CHAPTER - 9

GLOBALIZATION

Concept: Reasons for Globalisation

There are several key factors which have
• Globalization is the process of increased influenced the process of globalisation:
interaction and integration among
people, businesses, and governments
• Technology: Rapid improvement in
technology has been one major factor
around the world, so that events in distant
that has stimulated the globalisation
parts of the world increasingly affect
process. For instance, the past fifty
one part of the world. In other words, it
years have seen several improvements
refers to the process by which the world
in transportation and communication
is becoming more interconnected as a
technology. This has made much faster
result of significantly increased trade
delivery of goods across long distances
and cultural exchange. Globalisation has
possible at lower costs.
increased the production of goods and
services. The biggest companies are no • Improvements in Transportation:
longer national firms but multinational The improvements in transportation
corporations with subsidiaries in many facilities led to quick movement of
countries. goods and people across the globe.
• Globalisation has been happening for Ex: Air and Water transportation. The
hundreds of years, but it has accelerated cost of transporting goods between
dramatically in the last half-century. countries has decreased due to the
transportation by larger cargo ships.
• Globalisation has resulted in: This enabled the operationalisation of
economies at large scale in domestic as
» Increased international trade in value
well as international market.
and volume.
» Rise of MNCs, a company operating in • Less Protectionism: Old forms of
more than one country non-tariff protection such as import
licensing and foreign exchange controls
» Integration and greater dependence have gradually been dismantled.
of national economies on the global Borders have opened and average
economy. import tariff levels have fallen.
» Freer movement of capital, goods, • Freedom of Trade: Organisations like
and services across the international the World Trade Organisation (WTO)
borders. promotes free trade between countries,
» Recognition of companies such as which help to remove barriers between
McDonalds and Starbucks in Less countries. This meant that goods could
Economically Developed Countries. be imported and exported easily and
also foreign companies could set up
Although globalisation is probably helping factories and offices here. This also
to create more wealth in developing facilitate the financial movement across
countries, it is not helping to close the gap border. Ex: FDI, FII, electronic trade in
between the world’s poorest countries and stock exchanges etc.
the world’s richest.

52
• Improvements of expanded as a result of globalisation.
Communications: The internet In contrast to the past, when there
and mobile technology have allowed were just a few producers, we now have
greater communication between a wide variety of products to choose
people in different countries. This has from. Globalization and its associated
facilitated the expansion of MNCs by shifts and developments are evident
outsourcing their business/projects to in the field of consumption, primarily
other countries without the physical through the introduction of new modes
presence. Ex: Outsourcing of services in of consumption and consumption
BPO. behaviours, the development of new
goods, new sales locations, and new
• Labour Availability and Skills: needs, the alteration of consumption
The countries such as India have lower patterns, trends, and lifestyles, and the
labour costs (about a third of that of increase in consumer activity.
the UK) and also high skill levels. Labour
intensive industries such as clothing can • Factors attracting MNCs to a
take advantage of cheaper labour costs country may include:
and reduced legal restrictions in Least
developed countries (LDCs). » Availability of cheap raw materials.
» Availability required and cheap labour
• Growth of Multinational supply.
Corporations: Due to the above
factors many businesses setting up or » Infrastructure facilities.
buying operations in other countries. » Availability and access to markets
When a foreign company invests in a where the goods are sold.
country, perhaps by building a factory or » Political stability and friendly
a shop, this is called inward investment. government policies.
Companies that operate in several
countries are called multinational
corporations (MNCs). Ex: The US fast-
food chain McDonald’s is a large MNC
Impact of Globalisation on
- it has over 34,000 restaurants in 119 Indian Economy:
countries.
• In the last twenty years, globalisation
• Resulted in Competitive Market: of the Indian economy has come a
Globalization boosts trade and long way. Globalisation and greater
raises living standards. It intensifies competition among producers - both
competition within the domestic local and foreign producers - has been
product, capital, and labour markets, of advantage to consumers, particularly
as well as between nations adopting the well-off sections in the urban areas.
various trade and investment strategies. There is greater choice before these
Countries become more competitive, consumers who now enjoy improved
attractive for investment, and prepared quality and lower prices for several
to meet the emerging economic, products. As a result, these people
social, and environmental challenges today, enjoy much higher standards of
of globalisation by encouraging and living than was possible earlier.
improving innovation efficiency. • Among producers and workers, the
• Rising Consumer Demends: impact of globalisation has not been
The consumer goods industry has uniform.

53
Effects of globalisation on $129 million FDI which is increased to
whopping $50 billion in 2019-20. While
Indian Economy: Foreign Portfolio Investment in 1990-
• Globalization has both positive and 91 in India stood at $6 million which
negative effects on Indian economy. reached at $20 billion in 2019-20.
• Increase in Foreign Exchange
Reserves: In 1991, India’s FOREX
Positive effects of globalization reserve plummeted to $5.8 billion. But
on Indian economy: due to liberalization and opening up of
economy, in April, 2012 increased to US
• Increase in Foreign Trade: As a result $ 293.14 billion. Thus, there has been an
of foreign trade policies adopted in the increase of 347 times in foreign exchange
wake of globalization, India’s share in reserves of India. While in 2020, India’s
the world trade has gone up. forex reserve touched $585 billion mark
which made India fifth largest country
India’s share in in terms of forex reserves. This is nearly
Year
world trade (%) 10,000 increase in forex in last 30 years.
• Increase in Foreign
1990-91 0.53 Collaborations: Globalization has
promoted collaboration of foreign
companies with many Indian companies.
1995-96 0.60 These collaboration agreements can be
technical, financial or both. Ex: Vistara
and Air Asia, Brahmos Aerospace,
2007-08 1.64
Mahindra-Renault etc.
• Expansion of Market: Globalization
2009-10 1.78 has expanded the size of market, it has
permitted Indian business unit to expand
their business in the whole world. Now
2014-15 1.96
multinational corporations, have no
national boundaries. Indian companies
2018-19 1.7 like Infosys, Tata consultancy, Wipro,
Tata Steel, reliance etc., are doing their
business in many countries of the world.
• As per the WTO data released in April
2019, for the year 2018, India’s share • Technological Development:
in global exports for merchandise was Globalization has promoted the
1.7% & for the year 2018 for service technical collaboration of foreign
sector, India’s share in global exports companies. This collaboration enabled
was 3.5% and imports was 3.2%. the inflow of modern advanced and
superior foreign technology in India.
• Increase in Foreign investment: As The use of this modern technology has
a consequence of globalization, Foreign resulted technological development of
Investment Policy 1991 has been a Indian business units.
central component of economic reform
in India. There has been a considerable • Brand Development: Globalization
increase in foreign direct investment as has promoted the use of branded
well as foreign portfolio investment. goods. Now not only durable goods are
branded but products like garments,
• In the year 1990-91, India received nearly

54
 Juices, Snacks, food grains etc. are also manufacturers have been hit hard due
branded. Brand development has led to to competition. Several of the units have
quality improvement. shut down rendering many workers
jobless. The small industries in India
• Development of Capital Market:
employ the largest number of workers
Globalization has helped in Indian
(20 million) in the country, next only to
capital market development. Now
agriculture.
many foreign investors invest in Indian
capital market. Recently there has • Problem of Unemployment: As a
been substantial increase in inflow of result of globalization foreign companies
foreign direct investment and portfolio or even some Indian companies
investment in India. Ex: Foreign investors use capital intensive technology.
invested Rs. 1.4 trillion (US$ 19 billion) in With the increasing use of capital
the Indian stock market in 2020. intensive technology the employment
opportunities are reduced and increase
• Increase in Employment: As a result the problem of unemployment in Indian
of Globalization foreign companies
economy.
are establishing their production and
trading units in India. It has increased • Exploitation of Labour:
employment opportunities for Indian. Globalization is exploiting unskilled
Ex: Many Indian’s are employed in workers by giving lower wages, less job
foreign auto, textile, chemicals and security long working hours and worse
mobile companies. working condition.
• Reduction in brain Drain: As a result • Increase in Inequalities:
of globalization, many multinational Globalization has benefited MNCs
corporations have set up their business and big industrial units but small and
units in India. These MNCs offer cottage industries are adversely hit by
attractive salary packages and good it. It has increased inequalities in India.
working conditions to effective, skilled
Indians looking for work in India. It has
• Bad Effect on Culture and Value
resulted in reduction in brain- drain. System: Many global companies sell
such products as distort our culture and
value system. The vulgar advertisements
shown by some MNCs pollute the
Negative Effect of thinking of young generation in India.
Globalization: Ex: Commodification of women in body
spray adds.
• Loss of Domestic industries: As a result
of Globalization foreign competition • Competition and Uncertain
has increased in India. Because of better Employment: Globalisation and
quality and low cost of foreign goods, the pressure of competition have
many Indian industrial units have failed substantially changed the lives
to face competition and have been of workers. Faced with growing
closed. competition, most employers these
• Small Producers- Compete or days prefer to employ workers ‘flexibly’.
This means that workers’ jobs are no
Perish: For a large number of small
longer secure.
producers and workers globalisation
has posed major challenges. Batteries,
capacitors, plastics, toys, tyres, dairy
products, and vegetable oil are some Conclusion:
examples of industries where the small • While globalisation has benefited well-

55
 off consumers and also producers with Positive Impact on Indian
skill, education and wealth, many small
producers and workers have suffered as Agriculture:
a result of the rising competition. Fair • Availability of Modern Agro-
globalisation would create opportunities
for all, and also ensure that the benefits
technologies: These technologies
included modern implementations in
of globalisation are shared better.
irrigation projects, pesticides, synthetic
nitrogen fertilizer and improved crop
varieties developed through the
Globalisation and Indian conventional, science-based methods
Agriculture: available at the time. Use of High
Yielding Varieties (HYVs) like IR8 a semi-
• The 124 countries along with India dwarf rice variety. HYVs significantly
were signed Dankel Proposal, which outperformed traditional varieties in
gave rise to the establishment of World the presence of adequate irrigation,
Trade Organization in January 1995. pesticides, and fertilizers.
Initially the World Trade Agreement
of 1994 brought agriculture within its • Rise in Production and
policy framework. The obligations Productivity: Due to adoption of
and disciplines incorporated in the HYV technology the production of food
agreement which seek to reform trade grains increased considerably in the
in agriculture and provide the basis for country. The production of wheat has
market-oriented policies on agriculture, increased from 8.8 million tonnes in
related to the aspects of market access, 1965-66 to 184 million tonnes in 1991-92.
domestic support, export competition/ The productivity of other food grains
subsidies, and Trade Related Intellectual has increased considerably. It was 71%
Property Rights (TRIPS). Reforms in in case of cereals, 104% for wheat and
agricultural policies were felt necessary 52% for paddy over the period 1965-66
for achieving trade liberalization in the and 1989-90. In 2020, rice and wheat
agricultural sector. production in India stands at 223 million
tonnes.
• Growth of National Income:
Impact of globalisation on Opening the international market for
Indian Agriculture: the agricultural goods of India, there
is an increase in farmer’s agricultural
• With the operationalization of the product. New technology, new seeds,
provisions of the WTO, the process
new agriculture practices etc. helped
of globalization commenced in the
to grow the agricultural product. From
major parts of the world. The sector
the monetary point of view the share
which has created the highest number
of agriculture sector as percentage of
of deliberations in the WTO as well as
the GDP in the economy is raised from
views and counterviews has been the
14.2% in 2010-11 to 19.9% in 2020-21.
agriculture, an area of utmost concern
for the developed and the developing • New Areas Employment: After
world alike. India is no exception to LPG the agro allied industries has
it. Better say it has been among few created employment in various sector
countries in the world spear-heading the like packing, exporting, standardizing,
campaign against the biased provisions processing, transportation and cold
of the WTO concerning agriculture. storage etc of agricultural product.
Agriculture is the biggest unorganized

56
 sector of the Indian economy accounting exports was $35.6 billion in 2019-20.
for more than 90% share in the total
• Reduction in Poverty: It is also
unorganized labour force. The share of
true that globalization is commonly
agriculture in total employment stands
characterized as increasing the gap
at 52.1%. Agri-allied sector like food
between the rich and the poor, but it is
processing industry employs nearly 20
a matter of looking at poverty in relative
million people in India.
terms. India’s prior concern is to remove
• Agriculture as a prime moving poverty, which is worse than death, and
force: The growth of agricultural if India makes efforts, globalization can
sector in India has correspondent be a key to get rid of it.
relation with industrial growth and
national income in India. It is assumed
that 1% increase in the agricultural Negative Consequences
growth leads to 0.5% increase in the
industrial output and 0.7% increase in • Vicious debt trap and farmers
the national income in India. Especially suicides: As per National Crime
after LPG the agricultural sector in Records Bureau (NCRB) data shows
India is developing rapidly. As a result, 42,480 farmers and daily wagers
the government of India announced committed suicide in 2019. Nearly 60%
agriculture as the prime moving force of them took place in the 4 progressive
of the Indian economy in 2002. As per states, viz., Maharashtra, Andhra
WTO data, global exports and imports Pradesh, Karnataka and Madhya
of agricultural and food products in 2011 Pradesh. These states have adopted
stood at $1.66 trillion and $1.82 trillion the process of LPG but also have the
respectively. India’s share in this is 2.07 highest farmer suicide rates. Hence, the
per cent and 1.24 per cent respectively. experience with liberalization is critical.
• Rise in the Share in Trade: Because • Migration of Labours: For the
of the conditions of WTO all of the Indian farmer, who is already paralyzed
countries get the same opportunities, by low productivity and lack of post-
so there is an increase in the export of harvest storage facilities has resulted
agricultural products. According to data in heavy loss of produce and revenue.
provided by World Bank, India’s share It is only because of low tariff imports
in exports (goods and services) rose and liberalized import duties the
from 0.54%in 1990 to 0.67% within five domestic farmer could not stand
years after globalization took place i.e. the competitiveness of international
upto 1999. Indian exports rose by 103% market. This has resulted in migration of
during the same period. labor from agriculture to other industrial
activities.
• Growth of Agri Exports: The prices
of agricultural goods are higher in • Lower Income of Rural Farmers:
the international market than Indian According to Nobel Prize-winning
markets. If the developed countries economist Joseph Stiglitz, trade
reduced grants, they have to increase in agreements now forbid most subsidies
the prices. So there will be increase in the excepted for agricultural goods. This
export in Indian market and if the prices depresses incomes of those farmers in
grow, there will be profit. Agricultural the developing countries who do not get
products account for 10.23% of the total subsidies. And since 70 per cent of those
export income of the economy, while in the developing countries depend
agricultural imports account for just directly or indirectly on agriculture,
2.74% of the total imports. Agricultural this means that the incomes of the
57
 developing countries are depressed. restrictions on imports of almost 1,500
items including food. As a result, cheap
• Reduction in International imports flooded the market, pushing
Competitiveness: Because of prices of crops like cotton and pepper
marginal land holding the production down. As a result, most of the farmers
cost of Indian farmers is higher as well as committing suicides in Maharashtra
the quality and standardization of agro were concentrated in the cotton
produce is much neglected. Along with areas. Similarly, Kerala, which is world
this, the curtailment in subsidies and renowned for pepper, has suffered as a
grants has weakened the agricultural result of 0% duty on imports of pepper
sector. On this background the farmers from SAARC countries. Pepper, which
are not in a position to compete in sold at Rs.27,000 a quintal in 1998,
international market. crashed to Rs.5000 in 2004, a decline of
• Abnormal hike in Fertilizers 81%.
and Pesticide Prices: Immediately • Fall in Agricultural Employment: In
after globalization, Indian rupee was 1951, agriculture provided employment
devaluate by 25% and Indian crops to 72 percent of the population and
became very cheap and attractive in the contributed 59 per cent of the gross
global market, which led Indian farmer domestic product. However, by 2001 the
for export and encouraged them to shift population depending upon agriculture
from growing a mixture of traditional came to 58 per cent whereas the share
crops to export oriented ‘cash crops’ like of agriculture in the GDP went down
chilli, cotton and tobacco. These need drastically to 24 per cent and further to
far more inputs of pesticides, fertilizers 14 per cent in 2018-19. This has resulted
and water than the traditional crops in a lowering the per capita income of
require. It automatically increased the farmers and increasing the rural
fertilizer and pesticide prices by 300%. indebtedness.
• Electricity tariffs have also
been increased: Pre-liberalization,
subsidized electricity policy helped
farmers to keep the costs of production
Impact of
low. The electricity costs increased Globalisation on
dramatically when farmers turned to
the cultivation of cash crops, which Indian Society:
needed more water, hence, more water
pumps were needed and there was Impact on Women:
higher consumption of electricity. The • The current wave of globalization has
fact that only 49% of India’s cultivable greatly improved the lives of women
land is irrigated makes cultivation of worldwide, particularly the lives
cash crops largely unviable, but export of those women in the developing
oriented liberalization policies and seed world. Nevertheless, women remain
companies looking for profits continue disadvantaged in many areas of life
to push farmers to the wall. including education, employment,
• Price crash: As per reforms of WTO, health and civil rights. In particular
Indian government removed import care for women during maternity is still
tariffs and duties. Earlier these were lacking in many parts of the world.
working as cushion to protect and • The roles of women in India have been
encourage domestic producers. By changing and they are now emerging
2001, India completely removed from the past traditions into a new era

58
 of freedom and rights. cope with this burden.
• Today, India is a country where women • Feminization of work: The emergence
are becoming more prominent. Yet, of a global market, with its associated
women are fighting long-standing policies of privatization, “stabilization”,
prejudices in society. Though women and liberalization, has led to the setting
have made great strides in the corporate up of smaller new industries with high
world in the last three decades, they flexibility and simple infrastructure
are discouraged by family and society. in developing countries. Such labor-
Factors like, conforming to traditional intensive industries are providing
roles within family and society; safety, platform for utilisation of female labour
security and glass ceiling at workplace force in developing countries.
etc. are biggest hurdle for filly • Financial inclusion: The Self-Employed
contribution of women in the process of Women’s Association (SEWA) in India is a
globalisation. union of women labourers willing to work
hard and seize any work opportunities
they might get. Globalization has aided
Positive Impact: their opportunities in various ways. SEWA
• Job Opportunities: Globalization has has established a Women’s Cooperative
opened up broader communication Bank with 125,000 members, and
lines and brought more companies into through the aid of globalization, they
India. This provides opportunities for have even reached the women in the
not only workingmen, but also women, rural areas of India. With the aid of
who are becoming a larger part of the satellites and computers, SEWA has
workforce. been able to reach more women to
share self-help knowledge.
• Self Confidence and independent:
With new jobs for women, there are • Vocalization of women: Globalization
opportunities for higher pay, which has given women a stronger voice.
raises self-confidence and brings People are more accepting of women’s
about independence. This, in turn, can rights. There has been a noticeable
promote equality between the sexes, change in what women can do and
something that Indian women have what their opportunities are. The
been struggling with their entire lives. government has done more advertising
(TV and radio commercials) portraying
• Traditional view about women:
women in leadership roles and being in
Globalization has the power to uproot
the army.
the traditional views towards women
so they can take an equal position in • Skill development: Different non-profit
society. This is because globalisation organizations have been brought to
has opened wide ranging opportunities India from around the globe. These
for women and they have also benefited organizations have given women the
from this. Globalisation has acted major skills they need to advance, such as
break for patriarchal mindset. literacy and vocational skills. With the
acquisition of new skill sets, women are
• Technology in daily lives: Women’s
able to earn their own personal income
double burden (working long hours
and enable the children to attend
in the field as well as attending to
school instead of sending them to work.
household chores like cooking and
The women also gain business skills that
collecting water and fuel for the day) is
enable them for getting better career
often taken for granted. The technology
opportunities.
used in agriculture is making women to
• Women in Rural India: The women in
59
 rural settings have been influenced affected as they are being available for
by globalization through media work at low wages.
and through numerous intervention • Affected Female Farmers: The rising
programs –non-profit organizations- trend of globalization has not lifted
that are constantly investing in women’s everybody. Because of lower education
issues in big way. These NGOs are levels, female producers experience
creating awareness and proposing ways more constraints in accessing
of change. The women are increasingly international markets than males.
empowered and stronger than before.
• Women’s plight: The work available to
• Women’s headway into politics: Women women is almost always poorly paid,
have now not only found their place in mentally and physically unhealthy,
work places but also want their part demeaning, or insecure.
in governance. In recent years there
have been explicit moves to increase • Violence against women: The mixture
women’s political participation. Women of corporate capitalism and Western
have been given representation in the culture models is dissolving family and
Panchayati Raj system as a sign of community social controls as witnessed
political empowerment. by higher rates of family violence, rape,
divorce, and family breakdown.
• Women today are more practical and
rational than earlier. Indian women • Acceptance of wrong values from
have never been as expressive and western culture: There has been
independent as they are today. a progressive change towards
Americanization. TV and media are
influenced by pop culture. Globalization
Negative Impacts: has relaxed moral attitudes. Smoking
and drinking is more accepted for
Globalization has had negative implications
women, so much to the point that such
for Indian women. Their plights are similar to
behaviour by women has become a
those of women in other developing regions
symbol of empowerment.
such as Africa and Asia. Globalization has
made many international corporations • Dumping of low quality health products:
richer by the billions. However, what most Owing to their many roles, as would-be
people are not aware of is that women in mothers, as mothers responsible for the
these developing countries are suffering health of their children and families, as
enormously due to this expansion of working women at home and outside
corporate empires. According to estimates they are major consumers of healthcare
from World Development Indicators, products. In recent years a serious issue
“Women work two thirds of the world’s has come to light where many products
working hours, produce half of the world’s related to women’s health, found to be
food, but earn only ten per cent of the dangerous and banned or restricted
world’s income, and own less than one per in the developed countries, were
cent of the world’s property”. marketed in the developing countries.
Transnational Corporations (TNCs) see
• Emergence of slave wages: Globalization the developing world as a convenient
along with the support of organizations dumping ground for these products and
such as the World Bank and the IMF, medicines.
have created slave wages. These wages
are not necessarily the result of “unjust”
• Violation of women’s rights: It has led
to increasing violations of women’s
societies, but of the fact that global
economic, political, and cultural
trade devalues the worth of people’s
rights in large measure due to the
lives and work. And women are worst

60
 withering away of the welfare state, the are becoming boon for elderly people.
feminization of poverty, the expansion Ex: Use of technology geriartic care
of religious fundamentalism, and new • Communication: Improvements in
forms of militarism and conflict. communication technology are making
this world global village in real sense.
Old age people are easily able to
Conclusion: connect with their children from any
In the long run it is imperative to manage corner of the world. Even travel around
and mitigate the negative consequences globe can take 36 hours to reach any
of liberalization and mechanization by part of this world. Elderly people have
enhancing women’s skills and innovations also benefitted from this as they can
as well as developing insurance cover to travel to meet their near and dear ones.
minimize the risks. This calls for direct • Technology and financial assistance:
interventions so as not to marginalize a Banking infrastructure has improved
very important section of society in the over the years. This made possible
race for economic development and sending money to elderly people within
empowerment. a fraction of time. Though they are
financially dependent on their children,
availability of finances in hands is
Impact of Globalisation on Old boosting their morale and confidence.
Age People: The old age people are experiencing
ease of living in their life by using
• As we look forward into the mid-twenty- technology like E-commerce.
first century, the demographers forecast
dramatic increases in cultural diversity
• Economy: Globalisation means opening
up of economy and integrating it with
in the general population of the globe,
rest of the world. The governments of the
which will also be reflected in increasing
world in general and Indian government
ageing populations.
in particular are focusing on geriatric
• Population ageing is considered to care and trying to mainstream it through
be an important aspect in this age of National Health policy. With better focus
globalization as it has huge impacts on from government, old age people are
diverse areas of our daily life. able to participate in economic activities
• A key issue is the relationship especially in service sector. Through
between globalization and population their economic participation they are
ageing which has possibilities and boosting our national income and they
consequences for social change across are also becoming independent.
the globe. The present day old who had • Diversified food baskets: During old
a different socialization are at a cultural age, people face many health problems
shock for the way the old is treated in which require specific kinds of food.
the society. Example: Sometimes old age people
develop some kind of allergy for
Positive Impact: particular food. MNCs being equipped
with in-house research mechanism, they
• Healthcare: Technological advancement offer quality and allergen free food as
in healthcare has helped old age people per the health requirements of old age
never like before. Assistive devices people. The supermarket chains are
from well-known MNCs, easy doorstep becoming helpful for elderly as these
health services, quality medicines, tele- markets offer wide range options of
medicines and tele-healthcare services food as per their choice.

61
Negative Impact: the labor market, and the devaluation
of the knowledge and experience of the
• Marginalisation of elderly: The elderly.
children, the youth, the women and the
old are undergoing a change in terms • Changing Perspective of the Family
of their lifestyle, world outlook and towards the Elderly: Today’s family is
the relationships in the society. When becoming a self-centered nuclear family
the children and the youth are able to where the old people’s services are used
adapt to these changes, the old are in whenever it is required. It is a common
an anomic mind confusing them and scene in the Indian families that the old
this is having a great impact on their people are used to look after the children
immediate society. The consequence when both the husband and wife go for
of this social phenomenon is that in work. This service usually comes to an
the developing countries globalisation end when the children go to school. Once
made the elderly people to move the children are becoming independent
to periphery becoming a marginal the old become an unwanted or extra
underclass. figure in the family.

• Sidelining elderly from family setup: • Migration of youth: Youth are migrating
Rapidly changing family circumstances in urban areas for quest of higher
like the emergence of nuclear family, education and better employment
absence of traditional care takers and opportunities. In this process, elderly
the absence of traditional support people are left behind with no one to
systems changed the elderly in their take care of. The elderly people are
status and lifestyle. There is decline in becoming more isolated and suffering
respect of the old, generation gap and from loneliness and subsequent mental
difficulty in coping up. problems like frustration, depression.
Globalisation has opened the doors
• Plight of elderly in rural areas: In rural of foreign countries for education and
areas, new patterns of land ownership employment. This has further increased
and mechanization of agriculture the physical distance between
reduce the opportunities for older elderly and their children. Though the
farmers to adjust their work-load and technology has reduced the physical
carry out smaller tasks as their strength distance but old age people are not
diminishes. finding it easy to imbibe it in their life.
• Growing independence of young • Changing Perspective of the Society
individuals: Access of the young towards the Elderly: Elderly were
to modern education can impair considered as a social phenomenon in
intergenerational ties undermining the India till the early 1980’s. But now they
status of older people by making their are looked as economic phenomena as
experience and attachment to tradition the society is moving from humanistic
appear outmoded and irrelevant to (social) to materialistic (economic).
technical progress. This shift in paradigm in the approach
• Mosaic of factors: The position of the of elderly is changing the elderly as a
elderly has been under-mined by such commodity.
factors as changing values, growing • Social change witnessed by India
individualism, smaller numbers of in the last decade show that many
children, the migration of the young social categories has transformed into
to cities in search of employment, economic and political categories.
housing shortages in urban areas, the Elderly cannot change themselves into
increasing participation of women in a political category or an economic

62
 category as they are not an organized people are not only vulnerable to
group. the vast changes brought on by the
• Those who are having an independent globalisation but can also be the key
income are forced to spend their money change agents. Despite this, young
in a manner in which they do not like. people are often ignored both in the
As a result, there is a constant conflict literature and political decisions. In this
between caretakers and elderly. way young people must be considered
key agents of change for globalisation
• Elderly as economic unit: The effect of as well as its potential victims.
the global economic reorientation has
looked the elderly as disempowered • India is about to experience its
person. This resulted in the demographic dividend in 2025 and it is
marginalisation of elderly or shifting also youngest nation in the world. The
the focus of elderly as an economic unit youth in country portray mixed bag of
rather than social unit. impact of globalisation.

Conclusion: Positive Impact:

• Countries need strong political • Breaking of traditional shackles:
commitments as to how they can utilize Globalisation has reached every corner
the resources for wellbeing of elderly. of the world and India is not an exception.
This can be done by providing social Even the villages are also under the grip
pension or restructuring workforces in of globalisation. With the increased
order to accommodate older persons educational opportunities, growing
at workplace or enhancing social care individualism, independent opinions
by encouraging intergenerational about outside world youth have broken
relationships within societies and the traditional shackles which were
communities. hindering their development.

• People should be encouraged for taking • Vocalisation of youth on global forums:

part in voluntary activities within the Globalisation has brought wide ranging
community at large. Mass campaign awareness about the various issues
is necessary in order to educate the faced by the globe like climate change,
society that older person is not a burden terrorism, geopolitical tensions etc.
instead they are contributing more to With the knowledge about the world
the family as well as to the society. affairs, they are able to put forward
their opinions, views. Example: Greta
• We should highlight positive news on Thunberg, Malala Yousafzai are apt
older people. At the same time, ‘young examples for this.
old’ should be prepared for the life-long
saving as the future benefit system is • Increased Opportunities of Education
likely to be uncertain. and Employment: With the vanishing
nation’s boundaries, educational and
employment opportunities are thrown
open in almost all countries. Youth
Impact of Globalisation on got access to new kinds employment
Youth: available in developed countries. This
also helped them to acquire new skill
• Young people are at the sharp end of
sets which were earlier unheard off. Ex:
globalisation. They can be amongst
Increasing number of youth working in
affected but are also potentially the
the USA and USA’s liberal policy towards
most adaptable to the change. Young
H1B visa is an outcome of globalisation.

63
• Increased awareness about rights: at the world level. As a result, youth
Globalisation has cultivated wide are becoming more aspirational,
gamut of knowledge in youth. This has enthusiastic for their passions, dreams
helped them to know about their basic etc.
rights. Youths are fighting for quality
education, environment, sustainable
future. Negative Impact:
• Network of youth: Technological • Western dressing: Though dressing is
developments in last 3 decades have an individual choice and no one can
really helped to blur the national impose particular type of dressing on
boundaries in true sense. Internet or anyone except in corporate world. But
digital world brought the world so closer youth in India is preferring western type
that anyone can connect with anyone of dressing and clothing over Indian
in a matter of time. Social media has traditional style. Both male and female
helped the youth to connect with other are at front for bringing this change.
people not only in our country but also This has led to a notion of inferiority
with youth in other countries. This has towards Indian dressing.
helped them to exchange various ideas,
• Lack of socialization: Growing nuclear
innovative thoughts, opinions, views
families, working couples and absence
about various things.
of grandparents from homes making
• Rise of Digital entrepreneurship: Indian youth less socialized in terms
Social media is providing sophisticated value education, inculturation etc.
platform to youth to experiment with
• Growing individualism: Individualism,
new type of entrepreneurship. Social
independent opinions is making our
media like YouTube provides very cost
youth more intolerant towards other
effective medium to start new businesses
opinions. This is especially observed in
like journalism, reviewing of various
home where youth have no respect for
products, running podcast channels etc.
their parents and grandparents. Even
Ex: In 2020, Ryan Kazi, a young 13-year-
grandparents are not considered as
old child became highest paid person
worthy to offer any opinion.
on YouTube by reviewing toys of various
companies. • Increasing presence on social media:
Youth are spending more time on internet
• Change agents: Youth are at receiving and social media than earlier. This is
end of various changes brought out
exposing them various unscrupulous
by globalisation. They are super-
elements like cybercrimes, child
spreaders, acceptors or rejecters. They
pornography, radicalized elements. In
are mostly responsible for bringing or
fact our youth is more vulnerable to
rejecting various changes in society.
terrorism and their recruitment models.
They are major driving force behind
Terrorist organisations are using social
culture of consumption. Indian youth
media to radicalize the youth and recruit
is heavily inclining towards this culture
them. Increased presence of youth on
of consumption by accepting western
social media has made them easy prey
concepts of food, dressing, music, arts
for terrorist organisations.
etc. This process is bringing western
cultural aspects in Indian society. • This is also affecting their health. Social
media is causing more isolation of
• Local to Global Identity (Physical and youth from real outside youth. As result
Virtual): In the globalized world, identity
youth is becoming less tolerant, angry,
of youth transitioned from local level to
frustrated or depressed.
global level. This got them recognition

64
• Materialistic attitude: Materialistic nation always supported globalisation
attitudes are developing due to more and interconnection of Indian economy
knowledge about luxury items present and society with the world. Our 21st
in this world. Youth are running behind century strategy should be to realign
these material things and they making our youth policy in such a way that
it as their status symbols. This hampers our youth should become an agent of
cultivation of morals and values. change, vocalized in preservation of our
• Threat to many indigenous craft and culture and to bring prosperity to Indian
literary traditions and knowledge society.
systems: Various forms of traditional
knowledge systems especially in the
fields of medicine and agriculture have Impact of Globalisation on
been preserved and passed on from one Cultural Aspects:
generation to the other. As the youth is
migrating from their homes for better • There are many ways that globalization
education and employment, traditional affects culture. Over the ages India
knowledge is also on verge of extinction. has had an open approach to cultural
Many traditional craft producers lost influences and has been enriched
their livelihood due to changing taste because of this. The last few decades
of consumers. Even these people are have seen major cultural changes
unable to change their livelihood due to leading to fears that our local cultures
lack of funds. would be overtaken. Thus, there are
heated debates in our society not just
• Identity crisis: Mainly, the media has about political and economic issues but
affected individual personality by
also about changes in clothes, styles,
changing individual views of self and
music, films, languages, body language.
others. Because the youth are still
The debate is not new and 19th century
undergoing the socialization process,
reformers and early nationalists also
they are amenable and sometime
debated on culture and tradition. The
vulnerable to culture shocks. The clash
issues today are in some ways the same,
of cultures may cause disorientation
in some ways different. What is perhaps
among the youth. Globalisation,
different is the scale and intensity of
exhibited in the glittering multicultural
change.
saturation, which is easily attracting the
masses of third world nations to praise
new ideologies and to question their
own identity. Homogenisation vs.
Globalization:
Conclusion: • Homogenisation is a contention that all
cultures will eventually become similar
• Though youth across the world in that is homogenous.
general and in India in particular are
• Globalization is the mixing of global with
acting as a change agents, they are
the local. It is not entirely spontaneous
also most vulnerable to impacts of
nor it is completely delinked from the
globalisation. India as the youngest
commercial interest of globalization. It
country in the world should focus on
is a strategy more often used by foreign
youth because youth are defining
firms to deal with local traditions.
agents of our future. Globalisation is
an ongoing process which is almost » Example: McDonald goes vegetarian
impossible to stop. India as a responsible during the Navratri festival.

65
» MTV, V Channel, Cartoon channels use driving force for use of English as
local language for their promotion and mainstream language. This has led to
more acceptance in the local market. a homogenization in language across
» Increasing popularity of Bhangra Pop, India. The rural areas have, however,
Indie Pop, and Remix etc. been less affected by it. The 2011
Census showed English is the primary
» International Yoga Day is celebrated on language—mother tongue—of 256,000
21st June in 130 plus countries. people, the second language of 83
million people, and the third language of
• So globalisation is also helping us make
another 46 million people, making it the
our culture globalized and we are also
second-most widely spoken language
in a position to spread our culture in
after Hindi.
different parts of the world instead of
being just passive receivers.
Impact on Festivals:
Impact on Languages: • Celebrations of Valentines’ day,
Friendship day are examples of
• Language is important in every aspect
change in cultural values related to
of our lives because it allows people to
festival. However, along with these
communicate and enables the sharing
new days, people are also becoming
of ideas.
more enthusiastic about our traditional
• Globalisation had many effects on festivals.
language, positive as well as negative.
Globalisation allowing some languages
• Traditionally people used to celebrate
the festival for happiness, prosperity or
and their culture to flourish, spread and
to mark the special occasion.
dominate on global scale it also in turn
leads to extinction of other languages • After globalisation festivals have come
and cultures. to be associated more with economic
activity and festivals economy moved
to the multinational companies. They
Loss of language: expanded their market and created
boom for purchasing during festival
• Smaller number of people using native time.
and indigenous languages. • Indian festivals are also going global.
• With loss of native language, comes the Example: Diwali is enthusiastically
loss of culture. celebrated in White House, Burz Khalifa
• A language provides words and is being lightened up during Diwali.
concept unavailable in other cultures or Recently Australian Parliament has
langauge and thus brings appreciation celebrated Bathukamma Festival of
of other cultures. Telangana which floral festival of the
state.

Advantages:
Impact on Food Habits:
• Languages are very lifeline of
globalisation, without language there • Indian cuisine is one of the most popular
would be no globalisation and vice- cuisine across the globe. Historically,
versa. Without globalisation there would Indian spices and herbs were one of the
be no world language. most sought-after trade commodities.
Now, western foods have become more
• Nowadays, urban areas are becoming
66
 popular. Impact on Marriage:
• India has its unique cuisine, but the Positive Impact:
cuisines of foreign countries have
become more easily available, they are • Due to Globalisation, the concept of
modified to suit the taste buds of Indians. love marriages is increasing, and elders
Eg. Paneer Tikka Burger in McDonalds. have started to accept and appreciate
• Due to availability of higher disposable it in the same way.
income, there has been increase.in the • Inter caste and inter-religious marriages
demand of products like meat, egg, have become more common.
pulses, organic food as result. People • More say is given to the bride and groom
tend towards taking more protein in selection of partners.
intensive foods.
• Parents are turning to the web to search
• Opening up of food joints like for brides and grooms, they prefer NRI
McDonalds, KFC across the country, for their westernized outlook, lifestyles,
there has been a homogenization of and higher disposable income.
food available across the country, but
there has also been heterogenization in • The marriage relations are becoming
food. Old restaurants are now replaced more equal rather than wife being
by McDonald’s. Fast food and Chinese subjugated by husband.
dishes have replaced juice corners and
Parathas.
Negative Impact:
• This is also true for Indian food
becoming globalized. Indian diaspora • The sacred importance of marriage as
has worldwide presence and this helped institution is decreasing, there has been
many people to open Indian Hotels in an increase in divorce, an increase in live-
foreign countries. So availability of in relationships, and single parenting is
Indian food across the world resulted in increasing.
mobilization of people throughout the • Marriage used to be considered
world. as bonding of the souls, but today
marriage is becoming professional and
contractual.
Impact on Fashion: • Other issues like serial monogamy, live-
in relationships are viewed against the
• Traditional Indian clothes for women
culture of India
are the saris, suits, etc. and for men
traditional clothes are the dhoti, kurta. • The dowry has increased as it is now
Hindu married women also adorned the seen as symbol of social status.
red bindi and sindhur, but now, it is no • Expensive and extravagant weddings
more a compulsion. are increasing burdening the middle
• Rather, Indo-western clothing, the class with a social obligation to spend
fusion of Western and sub-continental enormous amount in weddings.
fashion is in trend. Ex: kurta with jeans, • However, despite the change in forms
saree with western blouse. of marriage, it has not declined as an
• Wearing jeans, t-shirts, miniskirts have institution.
become common among Indian girls.

67
Effect of Globalisation on • However, despite change in the
functions of the family, even today there
Family: are certain functions still specific to
• Traditionally, in India, joint family family. Primary socialization of children
was the societal value and it was and Agency of social control are two
considered as matter of prestige. Ever prominent one.
since independence, Indian family has
undergone and continues to undergo
great change in every walk of life. Family Inter-personal Relations:
is becoming progressively weak due to • Traditional authority structure has
globalization and individualism rapidly. changed. The head of the family have
Structure of the Family: started losing their authority to the
bread winner of the family.
• Disintegration of joint family is
increasing mobility of younger • In nuclear families, there has been
generation in search of new employment change in marital rules and distributions
and educational opportunities has of powers.
weakened the family relations. It has • Total subordination of women to men
led to disintegration of the joint family. and strict disciplinarian role of father
Gradual change in family structure from towards children are changing.
joint/extended to nuclear family pattern. • Individualism in the younger generation
• New forms of family are emerging: is increasing, many of them don’t
Apart from traditional family structure, believe in surrender of their individual
the new forms like Single parent interests to family interests.
households, live-in relationship, female • However, due to penetration of
headed households, dual career family technology connectivity with extended
(both husband and wife are working), kins has improved.
same sex couples etc are arising.

Conclusion:
Functions of the Family
• Although there are many changes in
• The family bonding and ties have started country at social as well as cultural level
loosening due to physical distance as because of the process of globalisation
it rendered impracticable for family but globalisation cannot be sole factor
members to come together as often as of changes; whether beneficial or non-
earlier. This affected the earlier idealized beneficial. There must be some other
notion of ‘family’ as the caring and factors that also might be responsible for
nurturing unit for children, the sick multi faceted change in socio-cultural
and elderly. aspects of India. Though globalisation
• With more women joining the workforce is bringing changes in our society, it
system, the care of aged within families depends on us how we perceive it or
has declined. how we utilize it.
• Finding partners: Younger generations • Indian civilization and culture is one of
started depending on marriage sites our strongest and age old soft power. So
like “Shadi.com”, ”Bharat matrimony”, we cannot argue that Indian culture is
etc. Family involvement in finding a at only receiving end for other cultures.
bride/groom is reducing. However, the We need to focus on preserving best
tradition of arranged marriages is still aspects of our culture while diffusing
relevant in Indian society. it to other countries. At the same time

68
 we should focus on accepting only • As more Indians work for companies
those foreign cultural aspects which are abroad, live in foreign nations, interact
suitable to our Indian taste. and marry foreign nationals, the
government of the day will have to
be more active to ensure that Indian
Shrinking Space of nationals and their interests are
Globalization protected.

• With the victory of US President • The recent initiatives of the government

of India to reskill members of the diaspora
Donald Trump in 2016, there is a feeling
who returned as part of the Vande
amongst scholars that the space for
Bharat Mission and the compulsory
globalization is shrinking and this
registration of NRI marriages and policy
has been accelerated further by the
decision to cancel the passports of NRI’s
COVID-19 pandemic.
involved in domestic violence cases are
• The US and other nations have in recent some of the positive steps.
times re-imposed trade curbs, restricted
flow of data, enacted tougher laws
• There will be challenges along the way
but it is an inevitable process which
to curb immigration (US, Kuwait and
India should welcome with open arms.
Oman amongst others) and have also
vowed to become self-reliant. Conclusion:
• India will have to find new opportunities • India is obtaining a worldwide
in this changing world order and will recognition and slowly moving towards
have to pursue an active economic to become a significant economic and
diplomacy to benefit from these political strength. Market economic
changes. policies are spreading around the
• External Affairs Minister Dr. S. Jaishankar world, with greater privatization and
has mentioned in his book that the entire liberalization than in earlier decades.
theory of International Relations that Globalisation has resulted in growing
remained dominant during the second global markets in services. Though the
half of the 20th century and in the first development is progressing rapidly, still
decade of the 21st century is now giving many basic problems like prevailing
way to a new architecture and India poverty in rural areas, menace of
will have to find new opportunities and corruption and instability of the
create ones where they don’t exist. government in the political arena are a
• India and Indians need to have a more cause of concern and steps should be
meaningful dialogue on this concept taken to bring solution to such problems
of globalization and assess their so as to reap the benefits of globalisation
actions and seek to benefit from this in the best possible manner.
phenomenon.

Content Booster
In his book “In defence of Globalisation”, noted economist Jagdish Bhagwati has argued that
globalisation has brought unprecedented rate of growth to poor countries and poor people. Growth is
trickling down. Inequality has started diminishing. He has given example of China, which has been able
to bring half a billion people out of poverty in a single generation.

Views of noble laureate Joseph Stiglitz:

In his book “Globalisation and its discontents”, Stiglitz has focused on the impact of globalisation on

69
the developing world. He has questioned the manner in which the process of globalisation is being
managed. He has pointed towards democratic deficit of the institutions of globalisation like IMF and
World Bank. He has shown that IMF, World Bank, global trade agreements have often harmed the very
same developing world they were supposed to help and protect.
In his another book “Globalisation and its discontents revisited”, Stiglitz has assessed the impact on the
developed nations. He has linked it to the emerging protests and movements in the USA and the EU.
The big winners have been the top one percent. It has adversely impacted those at the lower middle
class and working classes in Western countries. There is a decline in median income of full-time male
workers in the USA.
In his another book “Making globalisation work”, Stiglitz has tried to provide a solution to the challenges
of globalisation. He has called for democratising the institutions of global governance, greater say
of the developing nations on the global issues, transparency in WTO negotiations and tackling the
challenge of Climate Change.

Criticism of Globalisation by Jorge Heine:

In the book “The dark side of globalisation” edited by Jorge Heine and Ramesh Thakur, they have
explained globalisation as the soft belly of corporate imperialism that plunders and profiteers on the
back of rampant consumerism.
• They have given statistical data to prove how wage share has fallen and profit share has increased
due to globalisation.
• Globalisation has weakend socio-economic rights and strengthened property rights.
• It has given rise to uncivil society in the form of terrorism, human trafficking, narco trade etc.

For India they have discussed “Development Dichotomy”: Dramatic level of national progress has gone
hand-in-hand with a greater gap between rich and poor, urban and rural areas.

70