Globalization has significantly impacted the Indian economy. India's GDP growth rate is around 8.8% and its GDP per capita income has increased to $1,030, ranking it 139th in the world. However, India's integration into the global economy still lags countries like China, with FDI flows only averaging around 0.5% of GDP compared to 5% for China. While India has benefited from economic liberalization, issues still remain in the agriculture sector, where the share of GDP is only 18% and many farmers remain landless or in debt. Overall, globalization has largely benefited India's economy but further progress is still needed in certain areas.

1. GLOBALIZATION AND
INDIA
Presented By :
Tanuj kumar
Roll no. : 11101163
Haryana school of business

2. Contents
1. Globalization and its definitions
2. Merits of globalization
3. Globalization impact on individual
sector
4. Information about The Indian trade
5. Globalization impact on Indian
Economy
6. Where does India stand in terms of
Global Integration
7. Summary

3. GLOBALISATION
It refers to the increasing
integration of economic around the
world, particularly through trade and
financial flows. The term sometimes also
refers to the movement of people and
knowledge across international borders.

4. Definitions

The World Bank
defines globalisation
as the “Freedom and
ability of individuals
and firms to initiate
voluntary economic
transaction with
residents of other

6. merits
 Encourage nation to reduce high levels
of protection.
 Increase trade volume.
 Reduction of import duties.
 Increase FDI.
 Increase GDP.

7. ADVANTAGE to a COMPANY
 Get access to more market.
 Expand their organisation.
 Increase the benefits.
 Increase international trade.

8. Globalization Impact on
Individual sectors
 Industry and services:
1. Business services (IT, BPO) are among the fastest growing sectors
contributing to one third of the total output of services .
2. In March 2009, annual revenues from outsourcing operations in
India amounted to US$60 billion and this is expected to increase to
US$225 billion by 2020.
3. India is 16th in the world in terms of nominal factory output.

9. .
 Agriculture:
1. India ranks second worldwide in farm output.
2. India is the largest producer in the world
of milk, coconuts, tea, ginger and black pepper.
3. It is the second largest producer
of rice, wheat, cotton and groundnuts, the second
largest fruit and vegetable producer, accounting for 10.9% and 8.6%
of the world fruit and vegetable production respectively.
4. In 2008, India had the world's third largest fishing industry.

10.  Banking and finance:
1. The public sector banks hold over 75% of total assets of the
banking industry, with the private and foreign banks holding
18.2% and 6.5% respectively.
2. More than half of personal savings are invested in physical
assets such as land, houses and gold. India has the highest
saving rate in the world at 36 percent.

11. Indian trade
 According to the World Trade States of the WTO in
2006, India's total merchandise trade (counting exports and
imports) was valued at $294 billion in 2006 and India's
services trade inclusive of export and import was $143
billion. India's trade has reached a still relatively moderate
share 24% of GDP in 2006, up from 6% in 1985.
 Exports(2009): $176.5 billion
 Export goods: software, petroleum products, textile
goods, jewelry, engineering goods, chemicals, leather .

12.  Imports(2009): $287.5 billion
 Import good: crude
oil, machinery, gems, fertilizer, chemic
als.
 FDI stock(2009)- Home: $161.3 billion
Abroad: $77.4
billion.
 Foreign reserves (Oct 2010) :
$294.01 billion.

13. Share of top five investing countries in FDI
inflows. (2000–2007)
Rank Country Inflows
(Million USD)
1. Mauritius 85178
2. United States 18040
3. United 15363
Kingdom
4. Netherlands 11177
5. Singapore 9742

14. Impact of Globalization on
Indian Economy
India had established
itself as the
world's second-fastest
growing major economy.
India’s position in the
global economy has
improved from the 8th
position in 1991 to 4th

15.  At presented, GDP growth rate is upto
8.8%, is expected upto 9.4%
 India's GDP per capita
income (nominal) is $1,030,
ranked 139th in the world, while its
per capita ranked 128th.
 GDP by sector: agriculture (18%),
industry (22%), services (60%) in
2009.

16. Where does India stand in
terms of Global Integration?
 Over the past decade FDI flows into India
have averaged around 0.5% of GDP against
5% for China, 5.5% for Brazil.
 Consider global trade – India’s share of world
merchandise exports increased from .05% to
.07% over the 20 years vs China’s share
which has tripled to almost 4%.

17. Summary
 India gained highly from the LPG model as its
GDP increased to 9.7% in 2007-2008.
 In respect of market capitalization, India
ranks fourth in the world.
 But even after globalization, condition of
agriculture has not improved. The share of
agriculture in the GDP is only 18%. The
number of landless families has increased
and farmers are still committing suicide.
 But seeing the positive effects of
globalization, it can be said that very soon
India will overcome these hurdles too and
march strongly on its path of development.