An analysis of Globalization

An analysis of globalisation originGlobalization is defined to be the dynamic process of harvest-time of whole national linkages referable to the effusion and deepening of transnational linkages increasing due to the diversification of scotch, policy-making, affectionate and n of tout ensemble timetheless cultural rights. However, it is important to bring out that problems associated can suffer global as well, rather than just within the nation. any(prenominal) community doom globalisation while other(a)s are all praise for it. It is a mixed fare that has brought riches to whatever and misery to others. Countries the like Mexico, Malaysia, Ind angiotensin-converting enzymesia, Thailand and India and Pakistan to some extent acquit had to get a severe jolt because of globalisation.Addressing the frugal and financial point of view, globalization is defined to be strengthening the links between national economies on the global foodstuffs for trustworthys, go and especially due to their capitals. A similar definition was presented in a accounting in 1997 of the International Monetary Fund, thatthe phenomenon of globalization is the integration of military personnel thrift in unanimous suppuration two with the commercialises for goods and services and the capital.Globalization has thrown a impertinent challenge before all the countries of the world. Now, even the companies in developing countries have to compete with the powerful giants of the western world. As a result of this, companies which could not withstand the effect of globalization, had either been completely wiped out or suffered heavy losses. It was once stated that, globalization would increase avenues of work. While such avenues have increased in certain fields like schooling technology, dramatics, media, services, etcet time They have drastically reducingd in other fields like agriculture, manufacturing, and engineering etc. Regarding the global nature of technolog y, it has had its study sources of technical progress that it is concentrated in the certain world, the scientific query is based on global resources, and implementation of technology is focusing on global concerns just like media, services.Global grocerying deals with the marketing strategy of companies that meet the requirements of globalization and promote this process.Economic globalization is the step-by-step integration of national economies in a process that continues to diminish the importance of boundaries for the development of economic activities. Expanding to the world level of economic relations and creating an international business environment, which stimulates the globalization process.In this report we bequeath be discussing the impact of globalization on India as a whole, the deliverance and how it has helped India in attaining its goal of becoming a developed res publica in the near future.History and backgroundIndia is a nation of extraordinary diversity, the mo largest in Asia and the seventh largest arena on Earth, with a total land area of 2,973,190 sq km. It is the giant of the Indian subcontinent, which comp bring ups fully one third of Asia. India supports one seventh of humanity and this existence is continuing to increase at an astonishing rate. India had one of the oldest civilizations in the world. Like China, it is known to be one of the founding civilizations of human history.Since 2500 B.C, the people of India have had a continuous civilization and influenced by legion(predicate) invasions. Indus Valley Civilization was the original major civilization in India which spread and flourished in the north western part of the Indian subcontinent from 3300 to 1300 BCE. India had the first ever urban civilization. Several ideas, philosophies and movements which have shaped the destiny of mankind today, originated in India.Pre-History of IndiaAround 9,000 socio-economic classs ago, Indias first settlement began, and throu ghout those years, India had been a mysterious land with several strong civilizations, which were able to beat both the Mongols and Alexander the Great during their history terminus.During the third century BC the democracy was united under Asoka the Great, this period was known as Indias Golden Age. This is the time India was developing through its advances in mathematics, arts, language, astronomy and religion. Moreoer, the religion of Hinduism and Buddhism was developed slightly this time.Europe ArrivesIndia is one country that kept itself independent nation for a huge time, solely around the 16th century, countries like the United Kingdom, the Netherlands, France and Portugal began to establish themselves around India, greatly disturbing the country. By the year 1856, India was a part of the British East Company, essentially making it a part of the British Empire. For more than than than 100 years India was ruled under the British Empire. The country tried to fight a make st Britain in Indias beginning War of Independence, but they were not successful.IndependenceIt was a long journey cashbox India received its independence. They of all time tried to push the British Empire out but without success. However, they continued to fight for their independence. It was not until the known Mahatma Gandhi came along and led India in the move towards independence through non-violent civil disobedience. Under his guidance, India gained its independence on August 15, 1947, along with the region of Pakistan. In 1950, the country became a republic and created its own constitution. The people of India by and by split into Pakistan and India. This arose from distinctions in culture and religion.The Growing GiantOnce India received its independence, it was having some problems with its neighbors. It withal got into a dispute with China in 1962 that resulted in the Sino-India War, and the country has gone(p) to war with Pakistan in 1947, 1965, 1971 and 1999. On t he other hand, India became a member of the United Nations and it is also one of the few nuclear nations in the world. In addition, the country has trans general anatomyed itself through economic reforms and is now becoming a superpower along with China. Currently, India is known to be one of the worlds fastest growing economies and so it is expected that India will be one of the major countries of the twenty-first century, similar to Russia and the United States. wizard thing that can be seen from this is that India, which has been around in one form or another for thousands of years, shows to it is ready to face all the challenges it is placed with and has no plans of s woefuling down its harvesting. aboriginal GlobalizationGlobalization can be traced back to the roots of India, ever since the start of its first civilization. India has unceasingly been famous for its trade for as back as history can remember. Since ancient times till the start of the British Raj, India has been known for its wealth and fortunes. During the medieval period, roughly from the 12th to the 16th centuries, the country was comfy despite its political instability. The reaping of towns throughout the country was a key element of this period. The impact of political and economic policies practiced by Muslim rulers of the time had led to the development of several towns. This eventually rancid into trade and industrial hubs of the country, leading to its prosperity.The prudence bankrupted further as a unchanging currency frame was implemented, using the facile tanka and copper dirham during the Sultanate period which was from the 13th to 16th century. Major trading cities including Delhi, Bombay, Lahore and Ahmedabad. These coastal towns began growing with large populations.Under the Mughal era, from the 16th to eighteenth century, the urbanisation of India gained further momentum. The formation of a stable and uniform goernment let to peace and security in the country that i nevitably led to the boom of commerce and trade. The escalating hostile trade led to the establishment of markets not only in towns but in villages as well. The production of handicrafts increased as the demand for them in foreign countries increased. The main town centres during the Mughal era were Ahmedabad and Bombay.Farming was a major patience as farmers grew rice, wheat and cotton. Coastal towns were responsible for producing salt.The history of globalization suggests that India had many transnational business relations with the world, with their major trading partner be Mesopotamia, now Iraq. brawny commerce and trade relations with neighbouring countries and Europe are all aspects of the ancient Indian rescue. The ancient sparing was always looking to expand its operations worldwide in search of upstart business locations and opportunities. Products on that point was a large variety of exquisite goods sold in the Indian markets. India was famous for their textile tha t was one of its main exports. Textiles were traded to Arab nations and South-east Asia. The textile products included quilts of cotton or silk, and colored or printed cloth material. Kasimbazaar in Bengal was a major trade centre for silk and cotton goods. Indian textiles were noblely appreciated for their fine and polish design consisting luminous colours. Major trading articles included materials such as silk and cotton, metals such as silver and gold, gems, potteries and foods such as cinnamon, honey and pepper.Hardwood furniture, embroidered with inlay work was also very popular. The furniture was based on European designs however the luxurious inlays and carvings were influenced by Mughal style. Maine markets for furniture were in Sindh and Gujarat. During the 16th century, carpet weaving fey clean heights and became an important profession for trade. The carpets produced during the Mughal era depicted either animals in combat or flowers.South India became famous for its f ishing industry, pearl, ornamental work in cut stones, ivory and tortoise shells. Diamonds also became a major trading good once they were mined from the Deccan Plateau. Calicut was a major centre for cutting and polishing stones.Indian arts and crafts were popular in European countries due to their beauty.Foreign TradeIndias exports were greater than its imports. Some of the main imports were horses from Kabul and Arabia, European glassware and Chinese raw silk, including porcelain were also imported. Luxury goods such as stones, corals, precious wines, dry fruits, scented oils, wool, bronze, wax, perfumes and velvets were also very popular imports.Goods that were commonly exported included gold-embroidered cloth caps, guns, elegantly designed clay pans and pots, scissors, silk and knives. Goods such as oils, sugar, sandalwood, salt, coconuts, diamonds and other precious gems and spices were also mainly exported.Arab traders shipped Indian goods as far of to European countries via the Mediterranean and Red Sea. Indian products were also sent to East Africa and the Far East. An average of 300 ships docked at Indian ports per year, this magnitude of trade promoted the shipbuilding industry in coastal towns. at last on that point were over 300 ports to accommodate the huge number of ships visiting. These facts can give a good idea of a what scale trade was during the medieval era. in that locationfore, as it can be seen India has always enjoyed a positive balance in trade relations with other countries. The income from export of indigo, spices, textiles and sugar alone were in millions of rupees, thus having the state treasury abundantly filled with gold and silver. The Decline in Prosperity governmental conditions in India during the 18th century such as the decline of the Mughal government led to the downfall of moneymaking(a) community. As a result trade downscaled and then the Maratha invasion of India also skipd commerce and trade.During the 18th centu ry, the invasion of the British Empire deteriorated the prosperity of India. The defeat at the Battle of Plassey in 1757 started the declined of the country. The British implemented heavy duties on exports and imports to the country, which hurt trade relations. After taking over, the British prevented other nationals from enter the country for trading purposes. Also the export of Indian textiles was banned. The British monopolised the foreign trade of India, crippling it. They started importation goods only from England, forcing Indian traders to other professions. A once great trading country had been handicapped to its termination by the end of the eighteenth century.(Kumar)Globalization and relaxationBoth globalization and liberation are co-ordinated to each other. The first wave of globalization emerged in India, when economic liberalization policies were implemented in the mid-nineties by Dr. Manmohan Singh, the Finance Minister of the country at that time. From then on, t he delivery has modifyd vastly in many aspects and has drastically increased the standard of accompaniment of the citizens.Pre liberalization period and globalizationPost-independence till the end of the 1980s, Indias economic strategy was primarily based on government control and a centrally pass market. India did not have a proper consumer based marketplace and thus, foreign investments were not coming in.During the 1980s, at that place was an increase of stress on globalization and liberalization of the economy by the Congress government. In 1991, Rajiv Gandhi-led Indian government imposed limits on office holders regarding expansion of capacity, brought down corporate taxes, and abolished price controls. The main mark of the government was then to help boost the rank domestic product of India and to increase exports. Even though the economic liberalization policies were implemented, they did not do much in improving the economic state of the country. The imports eventuall y exceeded exports and thus the country started to have severe balance of payments. The downfall of the Soviet Union, a key trading partner of India, also provoked the problem against India. The country was in a desperate state for economic reforms in come in to improve its situation.Liberalization in the 1990sUnder the guidance of Dr. Manmohan Singh, Finance Minister of India, the first steps towards liberalization were taken, with the aim towards embracing globalization. This was considered a milestone in Indian history and ever since, the economy has been steadily improving. Today the Indian economy is one of the fastest growing in the world with a ontogeny of 7% per year.The Indian Economy The Effect of LiberalizationGlobalization and liberalization have greatly affected the Indian economy and converted it in to a multi-billion dollar consumer market. Today, most of the economic changes in the country are based on the demand supply cycle and other economic factors. Today, Ind ia is the worlds eleventh largest economy in the world with a nominal GPD of US$1.243 trillion and 4th largest in toll of the Purchasing Power Parity at US$3.561 trillion. The business and economic environment is evolving towards constant improvement. The Indian economy has transformed into a vibrant, rapidly growing consumer market, containing a strong middle class with over 300 million people. India provides a large market for consumer goods, on one hand, and imports capital goods and technology to grow its manufacturing base, on the other. Revolution in the field of manufactured goods coupled with scuttle up the economy to the globalized market tweets, has led to the inflow of variant consumer goods into the Indian market to supply to the needs of consumers and a variety of services such as banking, financing, insurance, transport, housing construction, entertainment are being made available to consumers.Liberalization and privatization have paved the way for a number of ma rket players to enter into the Indian economy ensuring greater prime(prenominal) and better case of goods and services to the consumers. Greater reliance on market forces have been felt in the last two decades. However, it has also been widely recognized that fate of the consumers cannot be left to sheer market forces. political science intervention is required to ensure protection of consumers.According to a report by the conception Bank, the Indian market is expected to grow at around 8% in the year 2010 and become the largest economy in the world by 2020. However due to its large population size, India has a low per capita income of $3,100. India ranks 139th with its nominal GDP capita and 128th with its GDP per capita at PPGlobalization and liberalization have positively impacted heterogeneous important economic segments. Today, the service spheres, industrial domains and the agriculture sector have bighearted drastically. 54% of the one-year Gross Domestic Product (GDP) of India is part of the service industry while the industrial and agriculture sector contributes around 29% and 17%. With the improvement of the economy, more and more new sectors are starting up and drawing profits such as IT services, cement, textiles, and chemical industry. With the boost in the supply level, the rate of troth is also increasing checkly. Several improvements in the manufacturing sector have helped it grow from 8.98% in 2005 to around 12% in 2010. The communication sector has grown up to 16.64%. The annual growth of the industrial sector has been 6.8 %, which will rise further in the future. India is one of the largest industrial markets in the Asia-Pacific region.Globalization and foreign investmentOne of the key aspects of globalization is foreign investment. India has emerged as one of the ideal markets for foreign investors due to its vast market size. Several foreign companies are investing in the Indian market to get higher profits. The foreign institution al investments (FII) amounts to around US$ 10 billion in FY 2008-09, while the rate of Foreign ship investments (FDI) has grown around 85.1% in 2009 to US$ 46.5 billion from US$ 25.1 billion (2008). Indias economic growth has been hindered in past by a variety of factors. For example in 2002, deficit in expenditures for areas such as power, telecommunications, construction, real estate and transportation prevented growth of the Indian economy. This led to permission and promotion of foreign investment, which has contributed to a continuous rate of development in last five years.Being the least hit of all economies, the Indian economy has really survived the storm of global financial crisis. Rating agencies like, Moodys, have stated that the strong performance is a resultant factor of renewed growth between India and China.Growth figures of Indian economy* Real Gross Domestic Product (GDP) at factor cost 6.7% in 2008-09* Growth of GDP in agriculture, forestry and fishing 1.6% in 2 008-09* Growth of GDP in industry 3.9% in 2008-09The Government of India is parturiency every possible gist to restore the India economic growth. Some other Indian economy growth projections are World Bank has forecasted an 8% growth for India in 2010Economists predicted a 6.5% growth for 2009-2010Goldman Sachs predicts a 5.8% for 2010The Government has raised the GDP growth forecast to 8.5% for FY11.India Economy statistics The foreign exchange reserve of India stood at US $285.5 billion on October 2009.Indias GDP was US $1.217 trillion in 2008.India economys GDP growth was 7.09% in 2008.Exports contributed to the Indian GDP in 2008 with a growth rate of 24.0%.Imports contributed to the Indian GDP in 2008 with a growth rate of 30.34%.Indias wholesale based annual inflation rate increased to 1.51% as on October 17, 2009. force of Globalization on Employment in IndiaGlobalization has played an important role in the coevals of employment in India. out-of-pocket to the economic li beration policies in 1990s, the employment scenario in the country has seen to be of importly meliorate. The following will provide a study of the impact of globalization on employment in India that will bring out a number of factors.Market liberalization policies and employmentThe sense and awakening of globalization took place in India during the early 1990s, when the Finance Minister Manmohan Singh initiated the open market policies. This initiated a critical change and improvement in the gross domestic product of the country and the exports increased significantly.There was a sudden increase in the customer base and it led to slowly giving rise to the consumer market where the market was changing and was dependent on the demand supply chains. In fact, the growth in demand led to the certain changes and the supply to start increasing. Once the supply starts, it would be directly connect to the employment moreover the supply leads to an increase of production which leads to mo re employment over the years.Growth of new segments in the marketDue 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. During the recent years, there are a number of industry segments like the information technology, agro products, personal and beauty care, health care and other sectors that have come into the market.According to the studies and experts it says that there are a wide set off of sectors that have led to the positive growth of the economy in the country. Due to the upcoming of more and more industries, there has been a high demand for quality workforce. For example, there are a number of junior people who are interested in working and so take up businesss in all segments for a new start.In the unorganized sector as well, there has been an increase in various sectors which has improved the rate of employmen t in the country. As per the recent surveys, and data collected- there has been a significant increase in the number of people working in the unorganized and allied sectors. The pay incase in all these unorganized sectors have also increased to a great extent.Improvement in the standard of livingDue to the globalization it has left a major impact in the economy of India, and so there has been an improvement in the standard of living of the people.These improved changes and the approving 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 predicted that the economy in India will be growing around 6-7% periodical. This growth rate is expected to improve the overall employment situation more and the per capita income will tend to increase significantly.Development of other sectorsGlobalization has positively affected the growth of various sect ors in India. Based on the effect of globalization, it has subject new markets along with 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 explains how the service industries are doing in the market and as such, there are plenty of employment opportunities. Meanwhile, in the other sectors, industry and agriculture the rate of employment has gone up. The industrial sector contributes around 29 % while the agricultural sector contributes around 17 % to the gross domestic product. Additionally, there are other exports in the country that 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. Moreover, actually a number of young people and freshers are getting conjectures in all types of industry.For example, in the manufacturing sector, there has been a gro wth of around 12% whereas the communication and storage sector has also grown up by around 16.64%.Government InitiativesTo deal with the encouraging effects of globalization, the government has taken a number of initiatives. There are a number of employment opportunities such as former establish Minister Rojgar Yojna and the former Chief Minister Rojgar Yojna initiated programs to improve the employment situation in rural areas. The stripped-down Wages scheme has been set up and tends to be successfully. To learn more about the improving the quality of workforce, a lot of effort has been given to the impact of education. Under these schemes, new schools are being opened up and attention is also being given to the welfare of the students. Similarly in the urban sector too, more and more employment opportunities are being opened up for the youth in a number of government sectors, banks and so on.Sequentially, to promote communication and migration of workforce to various parts of th e country to cater to the needs, the government has also developed communications to a great extent. New roads and highways are being constructed to increase connectivity.Impact of Globalization on Poverty in IndiaThe impact of globalization on the want level in India has always been an ongoing issue. While some scholars agree that globalization has led to high economic growth in the country, leading to positive economic conditions and a better standard of living for the people. Others contend that globalization barley had any positive impact on the country as a whole.The economic growth after liberalization of 1990 led to rapid progress of public facilities all over the country. The standard of living increased as the per capita income increased, which inevitably improved the poverty level of masses. In general, if the economy of a country improves, the poverty level reduces. As India became a consumer based marketplace it created more job opportunities, which also helped improved the poverty level. Also with the growth of globalization throughout India, the agriculture sector grew tremendously, which helped reduce poverty mainly in rural areas. The introduction of technologically advanced equipment changed the way farmers worked. Tools such as tractors and rowers increased the produce in terms of quality and quantity. As such, farmers have started earning more and have improved their per capita income and the standard of living.Globalization has also positively impacted the health care of India. As several aesculapian advances came into the country, they improved the overall health situation of India. This led to the increase of morality rates and reduced the malnutrition rates.We as a group feel that globalization helped improve the poverty level of India and the factors listed above are cogent evidence of that. Challenges India is facingIt is predicted by Goldman Sachs and the Global Investment Bank that by 2035 India will have the third largest economy of the world after US and China. India has a booming economy and by 2035 it will grow to 60% of the US economy. To keep its status and to achieve GDP of 10% for the financial year India has to overcome many challenges.According to the CIA world fact book India has a population of 1.15 billion people and is growing at a rate of 2.11% approximately. Indias population is causing trouble for India to succeed. The population puts a lot of pressure on the economic infrastructure of the nation. Therefore, India needs to control its growing population.The World Bank has estimated that 41% of India lives in poverty. This means that 41% lives below US $ 1.25 a day. India needs to take some major steps to decrease this figure. It is crucial for a country to first eliminate poverty in ordering to succeed.The increasing population of India puts pressure on the economic resources and job opportunities. For the growth of the country the Indian government has started various schemes such as Jawah ar Rozgar Yojna and Self Employment Scheme for Educated Unemployed Youth (SEEUY). However, these schemes are not as successful as they were planned. The growing population would cause unemployment in the country and become a problem. The trade union movement force is growing at about 2.5% a year but employment only grows at 2.3% a year. India is also struggling to complete the pending investment projects. These investment projects are essential for long term development of the country and therefore need to be in progress. Indias debt is 58% of GDP according to the CIA World Fact book this is another issue that India is struggling with.Another challenge India is facing due to globalization is the divide between the Rural and Urban Areas. It is said that even though India has progressed so much, at least 70% of the population still lives in villages. There is a very severe difference in the rural and urban growth. This is causing a wide gap between the two. As a result, India needs t o work on the gap between the rural and urban areas. There should be a balance between both the societies.To work better towards the countrys growth and success India needs to work on maintaining fiscal discipline and introducing financial reforms such as privatization of the public sector. The budget for the expenditure over a certain period should be matched by its revenues. Davesh Kapur, director of the Centre for Advanced Study of India and an associate prof of political science at the University of Pennsylvania explains, police forces, land rights, education, and health, are not in a good condition. Kapur stresses that the link between education and social justice in India is increasingly significant, as social inequalities limit access to severely limited educational resources. India needs overcome its challenges by planned economic reforms, such as its labor laws from which there are more employment opportunities for the growing population.Reorganizing the agriculture sector, introducing new technology and reducing the dependence on monsoon will not only create more job opportunities but will help India advance.Opportunities in IndiaGlobalization has provided many opportunities for the growing population of India. It has allowed many companies to be introduced in India. Due to globalization, companies have had the opportunity to increase their base of operations and expand their workforce to a broad range of customers. Globalization is playing a major role in the growth of the country and enlarging opportunities that are available.Many companies are taking avail of Indias lower cost yet English verbalize work force. One of the major forces that have expanded its growth is the outsourcing of IT and business. This gives better options for the local work force and utilizes the global communications technology such as the email and internet (Economy Watch). Multinational companies have the advantage of establishing low cost outsource work force in India. This has also helped many organizations in India to gain confidence which can play roles in globalization through expansion.Since the liberalization of 1990, there has been positive growth, which resulted in an significant improvement in the job markets and employment. Standards of living have been better and improved significantly in India. Development of the infrastructure and health care has become better and it is known that India will grow around 6-7% yearly (Business Maps of India). This growth rate is expected to improve the overall employment situation more.In order to have faster communication and migration of workforce to various parts of the country, the government has developed infrastructure to a grea