Globalization refers to increasing global connectivity and interdependence in economic, social, technological, cultural, political and ecological spheres. It has impacted India through trade, capital flows and financial flows. India faces both opportunities and challenges with globalization. It must protect its agriculture and services sectors while pursuing liberalization. India also needs to address education, technology, quality standards, resource utilization and foreign investment to fully benefit from globalization.

1. IMPACT ON GLOBALISTION
&
INDIA TASKS AND CHALLENGES
BY
M. TaraniJyothi
M.Pharm (Pharmaceutical Chemistry)

2. IMPACT ON GLOBALISATION
 GLOBALISATION
 The term Globalisation is defined as integration of
economies and societies through cross country flows of
information, ideas, technologies, goods, services, capital,
finance, people.
 In short terms globalization refers to increasing global
connectivity, integration and interdependence in the
economic, social, technological, cultural, political, and
ecological spheres.

3.  At present the term globalisation used in limited sense of
economic integration leaving all cultural , Social , political
dimensions.
 The economic integration occurs through three channels:
a. Trades in goods and services
b. Movement of capital
c. Flow of finance by influencing market integration
effciency and industrial organisation.

4. • TRADE IN GOODS AND SERVICES:
 International trade ensures allocating different resources and
that has to be consistent.
 We all know from economic point of view that restrictive
trade barriers on emerging economies which impedes growth
 Emerging economies can reap the benefits of international
trade if only all the resources are utilized in full potential
 This is where the importance of reducing the tariff and non-tariff
barriers crop up.


5. • MOVEMENT OF CAPITAL:
 The production base of a developing economy gets enhanced
due to capital flows across countries
 The mobility of capital only enabled savings for the entire
globe and exhibited high investment potential.
 A country's economic growth doesn't, however, get barred by
domestic savings. Foreign capital inflow play an important
role in the development of an economy

6.  Developing countries would definitely prefer foreign direct
investment because portfolio investment doesn't have a direct
impact on the productive capacity expansion.
 FINANCIAL FLOW:
 The growth in capital and mobility of the foreign exchange
markets enabled better transfer of resources cross borders and
by large the global foreign exchange markets improved.
 It is mandatory to go in for the expansion of foreign exchange
markets and thus facilitate international transfer of capital.

7. Impact of Globalisation on Manufacturing
Industry:
• Manufacturing companies, both domestic and global,
are expanding their Indian production capacities and
establishing new plants.
• Indian companies are also becoming global, with
manufactured goods exports growing in excess of
20 percent annually in recent years.
• The growth of manufacturing has resulted in India
emerging as one of the fastest growing markets for
automation systems, enterprise solutions and integration
service providers.

8. Impact of Globalisation on Employment
 An analysis of the impact of globalization on
employment in India will bring out a number of factors .
They are:
a. Market liberalisation policies and employment:
 The wake of globalisation which leads to intiation of
open market policies.
 There was significant rise in the customer base and it
slowly gave rise to the consumer market where the
market changes were dependant on the demand supply
chain.

9. b. Growth of new segments in the market :
 In the recent years, a number of industry segments such as
information technology, agro products, personal and beauty
care, health care and other sectors have come into the
market.
 Experts say that the introduction of a wide range of
sectors have led to the favorable growth of the economy
in the country.
c. Improvement in standard of living:
 The favorable economic growth has led to the development
of infrastructure, health care facilities and services, per
capita income and other factors which have really led to
the high growth rate.

10. India Tasks and Challenges
 India seeks to protect its food and livelihood security by having
sufficient flexibility for domestic policy measures.
 Protect domestic products from surge in imports
 Substantial reduction in expert subsidies and domestic support to
agriculture in developed countries for greater market access
 Negotiation on trade in services are crucial to India.
 India should not be seen as a spoiler in negotiations

11.  India should give constructive leadership to protect the
interests of developing and least developed countries
 India vigorously pursue liberalization of trade in services
 CHALLENGES:
 The government will have to find a way of addressing
anomalous situation of allowing import of some products
which are reserved for production in the small scale
sector.
 India has to work creatively and make developments in
leading edge technologies being developed all over the
world.
.

12.  India should bring about universal literacy
 India needs a very elaborate national science policy which
should address area of health.
 India should reach the international standards in the quality
of both industrial and agricultural products
 India should properly plan and utilise its cheap and abundant
human and natural resources.
 India should open up its economy to foreign investment
without the detriment of native investment