Economic Globalization In India

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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…show more content…
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…show more content…
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 are still living as if we’re still in the 1900s could help India progress even more. Every effect economic globalization has had on India has its pros and cons. The education sector is thriving due to the new availability of textbooks and information on the internet, but these textbooks and internet-access comes with a price and most of the middle and lower class cannot afford it. In the health sector, India has more access to foreign medicine, but multinational pharmaceutical companies are taking advantage of their brand name common medicines, making them unaffordable. (Nissanke, 2010) It is hard to definitively say whether India has benefitted from economic globalization. Presently, economic-wise, India is on the fast tracks to becoming a major political strength and is expected to continue thriving because of their economic reforms. But in nearly every other aspect of the country, there are still a lot of basic problems left to be resolved because of economic globalization. In the end, the negative effects as a direct result of economic globalization far outweigh the

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