Globalisation as we all know is the process of integrating the economy of a country with that of the world .In Indian context during the post independence era we followed Nehruvian economic policy which was somewhat insulated to the world , relied mainly on agriculture and had 3% rate of growth which most people call Hindu rate of growth . During eighties we opened doors of our economy to those of the world and opened the cocoon of protectionism .
It included following measures –
- removing constraints for MNCs to enter in India
- allowing FDIs to invest in India.
- massive import liberalisation steps , reducing import duties
- allow Indian enterprises to trade outside and have joint ventures with foreign companies
- exchange rate adjustments in the wake of which Rupee was devalued twice in 1991 ADVANTAGES
- Our foreign currency reserves have been rising ever since we switched to LPG
- Our country boast of one of the highest rates of growth in the world next only to China.
- Dismantling of barriers has resulted into new era of relationships between nation, people and economies .
- IT revolution is particularly the product of globalisation .There is no need to mention the significance of IT sector for Indian economy . DRAWBACK
- Globalisation in its present form is driven by Trans National Corporation(TNCs) .Globalisation has enormously increased financial prowess of these mega corporations which in turn influence the policy making process in developing countries . This has resulted into a kind of subjugation of developing economies to monopolistic tendencies .
- It does not help in eradicating poverty in developing countries as it is limited to industrialised nations .
- Developing countries have not been able to take its benefits due to aggressive pursuit of regionalism and market access barriers .
- There is this rise of East India syndrome as MNCs are at more advantageous position as compared to their Indian counterparts .
- In the globalised world impact slowdown in one part of the world can be felt in other parts of the world . This is what is happening now. The Great depression 2 in US has triggered the wave of recession in all over the world. The process therefore needs a serious and thorough review to rid it of racial and other discriminations against the developing countries .