GLOBALISATION
AND INDIAN
ECONOMY -
CONNECTED
What is
Globalisation?
Globalisation refers to the growing interdependence of
countries, driven by the exchange of goods, services,
capital, and ideas. Historically, it began with ancient trade
routes like the Silk Route, which linked India to the rest
of the world. In modern times, advances in technology
and transportation have accelerated this process,
allowing India to expand its markets, though it also brings
challenges such as increased competition.
Historical Context of
Globalisation
Globalisation has deep roots, dating back
to early trade routes like the Silk Route,
where goods such as spices and textiles
flowed across Asia and Europe. Under
colonial rule, India’s economy was
shaped by British interests, focusing on
raw materials for export. After World War
II, global institutions like the IMF and
WTO began regulating trade, which set
the stage for India’s future integration into
the global economy.
Evolution Of Globalization In India
Pre-1991: 1991 Economic Reforms: Resulting Growth:
• Before the 1991 • India moved from a • Post-1991, India’s
reforms, India followed closed economy to an economy saw
a protectionist open economy significant growth,
economic policy, with through particularly in the IT,
high tariffs and import liberalisation, services, and
substitution to reduce privatisation, and manufacturing
dependency on foreign globalisation policies sectors. This
goods. (LPG reforms). transformation
• Trade barriers were allowed India to
reduced, foreign become a global
investments were player in sectors like
welcomed, and several software services,
state-run industries pharmaceuticals,
were privatized, and
marking a significant telecommunications
shift in India’s global .
economic integration.
Lifelines
•Trade and Exports:of National
India’s exports include key goods like textiles, IT
Economy
services, pharmaceuticals, and agricultural products
like rice, tea, and spices.
Imports include crude oil, gold, and electronics.
Example: India's basmati rice is a major export to markets
like the Middle East and Europe.
• Transport Systems:
Railways play a critical role in transporting bulk goods such
as coal and iron ore across the country.
Ports like Mumbai and Chennai handle significant exports
and imports.
Airways facilitate the movement of high-value goods like
electronics and pharmaceuticals, contributing to India’s
export growth.
•Infrastructure Integration:
The expansion of roadways, railways, and ports has
connected remote regions to the national economy,
promoting internal trade and contributing to national
integration.
Role of Multinational
Corporations (MNCs)
•Definition:
• MNCs are corporations that operate in multiple
countries. They bring in capital, technology, and
management expertise.
•India’s Growth with MNCs:
• MNCs like Ford, Toyota, and Coca-Cola have
contributed significantly to India’s economy by creating
jobs and transferring technology.
• The automobile industry in India grew with
partnerships between global and local companies,
benefiting from foreign investment and global
standards.
•Impact on Local Businesses:
• While MNCs have fostered economic growth, they also
lead to intense competition, which can harm small
businesses and industries that cannot compete with
their scale and technology.
Technology and
Globalisation
•Technological Advancements:
• The internet, mobile technology, and
innovations in transport (e.g., container
shipping, air freight) have made global trade
faster and more efficient.
• India’s IT Sector has flourished, and cities like
Bengaluru have become global hubs for software
development and outsourcing.
•Global Integration:
• Technological growth has allowed India to be
deeply integrated into global supply chains,
enabling industries to compete globally in terms
of technology, production, and services.
Impact Of Globalisation on india
Positive Effects: Negative Effects:
• Economic Growth: • Income Inequality: The
Globalisation has led to benefits of globalisation
increased GDP growth, have not been evenly
particularly through distributed. Urban areas
sectors like IT, and skilled labor have
automobiles, and benefitted more than rural
pharmaceuticals. populations and unskilled
• Consumer Choices: workers.
Indian consumers have • Environmental Impact:
access to a wider range of Increased industrialization
global products and has led to environmental
services. concerns, including air
• Technological pollution and over-
Advancements: India exploitation of natural
has become a leader in IT resources.
outsourcing, benefiting
from global technology.
Key Sectors Impacted by
Globalisation
•Agriculture:
• India has become a major exporter of agricultural
products like rice, tea, and spices.
• The agricultural sector has benefited from better
technology, but small farmers often face challenges
due to competition with global markets.
•Manufacturing:
• Automobile industry (e.g., Maruti Suzuki, Hyundai) has
seen substantial growth due to global demand and
foreign investments.
• Textiles and electronics industries have also grown
with global trade opportunities.
•Services:
• India’s IT and BPO sectors have become globally
competitive, with companies like TCS, Infosys, and
Wipro leading the outsourcing industry.
BIBLOGRAPHY
1. NCERT Class 10 Economics - Chapter: "Making of the Global World"
- Provides foundational knowledge on globalization and its effects on India’s
economy, including trade, reforms, and sectors like agriculture and manufacturing.
2. YaleGlobal: "India: Poverty Retreats with Globalization’s Advance"
- Discusses India’s economic growth post-liberalisation, the role of globalization in
alleviating poverty, and the challenges of inequality.
3. ClearIAS: "The Process of Globalisation in India"
- Offers insights on how India’s economy opened up post-1991, focusing on economic
liberalisation, the rise of the IT sector, and foreign trade.
4. Textbook: "Impact of MNCs on India"
- Highlights the role of multinational corporations in transforming India’s economy,
through job creation, technology transfer, and competition.
THANK
YOU
name – Aashvi sadiwala
class – 10
Subject- s.s
Roll .no - 22
