Impact of Globalization

- Swapnil Panpatil
A-1632
What Is Globalisation..?
Integration of the Indian economy
with the world economy.

Does not differentiate between the

world domestic market and the
foreign market.
 Globalisation..?

We have everything by
GLOBALISATION, we have
nothing by GLOBALISATION
Impact of Globalisation
on Indian Economy

Brighter side of globalisation.

Darker side of globalisation.

 Positive Aspects
(Brighter Side of Globalisation)

The rate of growth of the GDP of India has

been on the increase from 5.6 % during
1980-90 to 7% in the 1993-2001 period. In
the last four years, the annual growth rate
of the GDP was impressive at 7.5% (2003-
04), 8.5% (2004-05),9% (2005-06) and 9.2%
(2006-07).
The foreign exchange reserves were $ 39
bn (2000-01), $107 bn (2003-04),$145 bn
(2005-06) and $180 bn (in February 2007).
 Positive Aspects
(Brighter Side of Globalisation)

India’s trade deficit during 1990-1991 to 2006-

2007 ranged between 3.6% to 6.9% of GDP.
The fluctuation in Foreign portfolio Investment
were much sharper then FDI, The FPI rate
decreases by 36% from period 1990-00 and
again shows upward growth rate in period 00-
07 was 22.1%.
FDI (net) shows a gradual upward growth from
$97 million in 1990-1991 to $3272 million in
2000-2001 and again rising and touching the
peak of $8779 million in 2006-2007.
 Positive Aspects
(Brighter Side of Globalisation)

Share in world exports raise from

0.52% in 1990 to 1% in 2007.
In the rate of growth of per capita
income there has been a sharp
acceleration in the growth of per
capita income, almost doubling to an
average of 7.2% p.A. (2003-04 to
2007-08).
 Negative Aspects
(Darker Side of Globalisation)

Industrialisation did not take place as per

expectation.
Share of agriculture in the GDP went down
drastically to 24 per cent and further to 22
per cent in 2006-07.
The number of rural landless families
increased from 35 per cent in 1987 to 45
per cent in 1999, further to 55 per cent in
2005.
 Negative Aspects
(Darker Side of Globalisation)

Corruption, lack of efficiency in work and

ineffective management became the
common features of public sector.
Decreased FDI: The data of FDI shows
50% (approx) gradual upward growth from
90-00. The FDI growth decreased by 20%
from period 2000-07.
 Negative Aspects
(Darker Side of Globalisation)

Our progress in education has been

slow and superficial , without depth
and quality, to compete the
international standards.
People depending on agriculture in
India is about 60% where as the
same for U.K. Is 2% and U.S. Is 2%.
THANK YOU