Globalization -A process of the “reconfiguration of geography, so that social space is no longer wholly mapped in terms of territorial places, territorial distances and territorial borders.”
Globalization is a process of interaction and integration among the people, organizations, and governments of different nations, a process driven by international trade and investment and aided by information technology.
It includes the creation of networks and pursuits transforming social, economical, and geographical barriers. Globalisation tries to build links in such a way that the events in India can be determined by the events happening distances away.To put it in other words, globalisation is the method of interaction and union among people, corporations, and governments universally.
Effects of Globalisation in India
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.
Globalization 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.
What are the factors aiding globalization ?
1) TECHNOLOGY :- has reduced the speed of communication manifolds. The phenomenon of social media in the recent world has made distance insignificant.
The integration of technology in India has transformed jobs which required specialized skills and lacked decision-making skills to extensively-defined jobs with higher accountability that require new skills, such as numerical, analytical, communication and interactive skills. As a result of this, more job opportunities are created for people.
2) LPG REFORM :- The 1991 reforms in India have led to greater economic liberalisation which has in turn increased India’s interaction with the rest of the world.
3) FASTER TRANSPORTATION :- Improved transport, making global travel easier. For example, there has been a rapid growth in air-travel, enabling greater movement of people and goods across the globe.
4) RISE OF WTO :- The formation of WTO in 1994 led to reduction in tariffs and non-tariff barriers across the world. It also led to the increase in the free trade agreements among various countries.
5) IMPROVED MOBILITY OF CAPITAL:- In the past few decades there has been a general reduction in capital barriers, making it easier for capital to flow between different economies. This has increased the ability for firms to receive finance. It has also increased the global interconnectedness of global financial markets.
6) RISE OF MNCs: Multinational corporations operating in different geographies have led to a diffusion of best practices. MNCs source resources from around the globe and sell their products in global markets leading to greater local interaction.These factors have helped in economic liberalization and globalization and have facilitated the world in becoming a “global village”. Increasing interaction between people of different countries has led to internationalization of food habits, dress habits, lifestyle and views.
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 teachers are being outsourced by the companies from the advanced countries to India.
At last we can conclude that Globalization and marginalization go hand in hand in India. With millions of poor farmers, rural laborers, urban unemployed, slum-dwellers, 3 million refugees, 100 million street children, and the millions displaced by ‘the development’ projects, poverty in this era of globalization has assumed new dimensions. The question of “are the poor getting poorer?” related to inequality both nationally and internationally. It is apparent that in order to ensure that the potential gains from globalization are shared among all groups (rich and poor countries and between groups within a country) major reforms may be needed. As Amartya Sen states, “Even if the poor were to get just a little richer, this would not necessarily imply that the poor were getting a fair share of the potentially vast benefits of global economic interrelations.”