Topic Effects of Globalization on Indian Society

Definition: Globalization = International Integration i.e. considering whole World as a single global village unified into a single society. The steps/processes which includes and vis--vis fasten the processes of globalization are:-

1. Opening of World Trade,

2. Development of advanced means of transport & communication so as fasten the process of integration,

3. Internationalization of World markets,

4. Relaxed Population/ Labour migration world vide,

5. Increased mobility of persons, goods, ideas, data, capital etc,

6. Multi National Companies,

7. Multi National Identities, etc.

Indias tryst with globalization: from the very beginning of Indus Valley Civilization India had trade and cultural relations with other countries of world notable are Mesopotamia, South east Asian nations, Greece, Roman Empire, china, Iran/ Iraq etc. In Ancient Civilization we have records of students from various nearby countries coming to Nalanda and Taxila University for receiving education in various fields.
Indias trade relations with Europe grew in Modern times during British occupation of India and continued to remain so till independence. After Independence Indias relation with rest of globe continued to grow through agencies such as NAM & U.N. (both of which India was a founding member).
After that in 1990, Rao-Manmohan LPG model (Liberalization, Privatization & Globalization) = growing economy + globally competitive = growing globalization. This model includes various steps which give a boost to globalization such as:-

1. Scrapping of Industrial licensing regime,

2. Reduction in the number of areas reserved for Public sector,

3. Amendment of the monopolies & restrictive trade practices Act,

4. Start of privatization programme,

5. Reduction in tariff areas,

6. Change over from controlled to Market determined exchange rates, etc.

Merits and Demerits: As we know that everything especially UPSC topics comes with their own merits and demerits. So lets look at some of the basic merits & demerits of Globalization.
Merits:

1. Jobs from developed countries to developing countries => increase in employment. E.g. BPO/KPO/IT/ Pharmacy jobs from USA/UK/Japan to India => India as a back office of world.

2. International Market for Companies (Global Markets) => their product renounced over worldwide => increase in sales and presence. E.g. Mac Donalds joint at Kashmiri gate, New Delhi.

3. Consumers have an option to choose from a wide range of products => they can have cheapest, best thing. Choice

4. Increase in flow of foreign capital in form of FDI(back stage cold storage) + FII (hot capital in share markets) => Financial development

5. Flow of information between countries through TV, Internet, etc.

6. Cultural interaction => overcome cultural barrier.

7. Technological development in developing countries

8. Boom in Telecommunication & service industry

9. Increase in volume of Trade => development

10. Foreign industries are collaborating with different Indian universities => education => control on illiteracy + Access to better & quality education/medical services

11. Increased in the purchasing capability of the nation through the creation of a sizeable middle class which is hungry for quality goods and services while there coexists a large poor class whose time is yet to come due to trickledown effect of globalization & development.

12. Extension of internet facilities even to remotest rural areas + Infrastructure development in rural areas => rural development, Inclusive growth, brings rural to main stream economy.

13. We can export what we produce in excess => less wastage + Import what we produce in deficient => meeting of requirements. Win-Win situation
Demerits:

1. Trade deficit (as in case of India) which hurt most in case of under-developed & developing economies & widen the gap between the developed & not so developed economies?

2. Drugs Arms Human Trafficking.

3. Outsourcing of jobs from developed countries to developing countries =>
Phase 1: loss of jobs in developed countries => unrest in developed countries
Phase 2: protectionist measures as recently in USA & Saudi Arabia => against the spirit of globalization + unrest in developing countries workers

1. Spread of communicable diseases like bird flu, swine flu, Japanese encephalitis

2. Interlinked economies => slowing down of economies of big players (USA, UK, etc) => cause havoc result on economies of developing & under- developed countries. E.g. Global recession which starts in USA => loss in jobs worldwide, economy of almost all countries more or less suffers.

3. Agriculture sector not improved as much as Service & Manufacturing sector. Agriculture share in GDP decreased, numbers of landless families increase, increase in farmers committing suicides. Matter of serious concern for countries like India which being an agriculture economy, more than 80% population directly or indirectly dependent on Agriculture.

4. Workers for same service in developing & under-developed countries are not paid equally to their counterparts in Developed countries => against the principle of equality for all

5. For smaller developing countries at the receiving end, it could indirectly lead to a subtle form of colonization

6. MNCs ruling the globe.

7. Not inclusive & equitable growth, rich becomes richer and poor becomes poorer

8. Not sustainable growth, development on growing negligence of environment, forests, wildlife etc.

9. In lure of easy money Indias youth leaving the education in mid-way & joining BPOs => decreasing skill level.

10. Destruction of traditional service providers. E.g. old restaurants, parathas & lassi are replaced by Mc. Donalds, Fast food & Chinese restaurants, cold drinks. In place of old cinema halls, multiplexes are coming up. In place of local kirana shops, malls have come up.

11. Advanced equipments. This equipment utility reduced the need of human labour force. Hence the rural people are shifting from place to place for want of labour for their livelihood.

12. Natural manure is replaced by synthetic fertilizers environment consequences.

13. As there is a shift from food crops to export crops, the prices of food items went on high, and the poor people couldn't buy from their meager income. Similar trend for clothing, housing health. Inflation

14. Developed countries fetching more benefits while developing & under developed not so much.

Conclusion:
Flowing with globalization, India is shining in nearly every area.
Her GDP has increased since 1991.
She is getting a global recognition and slowly moving towards to become a major economic & political strength.
Though the development is progressing rapidly, still many basic problems like rural poverty, corruption and political instability remained unsolved.
One would expect that the fruits of liberalization and globalization would have a trickledown effect through the collection of taxes and revenues by Government due to increased trade and commerce.
Globalization must be build upon the economic notion that free trade helps everybody and lift the poor out of poverty.
Ankur Gupta
List of reference websites-URL and books you used to prepare the article
Google, Wikipedia, taken help from many sites & books though not remember the exact names of sites/books as I prepared this article in breaks and I noticed the line List of reference websites-URL and books you used to prepare the article just while sending this doc. Also information gained earlier was in my back mind, so dont remember that sites/books from where I gained information earlier.