Globalization And Indian Society-Foundation Course Semester 2-Prof. Karishma Shetty

PROF. KARISHMA SHETTY

 Liberalization means relaxation of various government restrictions in the areas of
social and economic policies.
Liberalizing trade policy by the government means removal of tariff, subsidies and
other restrictions on the flow of goods and services between countries.
Liberalization is the result of New Industrial Policy' which abolished the "License Raj".
All industries except six major industries
(distillation and brewing of alcoholic drinks, cigar and cigarettes of tobacco, electronics,
aerospace and defence equipment, industrial explosive and hazardous chemicals) were
liberalized.
As a result industries grew rapidly and therefore liberalization also means deregulation
and delicensing of industries.Liberalization has opened new business opportunities
abroad and Increased foreign direct investment. Liberalized trade policy resulted in free
flow of goods from and within the country.

"It is defined as making
economics free to enter in the
market and establish their venture
in the country."

- It can lead to increase in unemployment levels.
- Increase in competition can lead to many domestic units are
forced to close down.
- It can lead to unbalanced growth as some sectors receive the
good response of foreign players where as other might not
receive support of foreign investment.
-Development might be dependent on the flow of funds from
foreign nations. It can lead to overdependence of funds on
foreign nations.

 Privatisation is the shedding of ownership
management of a government owned firm.
This can be achieved in two ways
(i) by direct sale of the public sector enterprise
(ii) by the withdrawal of the government from the
ownership and management of the public sector firm.
Therefore, Privatisation can also be termed as
Denationalisation or Disinvestment.

Privatisation can be partial or complete.
It may also carry conditions as
there are Five forms of privatisation, such to change in ownership.
Five Forms Of
Privatization
Complete
Privatization
Privatization
Of Operation
Use Of
Contracts
Franchising
Open
Competition

“It is defined as the process whereby the public
operations are transferred to the private sector".
- Steve H. Hanke
"The transfer of ownership. property or business
from the Government to the private sector is termed
as privatization. The Government ceases to be the
owner of the entity or business".
- The Economic Times

- It helps to reduce the burden on the government as government can
concentrate more on administration where as private players will be managing
more of a business responsibilities.
- It helps to make public sector units more competitive as increase in
competition made PSU to go step further and stay updated with the current
position.
- More powers to PSU manager to take decision is considered to be an biggest
achievement of privatization making PSU more effective and efficient.
- It helped to boost the Industrial growth.
- Better competitive environment made it possible for customers to receive
better services in order to retain a customer.

- Chances of growth of monopoly powers increased.
- It can also lead to unbalanced growth of industries.
- Privatization may be preferred only for profit making PSU"s.
- It can lead to increase in corruption practices.
- Privatization needs some kind of compromise on Social Justice
and Public Welfare Front.

 Globalisation is the outcome of the policies of liberalisation and privatisation
Therefore,
GLOBALISATION = LIBERALISATION + PRIVATISATION
 Globalisation is the way that local or national ways of doing things become
Global. It is about economics or trade, technology, politics and culture. It describes
the way countries and people of the world interact and integrate.
 Globalisation has many sides and can be economic, political and cultural.

“Globalization is the process in which people,
ideas and goods spread throughout the
world, thus resulting into more interaction
and integration between the world's culture,
governments and economies"

-It increase free flow of foreign capital which will enable to boost the
speed of economic growth.
- It enables the how of new technology and production method as t
boosts possible collaboration and Joint venture among domestic and
foreign players.
-It helps to increase industrialization.
-It creates more opportunity for employment generation as well as
increase the income levels.
-In overall situation it is beneficial for the consumers due to increase
competition levels in the market.

-Due to entry of foreign players and increase in
competition it is potential thereat for domestic
industries.
-It widens the gap between rich and poor in the economy.
-Industries are likely to face cultural problems while
entering foreign countries.
-The major dependence of this initiative is on the
political stability and policy making of the country.

Economic environment is also called business
environment and are used interchangeably.
In order to solve the economic problem of our
country, the government has taken several steps
including control by the State of certain industries,
central planning and reduced importance of the
private sector.

Accordingly, the main objectives of India's development plans set were to:
a. Initiate rapid economic growth to raise the standard of living, reduce the
widespread unemployment and poverty stalking the land:
b. Become self-reliant and set up a strong industrial base with emphasis on
heavy and basic industries.
c. Achieve balanced regional development by establishing industries across
the country.
d. Reduce inequalities of income and wealth.
e. Adopt a socialist pattern of development - based on equality and prevent
exploitation of man by man.

With the above objectives in view, the Government of India as a part of economic reforms
announced a new industrial policy in July 1991.
The broad features of this policy were as follows:
1. The Government reduced the number of industries under compulsory licensing to six only.
2. Disinvestment was carried out in case of many public sector industrial enterprises.
3. Policy towards foreign capital was liberalized. The share of foreign equity participation was
increased and in many activities 100 per cent Foreign Direct Investment (FDI) was permitted.
4. Automatic permission was now granted for technology agreements with foreign companies.
5. Foreign Investment Promotion Board (FIPB) was set up to promote and channelize foreign
investment in India.

There were three major initiatives taken by the Government of India
to introduce the much debated and discussed economic reforms to
transform Indian economy from closed to open market economy.
These are generally abbreviated as LPG, i.e.
•Liberalization.
•Privatization
•Globalization.

A) Liberalization:
The economic reforms that were introduced were aimed at liberalizing
Liberalization of the Indian economy contained the following features:
a.The Indian business and industry from all unnecessary controls and restrictions.
b. They indicate the end of the license-permit-quota raj.
c. Liberalization of the Indian industry has taken place with respect to:
(i) Abolishing licensing requirement in most of the industries except a short list,
(ii) Freedom in deciding the scale of business activities i.e., no restrictions on expansion or
contraction of business activities,
(iii) Removal of restrictions on the movement of goods and services,
(iv) Freedom in fixing the prices of goods and services,
(v) Reduction in tax rates and lifting of unnecessary controls over the economy,
(vi) Simplifying procedures for imports and exports, and
(vii) Making it easier to attract foreign capital and technology to India.

B) Privatization:
Privatization was characterized by the following features:
a. The new set of economic reforms aimed at giving greater role to the private sector in the nation
building process and a reduced role to the public sector.
b. To achieve this, the government redefined the role the public sector in the New Industrial Policy of
1991.
c. The purpose of the same, according to the government, was mainly to improve financial discipline
and facilitate modernization.
d. It was also observed that private capital and managerial capabilities
could be effectively utilized to improve the performance of the PSUs.
e. The government has also made attempts to improve the efficiency of PSUs by giving them
autonomy in taking managerial decisions.

C) Globalization:
Globalization of the Indian economy contained the following characteristics:
a Globalization is the outcome of the policies of liberalization and privatization already initiated by
the Government.
b. Globalization is generally understood to mean integration of the economy of the country with
the world economy. It is a complex phenomenon to understand and apply into practice.
c. It is an outcome of the set of various policies that are aimed at transforming the world towards
greater interdependence and integration
d. It involves creation of networks and activities transcending economic, social and geographical
boundaries.
e. Globalization involves an increased level of interaction and interdependence among the
various nations of the global economy.
f. Physical geographical gap or political boundaries no longer remain barriers for a business
enterprise to serve a customer in a distant geographical market across the globe.

Globalization has its impact on
India which is a developing
country. The impact of
globalization can be analysed as
follows:

1. Access to Technology:
Globalization has drastically, improved the access to technology. Internet facility has enabled India to
gain access to knowledge and services from around the world. Use of Mobile telephone has revolution
used communication with other countries.
2. Growth of international trade:
Tariff barriers have been removed which has resulted in the growth of trade among nations, Global trade
has been facilitated by GATT, WTO etc.
3. Increase in production:
Globalization has resulted in increase in the production of a variety of goods. MNCs have established
manufacturing plants all over the world.
4. Employment opportunities:
Establishment of MNCS have resulted in the increase of employment opportunities.
5. Free flow of foreign capital:
Globalization has encouraged free flow of capital which has improved the economy of developing
countries to some extent. It has increased the capital formation.

Globalization is not free from
negative effects. They can be
summed up as follows:

 Inequalities Within Countries:
Globalization has increased inequalities among the countries. Some of the policies
of Globalization (liberalisation, WTO policies etc.) are more beneficial to developed
countries. The countries which have adopted the free trade agenda have become
highly successful. E.g.: China is a classic example of success of globalization. But
a country like India is not able to overcome the problem.
 Financial Instability:
As a consequence of globalization there is free flow of foreign capital poured into
developing countries. But the economy is subject to constant fluctuations on
account of variations in the flow of foreign capital
 Impact On Workers:
Globalization has opened up employment opportunities. But there is no job
security for employees. The nature of work has created new pressures on
workers. Workers are not permitted to organise trade unions.

 Impact On Farmers:
Indian farmers are facing a lot of threat from global markets. They are facing a
serious competition from powerful agricultural industries quite often cheaply
produced agro products in developed countries are being dumped into India.
 Impact On Environment:
Globalization has led to 50% rise in the volume of world trade. Mass movement
of goods across the world has resulted in gas emission.Some of the projects
financed by World Bank are potentially devastating to ecological balance.
Eg: Extensive import or export of meat.

 Domination By MNCs:
MNCs are the driving force behind globalization. They are in a
position to dictate powers. Multinational companies are emerging
as growing corporate power. They are exploiting the cheap labor
and natural resources of the host countries.
 Threat To National Sovereignty:
Globalizations results in shift of economic power from independent
countries to international organizations, like WTO United Nations
etc. The sovereignty of the elected governments is naturally
undermined, as the policies are formulated in favor of globalization.

The production side of business activity is referred as industry. It is a business
activity, which is related to the raising, producing, processing or manufacturing of
products.
The products are consumer's goods as well as producer's goods. Consumer
goods are goods, which are used finally by consumers. E.g. Food grains, textiles,
cosmetics, VCR, etc. Producer's goods are the goods used by manufacturers for
producing some other goods. E.g. Machinery, tools, equipments, etc.
Expansion of trade and commerce depends on industrial growth. It represents the
supply side of market.

1) Opening up of the Market:
Effects of Globalization on Indian Industry started when the government opened the
country's markets to foreign investments in the early 1990s.
2) Sectors:
Globalization of the Indian Industry took place in its various sectors such as steel,
pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO.
3) Removal of Trade Barriers:
Globalization means the dismantling of trade barriers between nations and the integration
of the nations economies through financial flow, trade goods and services, and corporate
investments between nations.
4) Rapid Growth:
Globalization has increased across the world in recent years due to the fast progress that
has been made in the field of technology especially in communications and transport.

5) Reforms:
The government of India made changes in its economic policy in 1991 by which it
allowed direct foreign investments in the country.
6) Reduce Unemployment and Poverty:
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.

7) Advanced Technology:
The major 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.
8) Negative Effects:
The negative Effects of Globalization on Indian Industry are that with the
coming of technology the number of labour required decreased and this
resulted in many people being removed from their jobs. This happened
mainly in the pharmaceutical, chemical, manufacturing, and cement
industries

Globalization has played an important role
in the generation of employment in India.
Since the economic liberalization policies
in the 1990s, the employment scenario in
the country has significantly improved. An
analysis of the impact of globalization on
employment in India will bring out a
number of factors in this regard

1) Market Liberalization Policies And Employment:
The wake of globalization was felt in India in the early 1990s when the then
Finance Minister Manmohan Singh initiated the open market policies.
This led to a significant improvement in the gross domestic product of the country
and the exports increased considerably.
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 chains.
In fact, the growth in demand brought a favourable change and the supply too
started increasing.
As, supply is directly involved with employment, more supply led to more
production which led to more employment over the years.

2) Growth Of New Segments In The Market:
Due to globalization and the growth of the consumer market, a number of segments in various
sectors of the industry have grown over the years.
This has led to the significant rise in the rate of demand and supply.
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. With more and more industry segments coming up, there has been
a high demand for quality workforce. As such, lots of young people are taking jobs in all these
segments in order to start a good career.
In the unorganized sector as well, there has been an increase in various sectors which has
improved the rate of employment in the country. As per the recent surveys, there has been a
significant increase in the number of people working in the unorganized and allied sectors. The
pay package in all these unorganized sectors have also increased to a great extent.

3) Improvement In The Standard Of Living:
As globalization has put a favorable impact in the economy of the country,
there has been an improvement in the standard of living of the people.
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.
It has been expected that the economy in India will grow by around 6-7%
yearly.
This growth rate is expected to improve the overall employment situation
more and the per capita income will also increase significantly.

4) Development Of Other Sectors:
Globalization has positively affected the growth of various sectors in India.
These have opened up new employment opportunities for the people The service industry
has a share of around 54% of the yearly Gross Domestic Product (GDP). From this figure
itself, it is understood that the service industries are doing very well in the market and as
such, plenty of employment opportunities are taking place.
In the other sectors such as industry and agriculture, the rate employment has gone up.
The industrial sector contributes around 29 % while the agricultural sector contributes around
17% to the gross domestic product.
Some of the well known exports of the country consist of tea, cotton, jute, wheat, sugarcane
and so on.
Due to the growth of customer base in all these sectors, more and more employment
opportunities are opening up.
In fact even young people and freshers are getting jobs in all these sectors.
In the manufacturing sector, there has been a growth of around 12% while the
communication and storage sector has also grown up by around 16.64%.

5) Downsizing Of Employment:
Due to global competition many companies tried to cut down cost since 1992, by
resorting to downsizing techniques by introducing Voluntary Retirement Schemes
(VRS).
A large number of workers lost their job as a result of VRS both in the organized
and unorganized sector.
6) Increase Of Employment In Service Sector:
The service sector has grown since 1990's due to the advent of information
technology and knowledge economy.
Trade, hotels, restaurants, transport and communication are the major segments
of growth within the service sector.
On account of growing performance, in the service sector employment has
increased from 21.20% in 1993-94 to more than 25% at present.

Meaning:
Migration (human) is the movement of people from one place in the world to another for the
purpose of taking up permanent or semi-permanent residence, usually across a political
boundary. An example of "semi-permanent residence" would be the seasonal movements
of migrant farm laborers. People can either choose to move ("voluntary migration") or be
forced to move ("involuntary migration").
Illegal Migration:
Illegal migration is the migration of people across national borders in a way that violates
the migration laws of the destination country.
Legal Migration:
Legal migration takes place among the educated and skilled labor force. Shortage of labor
of both skilled and unskilled are the main reason of such migration.

Migration can have positive and
negative effects on the areas that
"export" people and the areas that
"import" people. Below are two tables
explaining the positive and negative
effects for both the country losing
migrants, and the country gaining
immigrants.

Advantages Disadvantages
Fewer People To Be Fed And Housed Loss Of Those Most Likely To Have Education
And Skills, Young, Working Aged People And
Most Able Which Creates An Unbalanced
Population Structure.
Income Sent Home Division Of Families
Reduces Pressure On Jobs And Resources Elderly Population Remains, So There’s A Higher
Death Rate.
Advantages Disadvantages
Cheap Labour Language Problems
Helps Overcome Labour Shortages. Racial/ Ethnic Problems
Cultural Diversity Pressure On Housing And Services. Immigrants
Tend To Be Less Healthy, Placing Strain On The
Health Service, And They Tend To Live In Low
Quality Housing.
For the Country Losing People:
For the Country Gaining People:

1) Use Of New Technologies:
Increased use of various technologies such as pesticides, herbicides, and fertilizers as well as
new breeds of high yield crops were employed to increase food production.
These technologies included modern implementations in irrigation projects, pesticides,
synthetic nitrogen fertilizer and improved crop varieties developed through the conventional,
science-based methods available at the time.
2) Increase In Agricultural Production And Productivity:
The green revolution had many effects on Indian economy.
Due to adoption of high yield varieties (HYV) technology the production of food grains
increased considerably in the country.
3) Increase In National Income:
Receiving the international market for the agricultural goods of India, there is an increase in
farmer's agricultural product.
New technology, new seeds, new agriculture practices etc. helped to grow the agricultural
product.
This helps in increasing the overall national income of the country.

4) Increase In Employments :
While exporting agricultural products it is necessary to classify the products, its
standardization and processing. packing etc.
The industries depending on agriculture are growing and it made an increase in
employments.
Agriculture is the biggest unorganized sector of the Indian economy accounting for more
than 90% share in the total unorganized labour force.
The share of agriculture in total employment stands at 52.1%.
5) Agriculture As A Prime Moving Force:
agriculture is deeply related to industrial growth and national income in India.
1% increase in the agricultural growth leads to 0.5% increase in the industrial output and
0.7% increase in the national income in India.
As a result, the government of India announced agriculture as the prime moving force of the
Indian economy

1) Limited Exports:
The prospects of exports to developed countries is very high in agricultural products as they
are costly in hose countries as compared to production cost in India. Therefore Indian farmers
can take comparative cost advantage and increase exports. However, the developed
countries have still continued to impose high number of Non- Tariff barriers. This imposes a
threat to the Indian agricultural exports.
2) Poverty Of The Farmers:
Majority of the framers in India are small cultivators they do not have the required finance to
improve their farming and take advantage of globalization:
3) Lack Of Supporting Facilities:
To be globally competitive farmers should be supported with proper facilities such as
infrastructure, marketing, credit, etc which India fails to provide

Corporate farming is a term used to describe
companies that own or influence farms and
agricultural practices on a large scale. This
includes not only corporate ownership of
farms and selling of agricultural products,
but also the roles of these companies in
influencing agricultural education, research,
and public policy through funding initiatives
and lobbying efforts.

Arguments For Corporate Farming:
1) Corporate structure allows Individuals to share in the ownership of agricultural land through
buying shares directly or through their pension schemes.
2) land can be a useful source of stability for individual investors as retains value over
hundreds and thousands of years while other companies start, grow and die. Allowing
individuals to share in the value of the land reduces the polarization between land-owners,
such as traditional aristocrats, and non-owners.
3) Some would argue that the land of a country belongs, in some sense, to all of its citizens,
because it is a natural asset that has existed forever rather than property created through skill
by individuals; mass share ownership is a step towards this sharing.
4) Corporate structure encourages efficiency as the management is accountable to
shareholders, whereas family farms may be managed for other objectives such as the
enjoyment of the farmer or preservation of family wealth under special farm Inheritance tax
laws.

Arguments Against Corporate Farming:
1) Family farms maintain traditions including environmental stewardship and taking longer views
than companies driven by quarterly profits.
2) They are less likely to damage the land if they feel they are merely looking after it for the next
generation than trying to extract every possible immediate profit.
3) Detailed knowledge about soil and crop types, terrains, weather and other features specific to
particular local areas of land can be passed from father to son over generations, which would
be hard for temporary managers to grasp.
4) Communists have argued that the land of a country belongs to all of its citizens equally, not
through direct mass share ownership but by ownership through the state which represents
them.
5) Unrestricted share trading of corporate farms allows the land of a country to be purchased by
International buyers, which may present security and environmental risks when the buyers have
different objectives from the country's own citizens.

1. Agriculture Is Unorganised Activity Today
Indian agriculture is largely an unorganised sector. No systematic institutional and
organisational planning is involved in cultivation, irrigation, harvesting etc.
Institutional finances are not adequately available and minimum purchase price fixed by the
government do not reach the poorest farmer.
2. Most Farms Are Small And Economically Unfeasible
The ground reality is that majority of the farmers in India own as little as two acres of land.
Cultivation on such small area is not economically feasible. Such small famers have become
vulnerable.
In many cases, the farmers are not even the owners of the land, which makes profitable
cultivation impossible because significant portion of the earnings go towards the payment of
lease of the land.

3. Middlemen And Economic Exploitation Of Farmers
Exploitation by the middlemen is the reason put forth for not getting the best price for the
procedure of the agriculturists.
The government should promote the plan called 'ulavar santhai (Farmers Market), where the
farmers can directly sell their products at reasonable price to the consumers.
4. Government Program Do Not Reach Small Farmers
Government has implemented agricultural debt waiver and debt relief scheme in 2008 to
benefit over 36 million farmers.
Direct agricultural loan to stressed farmers under so called Kisan Credit Card were also
covered under this scheme.
However, most of the subsidies and welfare schemes announced by the Central and State
Governments do not reach the poor farmers.
On the contrary, only big land lords are benefited by those schemes.

5. High Indebtedness And Exorbitant Interest Rates
The root cause of farmers taking their lives is the increase in their indebtedness and debt
burden.
Exorbitant interest rates have to be declared illegal and the government has to take strict
measures against greedy money lenders.
Easy access to institutional credits has to reach the small and marginal farmers, without
cumbersome procedures.
6. Real Estate Mafia
It is seen that fertile land best suited for agricultural purpose being sold to real estate people,
who prepare plots and give attractive advertisements to sell at exorbitant price. There is a
need to implement strict measures to prevent land grabbing.

1. Multiple Crops
Cultivation of multi crops such as coconut, turmeric, pineapple, banana,
apple, papaya, ginger will yield profitable results to the farmers.
2. Special Agricultural Zone
Just like industrial zone, there is an urgent need to establish special
agricultural zones, where only farming and agriculture related activity
should be allowed. By introducing techniques which guarantees a
definite success, an increase in youth participation on agricultural fields
is economically possible.

3. Need To Modernize Agriculture
This can be attained only by implementing new technologies. Research efforts should
continue for the production of crops with higher yield potential and better resistance to
pest.
Technological advancement in agriculture should be passed down to the small farmers.
Where the existing crops would not do well under drought and weather conditions, the
farmers should be helped to shift to cultivating crops that would be easy and economical
to cultivate.
4. Educate The Farmers
Many farmers in India are not aware of crop rotation. Though education in urban areas
has improved a lot, the government has ignored the same in rural areas in general and in
agriculture sector in particular. This is the reason why farmers are not absolutely aware of
the various schemes provided by the government.

5. Clubbing Of Small Fields May Help
Several farmers who won small piece of land can join together and combine all small fields into
one large chunk. This may help in verity of ways.
6. Need For Meaningful Crop Insurance Policies
Crop insurance is must and the claim should be settled easily under the supervision of the
district collectors.
Traditional crop insurance on the direct measurement of the damage suffered by a farmer to
determine his/her payout. However, field loss assessment is often not feasible or expensive,
since most of our farmers are small holders.
Index based insurance, on the other hand, responds to defined parameter.
Index based insurance has the advantages that is transparent and all the insurers within the
defined geographical area are treated equally. It has low operational and transnational costs,
while also ensuring quick payouts

7. Need For Better Water Management
Irrigation facilities that are currently available do not cover the entire cultivable
land. Apart from the areas where perennial rivers flow, most of the agricultural
fields do not have irrigation facility.
In most cases, it is not the lack of water but the lack of proper water management
that causes water shortage. Improved modern methods of rain water harvesting
should be developed.
Water management can be made more effective through interstate cooperation on
water resources, where surplus water from perennial rivers can be diverted to the
needy areas.
Connecting the rivers throughout the country will solve this problem.
Construction of National Waterways will improve the irrigation facility, which in turn
can save farmers, if the monsoon would fail.

8. Alternate Source Of Income For Farmers
Small farmers should be encouraged to develop alternative sources of
income and the government should take up the responsibility for providing
training to the farmers to acquire new skills.
In drought areas, the government should start alternative employment
generation programs to reduce the dependence on agriculture as the sole
source of income. Such programs should be standardized.
Farmers should be enabled to divide their activities into three parts: one for
regular crop production, one for animal husbandry or fisheries and another
for timber production. There activities complement each other and also
alternate sources of income of famers can be ensured.

9. Need For National Weather Risk Management
System/Disease Alert System:
Facilitating national weather risk management system that alerts farmers when
there is a danger of extreme weather, would go a long way in reducing losses in
agriculture.
Value added services like pest and disease alert applications, in combination with
the weather forecast would equip the farmers to handle and manage their crops
better.
For example, Water Watch Cooperative, a Netherlands base organisation, has
developed a disease alert system that sends an alarm to farmers, if probability of
a pest/disease would be detected.
Similarly, system that detect the amount of water to be provided to a field based
on the field water content, biomass and rainfall probability, would aid in
optimization of water provision to the crop and ensure efficient crop management.

Definitions :
1) Information Technology (IT)
"Information technology (IT) is the use of any computers, storage. networking and other
physical devices, infrastructure and processes to create, process, store, secure and
exchange all forms of electronic data".
2) Information And Communication Technology (ICT)
"Information And Communication Technology is an umbrella term that includes any
communication device or application encompassing: radio, television, cellular phones,
computer and network hardware and software, satellite system and so on, as well as the
various services and applications associated with them."

1) No Barriers
The IT sector has truly achieved global integration through increased connectivity. It has cut
across linguistic and geographical barriers making it possible for persons in distant nations
to easily communicate with one another.
2) Speedy Communication:
It has enabled inter-mingling of cultures, exchange of opinions and ideas thereby creating
strong bonds and reducing prejudices. Use of wireless phones and internet has made
communication speedier, environment friendly as it is paper-free and cheaper. Video
conferencing makes it possible for people however far apart to engage in a direct
interaction. This has enabled people to work from home, meetings to take place among
many individuals even if they are in different parts of the world, etc.
3) Ease in Transactions:
E-mails can be checked on phone; financial transactions can be carried out over phone;
social networking sites are linked to phone to keep oneself updated with the events in the
lives of our friends and relatives; all this has made communication devices an
indispensable part of our lives.

4) Different Areas Of Benefits:
The benefits of Information Technology and communication facilities have spread into various
areas of business, health care, defense, environment and so on.
5) Quick Decision Making:
The quick access to information has removed time lags in decision making, increased
productivity and cut costs effectively. It has made work less strenuous and salaries more
lucrative.
6) E-markets:
Technology has made it possible to buy and sell anytime from any place and have the goods
delivered at one's doorstep. Electronically markets can operate day and night because of the
internet. A lot of new jobs have been created especially in the IT sector. For ex. Software
programmers, Hardware developers, Systems analysts, Web designers and so on.
7) Remote Sensing Satellites
Remote Sensing Satellites are used for various purposes such as land use mapping, drought
and flood mapping, forest cover mapping etc. to study the impact of industrial activities, mining
on environment.

1) Unemployment:
Increased computerization has led to over-manning and with efforts at cost cutting to
streamline business processes a lot of jobs have been made redundant. This has
aggravated the unemployment problem.
2) No Personal Life:
Mobile phone have made people accessible at all times encroaching into their personal time
with friends and family,
3) Lack Of Job Security:
Technology is dynamic and keeps changing on a daily basis which makes it impertinent for
professionals in this field to upgrade their skills and knowledge regularly. Otherwise they
face the risk of losing their jobs. Hence there is no job security.

4) Increasing Cyber Crimes:
There are new forms of offences such as cyber crime
and hacking which threaten to compromise the privacy
of individuals.
5) Western Culture:
Exposure to western influences have led to certain
cultures being imbibed and their lifestyles, language,
dress and behavior being imitated.

1. SECURITY: Information communication technology has proved helpful security wise in
the creation of devices such as hidden cameras webcam etc which is used in offices,
organizations, homes. These devices monitor places and the activities of people in such a way
that crime is detected at its inception.
2. COUNTER TERRORISM: ICT has helped in the maintenance of peace and order in
the world as world terrors have been brought down by the inventions of ICT e.g. atomic bombs
sent from a far country to destroy a plane
3. INFORMATION: ICT has equipped students with the knowledge of information
communication technology thereby, adding value to the lives of the students. It is a major
source of information to mass communication students in the University.
4. ICT has made it possible for organizations to use electronic communication in their day to
day operations. Shops can now trade online without the heavy overheads. Many shops now
TRADE ONLINE as well as on retail premises. This increased sales and empowering
small businesses. Individuals also use it in various spheres of life e.g. banking,
online payments and online trading.

5. MASS COMMUNICATION:
As the name implies, mass communication involves communicating to a large audience. Schools and
businesses make use of electronic communication to facilitate the activities of their institutions e.g. e-
mail and e-newspapers to communicate to a large number of people at the same time.
6. STORING INFORMATION:
Information technology has created electronic storage systems to protect valuable records. Storage
systems, such as virtual vaults, keep information safe by only allowing authorized company staff or
individuals can have access, withdraw, add or change the documents. In times of technological disaster,
IT security engineering systems protect electronic information from being hacked or wiped out.
Electronic security engineering ensures that valuable records remain untouchable.
7. FAST DELIVERY:
Communications between businesses are now faster because people no longer need to send a letter
which takes about 24hours. They can send an instant notification for a fraction of the cost which saves
costs and man power for delivery. This therefore reduces postal costs, postal staff, mail sorting and
paper costs.

1 NUCLEAR WEAPONS: Destructive weapons and equipment have been created
through ICT and these weapons have been used to claim the lives of many innocent people.
2. FRAUD: ICT paved the way for fraud as people from one country can defraud others in
different parts of the world. The internet has facilitated the activities of fraudsters who from the
comfort of their homes can dupe people far and near.
3. JOB LOSS: manual operations have been replaced with automation which has
economic and social effects such as loss of income and status.
4. COST: Many ICT hardware and software are expensive both to purchase and to maintain.
It is true that Information Communication Technology is present in almost every faecet of our
daily lives yet the cost of acquiring them is still relatively high.

5. SOCIETY: ICT has negatively affected our society by causing a digital divide between
those who can access information and those who
cannot reducing education and understanding due to the vast amount
of misleading and incorrect information.
6. LOSS OF PRIVACY: Users of social networking run the risk of lack of privacy in the
sense that known and unknown people can assess their accounts or sites where they can get
their personal private and sensitive information.
7. REDUCED EMPLOYMENT: In the days before ICT, people were employed as
messengers, cleaners, laborers in construction sites, etc but with the advent of technology,
machines have replaced such jobs previously done by man. These illiterates have been
rendered jobless leading to unemployment.

Globalization And Indian Society-Foundation Course Semester 2-Prof. Karishma Shetty

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