You are on page 1of 7




Submitted to:
Asst. Prof. Mr. Sanjit kr. Chakraborty
Professor of Law

Submitted by:

pg. 1
Globalization1 is that the new thing that has return to dominate the globe since the nineties of
the last century with the tip of the conflict and therefore the break-up of the previous land and
therefore the international trend towards the rolling ball. The frontiers of the state with
multiplied reliance on the free enterprise and revived religion within the non-public capital
and resources, a method of structural adjustment spurred by the studies and influences of the
globe Bank and alternative International organizations have started in several of the
developing countries. conjointly2 globalization has brought in new opportunities to
developing countries. bigger access to developed country markets and technology transfer
hold out promise improved productivity and better living commonplace. However,
globalization has conjointly thrown up new challenges like growing difference across and
inside nations, volatility in money market and environmental deteriorations3. Another
negative side of globalization is that a good majority of developing countries stay off from
the method. until the nineties the method of globalization of the Indian economy was strained
by the barriers to trade and investment relief of trade, investment and money flows initiated
within the nineties has more and more lowered the barriers to competition and hastened the
pace of globalization.

India opened the economy within the early nineties following a significant crisis that diode by
a distant exchange crunch that dragged the economy on the brink of defaulting on loans. The
response was a slew of Domestic and external sector policy4 measures partially prompted by
the immediate wants and partially by the demand of the four-sided organisations. The new
policy regime radically pushed forward in favour of a more open and market familiarized

Major steps that took off as a result of the liberalization5 and globalization strategy within the
early nineties enclosed scrapping of the economic licensing regime, reduction within the
variety of areas reserved for the general public sector, modification of the monopolies and
also the restrictive trade practices act, begin of the privatization program, reduction in tariff
rates and alter over to promote determined exchange rates.

Over the years there has been a gradual liberalization of this account transactions, a lot of and
a lot of sectors opened for foreign direct investments and portfolio6 investments facilitating
entry of foreign investors in telecommunication, roads, ports, airports, insurance and different
major sectors.

The Indian tariff rates reduced sharply over the last decade from a weighted average of
seventy two .5% in 1991-92 to twenty four.6 in 1996-97. Though, tariff rates went up slowly

1 visited 29-03-2019
3 visited 29-03-19
5 visited 29-03-19

pg. 2
within the late nineties it touched thirty -five.1% in 2001-02. India is committed to reduced
tariff rates. Peak tariff rates to be reduced to the minimum with a peak rate of 2 hundredth, in
another a pair of years most non-tariff barriers7 are destroyed by march 2002, together with
the majority quantitative restrictions.

The easement of the domestic economy and also the increasing integration of Asian country
with the worldwide economy have helped intensify gross domestic product growth rates, that
picked up from five.6% in 1990-91 to a peak level of seventy seven.8% in 1996-97. Growth
rates have caught up since the country has been ready to accomplish 5-6% rate in 3 of the last
six years. Although, growth rates has attained to all-time low level four.3% in 2002-03
principally owing to the worst droughts in 20 years the expansion rates are expected to travel
up near to seventieth in 2003-04. a worldwide comparison shows that Asian country is
currently the quickest growing simply when China.

This is major improvement as long as Asian country is rate within the 1970's was terribly low
at three-percent and gross domestic product growth in countries like Brazil, Indonesia, Korea,
and North American country was over double that of Asian country. Now, India's average
annual rate nearly doubled within the eighties to five.9% it absolutely was still below the
expansion8 rate in China, Korea and Republic of Indonesia. The obtain in gross domestic
product growth has helped improve India's international position. Consequently India's
position within the international economy9 has improved from the eighth position in 1991 to
fourth place in 2011. once gross domestic product is calculated on a buying power parity


Globalization within the variety of enlarged integration though trade and investment is a very
important reason why a lot of progress has been created in reducing poorness and world
difference over recent decades. however it's not the sole reason for this usually unpopular
progress, smart national polices, sound establishments and domestic political stability
conjointly matter.

Despite this progress, poorness remains one in all the foremost serious international
challenges we tend to approach to one.2 billion of the developing world four.8 billion
individuals still sleep in extreme poorness.

But the proportion of the globe population living in poorness has been steady declining and
since 1980 absolutely the range of poor individuals has stopped rising and seems to own
fallen in recent years despite robust increment in poor countries. If the proportion living in
poorness had not fallen since 1987 alone an extra 215million individuals would be living in
extreme poorness nowadays. India has got to think about 5 vital areas or things to follow to
attain this goal. The areas like technological entrepreneurship, new business openings for tiny

7 visited 29-03-19
9 visited 29-03-19

pg. 3
and medium enterprises, importance of quality management, new prospects in rural areas and
privatization of economic establishments. The producing of technology and management of
technology are 2 completely different vital areas within the country.

There will be new prospects in rural Asian country. the expansion of Indian economy greatly
depends upon rural participation within the world race. once implementing the new policy the
role of villages got its own significance due to its distinctive outlook and stigmatization ways.
for instance food process and packaging ar the one in all the realm wherever new
entrepreneurs will enter into a giant manner. it's going to be unionized during a collective
manner with the assistance of co-operatives to fulfill the world demand. Understanding this
real definition of globalization is important for setting course for future.

The Indian economy is passing through a tough period by several unforseen domestic and
external developments; Domestic output10 and Demand conditions were adversely suffering
from poor performance in agriculture within the past 2 years. the world economy tough
associate overall slowing associated recorded an output growth of two.4% throughout the
past year growth in real gross domestic product in 2001-02 was five.4% as per the Economic
Survey in 2000-01. The performance within the half-moon of the yr is 5.8% and second
quarter is half-dozen.1%.

India's Export and Import within the year 2011-12 was to the extent of thirty- two,572 and
38,362 million severally. several Indian corporations have started changing into respectable
players within the International scene. Agriculture exports account for regarding thirteen to
eighteen of total annual of annual export of the country. In 2010-11 Agricultural11
merchandise valued at over US $ 6million were exported from the country twenty third of
that was contributed by the marine merchandise alone.

Marine merchandise in recent years have emerged because the single largest contributor to
the whole agricultural export from the country accounting for over one fifth of the whole
agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oil seeds, tea and
occasional area unit the opposite distinguished merchandise every of that accounts to nearly
five to 100% of the countries total agricultural exports.


1. Since the Seventies, the way reaching changes that have taken place within the world
economy are jointly known as economic process. This term describes the extension of the
normal patterns of international economic activity to high levels and to new areas:

10 visited 29-03-19
11>India visited 29-03-19

pg. 4
technology, trade, production, finance, investment, and data. New regions of the globe are

2. the primary major development is that the dramatic advances that are achieved in info
technology within the past 20 years. As telecommunications12 and computers became
additional refined, the flow of data between geographically distant elements of the world has
dramatically enhanced. International enterprises area unit able to disperse production world-
wide while holding tight day by day management.

3. The second major development and, to a substantial extent, a corollary of this info
revolution, is that the acceleration and intensification of international money flows. Over the
last 20 years, we've got seen a progressive shift from divided national finance markets to one
international finance market characterized by a vast pool of extremely mobile funds.

4. The third major development, once more heavily influenced by the data revolution, is that
the incorporation of latest regions of the world into the open world economy. the continued
transition of Russia from state socialist to capitalist laissez-faire economy, the increasing
marketization of the Chinese economy, and also the easing of the many less developed
economies, has for the primary time season the open market system a really international
scope, and else an enormous new labour force to the globe market.

5. These developments have acted to integrate the globe economy, and at a similar time to
accentuate competition between individual countries as each the amount of players, and also
the size of the stakes, have enhanced. This intensification of competition13 has qualitatively
modified the character of the market place, necessitating a radical shift in economic policies
and business ways.

6. These developments area unit unbeatable and provide important opportunities to boost
combination living standards across the globe within the long run. Economies in Asia, and
more and more in geographical region, that have embraced this shift and pursued export
homeward, open market ways, have succeeded in capturing important foreign investment and
important market share, and so earned high levels of growth. within the medium term this can
increase their political influence.

7. economic process won't of itself improve a nation's economic well-being. The new
conditions have created the potential for serious issues within the world economy. These
issues is classified in terms of:

(a) A danger that the size of capital movements and also the lack of regulation might allow a
heavy dislocation to occur at intervals money markets with serious ramifications for the globe
economy as a full.
(b) A danger that, while several countries have succeeded in taking advantage of the
opportunities of economic process, others, most perceptibly in Sub-Saharan Africa, have did

12 visited 29-03-19

13 visited 29-03-19

pg. 5
not do therefore, and have become more and more marginalised in what has become a 2 track
world economy.

(c) A danger that developed economies can fail to regulate to the enhanced competition
within the world economy, resulting in a backlash against economic process and a
wastefulness of the opportunities offered by it.

8. Such risks should be managed and overcome. it's essential that we have a tendency to don't
enable the truth of economic process to steer INDIA that nothing is done to handle the
challenges that it poses.

Whilst nation states might have declined in power, they preserve a substantial scope for
action at intervals their own boundaries, and that they will recover several of their previous
capabilities by tetramerous cooperation. economic process is a chance we have a tendency to
should profit of, not associate degree alibi for inaction. the long run welfare of all the world's
peoples cannot become a mere handmaiden of impersonal international economic process.
daring and enlightened leadership, and shut co-operation are going to be needed.

Many developed economies square measure failing to regulate to the new conditions created
by economic process. Sectors of economies in a very variety of nations square measure unfit
by inflexible labour practices and inadequate academic and coaching provision, creating new
investment less enticing. At identical time, several of those states, notably those in Western
Europe, square measure finding it tougher to finance adequately the welfare services that
diagrammatic the premise of the accord with their societies throughout the post war amount.
This raises the prospect of a backlash against economic process which can squander the
opportunities offered by it.

9. the primary step in addressing this case should be for the political leaders of developed
economies to refrain from victimisation14 competition from low wage economies as a
whipping boy for his or her domestic issues. there's presently lean information to support the
reputed association between competition from low wage economies and rising difference and
state within the developed world. Indeed, the final correspondence between wage levels and
productivity levels suggests that such a association is unlikely to occur in a very majority of
economic sectors. Developed world issues ought to be seen initial and foremost as product of
developed world conditions.

10. The central task that confronts these states is thus, to not defend their economies from low
wage competition, however rather to boost productivity levels before wage levels. provided
that productivity levels may be therefore raised can developed economies regain their fight.
This implies:

(i) an endeavor to structure labour markets so as to form a additional versatile system15 of

employment practices.

14 visited 29-03-19
15 visited 29-03-19

pg. 6
(ii) a trial to boost basic academic and education capabilities, notably within the use of recent

It should be noted, by method of conclusion, that it's ultimately not possible to think about
the economic problems exhibit by economic process in isolation from the broader political
science context during which they rest. If we have a tendency to square measure to require
advantage of the opportunities of economic process, a comparatively stable strategic
surroundings is a necessary precondition. Yet this can be by no suggests that as secure the
maximum amount of the triumphalism related to the tip of the conflict would appear to
recommend. In several regions of the planet, like the previous Union of Soviet Socialist
Republics, Balkans, Mideast, Indian Sub-continent, and East Asia, there remains a possible
for conflict that, if allowed to develop unrestrained, might have serious implications for our
possibilities of meeting the challenge of economic process. It would thus appear essential that
the structure of economic governance projected here be supplemented by Associate in
Nursing increased structure of security governance. The precise form that such a structure
may take is on the far side the scope of this working party, involving, because it would, the
longer term of the UN and also the council, the link of world organization with Russia, the
settlement of the center East, and different regional issues. however we have a tendency to
square measure clear that there's a requirement for pressing consultation and cooperation to
boost stability in these components of the planet. Like a coin having 2 sides, economic
process too has its pluses and minuses. Currently, economic process is at its peak. Industries
sound the new markets have to be compelled to confine mind the native culture and
sentiments of the folks. Monopoly by big players should not be practiced and also the native
players should not be suppressed. honest trade dealings and moral practices once followed,
would continually prove that economic process could be a boon and not a scourge to society.

pg. 7