Globalization has had a highly positive impact on the Indian economy. It has led to high economic growth, booming exports, reduced poverty, increased employment, decreased inflation, and improved quality of products. The service sector is a major driver of India's social and economic growth. It has grown due to urbanization, privatization, and increased demand for intermediate and consumer services. While globalization has benefited India, its policies must be customized to each country and have adequate safety nets and regulatory frameworks to balance economic development with social costs.

1. (With reference to Service Sector)

2. WHAT IS GLOBALIZATION?
 The trend toward countries joining
together economically,
 Education
 Society
 Politics and
 Viewing themselves not only
through their national identity
but also as part of the world as a
whole.

3. Impact of Globalization on Indian Economy
 highly positive in almost all spheres of economic and social life and
virtually no negative effect.
 India's economic growth has been high
 exports have boomed
 incidence of poverty has been reduced
 employment has surged
 begging by India for economic aid has stopped
 long-term inflation rate has gone down
 scarcity of goods have disappeared.
 the quality of products have improved substantially
Overall India has become progressively
vibrant and internationally competititive.

4. Impact of Globalization on THE SERVICE SECTOR
Service sector is the lifeline for the social
economic growth of a country.
The real reason for the growth of the
service sector is due to the increase in
urbanization, privatization and more
demand for intermediate and final
consumer services.
In advanced economies, the growth in the
primary and secondary sectors are
directly dependent on the growth of
services like
banking, insurance, trade, commerce, ente

5. The Bright Side of Globalization
 The rate of growth of the Gross
Domestic Product of India has been on
the increase from 5.6 per cent during
1980-90 to 7% in the 1993-2001
period.
 The foreign exchange reserves (as at
the end of the financial year) were $
39 billion (2000-01), $ 107 billion
(2003-04), $ 145 billion (2005-06) and
$ 180 billion (in February 2007).

6. WHAT = GLOBALISATION?
PRIVITIZATION
+
LIBERALIZATION

7. LPG –Globalization (Freedom to choose?)
Liberalization, Privatization,
 LPG surely has the power to do a lot of good. But at
what cost?
 Pursuing LPG at an alarming rate defeats the very
purpose of developing the countries.
 Many LPG policies become being an end in themselves
instead of being the means to an end.

8. Privatization (Freedom to choose?)
 Govts. have no business to be in business.
(Exceptions like steel industry in Korea, Taiwan do
exist)
 Privatization  More efficient.
 Costs – Trimming payrolls.
 Replacing unproductive workers.
 Social costs
 Where does privatization leave countries which
have no safety nets in place?

9. Liberalization (Freedom to
choose?)
 Removal of government interference in trade,
capital markets, financial markets, etc.
 The thrust has been on trade liberalization
 main idea being to utilize comparative
advantage.
 IMF argues that with liberalization, new and
efficient jobs would be created as they replace
the old unproductive ones.
 Not instantaneous.

10. Sequencing and Pacing LPG
 Need for safety nets.
 Adequate regulatory framework.
 Uniform policies of IMF does not suit all.
Thus, customize the policy framework for each
country.
 Proper sequencing helps in adapting and
responding to the challenges of globalization.
 Balancing of the trade agenda in favor of
developing countries.

11. IMPACT ON INDIAN ECONOMY
 india’s growth rate in the 1970’s was very low at 3%.
 though india’s average annual growth rate almost
doubled in the eighties to 5.9%, it was still lower
than the growth rate in China, Korea and Indonesia.
 the pick up in gdp growth has helped improve india’s
global position.
 india’s position in the global economy has improved
from the 8th position in 1991 to 4th place in 2001;
when GDP is calculated on a purchasing power
parity basis.

12.  During 1991-92, The Indian economy grew by 0.9%only.
 However the GDP growth accelerated to 5.3 % in 1992-93, and 6.2%
1993- 94.
 A growth rate of above 8% was an achievement by the Indian
economy during the year 2003-04.
 India is ranked 18th among the world’s leading exporters of services
with a share of 1.3% in world exports
 India’s GDP growth rate can be seen from the following graph since
independence

13. Indian Service Sector
 Is one of the major contributors to both
employment and national income in recent times.
 Trading, transportation and
communication, financial, real estate and
business services, community, social and personal
services come within the gambit of the service
industry
 Services account for more than 60 per cent of
world GDP and trade in services has grown.

14. Indian exports of services

15. India’s -Export of Commercial Services
 India has become one of the top five exporters of
services amongst developing countries.
 India’s exports of services are mainly to the EU
and the US.
 India’s export services growth rate was 16.3 in
2005-06, 25.9% in 2006-07,36.9% in 2007-08 and
33.3% in 2008-09.
 India has been deemed as a major exporter of
services in the world with a market share of 2.72%
in 2008 as against 0.6% in 1995.

16. Conclusion
 Indian economy has made rapid strides in
the process of globalisation.
 Globalisation is increasing:
1. the integration of national markets
2. the interdependence of countries world
wide for a wide range of
goods, services, and commodities.
 The most important lesson that we must
learn from the crisis is that we must be
self-reliant.

17.  India’s trade reform programme resulted in strong
economic growth in the globalization age.
 In particular, difficult decisions are to redress
the fiscal imbalance, by:
1. reducing subsidies,
2. completing the process of tariff and tax
reform,
3. and stepping-up privatization of state-owned
enterprises.
 The efforts are needed to balance the trade and
consider expansion of trade in other countries of
the world.

18. BY GROUP 5:
1. AMANDEEP OBEROI
2. AVNEET KAUR
3. KAVERI CHOPRA
4. SMRITI BABBAR
5. MEHAK SUKHRAMANI