2. Discuss the effects of
on pattern of
consumption in India.
What has been the
effect of consumption
change on the Indian
3. Globalization is the process of
international integration arising from
the interchange of world views,
products, ideas, and other aspects of
culture. Put in simple terms,
globalization refers to processes that
promote world-wide exchanges of
national and cultural resources.
Advances in transportation and
including the rise of the Internet, are
major factors in globalization.
4. In general, liberalization (or liberalisation) refers to
a relaxation of previous government restrictions,
usually in areas of social or economic policy
The word liberalisation is mainly used to denote
that the Government is moving from licensing of
commerce to de-licencing. Even though normally
associated with Government ownership of
Government in business entities, the real direction
of liberalisation is moving away from planned
economy to market economy. The growth of
businessis dictated more as per the demand and
suppy in the market than decided by Government in
5. From independence till the later part of the
1980s, India economic approach was mainly
based on government control and a centrally
The economic liberalization policies were
undertaken, it did not find much support and the
country remained in its backward economic
It was in the 1990s that the first initiation
towards globalization and economic
liberalization was undertaken by Dr. Manmohan
Singh, who was the Finance Minister of India.
6. Globalization and
liberalization has greatly
influenced the Indian
economy and made it a
huge consumer market.
Today, most of the
economic changes in the
country are based on the
demand supply cycle and
other economic factors.
7. One of the main aspects of globalization
is foreign investment. India today has
emerged as one of the perfect markets
for foreign investors due to its vast
market base. More and more foreign
companies are investing in the Indian
market to get more returns.
Increased the number of jobs that were
available to the people of the country.
8. Reduced the profit levels of the Indian
pharmaceutical companies as a result of
which many had to close down such as
Hindustan Ciba Geigy, Park Davis.
Competition increased in the Indian
market between the foreign
pharmaceutical companies and domestic
9. Growth rate
A huge public sector emerged. State-
owned enterprises made large losses.