The document discusses the economic policies and effects of globalization in India. It states that after independence in 1947, India adopted a planned economy with extensive government control, resulting in low growth until the 1980s. This led to large deficits and debt, triggering a crisis in 1990. India was forced to rely on an IMF bailout and adopt reforms promoting liberalization, privatization, and globalization. While globalization has facilitated overall economic growth averaging 7% annually, it has also increased inequality and inflation in India to some extent.

1. Speech
Introduc.on
Globalisa.on
has
fostered
overall
economic
prosperity
through
the
scope
of
economic
growth,
economic
development
and
quality
of
life.
Policies
The
chronical
of
Indian
history
began
with
its
independence
in
1947
where
the
Government
espoused
(advocated/adopted)
the
no.on
of
a
planned
economy.
This
entailed
extensive
government
control
on
private
companies,
resul.ng,
in
the
“Hindu
Rate
of
economic
growth”
between
the
1950
and
1981.
In
turn,
this
allowed
for
large
fiscal
deficits
and
increasing
external
debts
to
accumula.ng
over
the
years,
triggering
a
balance
of
payments
crisis
in
1990.
India
were
forced
to
rely
on
an
IMF
emergency
bailout
on
the
premises
of
new
structural
reform
in
favour
of
interna.onal
convergence
of
economic
systems.
The
chronicle
of
Indian
history
began
with
independence
in
1947
where
the
government
adopted
the
stance
of
a
planned
economy
characterised
with
extensive
government
control
on
private
enterprise
and
inward
looking
protec.onist
policies.
Espousing
a
vision
of
self-­‐reliance,
the
result
was
the
Hindu
rate
of
economic
growth
between
1950
and
1981.
In
turn,
this
allowed
for
large
fiscal
deficits
and
increasing
external
debts
to
accumulate
over
the
years,
triggering
a
balance
of
payments
crisis
in
1990.
Subsequently,
India
were
forced
to
rely
on
an
IMF
emergency
bailout
on
the
premises
of
new
structural
reform
in
favour
of
interna.onal
convergence
of
economic
systems.
liberalisa.on,
priva.sa.on
and
globalisa.on.
Economic
Growth
The
onset
of
globalisa.on
has
facilitated
economic
growth.
GDP
growth
Through
increased
integra.on,
the
business
cycle
of
India
has
synchronised
with
the
interna.onal
cycle.
This
global
plaVorm
has
given
rise
to
India
experiencing
substan.al
rates
of
economic
growth,
averaging
7%
over
the
two
decades,
albeit
the
European
Sovereign
Debt
Crisis
with
2.5%
and
the
global
financial
crisis
with
2.1%.
This
highlights
the
increased
risk
of
financial
contagion
due
to
globalisa.on.
Recently,
growth
has
fa.gued
due
to
eschewed
poli.cal
reform
and
ins.tu.onal
problems.
Through
maintaining
fiscal
discipline
and
easing
monetary
policy,
India
can
con.nue
to
fulfil
its
economic
poten.al.
Although
globalisa.on
has
s.mulated
economic
growth,
it
has
increased
infla.on
-­‐
a
major
constraint
on
economic
growth.
For
instance,
when
economic
growth
is
high,
demand-­‐pull
infla.on
drives
prices
up.
During
the
global
resources
boom,
infla.on
in
India
rose
to
7.7%
but
significantly
fell
to
1.8%
during
the
global
financial
crisis.
A]er
further
reform
including
the
imposi.on
of
special
economic
zones,
further
market
deregula.on
and
priva.za.on

2. Economic
Development
India
has
received
an
influx
of
investment
through
economic
liberalisa.on
measures,
par.cularly
microeconomic
deregula.on,
priva.sa.on
of
government
owned-­‐enterprises,
and
reduced
financial
market
controls.
Subsequently,
there
has
been
a
stark
increase
in
Foreign
Direct
investment
inflows
and
ouVlows
accruing
to
over
24
billion
dollars
in
revenue
since
1991.
This
has
allowed
the
government
to
increase
expenditure
on
Heath,
Educa.on
and
Infrastructure.
Increased
trade
and
investment
flows
has
been
a
conduit
to
reducing
trade
barriers
through
mul.lateral
and
bilateral
free
trade
agreements,
such
as
the
Asia-­‐Pacific
Free-­‐Trade
agreements
and
the
Look
East
Policy
with
China.
Furthermore,
increased
trade
has
resulted
in
India
receiving
substan.al
aid
for
economic
development
through
programs
such
as
the
“Aid
for
Trade”.
Foreign
aid??
Globalisa.on
has
had
a
varied
impact
on
unemployment
in
India.
Through
the
surge
in
TNCs
located
in
India,
new
job
opportuni.es
have
been
created
reducing
unemployment.
However,
as
these
TNCs
have
monopoly
power,
they
play
a
restric.ve
role
in
terms
of
market
access
for
small
businesses,
ul.mately
increasing
unemployment
in
some
areas
also.
Employment
and
unemployment
(Services
–
IT
and
Outsourcing)
The
distribu.on
of
income
has
become
more
unequal
over
the
last
two
decades,
gauging
0.32
to
0.37
in
terms
of
the
GINI
index,
ensued
by
health
and
educa.on
inequality.
This
highlights
economic
dualism
in
India,
where
a
booming
services
sector
coexists
with
an
inefficient
agricultural
sector.
This
has
led
to
rural-­‐urban
migra.on
en.ced
through
schemes
such
as
the
Na.onal
Rural
Employment
Guarantee
Act
(NGREGA).
Likewise,
the
mobility
of
the
na.on’s
workforce
is
seen
through
immigra.on
reflec.ng
division
of
labour
on
an
interna.onal
scale.
A
measure
of
this
is
through
remigances,
contribu.ng
$71
billion
to
the
economy
in
2007.
Globalisa.on
has
had
an
adverse
effect
on
income
inequality.

3. Quality
of
Life
The
process
of
globalisa.on
has
ameliorated
quality
of
life,
through
welfare
enhancements
and
poverty
decline.
India’s
Human
Development
Index
has
improved
from
0.410
to
0.586
between
1990
and
2013,
ranking
125th
against
the
global
scale,
with
poverty
halving
from
51%
to
24%
over
the
same
period
of
.me.
A
ramifica.on
of
globalisa.on
has
been
environmental
degrada.on.
However,
environmental
sustainability
has
been
adversely
affected.
Abeged
by
rapid
popula.on
growth
and
manufacturing
industrialisa.on,
issues
of
air
and
water
pollu.on,
increased
produc.on
of
greenhouse
gases,
garbage
and
resource
deple.on
woe
the
na.on.
Midday
meal
scheme?
Mi.gate
Conclusion
Ul.mately,
globalisa.on
has
had
a
beneficial
impact
on
the
Indian
economy
through
the
scope
of
accelerated
economic
growth,
advanced
development
and
enhanced
quality
of
life.