Globalization has been defined as the process of rapid integration of countries and happenings through greater foreign trade and foreign investment. It is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Globalization is a significant factor in the competitive world that integrates and mobilizes the cultural values of people at a global level. In the age of rapid technical progression, many countries are unified and transformed due to the process of globalization. Globalization has a huge impact on the cultural, social, monetary, political, and communal life of countries.
India had the distinction of being the world's largest economy in the beginning of the Christian era, as it accounted for about 32.9% share of world GDP and about 17% of the world population. The goods produced in India had long been exported to far off destinations across the world; the concept of globalization is hardly new to India. India currently accounts for 2.7% of world trade (as of 2015), up from 1.2% in 2006 according to the World Trade Organization (WTO). Until the liberalization of 1991, India was largely and intentionally isolated from the world markets, to protect its fledgling economy and to achieve self-reliance.
Aspects of Globalisation in India:
Cross country incorporation has several aspects and can be political, cultural, social, and economic, all of which equal globalization. Economic integration involves developing a nation's economy into an international economy. India was the main mover of globalization. The government of India made major modifications in its economic policy in 1991 by which it allowed direct foreign investments in the country. As a result of this, globalization of the Indian Industry occurred on a large scale. The liberalization of the domestic economy and enhanced incorporation of India with the global economy helped to step up gross domestic product (GDP) growth rates which made a good position on a global scale.
Effects of globalization in the Indian Industry are observed as this process brought in large amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. The benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to offer great opportunities for employment to Indian people. Also, this helped to reduce the level of unemployment and poverty in the country.
It is observed that the major forces of globalization in India have been in the development of outsourced IT and business process outsourcing services. Since the last many years, there has been an increase in skilled professionals in India employed by both local and foreign companies to service customers in the US and Europe. These countries take advantage of India's lower cost but highly talented and English-speaking workforce, and utilizes global communications technologies such as voice-over IP (VOIP), email and the internet, international enterprises have been able to lower their cost base by establishing outsourced knowledge-worker operations in India.
It is recommended by researchers that India has to focus on five important areas to enhance its economic status. The areas include technological entrepreneurship, new business openings for small and medium enterprises, the importance of quality management, new prospects in rural areas, and privatization of financial institutions.
In terms of export and import activities, Many Indian companies have expanded their business and became famous at global levels such as fast food, beverages, and sportswear and garment industries. Marine products in recent years have emerged as the single largest contributor to the total agricultural export form the country accounting for over one-fifth of the total agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oilseeds, tea, and coffee are the other prominent products each of which accounts for nearly 5 to 10% of the countries' total agricultural exports.
Concept of Globalisation:
The concept of globalization means that the world is getting smaller as well as bigger. Akteruzzaman.Md described that globalization can contribute to the development of a pattern of cross border activities of firms, involving international investment, trade, and strategic alliances for product development, production, sourcing, and marketing. These international activities companies to enter new markets, to exploit their technological and organizational advantages, and to reduce business costs and risks. This association is driven by the liberalization of trade, investment, and capital flow, technological advances, and pressures for assimilation towards international standards. Globalization has reduced barriers between countries, thus resulting in the strengthening of economic competition among nations, dissemination of advanced management practices and newer forms of work organization, and sharing of internationally accepted labor standards.
Factors Aiding Globalization:
=> Technology: has reduced the speed of communication manifolds. The phenomenon of social media in the recent world has made distance insignificant. The integration of technology in India has transformed jobs that required specialized skills and lacked decision-making skills to extensively-defined jobs with higher accountability that require new skills, such as numerical, analytical, communication, and interactive skills. As a result of this, more job opportunities are created for people.
=> LPG Reforms:
The 1991 reforms in India have led to greater economic liberalization which has in turn increased India’s interaction with the rest of the world.
=> Faster Transportation:
Improved transport, making global travel easier. For example, there has been a rapid growth in air travel, enabling greater movement of people and goods across the globe.
=> Rise of WTO:
The formation of WTO in 1994 led to a reduction in tariffs and non-tariff barriers across the world. It also led to an increase in the free trade agreements among various countries.
=> Improved mobility of capital:
In the past few decades, there has been a general reduction in capital barriers, making it easier for capital to flow between different economies. This has increased the ability of firms to receive finance. It has also increased the global interconnectedness of global financial markets.
=> Rise of MNCs:
Multinational corporations operating in different geographies have led to a diffusion of best practices. MNCs source resources from around the globe and sells their products in global markets leading to greater local interaction.
These factors have helped in economic liberalization and globalization and have facilitated the world in becoming a “global village”. Increasing interaction between people of different countries has led to the internationalization of food habits, dress habits, lifestyles, and views.
Challenges of globalization and its effects:
Many theorists asserted that change in the environment has both positive and negative aspects. These stimulate driving or resisting forces toward the change of the status quo. This is most obvious relative to both globalization, and the resulting spread of the global organization. There are four factors that accelerate globalization.
=> The market imperative:
Impact on national economies of larger, transnational markets characterized by free, convertible currencies, open access to banking, and contracts enforceable by law.
=> The resource imperative:
The growing interdependence of nations and their activities on one another, fostered by the depletion of natural resources, misdistributions of arable land, mineral resources, and wealth, as well as overpopulation. The undeveloped nations need the capital, technology, and brainpower of the wealthier countries, while the First World economies are progressively dependent on the natural and human resources of the developing nations.
=> The IT imperative:
Modernizations in global communications, science, and technology contribute toward universalization
=>The ecological imperative:
Globalization does have a great effect on the ecologies and environments of nations that need safeguards that lessen the negative effects rather than exploiting without regard to such concerns.
IMPACTS OF GLOBALISATION IN INDIA
Economic Impact:
=> Greater Number of Jobs:
The advent of foreign companies and growth in the economy has led to job creation. However, these jobs are concentrated more in the services sector and this has led to the rapid growth of the service sector creating problems for individuals with low levels of education. The last decade came to be known for its jobless growth as job creation was not proportionate to the level of economic growth.
=> More choice to consumers:
Globalization has led to a boom in the consumer products market. We have a range of choices in selecting goods, unlike the times where there were just a couple of manufacturers.
=>Higher Disposable Incomes:
People in cities working in high paying jobs have greater income to spend on lifestyle goods. There has been an increase in the demand for products like meat, egg, pulses, organic food as a result.
In India, the Green Revolution and other technological advancements have primarily focused on enhancing cereals productivity, pulses and oilseeds have traditionally been neglected. With an improvement in the standard of living and rising income levels, the food habits of people change. People tend toward taking more protein intensive foods.
=> Shrinking Agricultural Sector:
Agriculture now contributes only about 15% to GDP. Although India has had immense economic growth, not all sectors of the country have benefited. The funds that should have been directed to the agriculture sector were directed to private-sector enterprises. For instance, growth in the agricultural sector dropped from 3.8% in 2007 to 2.6% in 2008. This decline in growth has greatly affected farmers because production costs are very high, while commodity costs are low. This has resulted in over 150,000 peasant suicides since 1997. The international norms imposed by WTO and other multilateral organizations have reduced government support to agriculture. Greater integration of global commodities markets leads to constant fluctuation in prices. This has increased the vulnerability of Indian farmers. Farmers are also increasingly dependent on seeds and fertilizers sold by the MNCs. Globalization does not have any positive impact on agriculture.
=> Increasing Health-Care costs:
Another sector the government has neglected is public health. India has one of the lowest ratios of the public to private health expenditure. The infant mortality rate for the richest 20% of the population is only 38 per 1000 live births, while the rate for the poorest 20% is 97 per 1000. In addition, the rate of epidemics among the poor is increasing; it is common for outbreaks of contagious diseases like Human immunodeficiency virus/Acquired immunodeficiency syndrome (HIV/AIDS) and malaria to occur.
Greater interconnections of the world have also led to the increased sensitivity to diseases. Whether it is the bird-flu virus or Ebola or corona-virus, the diseases have taken a global turn, spreading far and wide. This results in greater investment in the healthcare system to fight such diseases.
Socio-Cultural Impact on Indian Society:
Nuclear families are emerging. Divorce rates are rising day by day. Men and women are gaining equal rights to education, to earn, and to speak. American festivals like Valentines’ day, Friendship day, etc. are spreading across India.
=> Access to education:
On one hand, globalization has aided in the explosion of information on the web that has helped in greater awareness among people. It has also led to a greater need for specialization and promotion of higher education in the country.
=> Growth of cities:
It has been estimated that by 2050 more than 50% of India’s population will live in cities. The boom of the services sector and city-centric job creation has led to increasing rural to urban migration.
=> Indian cuisine: is one of the most popular cuisines(भोजन) across the globe. Historically, Indian spices and herbs were one of the most sought after trade commodities. Pizzas, burgers, Chinese foods, and other Western foods have become quite popular.
=> Women:
Technology has also increased access to education in India, especially to women. This has decreased the gap between men and women which was created by stratified gender roles. It has also empowered women in two ways. Technology has influenced more women to pursue advanced degrees in computer science and engineering instead of their traditional degrees in social sciences and the humanities. This has resulted in an increase in the number of women in competitive professions. Globalization expanded the need for higher education for both men and women. This, in turn, has had a tremendous impact on the life of the single woman in India.
=> Clothing:
Traditional Indian clothes for women are the saris, suits, etc. and for men, traditional clothes are the dhoti, kurta. Rather, Indo-western clothing, the fusion of Western and Subcontinental fashion is in trend. Wearing jeans, t-shirts, mini skirts have become common among Indian girls.
=> Indian Performing Arts:
The music of India includes multiple varieties of religious, folk, popular, pop, and classical music. India’s classical music includes two distinct styles: Carnatic and Hindustani music. It remains instrumental to religious inspiration, cultural expression, and pure entertainment. Indian dance too has diverse folk and classical forms.
> Bharatanatyam, Kathak, Kathakali, Mohiniattam, Kuchipudi, Odissi are popular dance forms in India. Kalaripayattu or Kalari for short is considered one of the world’s oldest martial arts. There have been many great practitioners of Indian Martial Arts including Bodhidharma who supposedly brought Indian martial arts to China.
> Indian Classical music has gained worldwide recognition but recently, western music is becoming very popular in our country. More Indian dance shows are held globally. The number of foreigners who are eager to learn Bharatanatyam is rising. Western dance forms such as Jazz, Hip hop, Salsa, Ballet have become common among Indian youngsters.
=> Nuclear Families:
The increasing migration coupled with financial independence has led to the breaking of joint families into nuclear ones. The western influence of individualism has led to an aspirational generation of youth.
=> Old Age Vulnerability:
The rise of nuclear families has reduced the social security that the joint family provided. This has led to greater economic, health, and emotional vulnerability of old age individuals.
Psychological Impact on Indian Society:
=> Development of Bicultural Identity:
The first is the development of a bicultural identity or perhaps a hybrid identity, which means that part of one’s identity is rooted in the local culture while another part stems from an awareness of one’s relation to the global world.
=> The development of global identities is no longer just a part of immigrants and ethnic minorities. People today, especially the young develop an identity that gives them a sense of belonging to a worldwide culture, which includes an awareness of events, practices, styles, and information that are a part of the global culture. Media such as television and especially the Internet, which allows for instant communication with any place in the world, play an important part in developing a global identity.
=> Growth of Self-Selected Culture: means people choose to form groups with like-minded persons who wish to have an identity that is untainted(बेदाग) by the global culture and its values. The values of the global culture, which are based on individualism, free-market economics, and democracy and include freedom, of choice, individual rights, openness to change, and tolerance of differences are part of western values.
=> Emerging Adulthood:
The timing of transitions to adult roles such as work, marriage, and parenthood are occurring at later stages in most parts of the world as they need for preparing for jobs in an economy that is highly technological and information-based is slowly extending from the late teens to the mid-twenties. the youth are forced to develop control over their own lives including marriage and parenthood.
Technological impact:
In the cities, Internet facility is everywhere and the extension of internet facilities even to rural areas. There is an increase in global food chains /restaurants in the urban areas of India. Excessive Multiplex movie halls, big shopping malls and high rise residential are seen in every city. The entertainment sector in India has a global market. After economic liberalization, Bollywood expanded its area and showed a major presence on a global scale. In India, modernity is observed with the West. Therefore, Western philosophy began to be incorporated into Bollywood films. Famous International brands such as Armani, Gucci, Nike, and Omega are also making investments in the Indian market with the changing fashion statement of Indians.
Impact of globalization on education in India:
There are huge effects observed in the educational sector due to globalization such as literacy rate become high and Foreign Universities collaborating with different Indian Universities. The distinction between formal, non-formal, and informal education will vanish(गायब) when moving from an industrial society to information society takes place. Globalization promotes new tools and techniques such as E-learning, Flexible learning, Distance Education Programs, and Overseas training.
India has also promoted higher education through the propagation of universities; however, funding to elementary education has declined. Sixty-three million children age 6 to 14 are out of school due to the reduced education budget.
It is observed in current Indian society that through globalization, women have gained certain opportunities for job options and to recognize women's rights as a part of human rights. It is found that the growth of computers and other technologies enabled women with better waged, flex timings, and capacity to negotiate their role and status in-home and at corporate level.
The negative impact of globalization:
There are some negative impacts of globalization such as this process made disparity between rural and urban Indian joblessness, growth of slum capitals, and threat of terrorist activities.
=> Globalization increased competition in the Indian market between foreign companies and domestic companies. With foreign goods being better than Indian goods, the consumer preferred to buy foreign goods. This reduced the amount of profit of the Indian Industry companies. This happened mainly in the pharmaceutical, manufacturing, chemical, and steel industries.
=> The Negative Effects of Globalization on the Indian Industry are that with the coming of technology the number of labor required is decreased and this resulted in increasing unemployment.
=> There is an increased gap between rich and poor that leads to criminal activities.
=> Another major negative effect of globalization in India is that youngsters of India leaving their studies very early and joining Call centers to earn fast money reducing their social life after getting habituated with monotonous work.
=> The institution of marriage is breaking down at a fast rate. There are more people approaching divorce courts instead of maintaining marital life.
=> Globalization has a considerable impact on the religious situation of India. Globalization has brought about raising a population who is agnostic and atheist.
It can be said that Globalization is a motivating factor in the current business environment. There are few challenges for companies due to globalization such as Migration, relocation, labor shortages, competition, and changes in skills and technology. In the political field, globalization helps to eradicate poverty, malnutrition, illiteracy, ill-health, and fighting cross border terrorism and global terrorism. Globalization in the context of the status of women implicates the relegation of the stereotypic pattern of duties of the women like rearing and caring the children to the background and taking up the various diversified occupations and thus making their living quite vibrant and alive.
Today, people can buy goods and services even if they do not have sufficient purchasing power and the prospect of raising a loan has become easy in the age of globalization. Credit cards have given a boost to consumerism and pushed many households into indebtedness. At the same time, globalization has an unfavorable impact on mass-media in India. Currently, realistic coverage of events and happening doesn't receive much importance because it doesn't determine the standing of a newspaper or TV channel. Globalization has brought a violation of journalistic ethics in India.
Conclusion:
We cannot say that the impact of globalization has been totally positive or totally negative. It has been both. Each impact mentioned above can be seen as both positive as well as negative. However, it becomes a point of concern when an overwhelming impact of globalization can be observed on the Indian culture.
To summarize, the process of globalization has changed the industrial pattern of the social life of global people and it has a huge impact on the Indian trade system. The globalization of the economic, social, and cultural structures happened in all ages. Globalization has resulted in an increase in the production of a range of goods. MNCs have established manufacturing plants all over the world. It has positive effects and India will overcome many obstacles and adopt global policies to expand business on an international scale. India is gaining international recognition and strengthening in economic and political areas.
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