IMPACT OF GLOBALIZATION IN INDIA

  • In the last twenty years, the globalization of the Indian economy has come a l ong way.
  • Among producers and workers, the impact of globalization has not been uniform .
  • India's globalization has both positive as well as negative impacts.

POSITIVE IMPACT 

  • MNCs have expanded their investments in India over the last 20 years
  • MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food, or services such as banking in urban areas.
  • New employment has been created in these industries and services.
  • Top Indian companies have been able to benefit from the increased competition. They have increased their production standards by investing in modern technologies and production methods.
  • Due to globalization large Indian companies to emerge as multinational companies
  • Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), and Sundaram Fasteners (nuts and bolts) are some Indian enterprises   which are spreading their operations worldwide.
  • Globalization has also opened up new opportunities for the companies that provide services. Example: IT services 
  • Due to globalization consumers now have more options in the markets and can buy cheaper goods.

NEGATIVE IMPACT

  • Globalization has posed a major challenge for small producers and workers .
  • Due to rising competition, local manufacturers have been severely impacted. Many of the units have closed, leaving many workers jobless . For instance : toy factories in India.
  • Uncertainty in employment : Due to increased competition, most firms now favor hiring staff "flexibly. "  This means that workers’ jobs are no longer secure.
  • Production of regional goods such as dhoti, Matka, and other handicrafts are declining or these are replaced by foreign products.
Ask a doubt
Davneet Singh's photo - Co-founder, Teachoo

Made by

Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.