The Comprehensive Essay on the effect of Globalization in India

Globalization is a vast concept, in the general sense. It means integration of economies and societies through cross country flow of information, ideas, technologies, goods, services, capital, finance and people. 

The basic game of globalization is to generate some sort of connectivity among the human life residing in different parts of the world. 

Background of globalization in India 

India got independence in 1947, during those times India was considered as one of the poorest countries in the world. The British colonial role has destroyed the diverse and self-sufficient agrarian economy of India. 

The leaders and planners at that preferred a mixed economy system to develop the Indian economy. But the idea was not a favorable one in an economy that was as poor as India. 

Corresponding working of the public and private sector was not very profitable for the nation because a number of private sectors were growing and the public sector became sick. Most of the population was so poor that they were not able to afford the private expenses and the public facilities were not much developed. 

The Comprehensive Essay on the effect of Globalization in India

The poverty rate started growing at an alarming rate. There was an acute balance of payment prices and load domestic savings. There was not enough capital left for investment. The shortage of resources leads to difficulty in provision of educational and health facilities. Moreover, the Indian economy faced a higher rate of inflation and the balance of payment efficiently was around $10 billion.

Rise of globalization in India

Observing the situation getting worse, PV Narsimha Rao government chose to introduce the policy of Liberation & Privatization. Dr. Manmohan Singh, the finance minister, played an instrumental role in the adaptation of this new economic policy of 1991. 

Along with the above two stated policies, the policy of globalization was also adopted. However, the basic goal of the policy enactment was to allow India to take foreign exchange loans from the World Bank. The basic aim of the New Economic Policy was to rectify the financial health of the nation. However, there were some unpredictable impacts of globalization upon the country; it helped the nation to fulfill its need of foreign exchange but also caused some permanent damages.

Impact of globalization in India

The Indian economy has benefited tremendously from its policy of globalization. For many years, the countries were trading and communicating with one another but the process has experienced a boost in the last two decades. 

Opening of Special Economic Zones in India and availability of new opportunities has made foreign companies quite effective in developing the technological and economic sector of the nation. 

The foreign companies brought in highly advanced technologies with them and this assisted the Indian industries to become more technological advance. It also created consumer wellbeing; as now the consumer had a variety of products and brands to choose from.

Globalization has intensified the interdependence and competition between economies in the world market. At the same time export and import of various types of goods has increased. Therefore, globalization has established a sort of interrelatedness among the economies. 

Now, the economic policies and economic conditions do not determine domestic development. 

Negative impact of globalization

Every coin has two faces, so does every policy. Apart from these positive aspects, there was a negative development also attributed to globalization. Due to the interdependence among the economy, it has become difficult for the Indian government to insulate its economy from the world economy. 

The Comprehensive Essay on the effect of Globalization in India

The Indian people started preferring the global brands over the domestic products. The domestic trade and industries adversely affected because the global brands were considered cheap, more fashionable and easily available. To ensure its survival the Indian industry has to transform itself into a capital intensive market from labor intensive. This means adopting technological methods of production and resulting in a higher rate of unemployment in India.

Along with its impact over the economy of the country, globalization has also certainly impacted the culture and tradition of the nation. It brought some improvements to the economic conditions of the people. It has helped in improving the interaction among the people from different countries. People from different countries start to share and adopt each other’s culture. Western culture has highly influenced Indian society since very ancient times. 

Now women are establishing an identity of their own, fulfilling their dreams due to globalization. Women are now working in all sectors of the Indian economy and enjoying the fruits of the empowerment process. But, at the same time their security has become a major issue in the changing scenario. 


As we have discussed the comprehensive essay on globalization in India and found that we can not say that the impact of globalization was totally positive or negative; it was a mixture of both. However, the point of concern is the lack of awareness .

Government should check these activities and ideologies in order to preserve the rich cultural diversity of India. It will ensure the fulfillment of the principle of self-sufficiency and self-identity of India. 

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