Vivekananda Institute of Professional Studies-Technical Campus

Vivekananda School of Journalism and Mass Communication

PRESENTATION- GLOBALIZATION AND INDIAN ECONOMY

SOCIO ECONOMIC AND POLITICAL ECOSYSTEM LAB (156)
4th April 2025

REPORT

Student Coordinators: Faculty Coordinators:

Tishita Sachdev (014) Dr. Ravi Chaturvedi

Vidhi (363)
Prachita (524)
Manaswi (529)
Aadya Sengar (528)
 PRESENTATION ON GLOBALIZATION AND INDIAN
ECONOMY

Roles and Divisions:

Introduction and Globalization in India- Tishita Sachdev

Sectors Affected by Globalization in India -Aadya Sengar
Impact of globalization on Indian economy-Manaswi
Role of International Organizations and Challenges and Concerns of
Globalization in India- Vidhi
Future of globalization in India and conclusion- Prachita

Compilation of the Report – Tishita Sachdev

Globalization in India refers to the increasing integration of the Indian economy

with the global economy, especially since the economic reforms of 1991. These
reforms marked a significant shift in policy through liberalization, privatization,
and globalization (LPG), which reduced government control, promoted private
enterprises, and encouraged foreign direct investment (FDI). The result has been a
dynamic transformation in the socio-economic and political ecosystem of the
country. India moved from being a closed economy to a globally competitive
market, attracting international corporations, enhancing technology transfer, and
integrating deeply into international supply chains. While this shift has accelerated
economic growth and innovation, it has also triggered challenges like income
inequality, rural-urban divides, cultural dilution, and environmental degradation.

Key Features of Globalization

 Economic Integration: Global trade, foreign investment, and transnational
corporations like Apple and Amazon entering India.
 Technological Advancements: Access to the internet, mobile phones, and
faster international travel.
 Cultural Exchange: Spread of global media (Hollywood, K-pop), fusion
fashion, and international tourism.
 Labor Mobility: Movement of people for jobs and rise in remote global
teams.
 Global Governance: Participation in institutions like the UN, WTO, and the
Paris Climate Accord.

1991 Economic Reforms – The LPG Model

 Liberalization: Reduced regulation, more market freedom.
 Privatization: Transfer of ownership from government to private
companies.
  Globalization: Increased global interconnectedness and interdependence.

Government Policies Supporting Globalization

1. FDI Policies: Attracted international capital and know-how.
2. Free Trade Agreements (FTAs): Boosted global trade relations.
3. Intellectual Property Rights (IPR): Protected innovation, especially in
pharmaceuticals and technology.
4. Technology and Infrastructure Investment: Improved logistics,
communication, and industrial capacity.
5. Trade and Sustainability Policies: Balanced growth with environmental
responsibility.
6. International Cooperation: Alignment with global standards and practices.

Impacts of Globalization on Indian Economy

Positive Impacts
1. Economic Growth:
o FDI increased infrastructure and employment.
o Example: Google, Amazon, Tesla investments.
2. Technological Advancement:
o Boost in healthcare and manufacturing productivity.
o India became a major hub for mobile phone production.
3. Cultural Exchange:
o Indo-western fashion (e.g., kurtis with jeans).
o Indian designers like Sabyasachi gained global fame.
Negative Impacts
1. Impact on Small Industries:
o Struggled to compete with cheaper foreign goods.
o Example: Textile and handicraft sectors affected by imports from
China and Bangladesh.
2. Environmental Degradation:
o Pollution, deforestation, and resource exploitation increased.
o Example: Severe air pollution in Delhi and Mumbai.
3. Rapid Industrialization:
o Strained resources and increased urban stress.

Sectors Affected by Globalization

1. Agriculture:
o Mixed impact: better technology but competition from imports.
o Farmers face income instability and high costs due to global
corporations.
 2. Manufacturing:
o Growth due to foreign partnerships and export focus.
o Intense competition with global brands.
3. Services:
o Boom in IT and BPO industries.
o E-commerce transformed retail through platforms like Flipkart and
Amazon.
4. Banking and Finance:
o Entry of international banks.
o Global financial trends now affect India directly.

Examples from Sectors

 Agriculture:
o Bt cotton improved yields.
o Precision farming using drones and satellite imagery.
 Manufacturing:
o Tata’s partnerships with international auto firms.
o Foreign electronics manufacturing hubs.
 Services:
o Infosys, Wipro, and TCS are global leaders.
o BPO services cater to clients in the US and Europe.
 Banking:
o Entry of HSBC, Citibank, and Standard Chartered.
o Integration with international financial systems.

Role of International Organizations in India’s Globalization

 WTO: Helped expand trade, reduce tariffs, and enforce TRIPS.
 IMF: Aided economic reforms, encouraged FDI, stabilized reserves.
 World Bank: Funded infrastructure and development projects.
 UN Agencies (UNDP, WHO, UNESCO):
o Supported education, health, and cultural preservation.
 Asian Development Bank (ADB):
o Funded energy and urban development.
 G20 & BRICS:
o Platforms for global cooperation, trade, and policy influence.
 World Economic Forum (WEF):
o Promoted India as an investment destination and innovation hub.

Challenges and Concerns of Globalization

 1. Economic Inequality:
o Wealth gap between urban and rural regions.
o Limited job creation in many sectors.
2. Agricultural Crisis:
o Declining profits and rising dependency on MNCs.
o Climate change worsens crop yield predictability.
3. Loss of Cultural Identity:
o Influence of Western media and consumerism.
o Reduced interest in Indian languages and traditions.
4. Environmental Impact:
o Pollution, deforestation, and poor waste management.
5. Dependency on Foreign Markets:
o Vulnerability to global recessions.
o Trade deficits and volatile capital inflows.
6. Labor Exploitation:
o Low wages, poor working conditions, and child labor.
o Brain drain of skilled professionals.
7. National Security Threats:
o Cybersecurity vulnerabilities.
o Foreign influence in policymaking.
o Terrorism and cross-border crimes enabled by global mobility.

India’s Future in Globalization

India is emerging as a key driver of global growth. With its demographic
advantage and strategic reforms, the country is expected to play a leading role in
global trade, digital transformation, and green development.
Key Trends Shaping the Future
 Economic Projection:
o India to become the 3rd largest economy (~$5 trillion GDP) by 2025–
26.
 Sectoral Leadership:
o Leading exporter in IT, generics, and solar energy.
 Youth Power:
o Over 600 million Indians under 30 are powering global firms and
startups.

Digital Globalization
 E-Commerce: Projected $200B market by 2030.
 Digital India & 5G: Enables rural connectivity and remote global work.
  Fintech: UPI and Paytm are pioneering secure global payments.
 Startups: Unicorns like Zomato and Byju’s expanding globally.
 EdTech: Indian platforms exporting online education.
 Cybersecurity: India becoming a global data security hub.

Regional & Manufacturing Shift

 Make in India: Attracts Tesla, Apple, and Samsung.
 Nearshoring: India as a hub for Asia, Middle East, and Africa.
 Supply Chain Diversification: Companies shifting production from China
to India.
 Special Economic Zones (SEZs): Expanding exports and trade
competitiveness.
 Defense Exports: BrahMos and Tejas being exported to countries like the
Philippines.
 Textiles: Targeting 10% of global market by 2030.

Conclusion: A Balanced Approach for the Future

Globalization has brought immense benefits to India in terms of economic growth,
technological progress, and global recognition. It has helped India integrate into
the global economy and lifted millions into the middle class. However, it has also
resulted in widening inequality, environmental degradation, and cultural erosion.
To move forward, India must adopt a balanced strategy that promotes global
competitiveness while protecting local interests.
Strategic Focus Areas:
 Promote Inclusive Growth: Develop rural infrastructure and digital access.
 Support Local Enterprises: Offer subsidies and training for small
businesses and farmers.
 Protect the Environment: Enforce green laws and promote sustainability.
 Preserve Cultural Heritage: Invest in arts, language, and traditions.
 Strengthen Cybersecurity and Sovereignty: Secure digital systems and
protect policy independence.
PROF. RAVI CHATURVEDI AND OVER 15 STUDENTS
PARTICIPATING AND LISTENING ACTIVELY TO THE TEAM’S
PRESENTATION.