Topic: Globalization

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Industrial policy act
y

The new industrial policy was announced on july 24 1991, by the government, headed by prime minister P.V Narsimha Rao

Main features Privatization y Liberalization y globalization y .

privatization y privatization refers to transfer of any government function to the private sector .including governmental functions like revenue collection and law enforcement.[1] .

Globalization .

Introduction of Globalization y Globalisation happened in 1991 in India. so after that industrial sectors became almost free to make their own decision about establishing a new branch. Industries were facing so much government intervention. so the economies off all the nations are interdependent on other. privatise and Globalise the industrial sectors. Its main intention was to liberalise.Foreigners can also buy from India. y y . Drastic change is that now the Indian consumer is free to purchase the product which he likes from anywhere in the world. producing the products and marketing etc..

Globalization helps in creating new markets. y y .Definition of Globalization: y Globalization is a term that includes a wide range of social and economic variations. economics. and corporate investments between nations. Dismantling of trade barriers between nations and the integration of the nations economies through financial flow. It can encompass topics like the cultural changes. trade in goods and services.

y Assume that you are a mango farmer and you grow very good quality mangoes . . Obviously. but you also know that you shall get a better value in US. So the network of communication and execution that allows you to sell your fruit in US is basically. your fruit is highly appreciated in India. the phenomenon of globalization.

Globalisation could involve all these things! .

Measures towards globalization Convertibility of rupee y Import liberalization y Opening the economy to foreign capital y .

Particularly movement of material and goods between and within national boundaries. y International trade in manufactured goods increased more than 100 times (from $95 billion to $12 trillion) in the 50 years since 1955.emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies.Aspects of globalization Globalization has various aspects which affect the world in several different ways y Industrial .[15] China's trade with Africa rose sevenfold during 2000-07 alone.[16][17] y .

the instability of the global financial infrastructure dramatically increased. y By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment.emergence of worldwide financial markets and better access to external financing for borrowers.[19] y . as evidenced by the Financial crisis of 2007²2010.Financial .[18] y As these worldwide structures grew more quickly than any transnational regulatory regime.

[citation needed] y With globalization. y . based on the freedom of exchange of goods and capital. companies can produce goods and services in the lowest cost location.[23] y The interconnectedness of these markets. however. least worker protection and lowest health benefits.realization of a global common market. This may cause jobs to be moved to locations that have the lowest wages.Economic . y For Industrial activities this may cause production to move to areas with the least pollution regulations or worker safety regulations. meant that an economic collapse in one area could impact other areas.

y y y Health Policy . In developing nations under the demands of Structural Adjustment Programs. These fragmented policy players emphasize partnerships and specific interventions to combat specific problems (as opposed to comprehensive health strategies). health systems are fragmented and privatized. health becomes a commodity. Global priorities. Global health policy makers have shifted during the 1990s from United Nations players to financial institutions. in this situation. health policy is directed by technological advances and innovative medical trade. are sometimes at odds with national priorities where increased health infrastructure and basic primary care are of more value to the public than privatized care for the wealthy.[26] .On the global scale. Influenced by global trade and global economy. The result of this power transition is an increase in privatization in the health sector.This privatization fragments health policy by crowding it with many players with many private interests.

there will be a major reallocation of power among the world leaders. in part because of its strong and wealthy economy. the United States has enjoyed a position of power among the world powers. the People's Republic of China has experienced some tremendous growth within the past decade. then it is very likely that in the next twenty years.some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. With the influence of globalization and with the help of The United States· own economy.Political . China will have enough wealth. y If China continues to grow at the rate projected by the trends. and technology to rival the United States for the position of leading world power.[27 y ] Politically. industry.[28] y .

Indonesia. The pick up in GDP growth has helped improve India¶s global position. it was still lower than the growth rate in China. y y .9%. Though India¶s average annual growth rate almost doubled in the eighties to 5. Korea. India¶s position in the global economy has improved from the 8th position in 1991 to 4th place in 2001. and Mexico was more than twice that of India. when GDP is calculated on a purchasing power parity basis.IMPACT y India¶s growth rate in the 1970¶s was very low at 3% and GDP growth in countries like Brazil. Korea and Indonesia.

India is ranked 18th among the world¶s leading exporters of services with a share of 1.y During 1991-92 the first year of Rao¶s reforms program.2% 1993.94. A growth rate of above 8% was an achievement by the Indian economy during the year 2003-04.9%only. However the GDP growth accelerated to 5.3 % in 1992-93.3% in world exports y y y . The Indian economy grew by 0. and 6.

the global village dream becomes more realistic there is a propagation of democratic ideals The interdependence of the nation-states increases Outsourcing Access to the latest technology Promotion of healthy competition Improvement in human rights .POSITIVE IMPACT OF GLOBALIZATION y y y y y y y y y Goods and people are transported with more easiness and speed Free trade between countries increases Global mass media connects all the people in the world As the cultural barriers reduce.

Ford. Sony. Samsung. many others) . Samsung. HP. Sony) Sourcing (IKEA. Franchise. Mercedes) Computers (Del. Europe. Adidas. Pepsi) Fast Foods (McDonalds. Britain) Music (Sony.Large Number of Multinationals Have Moved to India Post Globalization (Strategy 100% Equity. Nike. National Geographic. Toyota. IBM. Pizza Hut. General Motors. Café Coffee Day) Sports Wear & Goods (Nike. Reid & Taylor) Cosmetics (Revlon. GE) Construction Engineering Companies Pharmaceuticals (US. Collaboration. Manufacturing) y y y y y y y y y y y y y y y Beverages (Coke. BMG. KFC) Coffee (Barista. Importing. Warner) Entertainment Channels (Star. Discovery. Suzuki. Adidas) Apparels & Garments (Levis. Compaq) White Goods (LG. Oriflamme. Hyundai. Maybellene) Two/Four Wheelers (Honda.

Globalization and its impact On Globalization Indian Industry. .

y . y The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts of foreign investments into the industry especially in the BPO. and manufacturing industries. Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced. retail.Globalization of the Indian Industry took place in its various sectors such as steel. they boosted the Indian economy quite significantly. textile. petroleum. petroleum. pharmaceutical. As huge amounts of foreign direct investments were coming to the Indian Industry. cement. pharmaceutical. chemical. and BPO. y This helped reduce the level of unemployment and poverty in the country.

With the foreign goods being better than the Indian goods. This reduced the amount of profit of the Indian Industry companies. The effects of globalization on Indian Industry have proved to be positive as well as negative. the consumer preferred to buy the foreign goods.y It increased competition in the Indian market between the foreign companies and domestic companies. The government of India must try to make such economic policies with regard to Indian Industry's Globalization that are beneficial and not harmful. y y .

Negative Effects of Globalization: y y y y y y y y y y Increase in unemployment in local labor market Exploitation of labor Job insecurity Threat of terrorism Increase in population Uneven distribution of income Bad aspects of foreign cultures Foreign acquisitions Increase in prices Influence on local political decisions and affairs. .

Thank You .

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