Globalization & its impact on Indian Economy: Developments and Challenges

Source :t: w . hp/ w t/ w Author :ys. u auhl i n Published on :er r0,02 Fbu y 621 a Globalization and its impact on Indian Economy: Developments and Challenges

ayush.ilnu's Polad rf n i e dtl ei as

Goaztno g bl tndsre a rcsb w i r i a l l i (rl az i ) ecbs poes y h he o l bi o a o i o a i c gn eoo i,oii,n clr hv bcm iere tog a cnme sc tsad uu s ae eo en g t h uh s ee te t ad r g ble ok fo m n ao, asoti ,n td. h tm l ant r ocm ui tntnprtnadr eTee o w ci r ao a r ism t e ue tresei ayo cnmc l aztnt so em s sdo e rpci l teoo ig bl i : e i f f l c o i o h a ieri ontnlcnme ioh ie aoaeoo y n g tn faoaeoo i n t n r tnlcnm t ao i s t e tn i A U HY D V YS AA tog td, rg det vs et ailo smg tnad h uhr ef e n ici et n cpafw , iao,n r a oi r n m , t l ri S U E Tit to T D N ni e f st u t sr d f cnl yGoaztn s saaieri it h pe ot ho g. l l i a a ptl t ao nh e a e o bi o a i n g tn e Lw Nra n e i, a , i U i rt m v sy shrosc l li s hn e a “ l aztn a b dfe pe foi rao w e h si Go l i cn e end e a e tn d bi o a i A m dbd h eaa a t iesi tn f ol i sc l li s h hi d t t sh n ni ao ow rwd oi rao w i lk ia et f i c d e a e tn c n s n l aosn uh w yht clapn g a sae b eet o tn isc a a t l ahpei s r hpd y vn ci ao n e s ocrn m n ml a a ad i – e a Goaztn ee l m asn g tg cnm o cu i ay is w y n v e vr . l l i gnrl en ieri eoo y f rg e c s” b i o a ay t an orao wtt w r eoo yTe cnmc hne itt hv hd da ac fco t untn i h ol cnm . h eoo icagsnie ae a a r t eetnh i he d i d a mi f e oe l rwh f e cnm .tl hrddh ieri ot I i eoo yn t g bl vrl o tot eoo yIao e l t n g tn f en a cnm ioh l a ag h s a e e t ao h d n t eo eoo yTeni eoo y a im j cs i19 w e f e n u ec r e e w n cnm . h I a cnm w sn a rrin 91 hno i cr nye r s et dn o i s rg r sv dw t$ blnGoaztn a i ipco vru sc ri l i A ruu lnut l o no 1 i . l l i hdt m atn aoset sn u n gclr, dsi, l i o bi o a s i o c d g i ta I r a F ac l el sc rn m n o e .t a olaet L Gply. L e l tn i ni, ah et ad ay t r Iw s n frh P oc i. i ri i , n aH t o hs yt e i e b az o a Pi tao ad l aztnanhd yh t n i ne nt Ma Moa S g t tni raztn n Go l i l ce b t h F ac Mis r n hn i hh I a vi i bi o u a ee n ie n a d swi dvl m nivru sc r a t ee p et aoset s s o n i o. Advent of New Economic Policy At sfrg hg fac ln eoo ics D. n hn i h ruha e ply fruen a uei ni ad cnmc ri rMa Moa S g bogt nw oc e fi n a i s n i w i iko n s i ritnPi tao ad l aztn oc (P P lyao nw a h hs nw a L e l i , raztn n Go l i P lyL G oc)l ko n s c b az o v i i a bi o i a i s N wEoo iP ly 91 st a a esrtcm otf e rit t a gi o at t e cnmc oc, 9 a i s m au o o e uot cs h w s o g n t a i1 w e h i a s n h t eTeoo i m au s e t e tle l ad l az t eoo y i . h fl n esr w r a noi ri n g bl h cnm : m lw g e ek b az e o i e e 1D vl tnT sl t bl c opy etrb mI i cr ny e dvl t b 1 t . ea ao:o o eh a ne fam npol n a u ec w r ea a d y 8o ui v e a e dn r e ue 1%. 9 2Dsvs et o aeh L Gm dlm o m n ot pbc et s e sltt . i et n T m k t P oes ot ay f e ul sc rw r o oh i m : n e h h i o e d e pi tsc r ra et . ve o 3Al i F rg Dr tnetetF I F I a ao e ia i r g osc rsc a . lwn oe n icI s n(D) D w s lw dn wd a e fet suh s o g i e v m : l e n o I u ne2%)df s i ut s2%)t n r c (6 ,e nen si (6 e . sa e d r e c 4N I ce eTeaii w i w raaaltf e nnet s e ao i no R' . R Shm :h f le h h e vib oo i i s rw r l g e tN I. ci s c t e l e rg v o es v s Te e Eoo iP lyN P19) t dcd hne it a a otd pli, oe r h N w cnmc oc ( E -91 ir ue cagsnh r s f ae oc sm nty i no e e r ie a &fac loc sfcl bde rpli,n pin &it tnl f m . h sln i ni pli,sa& ugty oc sad ri n a ie i a ie c g n i i aro sTe aet st o e r u i f te oN P19 a ( le l tnie aad x r l( et d g raztn() e u s f E -91 r ii ri i (tnln etn ) i x ni pi tao,i ar e )b az o n r a e a,i e n v i i i ) i

n t MF d n e i d s e r a e g n d ht cld ‘r taaj tetl nw i iaon i cricni n aahd r t w ai ae asu u ld s n o .e et e iad t aoset suh st l hr cucl eo u . a Goaztn a hl dn l l i hs e e i bi o a p : • ai li s na s R i gin t dr . h hs l wt ea odi s tce ae s l tc r u m ’ a c a h tn t o t w i ra ta tc r cag it eoo yEsnayt rom suhtg day hs h he t o suta hnenh cnm . ee rsogt r ul pae c le r ul e e il h f o a l otoe m ncnoot m re( e l tn pi te ul sc r r naos ugvr etot lf e a tl ri i ) raz pbc et og itn n r h k i az o . d ds rr ee a l i o. aen od ad e i sad oprenetet aos cnme h uhi ni fw td igos n src . l astn a iesi h ipctn og bl i f ntnlcnm a ayGo l i hsn ni d ii o i o r i a e bi o a t f e ie eedne n cm etn e en cnme it w r m re Tiirl t i n r pnec ad o pto bt e eoo i nh ol a t h see e n td i i w s e d k .t t s l rht g bln eoo yw i f m li ad vl tgtdm sc odi sIi h c at a l asg cnm .hmc . v i b a i o azi (raztn ad eue xotus i adm ota iso nb fer eg bl tn pi tao) n r c eprsbie n iprbre teal r td (oaz i ) vi i . s tl. e e fe h i tn i ie cni n. Goaztn en t d m ni otd bre bten aos n t ieri ot l l i m ash i at g f ae a is e e ntn adh n g tn f e bi o a es l n r rr w i e t ao h ntn eoo i tog fac lo . N wf Freaa s w t e p m atf l aztn n aoset oI i Eoo y o o uhrnli ea u IpcoGo l i o vru sc r fn a cnm . s o n h i e .n ( m ref nls t l az i oeoo yad v a t i d te o i o a ) k r y a. re at i e . m i . h bnf ot eetog bl tnnh I i I ut a t t n s n nh onyTe eet f e fc fl az i it n a n sy r h v m s e r i h fs o i o s a e dn d r e a . tl BO P. Impact of Globalization on Industrial Sector: Ef toGoaztn nni I ut s rd hnh gvr etpndh cut' fc f l l i o I a n sy tt w e t oe m noee t ony es bi o a d n d r ae e n e rs m re tf e nnetetit er 19sGoaztn f eni I ut t k l en a t oo i i s n nh ay 90. s vg a d n • lv tg oey Al ii pvr. un o i y • ee tg uynm ref epni oi ut ad e i sad G nri boat a t rxas n f dsy n src . h osa e t oc otn vib oh oe m nw i ipe l o s h d s rn e i i le e n c i s ply u nm tsm et tn ei nm k g t e aoal e oc at o yo o e x n idci . h le l tn fnis cnm w s dp d y m atnh xtg ae f oi euyTei ri i oI a eoo y a aot b e sn tn a t b az o a d’ e I ii19.ai at ntnl vl i o e. e an t • s rgod eut A s i f scr . heo u tg n ea an i o et t o su e a o i i l r an ui s i ply antfr ti oeh psb atn ad ecos foc s n dvl m n it oc cnoaodog rt os l cos n r tn opli ad ee p et nh i f n e ie i ai ie o s e r tf e ol Ticnti dh ply po aaaltt gvr et h hm lsos f e ot w r.n s i o e. a e t y ril ne b btdm sc n ie aoapli ad cnmc odi sR t r h a nu cd y o o et adn r tnloc s n eoo i t o h .n croa i s n i sr n al r ve t v m s bten aosGoaztn a i r sd c st w r ir eterdeoh f trg s e e ntn.n an k o o n r ve • k g us nacni tnoh ntnlcnmc rwh Mai sbt tlot uo tt aoaeoo ig t n ai r i b e i o . xl cm n ra. l l i ot I a n syo p c i k s rg v m s e l bi o h dn d r o a a i vru sc rsc a s e pa aeta pt l m ce i let .r icn sa e ul Sc r eor so r s hrt pi tsc r ule tet. l l i hsn e e ar sh ol ne nya u tt a por s w i bi o a ca o e d c s es e t ta be m d it flot ho g epc l icm ui tn adr sot h h hs en aenh id f cnl y seil n o m n aos n tnpr Te a ee e o ay ci a . e Consequences of Globalization: Tem laos fl astno a aoaeoo y rm n. ai a ee eoo ics. st dm sc cnmc ee p eta nte ri d nry y o et pli ad a e o et eoo idvl m n r odtmn et lb dm sc oc s n m r t i o se e e i e i ie k cni n. s fc d Ie eednenea ttd gn od ad e i s n im vm nocpa A aeu n r pnec ir r or i igos n src adn oe etfail s r l td g d an ve t.i e r tg cr Pbc et R su e tAe w e h ra et i nkl o n r() de i c i o c a e e ve o s i y e v g bl tn fcnm .niapoce t I f aonadh I n an 91Fc g svr cnmc ri I a prahdh MF o l . gvr etfnim d cagsnteoo iplyn 91 y h htlw d icf e n oe m noI a ae hne ii cnmc oc i19 b w i i l e det rg n d s i c ao r oi i etetit cut. r t ys k bi o a i o dn Impact of Globalization on Agricultural Sector: A ruu let it m it ot r aI i eoo y rud h h oi eoo i gclr Sc r h a s y f eu l d n cnm a n w i sc -cnmc i ta o s e na h r n a o c o pil e ad eraoseo e n ay hnentsutesi lthv a or pni rigs n dpi tn r l ad n cag ii tc rile o ae cr sod g ve vi vv sr u ky e n ipco t eii ptroS c lqi.

h pn 6 7 9 m m n mhs en a tnd i a rwh f1 % i20-7B cue f l aztnt o et a be m ia e wt g to1.els tad ui ssrcs ae rwhni ni src ( pi g ak giu ner ete n bsese i ) fr n a ve o s n n n a a a n ve . dacd Te eav Ef toGoaztn nni I ut a t t i t cmn ot ho g t h ngte fc f l l i o I a n sy r h wt h o i f cnl yh i es bi o a dn d r e a h e g e o e nm eol o r ue dc ae adh r ue im n polbi r oe f mt ios u br f bre id er sd n tse ldn ay ep e ge vdr h r b. n I a o pn s ae tt bcmn e et l l e nh n r tnl s iy dn e ae g s a e a s e tn i seeA ruu epr acut rbu1 t1% otaanaoanaeprot cn. b az o a Go tifac le i scm ri bni . e rs f e e im n f e i s frseten s rsr togot e onyR f m ot qr s h l i o i v o a r h r o h fac let cnt tt m siprncm oetfnis rg m eo a s cnmc i ni sc rosteh ot ot to pnnoI a por m t r eoo i n a o i e u m a d’ a w d le l tn i ri i .o pto.n cm ni ut s s n e m i. n 060. rg e d r e d. i20-4 one bc t8 % i20-5 n 1. sr c. eas oGo l i .m n f e n o pn seu i ut snni epc l it pa aeta B O pt l m ayo i cm ai stpn si iI a seil nh hr cucl P . h r neoo ile l i m au s ae pndh or w d b az o a c b az o a e e tf e n o pt rtet io udm sc a e I oao hs eo e m sf srvl oo i cm et so n r tor o et m r t n vtn a bcm a ut ru i . nf ti . h apnd a lit hr cucl hmc .n t ho g a i ni src i sysn prd f asi .nh cagd ot th i ni src i synn a a tp y vr oi e l i e . t d p go . 2 i d' ne e e 5 3 l i o r pcvl Mayni cm ai hv s rd eo i r pc b p yrit Ie aoa e ete . re rdc ir et ony 3 f h h a cni t b t an pout l eMan pout ne n r c r e b e i so i s c ya hv e e e a t sg lgscni t tt taaruu lxot o t cut er ae m r d sh i l a etot u roh o lgclr eprf m h ony s g e ne r r o b e t i ta r e r acutgo oeoei ot taaruu lxot C r l(ot bs a re n nn conn f vr n fh f eo lgclr epr. a m a un n r e Impact on Financial Sector: R f m ot fac let cnt tt m siprncm oetfnis rg m e e rs f ei ni sc rosteh ot ot to pnnoI a por m o h n a o i e u m a d’ a t a s cnmci ritnTeeetcnmci ritn esr hv oee t do o r eoo ile l i .eo u . a n cfe r h t r rmn trdc ah f h h con r ic . er 5o 0 f e oni taaruu lxot l h r t i ta e s Advantages of Globalization: • hria Ie aoam ref cm ai ado cnu e t ria i rag o Te s nn r tnl a t ro pn s n f osm r h es wd r e f e tn i k o e r se e n . 2 n 3. i20-6Te i i t5 % n 030 bucd ako . r tht cm etnade nl i l n a ve d r i r t o k f s i i c oc dvl m n a uhrgn nr eet cagsnh g blnni srcsnut. s cneunem n i oaos aeae p c it g blnni oe r ii sA a osqec. l t bnfo onyTi e e r c t e lfnm l m nad oeynh onyAs h eetf r s p d ev o t e r o e i t Ef toGoaztn nni I ut a t t eoe n o pn s ruhih h h fc f l l i o I a n sy r h t f i cm ai bogt i l e es bi o a d n d r e a h rg e n gy avne t ho g wtt madh hl do aeh I i I ut m rt ho g ay dacde nl y i h n ts e e tm k t n a n sy oee nl i l c o he i p e dn d r c o cl avne. ee p et r sen iupe dn d hne it l afac le i i sy o se i c e e o i a ve d r Impact on Export and Import: I is xotn Iprit ya20-2 a tt et tf2 7 ad 8 6 ml n n a Eprad m ot h er 010 w soh x no3.nh poesh sc r f i a u br f osr ten syo vr ya ioeIts rcstset i a n nm eo vi d r y i i o s cg caegsIts hne cn x t fac le i snut iI ihso l a e psi hlne. gclr xot conf aot3o 8 f t nulfnulxotf e i te s o ol h cut. e a m sy am ti ad oi r f h t i ta t s es l ic bs a re o sest ad oe a t o epo i npoutec ow i acutf am ti ) ied. n 040 ad 0 % n 050. e u ni h o 1 bi o h a fac le i snut iia eo otni nMa esi .n 000 A ruu lrdc vl d t oehn S$ ml n e eprdrmt onyI20-1 gclr pout a e am rt U 6 i w r xot f h r i ta s u a l i o e e o e cut 2% ow i w s ot u d yh m re rdc a n. h hl d eueh l eoue p y etn pvr it cut. e n a ve d r d a y t v ad ya irlit ya tcm b oen m n i oav pouttsih vrd n dnmco nh er o o e y frg ayn vte rdc o u t ae e e s fi n i s te i r ue etot ml n opopcv i et spedh uhut cut. rg i o en i k. ayn vtn hv t n l enh l afac l e ts n i k a eo i a sc rw i hv i o nm atnh dm sc et aoTe m r ne ovru fac l et s h h aet w ipco t o et sc rl . ay e m i. a qr e i st e n m o ej Tihpee m iynh pa aeta ce i l au c rgad e et dsi.n ce i let s n ts e e tpoi e p y et m n polit au c rgad hmc sc radh hl do rv e m l m nt ay ep nh a un a o i p d o o e e cut. h e e ecs faosi ni o c s e i o s g i n a it tn ad eu t y oi hv tnf m dh fac le i set f mbi a n i i s n r lo bd s aer s re t i ni src sc rr e g st o u ga r e a o e n a ve o o n cne av i ut ta e dnmc n. re m nf ti . l e f ee h e s c so nay t1% ot cut so lgclr epr. n i o va F ac l tm d rs ae o e uot ir i nlprah n t y rr d tasm i ni ie eii hv cm otf e tdi aapoc adh a e yo s e n a n r ae hr a t o e e a u m rc d rk.

% oet ps2 ya . cnmc xes ec r e o e a as d n s t ad aost i cnut arst g b evaeniad h ao u t w r it 2s n vru s d s odc d c sh l e nig I a n C i treh ol nh 1t i ue e o eo s d n l e d e cn r I i w i inwt f r lgseoo yne s fu hsg o epr . f BaiF I fw tC i nwece U $ 0 i n nul. Tcnl i lee p eta r ldne r ba da idvl i cut s oc o st vs i i on r e Demerits of Globalization (Challenges): • h ot u i oj so ee p g oni hseue il s f b idvl e cut s Te u orn f b tdvl i cut s a r ldno oj sn ee pd oni.ne etf d n gy o e s ca 7 s m recpaztnI ir k f r it w r. r c r i • r t adat fwoiom tn e en oni ad r t clr ie co hs e e Ge e n f e l f f ao bt e cut s n g a ruu l tatn a hl d ar s ro nr i w r e e e ta n r i p toe o e uu la is o vr m clr bre . % t os eg blae I a sa f ol e hni epr n e e f 0 o d o r d’ e d c s s ca o 5 .t olU h a n 5 % o r l D il so h a o xed S 5 bl anayIi n S n 5 r z . s cg o on r e st s o o r e • hria r t tetfped fo m n ald ess Te s g a rh aosr ocm ui b iae. d. s c i a r el cos a o b ao opli t tetnb st t eh oprny w i ao i t hoe cm i tn foc sh bseal ioa t pot i . cu n r t l ta ut f l on i h cvg t d de l a l r f cl itn o nao.pouttcos f m rdc o hoer . n 05Tea e r ete td ftv i o sid r se i e a ao ce A Comparison with Other Developing Countries: C ni rl atd – nishrow r m r ad e xoti r sdrm. c e uh r r c n i y oeae aa ad eo ehd a rcnmc o ewtn 0 er T cnl e e a sy vrk Jpn n bcm tr m j eoo ipw r ii1 ya .odi o k ti o d n uh e d a t o i o a t o aruu hs oipoe. n i e O et psdcd F Il sn I ihv ae gd rud . h nm eo gclr a nt rvdTe hr fgclr nh D s n 7 Te u br f i te m e i te e y l d sf is a i r sd n fm ra sl o mt g u i . uee aeg bl tncni n f a tail i .he vin h ni ie a e t k e ut l dg e pfl F r vr cn rt U id te hs enh lgseoo ynh w r bt a r i l o oea etyh ne Sa s a be t a etcnm it ol um j ts a. c ta rr • eho g advl m nhseue ir e e rn rnn ee p g oni. a ety n a h hs o h o t a etcnm itm opr ai pw r at m y u . Te s n ney gh aom l aoacroao wt m es pw run h l e e ln r t i n tn h lg e o • o s aedvl i ntn at r e i edi oli icyedo sbeomo F rm lr ee p g aos t ee in n. o zi · h nm eor al d sf isnr sdrm3 %i18 t4 % i19. u e t t er e d o dvl m n hv t e p c it w r Eoo y i ehnl d goh siof u f mt ee p et aea n l enh ol cnm sc t . 0 7 vrh at0 er O et a e eo C i ’ hr a t e o l s4 e s e i ns e id m p I ishrog blaesiirohtf e hi i s n cnm 6ie s ae n a sa fl atd is l tt ot Pi p e a eoo y t sm lr d’ e o r ma a h l n p m l acri tI et a s cod go MF sm t . cn e a h vr onn a ioe o eh e u e o n m r o i o t a d a y d l c e ds o c sog o i ptodvl m n Teesn feetxeec it t cut m scruy t nl nt a fee p et h l o or neprnesh a ony uta fl r y s h o . s o •nr s ifwoi etetf mdvl e cut so ee p g oni. use gh psi eet a lsa l hsn e e ada e r t cm in sid B tei t oi e fc n e mi e ca r sei l t i ce n e t fs v og bl tni a b sit te so I iwl vr m t s hrl t ad a h fl az i . ret5% Te u br fu l nlsa l i e e f r a e mi c a e o 5 n 97o 5 n 99ft ro 5 uh i20. vrh sm prd h a sa hsrl ta ot%. no n l i o l s y $ blnnh cs oI i 4i it ae fn a l i o e d. h fm ra dsndo ios r tn ru i . oG Paa s5 f vrh ateae D fw io n a ae vr e a n 0 % f D git% o e o t d a o 5 n r C i ad . Conclusion: I igi d i lf mt L Gm dlstG Pi r sdo . e ee r a c es • hria udri tetf ui tnlopri s i im ne o eri t g b. h h a b I e enl f vs n r ee pd oni tdvl i cut sw i cn e ca o n m so o r e on r e c ue f eoo ir osutn sdo cnmce ntco. ai tt htf csr h o s k a e d n e e n e f o o e U adh rh oni oErp tt to sn i t I iad h aEoo i epr S n t i cut s f u eoh w A i g n -n a n C i .n aa so t nh ol B tvn frl az i . i20-08Ir pco n a a e h h r h P oea i D n e e t9 % n 0720. h sa oaruu it G Piol1%. o oc d w cn a t i o h s u .

t t e oe itnht e e a ud sn udi l ia ot uo oGoaztn h t m drz i t w se r n u ior ayi s cni tn f l l i . bi o a h t v l i s i o dn S Goaztn a t e u aog a f m19 w i hseuat t avne etu o l l i hsa n s l w yr 91 h h a r lni h dacm nor bi o a k n o c st n e cut. ah nao a o lf e r i b bi o a Goaztn a btpsi ad s e a ngtem ato vru sc roI i Eoo y l l i hs o oi e n a w l s eav ipc n aoset s fn a cnm . co m . ony r The author can be reached at: a yu sh ya d a v @le g a lse rv ice in d ia .

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