2021-22

SUBJECT: GLOBALISATION LAW AND JUSTICE

Assignment in lieu of attendance

SUBMITTED TO - SUBMITTED BY -

PRASHANT PANDHARIKAR SHUBHANGI SINGH

FACULTY OF LAW REG. NO: 21123107

CHRIST UNIVERSITY, LAVASA CAMPUS LL.M. (INTELLECTUAL

PROPERTY AND TRADE
LAW).

CHRIST(DEEMED TO BE) UNIVERSITY, LAVASA-PUNE.

MARCH, 2022
 GLOBALISATION IN INDIA

History of globalisation in India

Around 1948, India's industrial strategy was very permissive on trade and investment policies, which
were mostly driven by the demands of local industry and economy and adopted in incremental steps. The
Foreign Investment Statement (1949) favoured foreign corporations operating in India. Few industries
were reserved because of their strategic relevance under the 1956 Industrial Policy, and foreign
corporations were prohibited from investing in these areas. Following the foreign currency crisis of
1957-58, the Government of India provided foreign corporations a variety of incentives, concessions, and
loosened entrance restrictions in several industries. In 1973, the Foreign Exchange Regulation Act
(FERA) became law.

Under Foreign Exchange Regulation Act 1973 (FERA) foreign firms with more than 40% equity in their
Indian operations were required by FERA to continue doing business in India. Foreign corporations were
treated the same as enterprises subject to Monopoly and Restrictive Trade Practices (MRTP). The 1977
Industrial Policy Statement announced a relaxation in profit remittances, royalties, dividends, and foreign
company capital repatriation. Industrial licensing was streamlined and made easier in 1980, setting the
tone for gradual but continuous deregulation.

The wake of globalisation was first felt in the 1990s in India when the then finance minister, Dr
Manmohan Singh initiated the economic liberalisation plan. Since then, India has gradually become one
of the economic giants in the world. Today, it has become one of the fastest growing economies in the
world with an average growth rate of around 6-7 %. There has also been a significant rise in the per capita
income and the standard of living. Poverty has also reduced by around 10 %.

The service industry has a share of around 54% of the annual Gross Domestic Product while the industrial
and agricultural sectors share around 29% and 17% respectively. Due to the process of globalisation,
exports have also improved significantly.

Impact of globalisation in India

India's economy has grown dramatically since it integrated into the global economy in 1991. It has a
drastic impact on India's economic condition. Its average annual rate has grown from 3.5% (1990 –1980)
to 7.7% (2002–2012). That rate peaked at 9.5% from 2005 to 2008. Economic growth has also led to
increases in the per capita gross domestic product (GDP), from $1,255 in 1978 to $3,452 in 2005, and
finally to $3,900 in 2012.

Jobs in the technology and business sectors have many benefits. However, only the people in those
sectors are benefiting. The overall employment rate for the country has decreased, while the number of
job seekers is increasing at a yearly rate of 2.5%. Despite these statistics, the GDP is increasing every
year. Growth is limited to some states, including Gujarat, Maharashtra, Karnataka, Andhra Pradesh, and
Tamil Nadu. Other states like Bihar, Uttar Pradesh (UP), Odisha, Madhya Pradesh (MP), Assam, and
West Bengal remain poverty-stricken.
India is one of the countries that succeeded significantly after the initiation and implementation of
globalisation. The growth of foreign investment in the field of corporate, retail, and the scientific sector is
enormous in the country.

Many of the services such as voice-based business processes (commonly known as BPS, BPO, or call
centres), accountancy, record keeping, music recording, banking services, book transcription, film editing,
clinical advice, or teachers are being outsourced by the companies from the advanced countries to India.
It also had a tremendous impact on the social, monetary, cultural, and political areas. In recent years,
globalisation has increased due to improvements in transportation and information technology. With the
improved global synergies, comes the growth of global trade, doctrines, and culture.