July 1991, India has taken a series of measures to structure the economy and improve the BOP position. The new economic policy introduced changes in several areas. The policy have salient feature which are :- Liberalization (internal and external) Extending Privatization. Globalization of the economy.

2. CONCEPT OF
Liberalization
Privatization
Globalization

3. INTRODUCTION
July 1991, India has taken a series of measures to
structure the economy and improve the BOP position.
The new economic policy introduced changes in several
areas.
The policy have salient feature which are :-
1. Liberalization (internal and external)
2. Extending Privatization.
3. Globalization of the economy.

4. LIBERALIZATION
Liberalization refers to relaxation of
previous government restrictions
usually in areas of social and
economic policies.
In other words Liberalization means
progressive elimination of
government interference.

5. IMPACT OF LIBERALIZATION
 Economic Collapse
 Cultural Collapse
 Increasing Inequalities

6. PRIVATIZATION
It refers to the transfer of assets or
service functions from public to
private ownership or control and the
opening of the closed areas to private
sector entry.
The logic behind Privatization was the
bad performance of the Public
sectors.

7. WHY THERE IS A NEED FOR
PRIVATIZATION ?
Though the PSUs have contributed heavily to
develop the industrial base of the country , they
are number of shortcomings which are identified
below :-
 Loss of a large number of PSUs
 Delay in implementation of projects
 Over – staffed resulting in lower labor
productivity

8. ADVANTAGES OF PRIVATIZATION
• Reduce burden
• Modernize public units
• Improve decision marking
policy
• Revives sick units
• Industrial growth
• Increase the foreign
investment.

9. GLOBALIZATION
Globalization implies integration and
interconnection between countries.
Globalization opens up the economy for
foreign direct investments.
According to IMF :-
The growing economic
interdependence of countries worldwide
through increasing volume and variety of
cross border transaction.

10. FACTORS THAT HAVE ENABLED
GLOBALIZATION
 Technology
 Foreign Trade and Investment Policy
Main Organization for facilitating
Globalization
 International Monetary Fund (IMF)
 International Bank for Reconstruction and Development
(IBRD)
 World Trade Organization (WTO)

11. PROS AND CONS OF GLOBALIZATION
Pros of
Globalization
 Free flow of capital
 Wide market for
companies
 Greater source of
information
 Cultural intermingling
Cons of
Globalization
 Widening gap between
rich and poor
 Unemployment
 Loss of domestic
industries
 Dominance of foreign
industries

12. IMPACT OF GLOBALIZATION
 Effects on Import –
Export policy.
 Effects on Foreign
currency.
 New Technology and
Production methods.
 Advantage to
Consumers.
 Small Producers Suffers
 New Jobs

13. FURTHER WE ARE GOING TO
STUDY
2. Impact of Globalization on our every
day life
3. Impact of Globalization on Industry ,
Employment and Migration
4. Impact of Globalization on Agriculture

14. INFORMATION AND
COMMUNICATION
TECHNOLOGY

16. INFORMATION
TECHNOLOGY
IT refers to INFORMATION
TECHNOLOGY
 IT is defined as creation, gathering,
processing, storage and delivery of
information.
 Information technology includes www(world
wide web),telephone, fax, e-communication,
internet.
 IT processes raw data into useful
information.
 IT Industry is the most widely operated
industry in the world.

17. IMPACT OF INFORMATION
TECHNOLOGY
 WORLD WIDE WEB (WWW)
 GLOBAL POSITIONING SYSTEM
 BROAD CASTING TECHNOLOGY
 TELEPHONY

19. APPLICATIONS OF
INFORMATION TECHNOLOGY
 BUSINESS
 EDUCATION
 INDUSTRY
 IN HOME
 PRODUCT DESIGN
 PRODUCT MANUFACTURING
 URBAN STUDIES
 FISHING
 ENTERTAINMENT
 OCEAN STUDY

20. ADVANTAGES OF
INFORMATION
TECHNOLOGY
 MULTIPURPOSE USES
 HELPS GOVERNMENT IN
MAINTAINING RECORDS AND
EFFICIENT
GOVERNANACE.
 PROGRESS IN BUSINESS..
QUICK AND EFFICIENT
ANYWHERE ANY TIME

21. DISADVANTAGES OF
INFORMATION TECHNOLOGY
 BRAIN DRAIN
 LACK OF SPIRIT OF RESEARCH
 LESS IMPORTANCE OF BOOKS

24. COMMUNICATION
TECHNOLOGY
 COMMUNICATION is a process of
exchanging thoughts,
words,opinions,emotions etc. for
personal and business purpose.
 Due to communication world has
become a global village.
 Communication has proved to be a
catalyst for the process of globalization.
 With globalization communication
system has improved tremendously.

25. MODES OF COMMUNICATION
 TELEPHONE
E-MAIL
MOBILE PHONES
SOCIAL NETWORKING SITES
VIDEO- CONFERENCING
INTERNET

26. ADVANTAGES OF
COMMUNICATION SYSTEM
 MESSAGECAN BE COMMUNICATED TO
MASSES AT A TIME.
 FIELD OF EDUCATION HAS PROSPERED
 DISTANCES HAVE SHORTENED
 WORLD WIDE COMMUNICATION
 CAN BE USED BY BOTH LITERATES AND
ILLITERATES
 REMOTE AREAS CAN BE WELL CONNECTED
 CHEAP SOURCE OF CONVEYING MESSAGE

27. DISADVANTAGES OF
COMMUNICATION SYSTEM
 NO SOCIAL BONDING
 ADDICTION OF GADGETS
 IMPERSONAL RELATIONSHIPS
 STRESS
 INSIGNIFICANCE OF FAMILY SYSTEM
LACK OF CONCENTRATION AMONG
STUDENTS
IGNORANT TOWARDS SPORTS
ANXIETY AND HYPERNESS

28. IMPACT OF GLOBALIZATION
ON INDUSTRY

29. GLOBALISATION
Globalization signifies a process of internationalization plus
liberalization, in which the world
has become a small village due to the concept of globalization.
The competition has become
intense in every field. Nations fight with game plan to sustain
their economy, by introducing new policies and announcing
incentives to support mainly their economic- indicators. After
the world economy was open to attack, the Indian economy has
initiate to concentrate on the
development of small industrial base, which had contribute
positively to the India’s GDP;
India’s GDP growth is better than other developing countries
with the developed small
industrial sector.

30. PARAMETERS OF GLOBALISATION
1.

31. SMALL SCALE INDUSTRY AND ITS IMPORTANCE
Economic development of a country is directly related to the level
of industrial growth.
Expansion of industrial sector leads to a greater utilization of
natural resources, production of goods and services, creation of
employment opportunities and improvement in the general
standard of living. India has also been striving to develop the
country’s industrial base over since independence. It has framed
various policies aimed at development of industries in the public
and private sectors. Special emphasis has been laid on small-
scale industries. Small-scale industries play a key role in our
planned development with its advantages of low investment,
high potential for employment generation, diversification of the
industrial base and dispersal of industries to rural and semi
urban areas.

32. THE SMALL-SCALE INDUSTRIES SECTOR HAS BEEN
APPROPRIATELY GIVE A STRATEGIC POSITION IN OUR PLANNED
ECONOMY TOWARDS THE FULFILLMENT OF THE SOCIO ECONOMIC
OBJECTIVES PARTICULARLY IN ACHIEVING EQUITABLE GROWTH.
P.N.DHAR AND H.F.LYDALL IN INTRODUCTION TO THEIR BOOK,
“THE ROLE OF SMALL ENTERPRISE IN INDIAN ECONOMIC
DEVELOPMENT” HAVE OBSERVED THAT ‘THE PROMOTION OF
SMALL SCALE INDUSTRIES HAS BEEN WIDELY RECOMMENDED AS
ONE OF THE MOST APPROPRIATE MEANS OF DEVELOPING
INDUSTRY IN OVER POPULATED BACKWARD COUNTRIES’.

33. POSITIVE EFFECTS OF GLOBALISATION
The various beneficial effects of globalization in Indian Industry are
that it brought in huge amounts of foreign investments into the
industry especially in the BPO, pharmaceutical, petroleum, and
manufacturing industries. As huge amounts of foreign direct
investments were coming to the Indian Industry, they boosted the
Indian economy quite significantly. The benefits of the effects of
globalization in the Indian Industry are that many foreign
companies set up industries in India, especially in the
pharmaceutical, BPO, petroleum, manufacturing, and chemical
sectors and this helped to provide employment to many people in
the country. This helped reduce the level of unemployment and
poverty in the country. Also the benefit of the Effects of
Globalization on Indian Industry are that the foreign companies
brought in highly advanced technology with them and this helped
to make the Indian Industry more technologically advanced.

34. NEGATIVE EFFECTS OF GLOBALISATION
The various negative Effects of Globalization on Indian
Industry are that it increased competition in the Indian
market between the foreign companies and domestic
companies. With the foreign goods being better than the
Indian goods, the consumer preferred to buy the foreign
goods. This reduced the amount of profit of the Indian
Industry companies. This happened mainly in the
pharmaceutical, manufacturing, chemical, and steel
industries. The negative Effects of Globalization on Indian
Industry are that with the coming of technology the number
of labor required decreased and this resulted in many
people being removed from their jobs. This happened
mainly in the pharmaceutical, chemical, manufacturing, and
cement industries.

35. INDIA’S PROBLEM
 High growth but problem
of unemployment.
 Need to generate 10
million jobs per year.
 Multi party rule, hence
need to accommodate
political ideology with
economic reality
(reservations, labour law
reforms).

36. CONCLUSION
The effects of globalization on Indian Industry have
proved to be positive as well as negative. The
government of India must try to make such
economic policies with regard to Indian Industry's
Globalization that are beneficial and not harmful.

37. IMPACT OF GLOBALIZATION ON
EMPLOYMENT AND INCREASE IN
MIGRATION

38. NUMBER OF JOBS
(EMPLOYMENT)
Economic globalisation may first have an impact
on the number of jobs available in
the economy, and thus affect key macro-economic
variables such as the
unemployment rate and the employment-to-
population ratio. The issue is made more
complex by the fact that the impact can be
different at the micro-economic level
(establishment, enterprise, economic activity) and
at the macro-economic level (total
economy), as well as in the short/long term. Off
shoring is a case in point .

39. Closing an enterprise in country A to move it to
country B may result in job losses in a particular
economic activity of country A.
It may also result in job gains for country A as a
whole because of higher productivity in the
remaining enterprises, higher wages,
and higher consumption demand. This optimistic view
seems to be supported by some of the latest ILO
analyses, according to which the number of jobs
available in the
world is higher than ever before [2]. Factors other
than economic globalization, such as demographic
growth, may however be the real cause of this
situation.

40. CHANGES IN EMPLOYMENT
Changes in wages and employment are not the only ways in
which an economy responds to immigration. There are at least
two other adjustment mechanisms (see e.g. Dustmann, Glitz
and Frattini 2008). First, immigration may change the mix of
goods and services produced in the economy and thus the
occupational and industrial structure of the labour market. For
example, the immigration of low-skilled workers may expand the
production (provision) of certain products (service) that use low-
skilled labour intensively. The expansion of the sector will then
increase demand and drive wages back up. Similarly,
immigration may change the technology used for producing
(providing) certain products (services). For example, the
immigration of skilled workers may encourage the adoption of
more skill intensive technologies which would again affect labor
demand.

41. MIGRATIONS
A great and increasing number of people are moving between countries and
continents. For the OECD countries it is estimated that about 30 per cent of
migration
is linked to labour. Labour migration is directly fostered by regional agreements
liberalising the movement of people as in the EU, by changing patterns of
specialisation, and by the development of multinational enterprises moving key
personnel to, from and between their foreign affiliates. The development of transport
and communication facilities serves as a catalyst. Migration leads to significant
inflows and outflows of workers whose impact on labour markets is still unclear. In
developed countries migrants may ease labour shortages and be part of the
solution to
population ageing. In developing countries, however, migration to more developed
countries may result in a brain drain .

42. MIGRATION AND THE ECONOMIC
CRISIS
In the global economy’s current state of financial crisis, the three
economically and culturally divisive aspects of migration will likely be
intensified by drastically changing labor market conditions. According to a
2009 report by
the Migration Policy Institute, declining GDP in most developed countries
has already led to a decreased demand for
labor, with migrants bearing the brunt of job loss in areas such as
construction, manufacturing, and services (Fix et al,
2009).
With trade and foreign direct investment (FDI) severely faltering in the year
following the financial crisis of 2008, many
migrants in the export sector lost their jobs and were forced to return home,
while many potential migrants from
developing countries have been deterred from making the trip across
borders.

43. Although it is still too early to gauge the
true impact of the crisis thus far, many economists believe that this
turnaround in migration flows is potentially the biggest
since the Great Depression (Fix et al, 2009).
In China, internal, cyclical migration from rural areas to
industrialized coastal regions is a widespread phenomenon;
workers spend much of the year living away from home and
instead in eastern provinces where they can find
manufacturing work and return home briefly to celebrate the
Chinese New Year with their families. In the year after the
recession, however, approximately 12 million of these migrant
workers were unemployed and remained in their home
provinces after their yearly vacation, rather than returning to the
coastal area (Fix et al, 2009).

44. POVERTY AND MIGRATION RELATIONS
Migration rate varies across caste groups and villagers ,with the
highest incidence among chronically poor people living in
remote villages. Overall mobility levels have grown: in the
number of households with at least one person working
outside the village. In remote villages, migration involved all
the poorest i.e. disabled, old and sick. migration involves
many costs and risks especially considering the globalisation.
Although migration is not an easy and ideal way of earning
money. Poverty does play an important role in the change in
migration during globalisation as many people from rural areas
come to urban areas and try to earn money and settle down to
support there family.

45. IMPACTS OF MIGRATION
The impacts of immigration on the labor market critically depend on the
skills of migrants, the skills of existing workers, and the characteristics of
the host economy. They also differ between the short and long run when
the economy and labor demand can adjust to the increase in labor
supply. The immediate short run effects of immigration on the wages and
employment of existing workers depend particularly on the extent to
which migrants have skills that are substitutes or complements to those
of existing workers (e.g. Boras 1995). If the skills of migrants and existing
workers are substitutes, immigration can be expected to increase
competition in the labor market and drive down wages in the short run.
The closer the substitute, the greater the adverse wage effects will be.
Whether and to what extent declining wages increase unemployment or
inactivity among existing workers depends on their willingness to accept
the new lower wages. If, on the other hand, the skills of migrants are
complementary to those of existing workers, all workers experience
increased productivity which can be expected to lead to a rise in the
wages of existing workers.

46. TWO ASPECTS
INFORMATION
TECHNOLOGY
COMMUNICATIO
N
TECHNOLOGY

47. GLOBALIZATION OF
AGRICULTURE , CORPORATE
FARMING AND FAMER’S
SUICIDES

48. IMPACT OF GLOBALIZATION ON
AGRICULTURE
 New economy policy and New agricultural policy
 Opportunities and Threats
 Opportunities to Export agricultural products
 Increase Income from framing
 Bridge the Technological gap
 Diffusion of better Agricultural technologies
 Lots of room to grow in Food processing
 Marketing of fresh Agriculture produce

49. OTHER SIDE OF GLOBALIZATION
 Land reform
 Polluting rural environment
 Diluted land ceiling legislation
 Changes in cropping pattern
 Eco crisis
 Loss of bio-diversity

50. Other impacts of globalization on
agriculture
o Problems of subsidy
o Public and private investments
o Danger to food sufficiency at national level
o Efforts to reduce subsidies in U.S and U.K
o Application of TRIP and agriculture in India.
Agrarian crisis
o Indebted farmers
o Introduction SEZ
o Poverty
o Water scarcity
o Farmers committing suicides

51. CORPORATE FARMING
Corporate farming is a term
used to describe companies
that own or influence farms
and agricultural practices on a
large scale.

52. FAMILY FARMS
FAMILY FARMS ARE SMALL FARMS WHILE
CORPORATE FARMS ARE LARGE SCALE OPERATIONS
Arguments In favor of corporate farming
1.Consolidation of Land holdings
2.Production for Exports
3.Huge marketing of agricultural producer
Arguments against of corporate farming
1.Internalproblems of agribusiness firms.
2.Lack of farming experience.

53. FARMERS SUICIDE
Due to large scale
mechanization of farming
large number of landless
peasants who will then
work as contract labors in
village or in the cities.
Those farmer’s who will not
get work on corporate farm
or in cities , will have no
source of income , no food
to it . Such farmers then
commit suicides.

54. REASONS OF FARMER’S SUICIDE.
 absence of adequate social support infrastructure at the level of the
village and district,
 uncertainty of agricultural enterprise in the region,
 indebtedness of farmers,
 rising costs of cultivation,
 plummeting prices of farm COMMODITIES ,
 lack of credit availability for small farmers,
 relative absence of irrigation facilities,
 repeated crop failures,
 dependence on rainfall for farming,
 rural living and easy access to poisons, and
 lack of political will and insight in the region

55. CONCLUSION
The process of reforms according to many
economists and social scientists is not
fast enough to achieve the goals . Jeffrey
Sachs, director of Harvard University’s
center for international development and
a noted economist , pointed out that the
reform process in India had a long way to
go . He feels that without a focus on the
“twin pillars” of social and economic
strategies , the future would be bleak for
India , especially in the context of
competition all around