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% (200304), 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 20062007.

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