience. For those with high order technical skills,
interaction with leading researchers in the competitive environments of the rich Countries
enhances productivity and innovation (c) there is increased access to new technologies like
computerization coupled with the World Wide Web.
On cultural effects of globalization in India, Steve Derne has asserted that affluent Indians
adopt a new sort of consumerism, demonstrate wealth and allow women’s greater freedom of
movement in public. It is also studied that a new focus on the individual perhaps generated by a
new economic possibilities and / or new cultural imagination has not led to the acceptance of

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love marriage (Individual choice in marriage) but has reduced the social pressure as reason men
opposed love marriages.
Secondly affluent Indians exploit more successfully the economic and educational opportunities to
the maximum for their betterment and progress.
Ronald Robertson talked about global compression in terms of shrinking of distances through the
dramatic reduction of time taken either physically or representationally (IT) to cross distances.
Global nearness resulted from a shrinking world or in McLuhan’s term global village.World
becomes more intimate and closed.
Global consciousness means individual events are addressed to the entire world rather than to local
or national sectors of it, not only in matter of mass media and consumer preference, but in all
issues- economic, political, citizenship, environment position of women and so on .
Yogendra Singh in Globalization in India stresses that trade, finance and investment increased
with equal speed. Multinationals have become dominant and organize the production operation on
a global scale. Regarding India’s cultural globalization, Yogendra Singh has observed that the
increasing use of computers telephone and internet has influenced India’s social instititutions and
pattern of relationships. As a result of changes in technology, liberalization and privatization
have brought substantial changes in trade, investment and banking in India.
Kellner has stressed the use of internet in promoting capitalist globalization. For him,
globalization involves both capitalist market and sets of social relations and flows of commodities,
capital technology, ideas, forms of culture and people across national boundaries via global
networked socially

B ) Review Of Literature - On Changes In Society

Dr. Krishna Chandra Pradhan in his book women and social change has stressed that the status
of women has been changed due to various educational and job opportunities available to them in
India. Even in political area their contributions are recognized and they have occupied many
powerful positions. Globalization has changed the attitude of men toward woman. They are
receiving many business opportunities on the basis of their merit. In rural areas many self help
groups emerged which help women. Women have also entered entrepreneurship in agribusinesses.

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In Globalization And Indian Society, Babita Agarwal and Anil Agrawal have emphasized that
the world has become smaller because of technology particularly in the fields of travel and
communication. This impacts the daily lives of everyone in the industrialized or developed
countries and many in the underdeveloped countries of the world. From the business view point,
most large companies and many smaller companies are dependent on participation in foreign
markets including the internet, e- business and intercompany trading to grow significantly in the
future. For them the important issues are 1) Globalization involves the diffusion of ideas,practices,
technologies and capital. 2) People movement and transfer of knowledge and technology are the
basic features. 3) The importance of education has increased. 4) Knowledge and technology control
the world and individual living standards.
Appadurai Arjun in his book Modernity at large, Cultural dimension of globalization argues
that there are more choices now in front of younger generation and this has changed the family
institutions, gender practices, and cultural understandings in India.

On the impact of globalization, R.W. Connell( 1998:10-11) and Arjun Appadurai emphasize that
international media circulate western definition of authoritative masculinity and desirable feminity
that often change the concept of male dominance.
Baudrllard (1993) was among the first to theorize that consumption is important in defining
people’s ideas of class and their identity in society. This means that people have become
consumers today. And determine their class on the basis of their pattern of consumption.
Steve Derne in Globalization on the ground has concluded that while elite middle class
population have made their fortune by global economic oppuritunies and as a result changed
their cultural understanding, class and gender system, the non elite population of the country has
not benefited much.
For Dipankar Gupta as he has emphasized in his study, “Mistaken identity: India between
worlds 2000, that consumerist globalized approach detracts our attention from consideration of the
disprivileged and the downtroddens in India. For him the production is geared to meet the demands
of the privileged class only.
Held David, Anthony Mcgrew, David Glold Blatt And Jonathan Perraton (1999) have
emphasized that global interaction and processes have speeded up due to the development of
worldwide system of transport and communication. As a result the potential velocity of the global
interaction of ideas goods, information, capital and people has increased.

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Bambi Turner on Globalization and Cultural change has said- Globalization has propagated
economic opportunities, elevated human rights and improved reference to food, dress, fashion,
vehicles, cosmetics and recreation. According to the author, consumption has been increased
especially among the youth due to globalization. Even women have been used more as a
commodity- this is being reflected in various beauty shows fashion shows. Miss world
competition, showing women’s body in several advertisements etc. For the author, globalizing
capital operates though the production of specific and various sites of consumer desire and agency,
marked by caste, region, community, age, gender and class.
In Globalization ICT and developing nation’s challenges in the information age.-According to
Sumit Roy has emphasized that ICT is a challenging and unique opportunity to accelerate
development and usher in structural change and the information age. Concrete policies on ICT are
essential to stimulate innovation, production and diffusion with high emphasis on efficiency
productivity and in particular employment and trading though digitalized and non digitalized
society. This analysis is centered on India- the major south Asian country in a developing-
developed frame work which captures the potential of new technology.
According to the author, there is high need of knowledge and higher education especially in the
field of software computer skills and higher professional field in order to develop the youth so that
they can compete and face the challenges of globalization successfully in India.
In Globalization, Environment and Human Development Kalpana Markandey and S.
Simhadri have insisted that Globalization has the inbuilt advantage to the developed spaces /
classes of access to information, technology goods to people all over the world”. Though this has
led to important changes in socio economic life of people,it also has resulted in loss of cultures.

She has emphasized that western influence has transformed most of our attitudes and value.
Jogdand P.G. and S.M. Michael in Globalization and Social Movements have emphasized
that globalization has impacted various ethnic communities in all over the world. For them
Globalization has changed the concept of self identity from the passive level of acceptance to the
active level of reflexivity and critique. According to the authors enormous opportunities to
develop have provided people choices from diversity of options and they are choosing most
beneficial life styles.
M.R. Biju in Globalization, Democracy and Gender Justice, has discussed gender
discrimination and inadequate representation of women in political power. According to him, the

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precondition for successful democracy is gender equality so that both men and women can equally
participate in governance and developmental processes in a country.
For the author, Globalization implies widening and deepening interaction with the globe i.e. with
people and processes abroad. Globalization is widely seen as the most important factor that could
influence economies of nations the world over in the new millennium. In business, more changes
can be expected specifically in terms of openness, adaptiveness and responsiveness.
In Globalization, Media, Culture And Society - Usha shrivastava has focused on consumption
as an effect of globalization. The colonization and the consequent modernization gave certain
segments of society the access to the benefits of globalization. Especially the middleand upper
middle class have taken the benefit and became further rich in India. Though extreme poverty has
been reduced, skill poverty and inequality exist between and among different classes. Many
people didn’t have training and access to state institutions so they are still poor.
In Contemporary issues in Globalization - an introduction to theory and policy in India,
Soumyen Sikdar has analyzed the economic scene in India due to liberalization and privatization,
global trade restrictions, the dominance of MNCs, devaluation of Indian currency, impact of FDIs,
increasing poverty and inequality and finally the role of the state in the economy.

The author has also pointed out education especially higher education and technical skills become
very important in job markets.
Globalization – 2.0 – a road map to the future from leading minds- Raschid, Ijioui, Heike
Emmerich Ceype Michael Hagen Jochen ( Editors)The book has emphasized more on the
negative effects of global financial crises on western companies and countries especially Germany.
All the German authors have assured the businessmen and policy makers of west that by making
necessary changes in the formulation of products, selling tricks and by exploring new markets and
by bringing deisirable changes in trade policies, the loss can be recovered and prosperity can be
regained but for them, globalization will not end; it will be there.

Heiko Shrader in the article Globalization, Fragmentation And Modernity has stressed that
globalization opened the domestic market for foreign products and companies in India. This
changed the life styles of middle and upper class people. In particular in the fields like software
production, India is among the leading nations in the world and her experts are in high demand in
the international labour market. Social structure is in a process of change, the old rigid caste

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system begins to weaken, human right movement like dalit movement articulate their claims for
equality.
Social Dimension of Globalization -This refers to the impact of Globalization on the life and
work of people, their families and their societies, concern and issues related to employment,
working conditions, income and social protection. Social dimension also includes security,culture
and identity, inclusion and exclusion and the cohesiveness of families and communities. According
to the author, the goal of globalization is to meet the needs of all people.
Cultural Dimension of globalization There are many debates about whether globalization
increases or reduces cultural diversity or homogenization. For many, the influences of western
culture though T.V., cinema, advertising, radio, etc are substituting for and competing with local
and minority cultures. This process is often blamed for increasing risk behaviors like smoking and
alcohol consumption, increasing social conflict loss of identity, dislocation and dissatisfaction.
Nankervis has emphasized that services industries are mostly in areas like information and
communication, technology, consumer product and service education, public service agencies and
retail service in which world market drive the economy of both India and china.
R.S. Bawa and Manjit singh in Globalization, Development and India- Issues And Policies.
The emphasis of development theory shifted to interdependent development. The policy emphasis
has shifted to market driven forces but along with state playing the role of facilitator and providing
safety nets for those who are put to disadvantageous position thereby preventing the market
failures.

Today when knowledge has become the most powerful engine of economic development it has
been realized that people are poor not because they are poor, but because there are poor policies.
(Meier and Stiglitz 2000) For the authors, economic globalization and information technologies
affect global culture. The free flow of goods, establishment of manufacturing facilities and spread
of the restaurants, internet, satellite and Cable T.V are sweeping away cultural boundaries.
Leslie Sklair focuses on the ‘profit driven’ culture ideology of consumerism, which has shaped
desires and created needs, opening up new areas for capital accumulation. The spread of ideas like
freedom, equality and empowerment has affected the gender arrangement of society.

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Economic Globalization - This refers to increasing economic interdependence of nationaleconomies

across the world through a rapid increase in cross order movement of goods,services, technology and
capital.
Current globalization trends can be largely accounted for by developed economies integrating with less
developed economies, by means of foreign direct investment, the reduction of trade barriers as well as
other economic reforms and in many cases immigration.
McGrew has also said- ‘people’s ideas and consciousness are all changed due to the global
interconnectedness.
Yogesh kumar Sharma has discussed the managerial issues and challenges with reference to
globalization, privatization and liberalization. For him, all managerial functions have become global in
scope and complexity and competitiveness has intensified. Technology and its management have
demanded efficiency. Manufacturing sourcing, marketing, financing, human resources management and
management information system have all become global in scope. There is also problem of managing
multicultural work force in both developing and developed countries.

The UNDP Report says- “Global Markets, Global technology, Global ideas and Global solidarity can
enrich the lives of people everywhere, greatly expanding their choices. Thegrowing interdependence of
people’s lives calls for shared value and a shared commitment to thehuman development of all people.

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Research
Methodology

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1. Objective of the study:

The objectives are designed to have a particular direction to the study like what aspect of the
topic is going to be studied. A topic can be studied from various parameter, the objectives
designed for a project gives an idea that in what manner the topic is studied, what is the flow
of project, what are the variables selected for the project, etc.

• To know the impact of economic decisions on India’s economic growth.

• To analyse the trend of economic growth.

• To suggest measures which will improve economic growth rate and development.

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2. Hypothesis of the study

Hypothesis is referred as the presumptions made by an individual to study the research project.
These presumptions are made in a way to satisfy the objectives framed for the project. Framing
of hypothesis is an important part of the research as in this step the research problem or the
problem statement is designed on which the entire research is based.

Hypothesis

H0: People are not aware of various economic decisions and trends of economic growth and
development

H1: People are aware of various economic decisions and trends of economic growth and
development

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3. Scope of study

The present study on changes in Indian economy and its impact targets understanding the
impacts of decisions like liberalisation, globalisation, demonetisation, privatisation,
emergency, GST, etc. on economy and analyse the growth trend so as to make future
predictions.

This study also helps to understand what challenges are faced by Indian people & what can
bring more improvement in lifestyle of Indian people thus leading to economic development.

Various other factors like inflation, economic crisis in 2008, balance of payment, external
debts, etc. are not considered as the topic is really vast and mammoth task to cover every aspect.

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4. Type of study

There are various types of study for doing a research, to name some descriptive study,
exploratory study, historical study, empirical study, qualitative study, quantitative study, etc.
For the purpose of this research, the research has used Descriptive study.

Descriptive study is a method usually used to describe the characteristics of the population that
is being studied. The descriptive study is mostly used to get the answer for the question “what”
rather than answer for “why”. The reason for selecting Descriptive research is because it gives
special focus on specific type of questions, methods, and outcomes of the data. The best part
about Descriptive study is that it can study the qualitative and quantitative aspects i.e. there is
no need to study the qualitative or quantitative aspects separately.

Therefore, it can involve the tables and graphs and numbers or the physical qualities in the
study. Descriptive study is usually used by the anthropologists, psychologists and social
scientists.

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5. Sampling Design

The sampling designs are manly classified into two types: probability and non- probability
sampling. Probability sampling is then divided into simple random sampling, stratified
sampling, systematic sampling, and cluster sampling.

Random sampling method means the sampling technique where we select a group of project
to study a larger group. Each individual is selected on chance and each member has an equal
chance of being included in sample. The main goal of random sampling is to get a sample
which is representative of the larger population. The importance of random sampling is to draw
conclusion from the results of a study. However, in random sampling the object may not
necessarily have an equal chance of being chosen. Random sampling helps to eliminate bias by
giving all the individuals an equal chance to be chosen.

For the purpose of this research, I have used “Probability Random sampling” method. The
reason for selecting the random sampling method is that my sample size is small and a fixed
set of questions were asked to everyone, hence there is uniformity in the data collected.
Therefore, random sampling is used as there will be no bias result obtained from the data, which
is the most important aspect of random sampling.

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6. Methods of data collection

The data collection method means the various sources from where the data has been collected
by the researcher. There are several methods for collection of data, especially in surveys and
descriptive researches. As during data collection for descriptive research, the primary data is
collected from the respondents through direct communication or through personal interviews.

DATA COLLECTION

PRIMARY DATA SECONDARY DATA

CASE STUDY
STRUCTURED
OR
QUESTIONNAIRE
VARIOUS JOURNALS

• PRIMARY DATA

The study is based on both primary and secondary data.

For the purpose of the research, the primary data was collected through a close ended structured
questionnaire which was designed pre hand and was circulated using Google form.
Questionnaire was answered by consumers in general with the age group of 18 yrs and above.

Close ended questionnaire method is the most feasible method of data collection as a fixed
set of questions is prepared and surveyed. Therefore, uniform observations were obtained
which are more reliable.

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• SECONDARY DATA

For the purpose of secondary data collection, the researcher has used various forms such as
various research magazines, articles, websites, research journals, compendiums, etc. related
to the topic. Due to unavailability and shortage of time no books were studied in the physical
form. The secondary sources were mostly used for designing the review of literature for the
project. Being a descriptive research more secondary data was used for the study.

7. Sample Size

The sample sizes of 50 respondents were selected from the respondents.

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8. Limitations of study

Limitations of a research project arise when there are uncontrollable variables which are harder
to be brought in control. This reduces the accuracy and credibility of results. However,for this
study only 140 responses were taken into consideration.

• The period of research was very short and hence more the researcher was unable to
gather more responses.

• The research sample size was limited.

• The scope of discussion was limited as a very in depth study was needed in every
field of science. This helps in finding an accurate solution.

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Data Analysis

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Frequency and diagrammatic analysis

Frequency analysis is a part of descriptive statistics. In statistics, frequency is the number of

times an event occurs. Relative frequencies are more commonly used because they allow you
to compare how often values occur relative to the overall sample size.

Diagrammatic analysis is a technique of presenting numeric data in Pictograms, Pie charts,

Bar diagrams, Graphs, etc.

Percentage analysis is one of the descriptive statistical measures used to describe the
characteristics of the sample or population in totality.

Percentage analysis involves computing measures of variables selected of the study and its
finding will give easy interpretation for the reader.

We are using Pie charts for our study.

Pie chart is a circular statistical graphic which is divided into slices to illustrate numerical
proportions. . Pie chart represent relative frequencies & percentage by displaying how much of
the whole pie each category represents.

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As per primary data collected: -

A. Classification of the respondents

Table 4.1.1: On the basis of Age Group

Sr. Particulars Frequency Percentage

No.
1 Age Group
18 to 20 Years 22 44 %
20 to 30 Years 11 22 %
30 to 50 Years 13 26 %
50 Years and above 4 8%

INTERPRETATION–
The above table shows the respondents from different age groups who has responded to the
questionnaire of the survey. It shows us the frequency of respondents from different age group.

As per the data collected, around 44 % respondents are in the age group of 18 to 20 years,
around 22 % respondents are in the age group of 20 to 30 years, and then around 26 %
respondents are in the age of 30 to 50 years, finally 8 % respondents around the age group of
50 years and above.

This can be better presented through following Pie Diagram. The Pie-Chart shows us the data
as a whole and in 100%.

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B. Classification of the respondents

Table 4.1.2: On the basis of Occupation

Sr. Particulars Frequency Percentage

No.
2 Occupation
Employed 22 44 %
Unemployed 28 56 %

INTERPRETATION-
The above table shows the occupation type of respondents. Here, 44 % respondents are
employed whereas other 56 % students are unemployed.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.3: On the basis of Most Unfavourable Impact

Sr. Particulars Frequency Percentage

No.
3 Most Unfavourable Impact
Demonetisation 20 40 %
GST 11 22 %
Globalisation 4 8%
Emergency 12 24 %
Higher Imports 2 4%
Reservation 1 2%

INTERPRETATION-

The above table shows the most unfavourable impact on Indian economy according to the respondent’s
answers. Here, 40 % respondents feel demonetisation (2016) has the most unfavourable impact followed
by emergency (1975-1977) having 24 %. Then GST (2017) having 22 %. Also 8 % respondents feel
globalisation, 4 % respondents feel higher imports inIndia and 2 % respondents feel reservation in India
has most unfavourable impact.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.4: On the basis of Most Favourable Impact

Sr. Particulars Frequency Percentage

No.
4 Most Favourable Impact
Demonetisation 6 12 %
GST 17 34 %
Globalisation 10 20 %
Privatization 8 16 %
Liberalisation 9 18 %

INTERPRETATION-

The above table shows the most favourable impact on Indian economy according to the respondent’s
answers. Here, 34 % respondents feel GST has the most favourable impact followed by globalisation
having 20 %. Then liberalisation having 18 %. Also 16 % respondents feel privatization and 12 %
respondents feel demonetisation respectively has most favourable impact.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.5: On the basis of Best way to measure economic growth

Sr. Particulars Frequency Percentage

No.
5 Best way to measure economic
growth
GDP Growth Rate 20 40 %
GDP Per Capita 22 44 %
Real GDP 3 6%
Nominal GDP 5 10 %

INTERPRETATION-

The above table shows the best way to measure economic growth according to the respondent’s
answers. Here, 40 % respondents feel GDP growth rate, 44 % respondents feel GDP per capita
respectively are the best ways to measure economic growth. Also 10 % respondents feel
Nominal GDP and 6 % respondents feel Real GDP is the best way to measure economic growth.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.6: On the basis of sector contribution

Sr. Particulars Frequency Percentage

No.
6 Sector contribution for
economic growth
Service sector 22 44 %
Manufacturing sector 17 34 %
Agriculture 11 22 %

INTERPRETATION-

The above table shows which sector should contribute more for economic growth according
to the respondent’s answers. Here, 44 % respondents feel service sector should contribute more
whereas 34 % respondents feel manufacturing sector should contribute more. Only 22
% respondents feel agriculture should contribute more for economic growth.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.7: On the basis of Best aspect for economic development and good lifestyle

Sr. Particulars Frequency Percentage

No.
7 Best aspect for economic
development and lifestyle
Poverty 13 26 %
Income inequality 2 4%
Unemployment 27 54 %
Corruption 8 16 %

INTERPRETATION-

The above table shows which aspect should government focus for economic development and
good standard of living according to the respondent’s answers. Here, 54 % respondents feel
unemployment should be tackled. Also 26 % respondents feel poverty should be reduced. And
16 % respondents feel corruption should be stopped and very few 4 % respondents feel income
inequality should be reduced for economic development and good standard of living.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.8: On the basis of tariff rate changes

Sr. Particulars Frequency Percentage

No.
8 Restrict trade policies with
China
Agree 30 60 %
Strongly agree 13 26 %
Disagree 1 2%
Strongly disagree 1 2%
Neutral 5 10 %

INTERPRETATION-

The above table shows whether India should restrict its trade policy with China according to
the respondent’s answers. Here, almost 86 % agree, 10 % are neutral whereas 4 % disagree.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.9: On the basis of India’s Future GDP

Sr. Particulars Frequency Percentage

No.
9 India’s Future GDP
4% - 5% 9 18 %
5% - 6% 13 26 %
7% - 8% 26 52 %
8% and above 2 4%

INTERPRETATION-

The above table shows what India’s Future GDP would be according to respondents answer.
Here, 52 % respondents feel India’s GDP would be between 7% - 8% whereas only 4% feels it
would be more than 8%. 26% respondents feel it would be between 5% - 6% and 18%
respondents feel India’s GDP would be as low as 4% - 5%.

The responses received can be presented using Pie Diagram as follows: -

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Table 4.1.10: On the basis of whether India would be next superpower in the world

Sr. Particulars Frequency Percentage

No.
10 Would India be next
superpower
Yes 28 56 %
No 8 16 %
Maybe 14 28 %

INTERPRETATION-

The above table shows whether India would be next superpower according to the respondent’s
answers. Here, 56 % respondents feel India would be superpower whereas only 16 % feel India
would not be superpower. Rest 28 % respondents are unsure whether India would be
superpower.

The responses received can be presented using Pie Diagram as follows: -

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Findings

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The following findings are based on observation dining the study period:

o It is found that 44 % respondents belong to age group of 18 – 20 years old.

o As most of the respondents are students, 56 % are not employed whereas rest 44
% respondents are employed.
o It is found that 40 % respondents think Demonetisation had most unfavourable
impact on Indian economy.
o It is found that 34 % respondents think GST had most favourable impact on Indian
economy.
o It is found that 44 % respondents think GDP per capita is the best way to measure
economic growth.
o It is found that 44 % respondents think service sector should contribute more for
economic growth.
o It is found that 54 % respondents think government should focus more on
unemployment issue for economic development and good lifestyle of people.
o It is found that 86 % respondents agree that India should restrict its trade policy
with China to prevent dumping of Chinese goods in Indian markets.
o It is found that 52 % respondents think India’s future GDP would be between 7%
- 8%.The export of services is expanding.
o It is found that 56 % respondents think India will be the next superpower in the
world.

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Conclusion and
Suggestions

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Future is always uncertain and full of risk. We don't know what is going to happen tomorrow.
We cannot accurately predict the economic conditions in India in future years. But we can come
to conclusions based on previous trends and facts. Since the start of 21st century, annualaverage
GDP growth rate has been 6% - 7% and from 2014 to 2018, India was the world’s fastest
growing major economy surpassing China.

The economy slowed down in 2017 due to shocks of demonetisation in 2016 and introduction
of GST in 2017. Demonetisation was initiated with a wide array of motives like stripping the
Indian economy of its black money, push people to pay taxes for unaccounted pile of cash, curb
terrorism, promote the digital India movement and make India a cashless economy. The biggest
negative impact which demonetisation had was economic slowdown. Note ban caused loss of
earnings for many unorganised sector workers and retailers.

GST was actually beneficial for Indian economy.GST removed cascading and thus reduced
prices of most of goods which increased consumption and directly increased the GDP. Directly
GST will increase the investment in FDIs and indirectly increase the employment
opportunities.

The service sector is the key driver of India’s economic growth. The sector has contributed
54.17 % of India’s Gross Value Added in 2018-19. The export of service is expanding. Also
employment opportunities have increased. Also service sector in India is the largest recepient
of FDI in India. Leisure and business travel and tourism, IT, healthcare companies are booming
in India having positive impact on economic growth.

China is India’s largest trading partner. Bilateral trade policies are followed. Despite growing
economic and strategic ties, there are several hurdles for India and China. India faces trade
imbalance heavily in some favour of China. With increase in tariff on Chinese exports by US,
China will search for market where it can dump its products. With 1.3 billion population and
resonable purchasing power, India will provide readymade market for chinese products
resulting in increase in Chinese exports to India and increasing trade deficit.

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This will also lead to fall in Indian rupee’s value. Nonetheless, there will be opportunities for
India to increase its exports to US and China. So the government should review such
regulations.

India’s GPD fell from 8.2 % in 2016-17 to 7.2 % in 2017-18 to 6.8 % in 2018-19. Currently
India’s GDP of 4.5 % has hit over six year low in July to September of 2019 whereas GDP in
October to December of 2019-20 is 4.7 %. India is facing economic slowdown. The slowdown
has been across most segments like manufacturing, construction, etc. The sharp slowdown in
financial, real estate and professional services and private final consumption on expenditure
side is worrisome.

So the government should start intiatives to increase the demand in market by increasing
government expenditure to increase cash available with people. Government should also
increase its exports and create more opportunities for foreign investment. Simplified tax
structure, supporting and promoting MSME would also help.

Along with economic growth, economic development ie. growth of standard of living of people
is aslo essential. With a population of 1.3 billion, issues like unemployment, illiteracy etc are
leading to vicious circle of poverty. These major social issues are also required to be tackled.

To conclude, if India wants to sustain and raise even higher its current growth, the main
bottlenecks in the Indian economy will need to be addressed. These are infrastructure (roads,
expensive freight rates, power supply, ports, and airports), labour and bankruptcy regulations,
and the high level of corruption in the government bureaucracy.

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In addition, the current erratic and low growth pattern of the agricultural sector, and the rising
inequality—between states, between rural and urban areas, and within urban and within rural
areas mainly are a concern.

Of these numerous factors, we have addressed only a few in this study paper. Each of these
factors deserves inquiry, research, and policy initiatives.

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Bibliography

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Websites
o www.wikipedia.org
o economictimes.com
o www.ibef.com
o www.researchgate.net

Articles/ Newspapers
o Economic times
o Times of India
o Working paper – A short history of India’s economy
o Oxford Journal – Pattern and causes of economic growth in India

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Appendix

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Questionnaire:

a. What is your age?

b. Are you employed?

c. Which decision had most unfavourable impact on Indian economy?

d. Which decision had most favourable impact on Indian economy?

e. Which is the best way to measure economic growth?

f. Which sector should contribute more for economic growth and development of

India?

g. Which aspect should government focus more for economic development and

good lifestyle of people?

h. With increase in US tariff rates, China will increase dumping products in

Indian market. So should India restrict its trade policy with China?

i. What will be India’s future GDP? (GDP FY 2018-19 was 6.8 %)

j. Do you consider India to be next superpower in the world considering the

current fast developing status of Indi

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