Lpg Model Of Globalization Research Paper

Economic globalization can be defined as the interdependence of national economies that has resulted from free trade. Companies can manufacture products in different countries and sell to consumers across the globe; distance is no longer a barrier. While economic globalization has been around for hundreds of years, it was not until roughly 30 years ago when we saw a significant increase due to the cutting down on trade barriers. Nations around the world have opposing views on this phenomenon as either positive or negative; India could argue for both. How well a country has benefitted, or not, from economic globalization can be determined from its gross domestic product (GDP) per capita, unemployment rates and level of inequality. From the 1990s

To increase the pace of their economic growth, the economy in India went through a major policy change, known as Liberalization, Privatization and Globalization (LPG model) in July 1991. The LPG model consisted of taking steps such as devaluation, disinvestment, opening up to Foreign Direct Investment (FDI) and Non-resident Indian (NRI). India had to devaluate their currency by 18-19%, sell their public sectors to the private sectors, allow FDI in a wide range of sectors such as insurance and defense industries and facilities made available for foreign investors were sold to

But what does this mean for Indian producers? The small-scale sectors that were stuck with their old technology and were unable to keep up with their global counterparts. Farmers, especially were impacted by the import of edible oils and grains at competitively low prices, making it no longer profitable. Agriculture occupies 43% of India and 60% of their population still depends on it for their livelihood. These people did not get to benefit from economic globalization. Not only did they remain poor but there is an increased gap between the rich and the poor. Indian billionaires currently hold more than 31% of the national income. That’s four times higher than the global average. This was the down side to globalization for India. Another downside to economic globalization is its quest for profits. Sometimes this means exploiting workers in undeveloped nations such as India and paying an impossible living wage because these countries do not have proper labor laws to protect their citizens. (Bunce, 2016)
Though much of India’s economic hardship has been relieved, there are still necessary steps to be taken to reduce inequality. Economic globalization can help the people living in rural areas too. The government can start investing more on rural infrastructure and basic public services such as electricity, sanitation and clean drinking water. (Narayana, 2010) Including people who