2. India before 1991
• India before 1991 was characterized by a mixed economy with a heavy emphasis on
government intervention and regulation.
• The Indian economy was largely closed to the outside world, with high tariffs on imports and
restrictions on foreign investment.
• The government played a dominant role in key industries such as steel, mining, and energy,
and implemented a system of central planning to direct investment and economic activity.
• India's economic policies before 1991 were based on the principles of import substitution
industrialization (ISI), which aimed to promote domestic production and reduce reliance on
imports.
• The government provided subsidies and protection to domestic industries, while imposing
high tariffs and quotas on imports.
3. India before 1991
• Despite these policies, India's economic performance was relatively weak in the decades
before 1991.
• The economy experienced slow growth, high inflation, and chronic balance of payments
deficits.
• The government's control over the economy led to inefficiencies, corruption, and a lack of
competition.
• In 1991, India faced a severe balance of payments crisis that forced the government to
undertake major economic reforms.
4. India before 1991
• These reforms, known as the New Economic Policy, included liberalization of trade and
investment, deregulation of industries, and privatization of state-owned enterprises.
• The reforms opened up the Indian economy to foreign investment and competition, and led
to a significant increase in economic growth and foreign exchange reserves.
• Since then, India has emerged as one of the fastest-growing major economies in the world.
5. Effects of Globalization on Primary sector
• Primary sector: The primary sector includes activities related to agriculture, forestry,
fishing, mining, and other extractive industries.
• Globalization has had mixed effects on this sector. On the one hand, globalization has
created new opportunities for primary sector exports, particularly for developing countries.
• The demand for commodities such as oil, minerals, and agricultural products has increased,
and many countries have been able to boost their exports and earn foreign exchange.
• On the other hand, globalization has also led to environmental degradation and resource
depletion in some areas, as companies seek to exploit natural resources for profit.
6. Effects of Globalization on Secondary sector
• Secondary sector: The secondary sector includes activities related to manufacturing,
construction, and other industrial activities.
• Globalization has had significant effects on this sector, particularly in terms of trade and
investment.
• Companies have increasingly moved their production to countries with lower labor costs
and less regulation, leading to the growth of manufacturing industries in countries such as
China and India.
• At the same time, traditional manufacturing centers such as the United States and Europe
have seen declines in employment and output.
• Globalization has also led to the growth of global supply chains, as companies seek to
source raw materials and components from around the world to reduce costs.
7. Effects of globalization on tertiary sector
• Tertiary sector: The tertiary sector includes activities related to services, such as finance,
education, healthcare, and hospitality.
• Globalization has had significant effects on this sector as well.
• The growth of cross-border trade and investment has led to the expansion of global
services, with many companies outsourcing functions such as customer service and IT to
countries with lower labor costs.
• Globalization has also led to the growth of international tourism and the hospitality
industry, as more people travel around the world for business and leisure.
8. Social & Cultural influences
The opening up of the Indian economy in 1991 has had significant social and cultural
influences on Indian society. Here are some of the key social and cultural influences:
• Increased consumerism: The opening up of the economy led to an increase in
consumerism in India, as more products and services became available to Indian consumers.
The growth of the middle class has led to a rise in demand for luxury goods, fashion, and
technology products.
• Westernization: The opening up of the economy has led to a significant degree of
westernization of Indian culture. Western fashion, music, and lifestyle trends have become
more popular among Indian youth, particularly in urban areas. This has led to changes in
social norms and cultural practices, particularly with regards to relationships and gender
roles.
9. Social & Cultural influences
• Rise of the service sector: The opening up of the economy has led to the growth of the
service sector in India, particularly in areas such as IT, healthcare, and hospitality. This has
led to changes in the nature of work and employment opportunities, as more Indians are
now employed in service-based jobs rather than traditional manufacturing or agricultural
roles.
• Increased exposure to global cultures: The opening up of the economy has led to
increased exposure to global cultures among Indians, particularly through the media and the
internet. This has led to greater awareness of different cultures and ways of life, as well as
increased interest in travel and tourism.
• Increased social mobility: The opening up of the economy has led to increased social
mobility in India, as more opportunities have become available to people from different
backgrounds. This has led to greater diversity in the workplace and in social interactions, as
well as changes in social attitudes and values.
10. Social & Cultural influences
• Changing family structures: The growth of the service sector and increased employment
opportunities have led to changes in family structures in India. Dual-income families have
become more common, leading to changes in traditional gender roles and the division of labor
within households. This has also led to an increase in nuclear families and a decline in extended
families.
• Greater acceptance of diversity: The exposure to global cultures and the rise of the service
sector have led to greater acceptance of diversity in India. Indians have become more accepting
of people from different backgrounds, religions, and sexual orientations. This has led to changes
in social attitudes and values, particularly among younger generations.
• Urbanization: The opening up of the economy has led to rapid urbanization in India, as more
people move to cities in search of employment opportunities. This has led to changes in the
urban landscape, with the growth of shopping malls, high-rise buildings, and gated communities.
Urbanization has also led to changes in social interactions and cultural practices, particularly
among the urban middle class.
11. Social & Cultural influences
• Increased focus on education: The growth of the service sector has led to an increased
focus on education in India. There has been a rise in the number of private schools and
universities, as well as increased competition for admission to top-tier institutions. This has
led to changes in social attitudes towards education and the pursuit of knowledge.
• Environmental awareness: The opening up of the economy has also led to greater
awareness of environmental issues in India. The growth of the manufacturing and service
sectors has led to increased pollution and resource depletion, leading to greater advocacy
for environmental protection and sustainability.
12. Criticisms on the idea of globalization
• Globalization is the process of increasing interconnectedness and interdependence among
people, businesses, and countries around the world.
• While globalization has been credited with creating new opportunities for trade, investment,
and cultural exchange, it has also been the subject of much criticism.
13. Criticisms on the idea of globalization
• One of the primary criticisms of globalization is that it benefits developed countries at the
expense of developing countries.
• Critics argue that global trade and investment rules are biased towards developed countries,
which have more resources and bargaining power.
• This can lead to the exploitation of labor in developing countries, where workers are paid
low wages and work under poor conditions to produce goods for export to developed
countries.
14. Criticisms on the idea of globalization
• Another criticism of globalization is that it leads to environmental degradation.
• Multinational corporations may pursue profits without regard for the impact on the
environment, resulting in pollution, deforestation, and other forms of environmental
damage.
• This can have long-term consequences for both developed and developing countries.
15. Criticisms on the idea of globalization
• Globalization is also often blamed for cultural homogenization, as Western values and
cultural products are exported around the world.
• Critics argue that this leads to the loss of cultural diversity and the erosion of local
traditions and identities.
• Additionally, globalization is seen as contributing to social inequality, as the benefits of
economic growth are not shared equally.
• Critics argue that globalization undermines national sovereignty, as countries are
increasingly bound by global trade and investment rules that limit their ability to regulate
their economies and protect their citizens.
16. Criticisms on the idea of globalization
• Cultural homogenization: Globalization is often blamed for the homogenization of cultures,
as Western values and cultural products are exported around the world.
• Critics argue that this leads to the loss of cultural diversity and the erosion of local
traditions and identities.
• Exploitation of labor: Critics argue that globalization has led to the exploitation of labor in
developing countries, where workers are paid low wages and work under poor conditions to
produce goods for export to developed countries.
• Social inequality: Globalization is seen as contributing to social inequality, as the benefits
of economic growth are not shared equally.
• The wealthy and powerful benefit the most, while the poor and marginalized are left behind.
17. Criticisms on the idea of globalization
Loss of sovereignty: Critics argue that globalization undermines national sovereignty, as
countries are increasingly bound by global trade and investment rules that limit their ability to
regulate their economies and protect their citizens.
18. Class analysis of globalization
• Class analysis is a way of understanding social and economic structures in terms of the
distribution of power and resources among different classes of people.
• When applied to the concept of globalization, class analysis can help us to understand how
globalization has affected different classes of people in different ways.
19. Class analysis of globalization
• On one hand, globalization has created new opportunities for businesses and investors to
expand their operations across borders.
• This has led to the creation of new wealth and the rise of a global elite, composed of the
wealthiest and most powerful people from around the world.
• This elite class has benefited from globalization by increasing their access to resources,
capital, and markets, and by reducing barriers to trade and investment.
20. Class analysis of globalization
• On the other hand, globalization has also had negative consequences for working-class
people and marginalized communities.
• The expansion of global trade has led to the outsourcing of jobs to countries with lower
labor costs, resulting in job losses and wage stagnation in developed countries.
• This has contributed to the decline of the middle class in many developed countries, while
exacerbating economic inequality and poverty in developing countries.
21. Class analysis of globalization
• In addition, globalization has also led to the erosion of worker protections and labor
standards in many parts of the world.
• Multinational corporations have sought to minimize costs by exploiting workers in
developing countries, where labor laws and regulations are often weaker or less enforced.
• This has led to the creation of a global underclass of workers who are subject to low
wages, long hours, and unsafe working conditions.
