Globalization in India ; Economics Project ; ISC ; Class 11 ; Advantages and Disadvantages of Globalization

1. ECONIMICS
GLOBALIZATION
BY KUSHAGRA AGRAWAL
SUBMITED TO ANJALI KHANDUJA MA'AM

3. ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of
guidance and assistance from many people and I am extremely
privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and
assistance and I would not forget to thank them.
I respect and thank Mrs. Anjali Khanduja ma'am, for providing
me an opportunity to do the project work in The Sanskaar
Valley School and giving us all support and guidance which
made me complete the project duly. I am extremely thankful to
her for providing such a nice support and guidance, although
she had busy schedule.

4. INDEX
S. NO. TITLES SLIDE
NO.
1 MEANING OF GLOBALIZATION 4
2 FACTORS AIDING TO GLOBALOIZATION 5
3 GLOBALIZATION IN INDIA 7
4 EFFECT OF GLOBALIZATION ON VARIOUS SECTORS
OF INDIAN ECONOMY
9
5 COMPARISON OF PRE AND POST GLOBALIZATION
ERA
14
6 ADVANTAGES AND DISADVANTAGES OF
GLOBALIZATION IN INDIA
16
BIBLIOGRAPHY 18

5. GLOBALIZATION
Globalization is defined as the process of growing interdependence
and integration between various economies of the world through
greater foreign trade and foreign investment. Hence, when the
countries that were previously shut to foreign investment and trade
have now burned down barriers. Globalization tries to build links in
such a way that the events in India can be determined by
events happening distances away. It includes the creation of
networks and pursuits transforming social, economic and
geographical barriers.
To put it in other words, Globalization is the method of interaction and
union among people, corporations and governments universally. it
allows for the free movement of people, goods, and
services across boundaries.

6. 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.
2) 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.
3) 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

7. .
1) 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.
2) 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.

8. GLOBALIZATION IN INDIA
It was only after the economic liberalisation in 1991, that Indian
economy tasted freedom in real sense. The LPG Policy of 1991,
had four basic premises:
1. Devaluation: Indian currency was devalued by 18-19%.
2. Disinvestment or Privatization : Many public sectors were sold
to the private sector
3. Allowing FDI: FDI was allowed in both in Insurance and
Defence sector.
4. NRI Scheme: NRIs were given same benefits as FIIs.

9. GLOBALIZATION IN INDIA
Thus, the policy opened Indian economy to new horizons and
embraced privatisation in a big way. This served as the first
footprint of globalization on Indian economy. Liberalization began
to hold its foot on barren lands of developing countries like India by
means of reduction in excise duties on electronic goods in a fixed
time frame. Import duties were cut down phase-wise to allow
MNC’s operate in India on equality basis. Due to the increased
global interdependence, all economic policy formulations on a
domestic front is not done in isolation from the outside world. They
are heavily dependent on international economic health and norms.
Likewise, any decision taken at a global platform has direct or
indirect impact on domestic policies.There have been both positive
and negative impacts of globalization on social and cultural values
in India.

10. EFFECT OF
GLOBALIZATION ON
VARIOUS SECTORS
OF INDIAN ECONOMY

11. AGRICULTURE
India is an agrarian economy as agriculture is the primary source
of living for over 55% of the population.
POSITIVE EFFECTS :
Globalization has touched every aspect of agriculture like
technological advancement, improved production techniques and
quality based enhancement.
NEGATIVE EFFECTS :
On the other hand, there are issues like genetically
modified(GM) crops, competition in pricing, WTO compliance
issues which limits the support the governments can extend to
farmers etc. Relaxation of import duties has also harmed the
Indian farmer.

12. INDUSTRY
POSITIVE EFFECTS :
Many Indian industries like Tatas, Reliance, United Brewery, etc have
invested abroad and have entered into various kinds of agreements like
joint ventures or mergers and acquisitions etc. This has raised their
global competitiveness.
The export-orientation is also increasing by setting up of various
Special Economic Zones(SEZs). This has attracted foreign
investments.
The outsourcing of IT and BPO services and MNCs have created
tremendous job opportunities for the skilled manpower in the country.

13. .
Relaxation of investment norms and licences has attracted huge
amounts of foreign investment through MNCs especially in
services, telecommunications, electrical equipments,
pharmaceutical, chemical, petroleum and textile
manufactoring industres.
 Another benefit of globalization is that foreign companies and
MNCs have brought highly advanced technologies with them. This
has helped to make Indian industry technologically advanced.
NEGATIVE EFFECTS :
Opening of some sectors to foreign investment led to the
exploitation of their resources by the MNCs.

14. .
The entry of MNCs has added to competition in the market
and has led to excessive pressure on domestic companies to
both raise quality and productivity to ensure survival.
 With the coming of advanced foreign technology, the labour
requirement has decreased in some sectors, resulting in many
people losing their jobs.
Many small manufacturers producing toys, eectronic goods,
batteries, vegetable oil, tyres, etc have lost to MNCs and the
cheaper goods imported from China. Similarly, Indian steel
industry has been facing problems because many
finished steel products imported from China are very low
priced.
 Foreign shareholders have been investing in indian stock
markets, taking over the domestic companies.

15. COMPARISON OF PRE GLOBALIZATION ERA
AND POST GLOBALIZATION ERA
PARAMETERS 1990-1991 2018-2019
Growth rate of real GDP(%) 5 6.8
Share of service sector in
national income(%)
42.5 54.2
Gross domestic savings
(as % of GDP)
23 27.4
Gross capital formation
(as % of GDP)
26 30
Share of public sector in
GDCF(%)
43 24

16. Growth rate of imports(%) 13.5 32.3 (2011-12)
Growth rate of exports(%) 9.2 21.8 (2011-12
Foreign exchange reserves $2.2 billion $ 457.5 billion
Foreign direct investment $1.3 billion $ 51 billion

17. GLOBALIZATION IN INDIA
ADVANTAGES
There is an International market for companies and for consumers
there is a wider range of products to choose from.
Increase in flow of investments from developed countries to
developing countries, which can be used for economic
reconstruction.
reater and faster flow of information between countries and greater
cultural interaction has helped to overcome cultural barriers.
 Technological development has resulted in reverse brain drain in
developing countries.

18. .
DISADVANTAGES
The outsourcing of jobs to developing countries has resulted in
loss of jobs in developed countries.
There is a greater threat of spread of communicable diseases.
There is an underlying threat of multinational corporations with
immense power ruling the globe
The number of rural landless families increased from 35 %in
1987 to 45 % in 1999, further to 55% in 2005. The farmers are
destined to die of starvation or suicide.

19. CASE STUDY OF VIRAJ PROFILES LIMITED
Viraj Profiles Limited founded by Mr Neeraj Raja Kochher ( Chairman & Managing
Director) in the year 1991 in Tarapur MIDC (Tal. & Dist. Palghar).It was started as a small
induction furnace to manufacture utensil grade steel for domestic markets with employee
strength of 150 people. Over the years the company expanded its operations across the
globe, increased its product portfolio and today the company boasts of employee strength
of 9000. Under the leadership of Mr. Neeraj Kochher , Viraj has expanded its foot prints
across 6 continents, more than 90 countries and is currently serving to more than 1300
satisfied customers. Now it is the second largest manufacturer of stainless steel long
products in the world and is ranked number one in stainless steel flanges.
Fundamental in ensuring the continuous growth of the organisation, Mr Neeraj Raja
Kochhar has transformed the company into, one of the fastest growing business houses in
India, is currently a major player in the global stainless steel market with a capacity of
528,000 tonnes per annum and with an annual turnover of over US $ 1.5 billion.
Over the last 20 years the Co. has achieved over 90 product certifications and approvals
in the petrochemical, food and beverage, construction, pharmaceutical, defence and
marine industries.

20. CONCLUSION
There is Positive as well as Negative impact of Globalisation.
Although the competition is very high, Indian Industries have potential to
face challenges of Globalisation successfully. Just like Viraj
Profiles, globalisation has brought exceptional opportunities for several
companies.
To get most of this opportunity, India should pay immediate attention to
ensure rapid development in education, health, water and sanitation,
labor and employment. Also, there needs to be balanced devolopment
so that smaller industries can also compete in the market. With proper
policies and effective implimentation, negative effects of Globalisation
could surely be mitigated.

21. BIBLIOGRAPHY
 civilsdaily.com
 en.wikipedia.org
 gktoday.in
 toppr.com
 byjus.com
 Frank ISC Economics by DK Sethi and Mrs. U Andrews
http://oldtm.lbp.world/

22. THANK YOU