Globalization

BY:
YOGITA
INTRODUCTION
•In the present era , globalization has gained an enormous
importance especially in the last fifteen years. The modern
world is seen as the world without geographical barriers.
Globalization has been the major force behind this. In the
basic sense , the word globalization refers to the adoption of
liberalization of foreign exchange restrictions , open and
unfettered trading markets.
Through this presentation I want to highlight the impact of
globalization on various sectors of the Indian economy such as
agricultural sector , financial sector, industrial sector and
exports and imports. In the cultural sphere I want to highlight
the impact on music, food , festivals , language and literature.
DEFINING GLOBALISATION
Globalization has been defined by many scholars in the following
way-
Roland Robertson`s definition of globalization runs as follows:
Globalization as a concept refers both to the compression
of the world and the intensification of consciousness of
the world as a whole ...both concrete global independence and
consciousness of the global whole.
Amartya Sen says following on the globalization:
Over thousand of years, globalization has contributed to the
progress of the world through travel, trade , migration , spread
of cultural influences and dissemination of knowledge and
understanding.
These global interrelations have often been very productive in
the advancement of different countries. They have not
necessarily taken the form of increased western influence .
Indeed, the active agents of globalization have often been
located far from the west.
Marx throws light on globalization as such:
He identifies an economic dimension of the process . He views
that the political-territorial boundaries of the nation-state
remain intact and will only disappear under a
future proletarian supremacy.
1.IMPACT ON THE ECONOMY
 The economic sector has undergone a major change after the advent of
globalization. The reforms initiated in 1991 paved the way for liberalization of
economy and the Indian economy became an open economy . Government abolished
industrial licensing, contraction of public sector ,removed tariffs which made
possible the liberalization of the economy .
 Impact of globalization on various sector of Indian economy is as follows.
(a) IMPACT ON INDUSTRIAL SECTOR:
 Globalization of the Indian industry took place in its various sectors such as steel
, pharmaceutical, petroleum, chemical, textile, cement, and retail . Many
foreign companies set up industries in India in the petroleum, manufacturing and
chemical sectors and this helped reduce the level of unemployment and poverty
in the country and also foreign companies brought in highly advanced technology
with them and this helped to make the Indian industry more technologically
advanced . The number of factories in India in 1990-1991 stood at 1,10,179 and
in 2003-2004 ,the figure increased to 1,29,110.
 The negative effects of globalization is that with the coming of the technology
the number of labour required decreased and this resulted in many people being
removed from their jobs.
(b) IMPACT ON FINANCIAL SECTOR
Globalization has opened the doors to foreign competitors to enter into our domestic
market .Innovation has become a must for survival. Financial intermediaries have
come out of their traditional approach and they are ready to assume more credit risks.
As a consequence many innovations have taken place
in the global financial sectors which have its own impact on the
domestic also. The emergence of various financial institutions and regulatory bodies
have transformed the financial service sector from being a conservative industry to a
very dynamic one.
In this process, this sector is facing a number of challenges. Growth in financial
services comprising banking , insurance, real estate, business services , after dipping
to 5.6% in 2003-4 bounced back to 8.7% in 2004-5 and 10.9% in 2005-6.The momentum
has been maintained with a growth of 11.1% in 2006-7.Because of globalization ,the
financial services industry is in a period of transition . Market shifts , competition and
technological developments are ushering in unprecedented changes in the global
financial services industry.
(c) IMPACT ON AGRICULTURE
Agricultural sector is the mainstay of the rural Indian economy around which socio-
economic privileges and deprivations revolve and any change in its structure is likely
to have a corresponding impact on the existing pattern of social equity .The impact of
globalization on this sector is not much positive . There has been deterioration in
agricultural growth rate . This deterioration is the root cause of the problem of rural
distress that reached crisis in some parts of the country. Public investment in
agricultural sector especially in infrastructure which includes irrigation ,power, road
,market linkages and research and extension has been reduced . The removal of
fertilizer subsidy has lead to increase in the cost of products and globalization has
increased the initial threat of competition to the Indian farmers.
(d) IMPACT ON EXPORT AND IMPORT

In terms of export and import activities, many Indian companies have expanded their
business and became famous at global level. India`s export and import in the year
2001-2 was to the extent of 32,572 and 38,362 million respectively. Records indicates
that agriculture exports account for about 13 to 18% of total annual export of the
country .
In 2001 agricultural products valued at more than US $6 million were exported from
the country ,23% of which was contributed by the marine products alone. Cereals ,oil
seeds ,tea and coffee are the other prominent products each of which accounts for
nearly 5-10% of the countries total agricultural exports . There has been a shift in
export-oriented strategies in agriculture from production for the domestic market
towards production for the export market focusing on cash crops in lieu of production
of food grains . India’s overall exports in April- June is estimated to be US $
137.26billion and overall imports in is estimated to be US$164.50 billion. India is seen
as the successful exporter of auto parts, engineering goods, IT software and textiles .
YEAR EXPORT(Rs Crore) IMPORT(Rs Crore)
1991-1992 44041 47851
2001-2002 209018 245200
2005-2006 456418 660409
2009-2010 845534 1363736

2.IMPACT ON CULTURE
The culture of any country does not only portray the region and language of the region
, but it starts with the mindset and mentality of the residing citizens. Indian culture is
quite rich with respect to its heritage and resources , and more importantly due to the
welcoming approach of its citizens .India is a bouquet of flowers varying religion,
dialect, edibles, tradition ,custom ,music ,art and architecture bundled into a single
unit of patriotism and unity.
Let us analyze the impacts of globalization on the Indian culture:
(a) IMPACT ON FOOD
With the advent of globalization , the choices of food items have expanded now more
food items have made their way to us. The use of wheat in the diet is changing , since
there is a move away from the traditional chapati to more commercialized bread
products similar to those found in the west . Due to globalization McDonalds foods
have become popular in many countries . Due to such type of interventions local
culture and food traditions are disappearing.
(b) IMPACT ON LANGUAGE AND LITEATURE
Many languages such as French, Chinese and German are becoming popular in India
while English has turned out to be national language of the country. This is having
impact on the literature as well.
(c) IMPACT ON FESTIVALS
With the globalization of Indian society a lot of new typesOf festivals like friendship
day , father’s and mother’s day etc have got acceptance of young generation of India
in last two decades.
(d) IMPACT ON MUSIC
The whole spectra of music have been hit by the process of globalization . Indian
listeners have got huge exposure to western music and it has been instant hit in India
. This can be verified with the help of increasing demand for western music and this
demand has also impacted Indian artists.
CONCLUSION
As a coin has two sides in the same way globalization also has two sides .
There are positive as well as negative aspects associated with the concept
of globalization. The positive aspects include all sorts of things such as
shrinkage of the world into a ‘global village’, trade has become easy ,
culture has become modified, generation of employment .
If we put all these benefits aside, then thee emerges many problems as
well . In a globalized world it has become easier to travel all across the
world , and a surge in the terrorist attacks have been all across the world ,
so it also presents the danger of terrorist attacks . It has also become
easier to peep into the security matters of other countries and the
countries such as USA , China toy with the smaller and poorer countries in
the name of globalization.
These drawbacks should be carefully accessed and monitored to make a
world more like a ‘global village’ which is more security- prone in the era
of globalization.
REFERENCES
1. ‘The Globalization Reader’ edited by Frank J . Lechner and
John Boli
2. ‘Globalization and Infrastructural Development in India’ by JG
Valan Arasu
3. ‘Globalization – An Introduction’ edited by N Janardhana Rao
4. ‘Economic Liberalization in India’ by K.V Kesavan
5. ‘How to Judge Globalism’ by Amartya Sen
6. ‘Globalization’ by Malcolm Waters
7. Economic Survey 2010-11

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(d) IMPACT ON EXPORT AND IMPORT

YEAR EXPORT(Rs Crore) IMPORT(Rs Crore)

1991-1992 44041 47851

2001-2002 209018 245200

2005-2006 456418 660409

2009-2010 845534 1363736

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