Eco.L.

4
Globalisation &
The Indian
Economy
Prepared by
Prem Kumar.V.A.
MCA, M.Tech(CSE), B.Ed
 Globalisation
• Globalisation is the outcome of the policies of liberalisation and
privatisation.

• Means integration of the economy of the country with the world

economy.

• It is an outcome of the set of various policies that are

aimed at transforming the world towards greater interdependence
and integration.

• It involves creation of networks and activities transcending

economic, social and geographical boundaries.
• Globalisation is a major change that occurred across the globe in
the late 20th century.

• This has political, cultural as well as economic dimensions.

• We identify three types of movement within international

economic exchanges.

• The first is the flow of trade in goods as well as services.

• The second is the flow of labour – the migration of people in

search of employment.

• The third is the movement of capital for short-term or long-term

investments over long distances. Besides, there are political and
cultural dimensions of globalisation.
Trade barriers are measures that governments or public authorities
introduce to make imported goods or services less competitive than locally
produced goods and services.
 Globalisation of the Indian Economy
• Choice of goods and services before us.
• Electronic devices leading manufacturers of the
world are within our reach.
• On Roads new models of automobiles.
• Top Companies and buyers.
• Explosion of brands for many other goods are seen.
– From processing ( from shirts to Oranges ).

In a market of years, our markets have been transformed!

Rapid Transformation?
What Factors that brought changes in markets?
Interlinking Production Across Countries
• MNCs setup production close to markets.
– Skilled and unskilled labors.
– Other production is assured.
– Look for the govt’ policies at their interests.
– Investments – FI ( land, machinery, building).
– HR.
– Jointly with some LC.
– Two-Fold.
• AI.
• Tech.
Interlinking Production Across Countries
• Owning LC.

– Cargill Foods, a very large American MNC

• Parakh Foods.
• large marketing network
• brand was well-reputed.
• four oil refineries, whose control has now shifted to Cargill.
Cargill is now the largest producer of edible oil in India, with a
capacity to make 5 million pouches daily!

Exceeds the budget of dev’ cont’ govt.

Interlinking Production Across Countries
• Production with small producers by placing orders.
– Under the brand names.
– Power to determine price.
– Quality.
– Delivery and labor conditions for these distant producers.
– Variety of ways and spreading the production interacting
with local producers across the globe.
Foreign Trade & Integration of Markets

• Trade routes connecting india and south asia to

markets both in the east and west, trade took place.
• Opportunity for beyond domestic markets.

• Importing goods and expanding the choice of goods

beyond what is domestically produced.
• Choice of goods arises, competition b/w the
producers.
A domestic market, also referred to as an internal market, it is the supply
and demand of goods, services, and securities within a single country.
 What is Globalisation?

• Movement of goods.
• Migration of people.
• Restrictions during the earlier days.
• Lack of education opportunities.
• Lack of technology skills.
 Factors That Have Enabled Globalisation
• Rapid Improvement in technology.
• Several improvements in transportation process
took place.
• Faster deliver of goods.
• In recent times tech’ has been changing.
• Able to access info’ at a faster speed.
• communicate.
• Satellites.
• ICT is every where in the world.
• Complulsory.
 Liberalisation of foreign trade and
foreign investment policy
• Imports.
• Trade barrier.
• Some restrictions has been setup.
• Govt’ regulates the FT to increase or decrease.
• Wgcbaii.
• Protecting the producers within the country.
• PFFDI.
• India allowed.
 Impact of Globalisation In India
• Competition b/w LFP.
• Greater choice increased by quality and low price.
• People enjoying much higher standard of living
than was earlier.
• 1st MNCs increased invest’ past 20 yrs.
• Beneficial for MNCs.
• Interested in Industries..
• No.of buyers.
• Supply of rm by lp.
• Top.
• Emp’.
• Invested in New tech’.
• Some have gained from successful collaborations
with foreign companies.
• GEIC to MNCs
 The Struggle For A Fair Globalisation

• Education and skills.

• How to make globalisation more fair?
– Benefits are shared better.
– Govt’ policies.
• Labour laws implements.
• Workers get rights.
• Signing Off

– By

• Prem Kumar. V.A.

» MCA, M.Tech(CSE), B.Ed.