The document discusses globalization and liberalization in India. It defines globalization as the spread of products, technology, information and jobs across borders through increased economic interdependence and trade. Globalization has led to increased employment, compensation, and standards of living in India through opportunities in special economic zones. Liberalization in India involved reducing restrictions on private businesses and foreign investment to encourage competition and economic growth. While globalization and liberalization provided benefits, they also led to changes in Indian culture and society.

1. Meaning:
Globalization is the spread of products, technology,
information, and jobs across national borders and cultures.
In economic terms, it describes an interdependence of
nations around the globe fostered through free trade.

2.  Increase in Employment: With the opportunity of Special
Economic Zones (SEZ), there is an increase in the number
of new jobs availability. Including Export Processing Zones
(EPZ) Centre in India is very useful in employing thousands
of people. Another additional factor in India is cheap labour.
This feature motivates big companies in the west to
outsource employees from other region and cause more
employment.

3.  Increase in Compensation: After Globalisation,
the level of compensation has increased as
compared to domestic companies due to the skill
and knowledge a foreign company offers. This
opportunity also emerged as an alteration of the
management structure.
 High Standard of Living: With the outbreak of
Globalisation, Indian economy and the standard
of living of an individual have increased. This
change is notified with the purchasing behavior
of a person, especially with those who are
associated with foreign companies. Hence, many
cities are undergoing a better standard of living
along with business development.

4.  India is one of the countries that succeeded significantly
after the initiation and implementation of Globalisation.
The growth of foreign investment in the field of
corporate, retail, and the scientific sector is enormous in
the country. It also had a tremendous impact on the
social, monetary, cultural, and political area. In recent
year, Globalisation has increased due to improvements
in transportation and information technology.

5. •Culturally, globalization represents the exchange of ideas,
values, and artistic expression among cultures.
•Globalization also represents a trend toward the
development of single world culture.
•Politically, globalization has shifted attention to
intergovernmental organizations like the United Nations
(UN) and the World Trade Organization (WTO).
•Legally, globalization has altered how international law is
created and enforced.

6. Indian society is changing drastically after
urbanisation and Globalisation. Economic
policies have had a direct influence in forming the
basic framework of the economy. Economic
policies established and administered by the
government also performed an essential role in
planning levels of savings, employment, income,
and investments in society. The process of
globalization brings some impact on the economy.

7.  Increased foreign investment in India.
 Greater cultural exchange because of greater
movement of the people. This has greatly
helped the tourism sector in India.
 Opening up of the Indian markets to foreign
goods.
 The greater competition among companies
leading to improvement of quality with
reduction in prices of the products.
 Access to newer technology and improved
ways of production from the more advanced
countries leading to efficiency in the local
industries.

8. Meaning
Liberalisation (or liberalization) is any method of
how a state raises limitations on some private individual
ventures. Liberalisation befalls when something which
was forbidden is no longer forbidden or when
government laws are loosened.

9.  To boost competition between domestic
businesses
 To promote foreign trade and regulate
imports and exports
 Improvement of technology and foreign
capital
 To develop a global market of a country
 To reduce the debt burden of a country
 To unlock the economic potential of the
country by encouraging the private sector
and multinational corporations to invest and
expand.

10.  To encourage the private sector to take an active part in
the development process.
 To reduce the role of the public sector in future
industrial development.
 To introduce more competition into the economy with
the aim of increasing efficiency.

11.  Deregulation of the Industrial Sector
 Financial Sector Reforms
 Tax Reforms
 Foreign Exchange Reforms
 Trade and Investment Policy Reforms
 External Sector Reforms
 Foreign Exchange Reforms
 Foreign Trade Policy Reforms

12. Since the adoption of the New economic strategy in
1991, there has been a drastic change in the Indian
economy. With the arrival of liberalisation, the government
has regulated the private sector organisations to conduct
business transactions with fewer restrictions. For
developing countries, liberalisation has opened economic
borders to foreign companies and investments. Earlier,
Investors has to encounter difficulties to enter countries
with many barriers. These barriers included tax laws,
foreign investment restrictions, accounting regulations, and
legal issues. The economic liberalisation reduced all these
obstacles and waived few restrictions over the control of
the economy to the private sector.

13. Positive Impact of Liberalisation in India
 Free flow of capital: Liberalisation
has enhanced the flow of capital by
making it affordable for businesses to
reach the capital from investors and
take a profitable project.
 Diversity for Investors: The Investors
will be benefitted by investing a portion
of their business into a diversifying
asset class.

14.  Impact on Agriculture: In this area, the cropping
designs have experienced a huge change, but the impact
of liberalisation cannot be accurately measured.
Government restrictions and interventions can be seen
from production to distribution of the crop.

15. Negative Impact of Liberalisation in India
 The weakening of the economy: Enormous restoration
of political power and economic power will lead to
weakening the entire Indian economy.
 Technological Impact: Fast development in technology
allows many small scale industries and other businesses
in India to either adjust to changes or shut their
businesses.
 Mergers and Acquisitions: Here small businesses are
merging with big companies, therefore, the small
companies employees may need to enhance their skilled
and technologically advanced. This enhancing of skill
and the time it might take may lead to non-productivity
and can be a burden to the company’s capital.