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  1. 1. GLOBALIZATION AND INDIAPresented By :Tanuj kumarRoll no. : 11101163Haryana school of business
  2. 2. Contents1. Globalization and its definitions2. Merits of globalization3. Globalization impact on individual sector4. Information about The Indian trade5. Globalization impact on Indian Economy6. Where does India stand in terms of Global Integration7. Summary
  3. 3. GLOBALISATION It refers to the increasingintegration of economic around theworld, particularly through trade andfinancial flows. The term sometimes alsorefers to the movement of people andknowledge across international borders.
  4. 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
  5. 5. merits Encourage nation to reduce high levels of protection. Increase trade volume. Reduction of import duties. Increase FDI. Increase GDP.
  6. 6. ADVANTAGE to a COMPANY Get access to more market. Expand their organisation. Increase the benefits. Increase international trade.
  7. 7. Globalization Impact onIndividual 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.
  8. 8. .  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 worlds third largest fishing industry.
  9. 9.  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.
  10. 10. Indian trade According to the World Trade States of the WTO in 2006, Indias total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and Indias services trade inclusive of export and import was $143 billion. Indias 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 .
  11. 11.  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.
  12. 12. Share of top five investing countries in FDIinflows. (2000–2007)Rank Country Inflows (Million USD)1. Mauritius 851782. United States 180403. United 15363 Kingdom4. Netherlands 111775. Singapore 9742
  13. 13. Impact of Globalization onIndian EconomyIndia had established itself as the worlds second-fastest growing major economy.India’s position in the global economy has improved from the 8th position in 1991 to 4th
  14. 14.  At presented, GDP growth rate is upto 8.8%, is expected upto 9.4% Indias 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.
  15. 15. Where does India stand interms 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%.
  16. 16. 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.