Globalization is the vast concept, in 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. It is not solely inclined by the economic forces but the development of information and communication technologies also intensified the scope and speed of interaction between the people all over the world. Therefore, it can be said that globalization is multi-dimensional concept.
GLOBALIZATION IN INDIA
India got independence in year 1947, during those times India was considered as one of the poorest countries in the world. The British colonial role has destroyed diverse and self-sufficient agrarian economy of India. The leaders and planners at that time, headed by prime minister Jawaharlal Nehru 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 much profitable for the nation as a number of private sectors were growing and the public sector became sick. Most of the population in India was poor and the people who but not able to afford the private expenses and the public facilities were not much developed have to face a dilemma.
The poverty rate started growing at an alarming rate there was an acute balance of payment prices and load domestic savings. There was no enough capital left for investment also the shortage of resources leads to difficulty in provision of educational and health facilities to the largely growing population. Moreover, the Indian economy was characterized by a higher rate of inflation and the balance of payment efficient that was around $10 billion.
Observing the situation getting worst, PV Narsimha Rao government choose to introduce the policy of Liberation & Privatization and Dr. Manmohan Singh, the then finance minister played an instrumental role in the adaptation of this new economic policy of 1991. Along with above two stated policies, the policy of globalization was also adopted by India. However, the basic goal of the policy enactment was to allow India take foreign exchange loans from World Bank as the foreign exchange reserves were left for mere three weeks of outflow. The basic aim of the New Economic Policy was to rectify the financial health of the nation. However, there was some unpredictable impacts of globalization upon the country; it helped the nation to fulfil its need of foreign exchange but also cause some permanent damages to the Indian economy and system.
IMPACT OF GLOBALISATION ON INDIAN ECONOMY
Indian economy was tremendously benefited from the its policy of globalization. Since 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 the foreign companies quite effective to develop the technological and economic sector of the nation. The foreign companies bought 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 and at the same time export and import of various types of good has increased the flow of investment in one economy that help in the reconstruction of another. Therefore, globalization has established a sort of interrelatedness among the economies. As a result of this, there has been a change in the determination of the domestic economy. Now, Domestic economic development are not determined entirely by economic policies and economic conditions; rather they are influenced by both the domestic and international policies and economic conditions.
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 is has become difficult for Indian government to insulate its economy from the world economy. The Indian people started preferring the global brands over the domestic products. The domestic trade and industries have been 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 capital intensive market from labor intensive which means adopting technological methods of production and resulted in higher rate of unemployment in India.
Along with its impact over the economy of the country the globalization has also certainly impacted the culture and tradition of the nation. It brought some improvements to the economic conditions of the people, increased the recognition of human rights, and also helped in improving the interaction among the people from different countries. People from different countries started sharing and adopting each other’s culture. Indian society was highly influenced by Western culture which can be highlighted through the division of joint family into nuclear or small families; the old and handicapped persons in the families are being forced to support themselves without any support from their children. The change can be noticed even in the daily habits of eating, dressing, talking etc.
Globalization has helped the women to established an identity of their own by not limiting their role to a homemaker and allowing them to work for their dreams. Women are now working in all sectors of Indian economy and enjoying the fruits of empowerment process brought by the globalization. But, at the same time their security has become a major issue in the changing scenario. They have been facing the double burden of family as well as job because the role of men has not changed much and has remained limited to their jobs.
Thus, it cannot be said that the impact of globalization was totally positive or negative it was a mixture of both. However, the point of concern is when an overwhelming impact of globalization can be observed on the Indian culture every educated Indian seems to believe that nothing in India is to be approved unless recognized and recommended by an appropriate authority. These activities and ideologies should be checked in order to preserve the rich cultural diversity of India and to ensure the fulfilment of the principle of self-sufficiency and self-identity of India.