Globalisation
- Globalisation refers to the growing interdependence of the world’s economies, cultures, and populations. It’s driven by increased interactions and integration across borders.
Factors Aiding Globalisation in India
- Economic liberalisation: India’s economic reforms in the early 1990s, often referred to as LPG (Liberalisation, Privatization, and Globalization). These reforms reduced government control over the economy, allowing for more foreign investment and trade. This opened doors for Indian companies to participate in the global market and for international players to invest in India.
- Information and Communication Technology (ICT): The rise of ICT has been a major driver of globalisation worldwide, including in India. The internet and advancements in communication technologies have made it easier and faster to conduct business across borders. This has benefitted Indian businesses by allowing them to connect with customers and partners globally.
- Improved transportation: Developments in transportation infrastructure, like better ports and logistics networks, have streamlined the movement of goods and people. This efficiency has made it more cost-effective to trade with other countries, further propelling India’s globalisation.
- Rise of the World Trade Organization (WTO): The establishment of the WTO in 1994 created a framework for fairer international trade by reducing trade barriers like tariffs. This benefited India by giving its exports a better chance of competing in the global market.
- Skilled workforce: India has a large pool of skilled and educated workers, particularly in IT and IT-enabled services. This makes India an attractive destination for foreign companies looking to outsource or establish operations in the country.
- Government initiatives: The Indian government has actively promoted globalisation through various initiatives. These include setting up Special Economic Zones (SEZs) with special incentives for foreign companies and promoting foreign direct investment (FDI) in various sectors.
Impacts of Globalisation in India
- Economy – Globalisation has opened doors for increased trade and foreign investment, leading to economic growth. For instance, the Indian IT industry boomed due to globalisation, creating millions of jobs.
- Agriculture – Globalisation has introduced modern farming techniques, machinery, and high-yielding seeds. This has increased agricultural productivity in some regions. For example, drip irrigation systems adopted from international practices have improved water efficiency in some areas.
- Manufacturing – Globalisation has led to the setting up of manufacturing units by Multinational Companies (MNCs) in India, creating jobs and boosting industrial output. For instance, automobile giants like Hyundai and Ford have set up manufacturing plants in India.
- Education – Globalisation has fostered collaboration between Indian and foreign universities, offering Indian students access to international curriculums and research opportunities. For example, Indian Institute of Technology Delhi (IIT Delhi) has partnered with universities like University of California, Berkeley for student exchange programs.
- Culture – Globalisation has led to the widespread availability of international media, fashion trends, and cuisine. This fosters cultural exchange and broader worldviews. The popularity of Korean pop music (K-Pop) in India is an example of this cultural exchange.