GLOBALISATION & IT’S IMPACT ON
INDIAN ECONOMY
BY- ADITI GUPTA
ROLL NO. – 21139
COURSE – BA PROGRAM
INTRODUCTION
India is one of the countries that succeeded significantly after the initiation and implementation of globalisation.
The growth of foreign investment in the field of corporate, retail, and the scientific sector is enormous in the country.
It also had a tremendous impact on the social, monetary, cultural, and political areas. In recent years, globalisation has
increased due to improvements in transportation and information technology. With the improved global synergies, comes the
growth of global trade, doctrines, and culture.
The Indian economy spread its wings after introducing the LPG model in 1991.
Liberalisation, Privatisation, and Globalisation have impacted the exports and imports in India
Well.
The exports have opened a whole new opportunity for India. It has taken it to a prominent
level globally.
It has also brought in various merchandise to India and given rise to so many domestically as well
GLOBALISATION IN THE INDIAN ECONOMY
Indian society is changing drastically after urbanisation and globalisation. The economic policies have had a
direct influence in forming the basic framework of the economy.
Economic policies established and administered by the government also performed an essential role in planning
levels of savings, employment, income, and investments in the society.
Cross country culture is one of the critical impacts of globalisation on Indian society. It has significantly
changed several aspects of the country, including cultural, social, political, and economical.
However, economic unification is the main factor that contributes maximum to a country’s economy into an
international economy
IMPACT OF GLOBALISATION
Outsourcing: This is one of the principal results of the globalisation method. In outsourcing, a company recruits
regular service from the outside sources, often from other nations, that was earlier implemented internally or from
within the nation (like computer service, legal advice, security, each presented by individual departments of the
corporation, and advertisement).
As a kind of economic venture, outsourcing has increased, in recent times, because of the increase in quick methods of
communication, especially the growth of information technology (IT).
Many of the services such as voice-based business processes (commonly known as BPS, BPO, or call centres),
accountancy, record keeping, music recording, banking services, book transcription, film editing, clinical advice, or
This Photo by Unknown Author is licensed under
teachers are being outsourced by the companies from the advanced countries to India.
CC BY-SA-NC
INDIAN ECONOMY GROWTH
RATE & STATISTICS
Strong economic growth in the first quarter of FY23 helped India overcome the UK to become the fifth-largest economy
after it recovered from the COVID-19 pandemic shock.
Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at Rs. 293.90 lakh crores (US$ 3.52 trillion),
against the First Revised Estimates (FRE) of GDP for the year 2022-23 of Rs. 269.50 lakh crores (US$ 3.23 trillion). The
growth in nominal GDP during 2023-24 is estimated at 9.1% as compared to 14.2% in 2022-23.
Strong domestic demand for consumption and investment, along with Government’s continued emphasis on capital
expenditure are seen as among the key driver of the GDP in the first half of FY24. During the period January-March
2024,
India’s exports stood at US$ 119.10 billion, with Engineering Goods (25.01%), Petroleum Products (17.88%) and Organic
and Inorganic Chemicals (7.65%) being the top three exported commodity. Rising employment and increasing private
consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.
MARKET SIZE
Real GDP or GDP at Constant (2011-12) Prices in the year 2023-24 is estimated at Rs. 172.90 lakh crores (US$ 2.07
trillion), against the First Revised Estimates (FRE) of GDP for the year 2022-23 of Rs. 160.71 lakh crores (US$ 1.92
trillion). This Photo by Unknown Author is licensed under CC BY-SA-NC
The growth in real GDP during 2023-24 is estimated at 7.6% as compared to 7.0% in 2022-23.
There are 113 unicorn startups in India, with a combined valuation of over US$ 350 billion.
As many as 14 tech startups are expected to list in 2024 Fintech sector poised to generate the largest number of future
unicorns in India.
With India presently has the third-largest unicorn base in the world.
The government is also focusing on renewable sources by achieving 40% of its energy from non-fossil sources by 2030.
India is committed to achieving the country's ambition of Net Zero Emissions by 2070 through a five-pronged strategy,
‘Panchamrit’.
Moreover, India ranked 3rd in the renewable energy country attractive index.
RECENT DEVELOPMENTS
India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic
activity. With an improvement in the economic scenario and the Indian economy recovering from the Covid-19 pandemic shock,
several investments and developments have been made across various sectors of the economy. According to World Bank, India
must continue to prioritise lowering inequality while also putting growth-oriented policies into place to boost the economy. In
view of this, there have been some developments that have taken place in the recent past. Some of them are mentioned below.
According to HSBC Flash India PMI report, business activity surged in April to its highest level in about 14 years as well as
sustained robust demand. The composite index reached 62.2, indicating continuous expansion since August 2021, alongside
positive job growth and decreased input inflation, affirming India's status as the fastest-growing major economy.
As of April 12, 2024, India’s foreign exchange reserves stood at US$ 643.162 billion.
In 2023, India saw a total of US$ 49.8 billion in PE-VC investments.
Merchandise exports in March 2024 stood at US$ 41.68 billion, with total merchandise exports of US$ 437.06 billion during the
period of April 2023 to March 2024.
GOVERNMENT INITIATIVES
Over the years, the Indian government has introduced many initiatives to strengthen the nation's economy.
The Indian government has been effective in developing policies and programmes that are not only beneficial for citizens to
improve their financial stability but also for the overall growth of the economy.
Over recent decades, India's rapid economic growth has led to a substantial increase in its demand for exports. Besides this,
a number of the government's flagship programmes, including Make in India, Start-up India, Digital India, the Smart City
Mission, and the Atal Mission for Rejuvenation and Urban Transformation, is aimed at creating immense opportunities in
India. In this regard, some of the initiatives taken by the government to improve the economic condition of the country are
mentioned below:
• In February 2024, the Finance Ministry announced the total expenditure in Interim 2024-25 estimated at Rs. 47,65,768
crore (US$ 571.64 billion) of which total capital expenditure is Rs. 11,11,111 crore (US$ 133.27 billion).
• On January 22, 2024, Prime Minister Mr. Narendra Modi announced the 'Pradhan Mantri Suryodaya Yojana'. Under this
scheme, 1 crore households will receive rooftop solar installations.
• On September 17, 2023, Prime Minister Mr. Narendra Modi launched the Central Sector Scheme PM-VISHWAKARMA in
New Delhi. The new scheme aims to provide recognition and comprehensive support to traditional artisans & craftsmen
who work with their hands and basic tools. This initiative is designed to enhance the quality, scale, and reach of their
products, as well as to integrate them with MSME value chains.
• On August 6, 2023, Amrit Bharat Station Scheme was launched to transform and revitalize 1309 railway stations across the
nation. This scheme envisages development of stations on a continuous basis with a long-term vision.
• From April 1, 2023, Foreign Trade Policy 2023 was unveiled to create an enabling ecosystem to support the philosophy of
‘AtmaNirbhar Bharat’ and ‘Local goes Global’.
• To enhance India’s manufacturing capabilities by increasing investment and production in the sector, the government of
India has introduced the Production Linked Incentive Scheme (PLI) for Pharmaceuticals.
• Prime Minister’s Development Initiative for North-East Region (PM-DevINE) was announced in the Union Budget 2022-
23 with a financial outlay of Rs. 1,500 crore (US$ 182.35 million).
• The Amrit Bharat Station scheme for Indian Railways envisages the development of stations on a continuous basis with a
long-term vision, formulated on December 29, 2022, by the Ministry of Railways.
Charts Spotlight Inflation, Economic Growth,
Globalization, and Climate Change
tracking the most pressing issues for the global economy. From inflation and economic
growth to housing, food prices, globalization, and climate change, these visualizations
encapsulate the biggest challenges policymakers faced—and may keep confronting in
the year ahead.
Higher prices so far mostly reflect
increases in profits and import costs,
but labor costs are picking up
Scaling back subsidies would reduce air
pollution, generate revenue, and make a
major contribution to slowing climate
change
This Chart of the Week brings together our
economic forecasts, which reveal weaker
growth amid an uncertain outlook with high
downside risks
China and India together
are forecast to generate
about half of global growth
this year
Trade openness increased after the
Second World War, but has slowed
following the global financial crisis
Advantages of Globalisation in India
Increase in employment: With the opportunity of special economic zones (SEZ), there is an increase in the number of
new jobs available. Including the export processing zones (EPZ) centre in India is very useful in employing thousands of
people.
Another additional factor in India is cheap labour. This feature motivates the big companies in the west to outsource
employees from other regions and cause more employment.
Increase in compensation: After globalisation, the level of compensation has increased as compared to the domestic
companies due to the skill and knowledge a foreign company offers. This opportunity also emerged as an alteration of
the management structure.
High standard of living: With the outbreak of globalisation, the Indian economy and the standard of living of an
individual has increased. This change is notified with the purchasing behaviour of a person, especially with those who
are associated with foreign companies. Hence, many cities are undergoing a better standard of living along with business
development.
DEBATE ON GLOBALISATION
