IMPACT OF

GLOBALIZATION
IN INDIA
AND ROLE OF WATER WAYS AND AIR
WAYS
Presented by Avanthika ,Mellisa,Andria, Sahasra, Zenha, Haya,Gouri
 TABLE OF CONTENTS
Effects of globalisation
Globalisation in indian economy
Cultural impact of globalisation
Pros andCons of globalisation in india
impact of globalisation in
factors effecting globalisation
The role of waterways and airways for achieving globalisation in
india
 Introduction:-
What is globalisation?
Globalisation refers to the integration of global economics, industries, markets, culture
and policies making around the world free from socio-political control and reduces
distances between regions/countries through a global network of trade,
communication, immigration, and transportation.Globalization has led to the
increasing integration of production and markets across countries through the rise of
multinational corporations (MNCs) and improvements in technology. MNCs set up
factories around the world to access cheap labor and resources and connect globally
dispersed production.Following are some of the advantages and disadvantages of
globalisation:-
.
Globalisation in indian economy
 Globalization in the Indian economy
The term globalisation refers to the integration of the economy of the nation with the
world economy. It is a multifaceted aspect. It is a result of the collection of multiple
strategies that are directed at transforming the world towards a greater
interdependence and integration. India is one of the countries that succeeded
significantly after the initiation and implementation of globalisation. The growth of
foreign investment in the field of corporate, retail, and the scientific sector is
enormous in the country. Indian society is changing drastically after urbanisation and
globalisation. The economic policies have had a direct influence in forming the basic
framework of the economy.
 Effects of globalization in Indian industries
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,
eggs, pulses, organic food as a result. It has also led to protein inflation.
Globalization has led to a boom in the consumer products market. The advent of
foreign companies and growth in the economy have led to job creation. However,
these jobs are concentrated more in the services sector, and this has led to rapid
growth of the service sector, creating problems for individuals with low levels of
education
 .Effects of globalization in Indian finance
After 2003, the cumulative impact of years of reform and globalization helped Indian GDP
to average more than 7 percent annually, making India a “miracle” economy. Per capita
income rose from $304 in 1991 to an estimated $2,600 in 2023.

.Effects of globalization in Indian Agriculture

The Impact of Globalisation on Indian Agriculture and on several aspects of the county’s
economy has been significant. However, agriculture in India faltered. Being one of the
primary occupations in the rural areas of India, agriculture is of great importance.
Globalisation has had a great impact on it
Cultural impact of globalisation
 Cultural impact of globalisation
Globalization is very important to our world today. For India the impact of the policy globalization is
both good and bad. Right from the environmental challenges from the climatic influence, the air, water
soil pollution etc., to the cybercrime. Globalization has a huge contribution to all the ill effects of
scientific
advancements. May it be business, trade, and work exposure or the economic and financial status of
the
country; no field is left behind the reach of globalization. Globalization is an international platform for
maintaining evenness in the living mode of the people all over the world. Globalization is the resultant
the interchange of worldly views, opinions and the various aspects of the culture everywhere around
the world Globalization has significantly impacted Indian culture by introducing new ideas,
technologies, and cultural practices from around the world. This has led to increased
cultural exchange,adoption of foreign lifestyles, and changes in traditional norms and values.
 POSITIVE impact:
Positive impacts can be seen in
Cultural exchange
Technological advancements
Educational opportunities
Economic growth
Globalization has facilitated India in sharing its ideas, art, and traditions globally, enriching its cultural diversity and
broadening its global perspective. Indian art, music, films are now acclaimed worldwide, with an increasing global
interest in Indian cuisine and fashion.

The progress of technology and the internet has significantly contributed to promoting Indian culture on a global
scale, offering better access to international cultural content. Digital platforms have emerged, enabling Indian artists
to showcase their work to a worldwide audience, increasing their visibility and influence.

Globalization has expanded educational and professional prospects for Indian individuals, encouraging interaction
with diverse cultures and fostering a global mindset, promoting the incorporation of international best practices
across various sectors.

Economic liberalization has attracted more foreign investment, driving economic growth in India, which has indirectly
influenced cultural elements. The increase in disposable incomes and exposure to global trends has led to the
emergence of new cultural patterns and consumer behaviors in the nation.
 negative impact:
IMPACTS CAN BE ALSO INCLUDED IN AS : - COMMERCIALIZATIOn -
IDENTITIY CRISIS
CULTURAL HOMOGENIZATION
URBAN-RURAL DIVIDE

-. The increasing influence of global culture, especially from the West, is causing traditional Indian
customs and values to weaken. Many are worried about the loss of indigenous languages, traditions,
and local practices as international brands and ways of life gain more popularity.
-. Globalization's fast speed can make people feel lost in their own culture and unsure of who they
are
when trying to balance old customs with new global trends.
-. Sometimes, when cultural elements are used for profit, it can result in the exploitation or shallow
portrayal of Indian culture. For instance, traditional celebrations and customs may be transformed into
commercial spectacles, diminishing their true meaning.
-. Globalization affects cities more strongly than countryside areas, which can widen the gap between
different cultures and economic situations. Rural communities often find it hard to adapt to the fast-
changing cultural environment.
Advantages and disadvantages of
globalization in indian economy
 BUisNESS
Advantages: -
1. Economic Growth
It’s widely believed that one of the benefits of globalization is greater economic
growth for all parties. There are several reasons why this might be the case,
including:
• Wider labor pool: Globalization gives all nations access to a wider labor
pool. Developing nations with a shortage of knowledge workers might, for
example, import labor to kickstart industry. Wealthier nations, on the other
hand, might outsource low-skill work to developing nations with a lower
cost of living to reduce the cost of goods sold and pass those savings on to
the customer.Indian companies will thus be able to import workers as well
as export them according to their needs.
 Access to resources: One of the primary reasons nations trades is to gain
access to resources they otherwise wouldn’t have. Without this flow of
resources across borders, many modern luxuries would be impossible to
manufacture or produce. Smartphones, for example, are dependent on rare
earth metals found in limited areas around the world.India's imports
encompass a wide range of goods such as gold, crude oil and petroleum
products.Crude oil, constituting approximately 20 percent of total imports,
is critical due to the nation's reliance on energy sources.
• Specialization: Global and regional cooperation allow nations to heavily lean
into their economic strengths, knowing they can trade products for other
resources. For example: India exports gold and jewellery,food and
machinery with UAE in exchange for crude oil, electronic equipments,etc.
It’s been shown that when nations specialize in the production of goods or
services in which they have an advantage, trade benefits both parties.
 2. Increased Cross-Border Investment
Globalization has led to an increase in cross-border investment. At the
macroeconomic level, this international investment has been shown to enhance
welfare on both sides of the equation.
The country that’s the source of the capital benefits because it can often earn a
higher return abroad than domestically. The country that receives the inflow of
capital benefits because that capital contributes to investment and, therefore, to
productivity. Foreign investment also often comes with, or in the form of,
technology, know-how, or access to distribution channels that can help the
recipient nation. In the first quarter of 2024 alone, India has been involved in 455
cross-border transactions, with a disclosed value reaching an impressive USD 25.6
billion. This marks a substantial 24 percent increase from the preceding quarter of
2023, underscoring India’s strategic significance in the face of evolving market
conditions. The data paints a compelling picture of India’s expanding influence in
global financial flows.
 Disadvantages:
1. Increased Competition
When viewed as a whole, global free trade is beneficial to the entire system.
Individual companies, organizations, and workers can be disadvantaged, however,
by global competition. This is similar to how these parties might be disadvantaged
by domestic competition: The pool has simply widened.
1. With this in mind, some firms, industries, and citizens may elect
governments to pursue protectionist policies designed to buffer domestic
firms or workers from foreign competition. Protectionism often takes the
form of tariffs, quotas, or non-tariff barriers, such as quality or sanitation
requirements that make it more difficult for a competing nation or business
to justify doing business in the country. The government has significantly
changed the customs tariff to push the Indian economy into the arena of
international competition. As a result, the budget for 2007–2008 reduced the
peak rate of customs duty from 250 percent to 10 percent.
 2. Disproportionate Growth

Another issue of globalization is that it can introduce disproportionate growth

both between and within nations. These effects must be carefully managed
economically and morally.
Within countries, globalization often has the effect of increasing immigration.
Macroeconomically, immigration can increase gross domestic product (GDP)of
India, which can be an economic boon to the Indian economy. Immigration may,
however, reduce GDP per capita in the short run if immigrants’ income is lower
than the average income of those already living in the country.
3. Imbalanced Trade:A trade imbalance, also known as a trade deficit, occurs
when a country spends more on imports than it makes on exports. This creates a
shortfall in capital that the country must make up for either by borrowing money
from foreign lenders or permitting foreign investments in its assets.
4. Tariffs and export fees:If you plan to engage in international trade of products
or goods, you should consider tariffs and export fees.Each country has different
tariffs and fees for international shipments, which affect a company’s bottom line.
5. Investment costs:Another challenge of globalization is the costs involved with
establishing your business in a different country.For example, you must identify
the location and type of infrastructure you need.You may need to build access
roads and connect to electricity, water and sewer systems.
 EMPLOYMENT
Advantages: -
• Flexibility of employment: With globalization, more employees will be able
to apply for opportunities in other countries. Workers will be able to
migrate to places they desire and work from there.
• Increased labor mobility. By allowing individual workers to move to other
countries, the global economy can better match supply and demand.
• High standard of living: With globalisation, both the Indian economy and
the average person’s standard of living have improved. This shift is visible in
a person’s purchasing habits, particularly among those who work for
overseas corporations. Thus, a higher standard of life and business
development is occurring in many places

• Increased employment opportunities: The creation of Special Economic

Zones (SEZs) has increased the number of new jobs that are available. It is
highly beneficial to include the export processing zones (EPZs) center in
India in order to employ lakhs of people. India’s affordable labour is an
additional element.
 Disadvantages: -
• Domestic Job Loss:When Industrialized countries outsource labor, it causes
a shortage of jobs domestically. Laborers whose skills are no longer in
demand experience higher unemployment, and struggle to adapt to the
changing labor market.
• Employee exploitation:Globalization generally increases competition in the
international workforce as more employees can apply for opportunities in
other countries. The increasing demand and low supply of job opportunities
may cause employees to offer cheaper labour to secure employment. As a
result, it also makes it easy for employees to opt for cheap labour in places
that have higher employee exploitation due to lax or non-existent labour
laws. Applying to established or reputable organizations with a clear
structure can help you get fair compensation for your work.
 • Legal compliance for employees: One disadvantage of globalism is that
different countries may also have different regulations. Provisions may
contain different rules regarding employee rights and obligations, work
permits, termination procedures, filing procedures, and social
responsibilities. Before moving to a new location to work, it's important to
research the rules and obligations of employees in the country.
• Structural unemployment: In a global system, a country that is no longer
able to provide certain goods or services may outsource production to
other countries. This situation creates a vacuum and removes employees in
the company or industry, increasing unemployment and inequality in the

country. Although there's the option of retraining employees and re-

integrating them into new international markets, this may take considerable

time, further increasing the global competition for limited job

opportunities.
 CULTURE
Advantages:
• Diversified workplace culture and work culture:Being part of a diverse
team may help increase productivity by promoting inclusion and
collaboration among Indians and also between Indians and people from
foreign countries. It also gives you access to diverse business perspectives.
This can help you perform your role better and produce innovative results.
• Sharing culture, knowledge, and technology:A major benefit of globalism is
that it allows people to share concepts and ideas across borders. As
employees communicate, they may share ideas, business practices, culture,
values, and technology. Exchanging ideas with other employees helps you
learn from their experiences and make better business and career
decisions.
• Expansion of Knowledge: Interacting with people from across the world will
help you learn more about the lives and livelihoods of people different from
you. It will also help others learn more about the Indian culture. This will
help you enhance your understanding of life and develop yourself as a
person.
 Disadvantages:-
• Barriers posed by cultural differences: Cultural differences can pose as a
barrier when considering people from different cultural backgrounds. What
seems appropriate in one country may not be appropriate in another.This
will cause misunderstandings between people.As India is a country with a
wide variety of cultures, cooperation becomes entirely difficult as actions
can be misinterpreted easily.
• Global communication challenges:One of the features of globalism is that it
connects employees across different time zones with different native
languages. This communication across time zones may be difficult and
affect productivity. Interacting with colleagues, managers, or clients with
different language abilities can also impact work efficiency, consuming time
and making communication challenging.This problem is acute in India as the
numerous languages make it quite challenging to communicate with one
another.
 INCOME INEQUALITY
Globalization can only have negative impacts on the income inequalities of India.
Unemployment among unskilled workers: The increased competition caused by
globalization will result in unemployment of unskilled workers. Their wages will be
pressurized constantly due to globalization and they would have to live with the
fear of replacement with a high skilled and educated employee.
Suppression of demand, and increased re-channelling of national resources to
service debt, caused recession. Social development financing fell, reducing the
poor's access to basic facilities including jobs, education, health.
Globalization can also contribute to global income inequality by benefiting
wealthier countries and individuals more than less developed ones. Developing
countries like India often have a more difficult time fully participating in and
benefiting from the global economy.
The benefits of globalization are also only accessible to the richer sections of the
society.
 TECHNOLOGY
Globalization has amplified the spread of technology across borders in two ways.
First, globalization allows India to gain easier access to foreign knowledge.
Second, it enhances international competition—including as a result of the rise of
emerging market firms—and this strengthens firms’ incentives to innovate and
adopt foreign technologies.
The increased transfer of knowledge and technology to emerging market
economies has partly offset the effects of the recent slowdown in innovation at
the technology frontier and helped drive income convergence for many emerging
economies.

In India,Automatic approval is given for foreign technology agreements in high-

priority industries up to a maximum of ₹1 crore. It is no longer necessary to

obtain approval to hire foreign technicians or test locally developed technology

abroad.
 ENVIRONMENT
Sadly, the environment also suffers as a negative effect of globalization. As great as
increased flow of goods and knowledge are for people and the economy, the
underlying business activities adversely affect the environment. Global trade and
transportation networks, along with increased market demand, mean more use of
fuels that contribute to a higher exertion of greenhouse gases. Planes, ships, and
trucks transporting goods all over the world are harmful for the atmosphere and
affect local ecosystems. More demand also means more production, again causing
more fuel and raw materials to be used up. Interestingly, remote working can help
businesses save on environmental costs, but remote working alone won’t solve the
environmental challenge of globalization
impact of globalization
 impact of globalization in various fields
IN POVERTY ERADICATION
Economic Growth: Globalization has spurred economic growth in India, particularly
since the economic reforms of 1991. The influx of foreign investment, technology,
and trade has created jobs and increased income levels, lifting millions out of
poverty.
Employment Opportunities: The opening up of markets and the expansion of
industries like IT, services, and manufacturing have created employment
opportunities, especially in urban areas. This has contributed to reducing poverty
by providing livelihoods to a large number of people.
 IN EMPLOYMENT
IT and Service Sector Boom: Globalization opened up the Indian economy to international
markets, leading to the rapid growth of the Information Technology (IT) and Business
Process Outsourcing (BPO) sectors. This has created millions of jobs, especially in urban
areas.
Urbanization and Migration: With the growth of industries and services, many workers have
migrated from rural areas to cities, leading to a decline in agricultural employment and a
rise in jobs in manufacturing and services.
IN EDUCATION
Global Competence: Indian education has increasingly aligned with international standards,
emphasizing global competencies such as critical thinking, problem-solving, and communication
skills.
Digital Learning: With globalization, digital resources and online learning platforms have become
more accessible, enabling students in India to access educational content from around the world.
Global Perspective: Globalization has facilitated cultural exchange, promoting diversity and
inclusivity in Indian classrooms. Students are now more exposed to global cultures, languages,
and ideas.
 IN TECHNOLOGY
Growth of IT and Software Industry: Globalization has played a crucial role in
making India a global hub for IT services and software development. Major
multinational companies have outsourced their IT operations to India, leveraging
the country’s skilled workforce.
Research and Development: Globalization has facilitated the establishment of R&D
centers in India by international companies, promoting innovation in various
technological fields, including telecommunications, biotechnology, and artificial
intelligence
 IN FOREIGN INVESTMENT
Policy Liberalization: To attract more foreign investment, India has undertaken
various regulatory and policy reforms, such as easing FDI norms, simplifying tax
structures, and improving the ease of doing business. Globalization has prompted
the government to create a more investor-friendly environment.
Infrastructure Development: The influx of foreign investment has contributed to
the development of infrastructure in India, including roads, ports, airports, and
telecommunications. This has enhanced the country's global connectivity and
facilitated trade and investment.
factors effecting globalisation
Free Trade – Globalisation has helped improve trade volumes between nations with minimal
interference. The reason is that governments are not micromanaging every minute aspect of
business transactions. The Gross Domestic Product (GDP) of countries that have accepted
globalisation has also increased significantly, thus bringing in greater prosperity. It has also resulted
in better cooperation between governments that leads to further improvement in trade.

Liberalization – has helped entrepreneurs to set up businesses and transact both within and outside
the country. The rules and. Regulations for companies are relaxed significantly to allow for more
trade

Increase in Employment—Every industry is responsible for generating both direct and indirect jobs.
And when production increases, it has a positive effect on employment. Globalisation helps
companies increase their production capacity and set up operations in different parts of the world. It
also helps boost work opportunities in countries where these corporations have set up operations.

Increased connectivity between nations – Globalisation has helped countries improve trade relations
with each other. It has increased interaction between people and businesses. Better connectivity
also boosts a country’s economy and enhances the standard of living for its citizens.
Interdependence-Businesses get the opportunity to import cheaper raw materials to produce their
commodities. They are also being allowed to export to countries that have more demand for their
finished goods. It has helped reduce trading barriers and build overall economic prosperity
Interdependence-Businesses get the opportunity to import cheaper raw materials to
produce their commodities. They are also being allowed to export to countries that have
more demand for their finished goods. It has helped reduce trading barriers and build
overall economic prosperity
Urbanization-When many foreign/local companies set up businesses in a particular area,
it becomes a hotbed of economic activity. The people who work in those companies need
infrastructure near their workplace in terms of housing, transport, shops and other
establishments. Globalisation leads to the building of urban centres in and around
industrial areas.
Outsourcing-One of the characteristics of globalisation is that it allows companies to
bring in third parties from outside the country to manage specific processes. They take
this step to reduce internal costs, improve the quality of services or both. Outsourcing is
a boon for several human resource-rich countries that are looking to generate
employment. Countries like India and the Philippines have benefitted immensely as a
result of this practice.
 Production Cost – In a globalized world, companies are free to establish their operations in
areas where the cost of production is low. The cheap availability of land, labour and raw
materials has become very important. So it makes sense for companies to go where these
resources are present in abundant quantities and at discounted rates. It helps them gain
over their rivals by lowering costs and improving profit margins.
Outsourcing-One of the characteristics of globalisation is that it allows companies to bring
in third parties from outside the country to manage specific processes. They take this step
to reduce internal costs, improve the quality of services or both. Outsourcing is a boon for
several human resource-rich countries that are looking to generate employment. Countries
like India and the Philippines have benefitted immensely as a result of this practice.
THE ROLE OF WATERWAYS AND AIRWAYS
FOR ACHIVEING GLOBALIZATION IN INDA
 THE ROLE OF WATERWAYS AND AIRWAYS FOR ACHIVEING GLOBALIZATION IN INDA
Waterways and airways play crucial roles in facilitating globalization in India by enhancing
connectivity, trade, and tourism. Here’s an overview of how each contributes:
Waterways
Ports and Maritime Trade
1. Major Ports: India has 13 major ports and over 200 minor ports. Key ports like Mumbai,
Chennai, and Kolkata serve as significant gateways for international trade.
2. Cargo Handling: Ports handle a vast majority of India's import and export activities,
including essential commodities like oil, coal, and iron ore, as well as manufactured
goods and agricultural products.
3. Container Shipping: The rise of container shipping has streamlined logistics, making it
easier to transport goods efficiently and cost-effectively across the globe.
Inland Water Transport (IWT)
1. National Waterways: India has identified and developed several national waterways
(e.g., NW-1, NW-2, NW-3) to promote inland water transport. This reduces congestion
on road and rail networks and provides a more environmentally friendly transport option.
2. Economic Zones: Development of economic zones and industrial hubs along these
waterways supports regional economic growth and integration with global supply chains.
 Airways
Airports and Air Cargo
1. International Airports: Major international airports like Delhi, Mumbai, and Bengaluru
handle significant passenger and cargo traffic, connecting India to major global cities.
2. Air Cargo: Air cargo services are crucial for transporting high-value and perishable
goods. The efficiency of air freight facilitates trade in sectors like electronics,
pharmaceuticals, and textiles.
Tourism and Business Travel
1. Tourism: Improved air connectivity has boosted international tourism, contributing to
the economy through foreign exchange earnings and job creation in the hospitality sector.

2. Business Travel: Enhanced air connectivity supports business travel, fostering

international business relations, foreign investment, and the establishment of
multinational companies in India.
 Government Initiatives
1. UDAN Scheme: The UDAN (Ude Desh ka Aam Nagrik) scheme aims to enhance
regional air connectivity by making air travel affordable and accessible, which
indirectly
supports globalization by improving domestic mobility.
2. Infrastructure Development: Continuous investments in airport infrastructure,
modernization, and expansion projects ensure that Indian airports can handle growing
passenger and cargo traffic efficiently.
Combined Impact on Globalization
1. Trade Facilitation: Efficient waterways and airways reduce logistics costs and
transit times, making Indian products more competitive in the global market.
2. Investment Attraction: Improved connectivity attracts foreign direct investment
(FDI) by providing better access to markets and resources.
3. Economic Growth: The development of transport infrastructure drives economic
growth, creates jobs, and supports regional development, integrating India more
deeply into the
global economy.