Globalisation In India

Globalisation is a process that increases global interdependence and integration by establishing networks and activities that cross economic, social, and geographical boundaries, aimed at creating  a world without borders.

It is a notion that deals with numerous types of fluxes, such as ideas, capital, commodities, people, and so on within different parts of the world. These continuous flows give rise to and keep ‘global interconnectivity’ alive. Globalisation is a multifaceted notion encompassing political, economic, and cultural aspects.

Globalisation in India

Outsourcing is the most crucial result of the globalisation process, one that has in so many ways transformed the Indian economy. In the outsourcing model, a corporation in one nation engages an expert from another country to complete work previously completed by their own country’s internal resources.

The most important aspect of outsourcing is that it allows for work to be done at a lesser cost and more efficiently. Legal counsel, marketing, technological assistance, and other similar services are examples of successful outsourcing in the era of globalisation. As the field of information technology has advanced in recent years, outsourcing has leapfrogged. 

The most significant benefit of outsourcing is that large multinational corporations and small businesses can obtain high-quality services at a lower cost. 

• Following the advent of globalisation and urbanisation, the Indian society has changed drastically. The economic policies have had a direct influence in forming the basic framework of the economy.
• All the economic policies implemented by the government of India have a direct influence on the increase in employment, increase in salary, planning levels of savings, investments in the society, and greater spending power.
• One of the most critical effects of globalisation on Indian society is the rapid emergence of cross-country culture. It has significantly changed various aspects in India, including social, cultural, political and economic factors.
• The main factor responsible for transforming India’s economy is economic unification.

Positive effects of globalisation on India

• Easing of foreign investment policies has led to major increase in FDI across all sectors.
• It has led to the upliftment of various smaller industries that can now cater to a wider global audience and also make bigger profits.
• Product standards have greatly improved due to increase in competition, ultimately providing for better products and services to be enjoyed by local audiences.
• Globalisation has had a significant impact on India’s monetary, social, political and cultural areas.
• Globalisation has hugely improved  information technology and transportation in the country to meet the rapid increase in trade and commerce.
• Job opportunities have increased, especially with the establishment of Special Economic Zones (SEZs).
• Foreign companies offer increasing compensation for the skills and talents of Indian workers.
• With various multinationals making key investments in setting up training facilities and operations in tier 2 and 3 cities, there has been rapid development in these otherwise largely neglected cities. 
• Due to globalisation, the Indian economy is improving.

Causes of globalisation

• Technology will continue to play an integral role in supporting globalisation. Telephones, the internet, and other innovations have transformed communication and facilitated links.
• Technological advancements have made it feasible for ideas, capital, commodities, and people to travel more readily from one corner of the world to another.
• People’s realisation that the globe is interconnected and that what occurs in one location affects other politically different spaces.

Impacts of globalisation

• The government’s capacity to fulfil its job is eroded as a result of globalisation, also called erosion of state capacity.
• Welfare states are now being turned into minimalist states, emphasising on essential services such as law enforcement, rather than those directed towards welfare, and economic and social well-being.
• Government policies are greatly influenced by the lobby of powerful multinational companies.

However, this is not always the case, as globalisation has not always diminished state capacity but has also boosted it in some areas.

• The state’s dominance continues to be the unquestioned foundation of the political community.
• In international politics, ancient rivalries and jealousy between countries still exist.
• The state continues to perform its essential functions while intentionally withdrawing from domains it no longer wishes to participate in.
• There are improved tools at the state’s disposal for collecting information about its citizens and helping better cater to their needs.
• This also allows for better and streamlined administration, while constantly staying updated about on ground effects of its policies.

Conclusion

Globalisation has had a huge impact on India. Due to globalisation, there is a growth in foreign investment in the corporate, scientific and retail sectors. In addition, globalisation has had a tremendous effect on the monetary, social, political and cultural areas. Globalisation has also improved information technology and transportation. Job opportunities have increased with the advent of Special Economic Zones (SEZs). India and Globalisation is a very popular topic, and MCQs on this topic are asked in the Civil Service examinations every year.