One of the major forces of globalization in India has been in the growth of outsourced IT and business process outsourcing (BPO) services. The last few years have seen an increase in the number of skilled professionals in India employed by both local and foreign companies to service customers in the US and Europe in particular. Taking advantage of India’s lower cost but educated and English-speaking work force, and utilizing global communications technologies such as voice-over IP (VOIP), email and the internet, international enterprises have been able to lower their cost base by establishing outsourced knowledge-worker operations in India.

1. Globalization of Indian business
International Business

2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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4. India – An emerging market
• India is one of the largest and
fastest growing markets in the
world.
• India is the second most
populous nation in the world.
• Although the per capita
income of India is low, the size
of GNI is large.
• 1n 2006, India was the 10th
largest economy in the world.

5. India – An emerging market
• In Purchase Power Parity
terms, India is the fourth
largest economy in the
world and it is estimated
that by 2030, it will be
the third largest after
china and USA.

6. Growth of outsourced IT and business
process outsourcing (BPO) services
• One of the major forces of
globalization in India has been in the
growth of outsourced IT and business
process outsourcing (BPO) services.
The last few years have seen an
increase in the number of skilled
professionals in India employed by
both local and foreign companies to
service customers in the US and
Europe in particular. Taking advantage
of India’s lower cost but educated and
English-speaking work force, and
utilizing global communications
technologies such as voice-over IP
(VOIP), email and the internet,
international enterprises have been
able to lower their cost base by
establishing outsourced knowledge-worker
operations in India.

7. Indian companies
• Indian companies are rapidly
gaining confidence and are
themselves now major
players in globalization
through international
expansion. From steel to
Bollywood, from cars to IT,
Indian companies are setting
themselves up as
powerhouses of tomorrow’s
global economy.

8. LPG model
• Indian economy had experienced
major policy changes in early
1990s. The new economic
reform, popularly known
as, Liberalization, Privatization
and Globalization (LPG model)
aimed at making the Indian
economy as fastest growing
economy and globally
competitive. The series of
reforms undertaken with respect
to industrial sector, trade as well
as financial sector aimed at
making the economy more
efficient.

9. LPG model
• With the onset of reforms to
liberalize the Indian economy in
July of 1991, a new chapter has
dawned for India and her billion
plus population. This period of
economic transition has had a
tremendous impact on the overall
economic development of almost
all major sectors of the economy,
and its effects over the last
decade can hardly be overlooked.
Besides, it also marks the advent
of the real integration of the
Indian economy into the global
economy.

10. Foreign Direct Investment (FDI)
• Now that India is in the process of
restructuring her economy, with
aspirations of elevating herself from
her present desolate position in the
world, the need to speed up her
economic development is even more
imperative. And having witnessed the
positive role that Foreign Direct
Investment (FDI) has played in the
rapid economic growth of most of the
Southeast Asian countries and most
notably China, India has embarked on
an ambitious plan to emulate the
successes of her neighbors to the
east and is trying to sell herself as a
safe and profitable destination for
FDI.

11. Example
• Notable examples of
international companies
that have done well in
India in the recent years
include Pepsi, Coca-Cola,
McDonald’s, and Kentucky
Fried Chicken, whose
products have been well
accepted by Indians at
large.