IMPACT OF GLOBALISATION

ON INDIAN CONSUMPTION
BEHAVIOUR

SUBMITTED TO:
SUBJECT: SOCIOLOGY
NAME: MALIHA SULTANA
CLASS: 2 ND BA.LLB sec-A
REG. NO.: 20159
INTRODUCTION:

To understand the impacts of Globalization on consumption

behaviour or any other sector of any country, it is important to know
about globalisation first. Let’s understand about Globalisation.
Globalization is the process in which the countries of the world
started interconnecting and interdepending on the trade of goods
and services, education, business, culture, technology, transportation
etc with an objective of advantage to both sides of the coin, which
means that its advantageous for each country involved the process
of globalization.
Globalization as a concept was first introduced in the work of Adam
Smith’s, “Wealth of Nations”. Globalisation was rapidly spread in the
late 19th century across the globe.
In India, Globalization was started with the economic reforms policy
called LPG (liberalisation privatisation and globalization) in the 1990s
with an objective of improvement and development of the Indian
Economy across the World.
Globalization is playing a major role in interconnecting various
sectors of different-different countries globally. At present we could
understand Globalization by its following types:
- social globalization, economic globalization, technological
globalization, financial globalization, political globalization,
cultural globalization, Ecological globalization etc.

Consumer behaviour is related to Economic Globalization.

Economic globalization means the production and distribution of
goods and services at a global level with fewer restrictions and trade
barriers such as tariffs and quotas. Globalization is a very helpful
process to develop the economy for the underdeveloped and
developing countries as in the case of India. Moreover, Globalization
opens the way for extending ideas, languages, technologies, the
culture of the people across the boundaries of the nation.

INDIA BEFORE GLOBALIZATION

India was a rich country with huge wealth before the British ruled
but Britishers looted India in all the possible economic ways with
heavy taxation and economic policies. The data reveals that
Britishers stole $45 trillion and much more during their rule and left
India after making it a poor and dirty but independent country.
Post-Independent India faced many challenges being a backward
economy with its major income and employment source in
Agriculture and no proper technologies, no proper transportation or
communication facilities, less industrialisation, no proper health and
security of the people with no proper educational institutions and
poverty and a huge problem of unemployment.
However, India had overcome most of the challenges with its major
economic reforms such as the Five-Year Plan in the 1950s, LPG in the
1990s etc that made major developmental changes and
improvements in the Indian economy with a positive change in the
GDP of the country. The Agricultural sector, educational sector,
Industrial sector are all in the positive developmental phase with the
improved technological development and with the open market
operations post Globalization.

INDIAN CONSUMPTION BEHAVIOUR POST-

GLOBALIZATION:
We all are consumers of one or the other products in society. In the
field of marketing, the needs and preferences of the customer and
the behaviour of the consumer matter a lot. In India there live
different groups of people with different living standards. Some are
very poor; some belong to the middle class and others belong to the
above middle class and some are rich and some are filthy rich. But
every person has different needs and satisfy them according to their
lifestyle and purchasing powers.
Several factors influence the behaviour of consumers such as society,
culture, status, purchasing power and so on. Individuals also make
choices by being influenced by others. Indians’ consumer behaviour
is one such, very adaptive and we could notice the impact on the
choice-making of Indians.

EXAMPLES
The addiction of consuming Junk foods
due to the globalization of foreign brands such as McDonald’s,
Dominos Pizza Huts, the impact of pizza hut is so much that today
every other child love to have pizza and it makes Indians more
creative than they are making Indian dishes such as authentic south
Indian dish like Dosa in the style of pizza and naming it as PIZZA
DOSA, Chinese food restaurants, the idea of having noodles made
Indian street foods more of Chinese style, moreover today in the
menu most of the restaurants and hotels we find a Chinese dishes
section.
The attraction towards wearing modern dresses
This is one of the good examples of Globalisation, it’s not just the
westernisation which made the changes in the traditional dressing of
Indians but also the Globalisation to a large extent, as per the official
data under the companies’ laws 124 foreign companies are
registered in India as of 2019-20. Moreover, India imports textiles
and clothing from foreign countries like the United States,
Bangladesh, Vietnam etc.
MIGRATION
Another interesting fact of Globalisation is on Indians themselves. In
search of Jobs or studies, Indians are migrating from India to other
foreign countries. If we refer to the reports of the Ministry of
External Affairs, we can know that there are about 32 million NRIs
(non-residents Indians) and Overseas Citizen of India who is residing
India the reports also reveals that every year about 2.5 million, which
is a very good number of people migrate out of India.
COLLABORATION OF FOREIGN UNIVERSITIES
Globalisation made possible the collaborations of foreign universities
with Indian universities. The education sector is not less than a
market to make good money in the name of providing good
education, but still, to see the positive side of it every individual
wants to study in a reputed school reputed university, the
preference made by the youth of studying in abroad, are all the
changes that India is experiencing and the non-formal, informal-
types of the education system is far left behind. Moreover, during
the pandemic most of the people depended on smartphones,
laptops for online classes and their work from home respectively,
increasing the demand for electronics – mobile phones and laptops.
POPULARITY OF FOREIGN BRANDS
In the observations of the Consumption behaviour of Indians, it can
be seen that Globalization has impacted a lot. To frame, some of the
examples could be the demand for foreign products such as
Chocolates, Cadbury Dairy Milk chocolate is a very popular brand in
India that its slowly attracting all age groups of Indians with its taste
increasing the demand for same. India also imports soft drinks such
as Red bull, Cocoa-cola. Moreover, as per the reports India imports
soft Drinks from more than 42 countries across the globe.
TECHNOLOGICAL DEVELOPMENT
Consumers also spend their part of their income for entertainment
purposes, on cinemas and theatres. Today there is television, smart
TVs perhaps in every single house. Several serials, reality shows,
Various country’s new channels are broadcasted on the tv channels
which is developing the interconnectedness among the various
countries to know about the culture, government systems, news etc
of various countries of the world
TRADE AND BUSINESS
In total, according to the reports of the Ministry of Commerce and
Industry, On the one hand, India exports 75000 commodities to 192
countries across the Globe and on the other hand, it imports about
6000 commodities from 140 countries around the world.
The Concept of urbanisation is growing and the cities are rapidly
developing such as Bangalore, Mumbai, Chennai, Hyderabad.
INCREASED PURCHASING POWER PARITY
Simultaneously the growth of the middle-class and number of
households and the living standards of the people is increasing with
the increase in purchasing power and demand for quality materials
and products for consumption. And the reports show that consumer
spending is increasing day by day. The major areas where the
consumers are spending is on electronics, Telephone services, Goods
and services for routine household maintenance, Entertainment,
Education sector, Medicines and medical services, tours and travel
etc.
Today, India is competing with other countries with its third-largest
prchasing power parity (PPP) at the global level as of 2021 and ranks
at seventh position in the world’s largest economy by nominal GDP.

CONCLUSION:
According to the research, the consumer spending in the year 2017
was 1.4 trillion dollars and is assumed to be increased more as per
the data accordingly.
Thus, after referring to various informative articles and data, I
understood that the needs of the people are changing according to
the changing time. Indian culture had a great impact on Globalisation
in terms of buying anything, the preferences, choices and
expectations have been changed. Urbanisation is one of the great
impacts of globalization in India. The country is experiencing high
technological development in various fields.
Globalization, International trade, liberalisation, and privatisation
contribute a lot to India's development and its economy.
The Process of Globalization also have Negative impacts such as
Migration, unemployment, currency fluctuation, inequality in the
economic growth of different sectors, inequality of development
among the rich and the poor, Globalisation is increasing the gap
between the rich people and the poor, making rich richer and
poorer, Instability of the prices, etc. India holds the third-largest PPP
in the world and the economy of India is growing. But even after
making so many economic reforms, industrialisation, urbanisation,
the country is not fully developed. Still many states and many cities
in India should be developed for the overall development of the
country as a whole. But there is a considerable change in consumer
behaviour and development in most of the sectors after the
economic reform of LPG in India.