Globalization in India

Introduction

Globalization has become one of the most interesting topics since the nineties of the last century. The concept of globalization refers to the combined synergy of the countries, mainly to do business with each other. The concept has brought economic growth and benefits for the entire world. However, it promises more benefits for the developing nations, as these nations will have new opportunities for accessing local and international markets. This paper discusses the role of globalization for India, by highlighting the influences, positive and negative effects, and the changes country has made in its domestic and foreign policies in order to prepare for globalization (Pradumna, pp. 20).

Influences of Globalization on India

India received considerable benefits from the concepts of globalization, despite of the fact that at first the country was hesitant to adapt the technology and global business strategies. During the period of 1990's, India suffered from a great economic crisis. During that area, a large proportion of Indian economic model was based on public sector, while with the concept of globalization penetrating in; the private sector began to grow as a result of increased foreign investments.

India became able to drive through the economic crisis by seeking the loans from International Monetary Fund and working on the international business opportunities, which were again a result of globalization.

Positive Effects of Globalization on India

Globalization has affected India positively in many ways. One of the major roles globalization plays for India is that it reduces the poverty level significantly. Over the past few years, the global inequality and poverty has been reduced due to the increased integration between trade and investment, which is provided by the globalization.

Due to the globalization and increased integration between economy of India and international economy, significant increase in GDP rate has been observed. Research and ...