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Globalization DPS PPT-1

Globalization is a complex process that facilitates interaction and integration among people, companies, and governments worldwide, significantly impacting political, social, economic, and cultural aspects. In India, globalization began in the 1990s with economic liberalization, leading to substantial economic growth, increased employment opportunities, and a rise in per capita income. The document highlights various sectors, such as IT, automotive, and agriculture, illustrating how globalization has transformed India's economy and its export capabilities.

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9 views3 pages

Globalization DPS PPT-1

Globalization is a complex process that facilitates interaction and integration among people, companies, and governments worldwide, significantly impacting political, social, economic, and cultural aspects. In India, globalization began in the 1990s with economic liberalization, leading to substantial economic growth, increased employment opportunities, and a rise in per capita income. The document highlights various sectors, such as IT, automotive, and agriculture, illustrating how globalization has transformed India's economy and its export capabilities.

Uploaded by

ben.stacy.cool
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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“In the era of Globalization, economies soar, fuelled by the power of international

cooperation and exchange”

Globalization in the words of Wikipedia is the process of interaction and integration


among people, companies and governments worldwide. But such an extensive idea
cannot be wrapped up in a single line definition. Globalization is rather a way of life;
it is the manner in which the world goes about its everyday business. Globalization
as a concept actually deals with flows, the flow of ideas, commodities, capital and
people themselves. Globalization is more than a phenomenon affecting the rich and
the powerful. Globalization has far-reaching political, social, economic and cultural
consequences.

Although it is a concept with far reaching consequences, the origin of globalization


is of much debate. Different scholars put the advent of globalization at differing
stage in human history. Some maintain that the Silk Road was a premature form of
globalization with many societies in close proximity of it sharing ideas and culture.
Others call colonization to be globalization as the world came under close contact.
But the majority of historians accept that the advent of industrialization ushered in
globalization as goods were being transported to one country to another. But that is
not the end, others put it even closer to present, seeing the disintegration of the
Soviet Union and the end of the Cold War to be the usherer of Globalization.

India obviously had the distinction of being the richest empire in world until the end
of
Mughal Rule in the 19th century. It accounted for approx. 33% of world wealth and
about 17% of the world population. Such an extensive economy could only be
maintained because the goods produced here were exported to far off destinations
in the World. Thus the concept of Globalization in India is not at all new. But modern
globalization was initiated in the 1990s when the then Finance Minister Dr.
Manmohan Singh put forward the Economic Liberalization Plan. Since then India has
gradually become one of the fastest growing economies in the world with an
average growth rate of a staggering 6-7%. This wave of globalization helped in a
rise in per capita income and reduced poverty by 10%. Even though globalization
has many effects, the most wide spread and consequential are the economic effects
that come with it, especially in a country like India.

In 1991, the GDP growth rate of our country was a mere 1.06%. By 1999, it had
risen to 8.85%. In 2022, it was 6.8% which when compared to USA’s 2.1%,
especially after the COVID-19 pandemic, seems too gigantic. Now globalization and
Indian economy have become interrelated and our economic policies are reflective
of these changes. These policies aim to promote business opportunities in this
blessed country, generate employment and attract global investments. India is only
one of those many countries which attain economic success after implementation of
this concept. The growth of foreign investment in major sectors fuels the rise of
Indian economy even further.

The export business of India is massive today but was not so forever. In 1990, it was
7% and grew to 11% in 1999. It was 26% in 2022 yeah and USA suffered a 0.9%
deficit in exports after the pandemic.

The concept of globalization in India resulted in the following benefits that helped to
transform the Indian economy and the country as a whole:-
➢ More Employment Opportunities- The sheer number of foreign investments
and the extremely favorable policies of the Indian Government have
encouraged many MNCs (Multi National Companies) to set up their units in
India. This led to new employment opportunities and gave the educated but
jobless youth a path to sustainable living.

➢ Increase in per capita income- As a direct effect of increased employment,


the per capita income of our country increased magnificently after
globalization. This could be proven by the fact in mere 10 years, there has
been an almost 100% increase in the per capita income. It has risen from
30,000 in 1990 to 40,000 in 2000 to 90,000 in 2010 to 1,70,000 in 2022
➢ A facility to Customers- Globalization has offered a wide range of choices to
Indians. Different companies with various products of same kind and so
consumers get a chance to select their preferred ones.
➢ Reduced Risk Profile- Having multiple locations help in preventing supply
chain issues. If one location is held up, it won’t negatively impact the entire
chain.

Now to cement our points even further, we would like to present certain case
studies of the major industries of our country:-

IT and BPO

Information Technology (IT) and Business Process Outsourcing (BPO): India has
emerged as a global IT hub, providing software services and solutions to companies
worldwide. Globalization played a crucial role in this development, as it allowed
Indian IT firms to tap into international markets. Companies like Infosys, TCS, and
Wipro have expanded their operations globally and have become significant
contributors to India’s GDP. As one of the largest exporters of IT And BPO services
globally, India IT exports Stood at US$157b in the fiscal year 2021-22 comprising
US$106b of IT Services and US$51b of BPO services Direct employment in the IT
and BPO Segment is estimated at 5.1m in FY 2021-2022 and indirect job creation is
Estimated at over 12m. Not only in India, but in foreign countries, this sector
constantly provides employment to Indians in such a manner, that in Western
Countries, an Indian would obviously be a high ranking IT sector official.

Automotive

Several international Automakers have established Manufacturing facilities in India,


making it an export hub for automobiles and Auto parts. Suzuki’s partnership with
Maruti and Hyundai’s presence in India are notable examples of successful
Collaborations between Indian and Foreign companies. Tata Motors is an Indian
multinational automotive manufacturing company that has been successful in
exploiting international opportunities. Its percentage of revenue from international
operations has increased from 9% in 2016 to 79.80% in 20181. The company has a
presence in over 125 countries with a worldwide network of over 8,400 touch points

2. The wave of liberalization, privatization, and globalization that started sweeping


India since the early 1990s gave Tata Motors a new path in the direction of
globalization. It has acquired many new companies such as: - Tata Motors Cars.
Jaguar Land Rover. Tata Daewoo. Tata Marco polo. Tata Hitachi Every 2 out of 4
trucks sold in south Africa are from Daewoo which is owned by Tata not only this
but Tata itself has created a brand presence of its own globally.

Study of exports with a country (Russia)

India exported 3,139 commodities to Russia in FY 2021-22. India’s export to Russia


stood at US$ 3.25 billion In FY 2021-22. Major exported items from India to Russia
include electrical machinery & equipment & parts thereof; sound & TV recorders &
reproducers & parts thereof (US$ 518.63 million); followed by Iron and steel (US$
479.52 million) in
FY 2021-22. India’s export to Russia stood at US$ 1.8 billion from April-November
2022. Major exported items from India to Russia include drug formulations and
biological (US$ 289 million) followed by residual chemicals and allied products (US$
114 million) etc.

India’s agricultural presence

India accounts for 40% of all exports of rice globally it produced 55.4million metric
tons in 2022, the Indian government put a ban on exports of non white basmati rice
due to the lack of production this year which led to rice shortage in many countries
where the rice was being exported drastically increasing the price of the staple, this
even led to Canada bulk ordering to prevent the prices of the staple from
skyrocketing, although this ban led to prices of rice reach the peak in many
countries, the prices remained stable in India.

Conclusion

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