eco project globalisation final

8/11/2019 Eco Project Globalisation Final

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INTRODUCTION

WHAT IS GLOBALISATION ?

People around the globe are more connected to each other than ever before.Information and money flow more quickly than ever. Goods and services producedin one part of the world are increasingly available in all parts of the world.International travel is more frequent. International communication is becomingmore common. This phenomenon has been titled "globalization."

Globalization is a process of interaction and integration among the people

companies and governments of different nations a process driven by international

tradeand investmentand aided by information technology. This process has effects

on the environment on culture on political systems on economicdevelopmentand prosperity and on human physical well!beingin societies around

the world.

The result of greater foreign investment and greater foreign trade has beengreater integration of production and markets across countries. Globalisation is this

process of rapid integration or interconnection between countries. #$s areplaying a ma%or role in the globalisation process. ore and more goods andservices investments and technology are moving between countries. ost

regions of the world are in closer contact with each other than a few decadesback.&esides the movements of goods services investments and technology thereis one more way in which the countries can be connected. This is through themovement of people between countries. People usually move from one country toanother in search of better income better %obs or better education. In the past fewdecades however there has not been much increase in the movement of people

between countries due to various restrictions.

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http://usforeignpolicy.about.com/lr/globalization/65457/2/http://www.globalization101.org/issue_main/Trade_and_Globalizationhttp://www.globalization101.org/issue_main/Trade_and_Globalizationhttp://www.globalization101.org/issue_main/investmenthttp://www.globalization101.org/issue_main/technologyhttp://www.globalization101.org/issue_main/environmenthttp://www.globalization101.org/issue_main/culturehttp://www.globalization101.org/issue_main/developmenthttp://www.globalization101.org/issue_main/developmenthttp://www.globalization101.org/issue_sub/health/healthintroduction/health_and_globalizationhttp://www.globalization101.org/issue_main/Trade_and_Globalizationhttp://www.globalization101.org/issue_main/Trade_and_Globalizationhttp://www.globalization101.org/issue_main/investmenthttp://www.globalization101.org/issue_main/technologyhttp://www.globalization101.org/issue_main/environmenthttp://www.globalization101.org/issue_main/culturehttp://www.globalization101.org/issue_main/developmenthttp://www.globalization101.org/issue_main/developmenthttp://www.globalization101.org/issue_sub/health/healthintroduction/health_and_globalizationhttp://usforeignpolicy.about.com/lr/globalization/65457/2/


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GLOBALISATION IN INDIA

Indian economy had e'perienced ma%or policy changes in early ())*s. The neweconomic reform popularly known asLiberalization, Privatization and

Globalization+,PG model- aimed at making the Indian economy as fastestgrowing economy and globally competitive. The series of reforms undertaken withrespect to industrial sector trade as well as financial sector aimed at making theeconomy more efficient.

ith the onset of reforms to liberalize the Indian economy in /uly of ())( a newchapter has dawned for India and her billion plus population. This period ofeconomic transition has had a tremendous impact on the overall economicdevelopment of almost all ma%or sectors of the economy and its effects over the

last decade can hardly be overlooked. &esides it also marks the transition of theIndian economy into the global economy.

Globalization in India has allowed companies to increase their base of operationse'pand their workforce with minimal investments and provide new services to a

broad range of consumers.

#otable e'amples of international companies that have done well in India in therecent years include Pepsi $oca!$ola c0onald1s and 2entucky 3ried $hickenwhose products have been well accepted by Indians at large.

Globalization in India has been advantageous for companies that have ventured inthe Indian market. &y simply increasing their base of operations e'panding theirworkforce with minimal investments and providing services to a broad range ofconsumers large companies entering the Indian market have opened up many

profitable opportunities.

Indian companies are rapidly gaining confidence and are themselves now ma%orplayers in globalization through international e'pansion. 3rom steel to &ollywoodfrom cars to IT Indian companies are setting themselves up as powerhouses of

tomorrow1s global economy. ,arge companies entering the Indian market haveopened up many profitable opportunities .

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Steps taken towards go!a"#at"on and"!era"sat"on

Indian economy was in deep crisis in /uly ())( when foreign currency reserveshad gone up to almost 4( billion5 Inflation had roared to an annual rate of (6

percent5 fiscal deficit was very high and had become unsustainable5 foreigninvestors and #7Is had lost confidence in Indian 8conomy. $apital was flying outof the country and we were close to defaulting on loans. To combat all these

problems ma%or measures initiated as a part of the liberalization and globalizationstrategy in the early nineties included the following9

1.Devaluation: The first step towards globalization was taken with theannouncement of the devaluation of Indian currency by (:!() percent againstma%or currencies in the international foreign e'change market. In fact this measurewas taken in order to resolve the &alance of Payments +&;P- crisis.

2.Disinvestment$ In order to make the process of globalization smoothprivatization and liberalization policies are moving along as well. Under theprivatization scheme, most of the public sector undertakins have been! are

bein sold to private sector.

".Dismantlin of #he $ndustrial Licensin %eime$


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.%esident $ndian -cheme: The general policy and facilities for foreign directinvestment as available to foreign investorsC $ompanies are fully applicable to

#7Is as well. In addition Government has e'tended some concessions especiallyfor #7Is and overseas corporate bodies having more than @*A stake by #7Is.

.'bolition of the */%#P+ 'ct: It necessitated prior approval for capacitye'pansion and there were no such restrictions and rules and regulations onmonopoly firms with assets over (** crores.

0.#he removal of uantitative restrictions on imports.

.#he reduction of the peak customs tariff from over D** per cent prior to the D*

per cent rate that applies now.

3.4ide5ranin financial sector reforms in the banking capital markets andinsurance sectors including the deregulation of interest rates strong regulation andsupervisory systems and the introduction of foreignCprivate sector competition.

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'OSITI() I*'ACTS O+ GLOBALISATION

1.$ncrease in GDP-The rate of growth of the Gross Domestic Productof India has been on theincrease from >.@ per cent during ():*!)* to seven per cent in the ())D!=**(

period.$n the last four 6ears, the annual ro(th rate of the GDP (as impressiveat 0. per cent *277"57&+, . per cent *277&57+, nine per cent *27757+ and 3.2

per cent *277570+.Prime /inister /anmohan -inh is confident of havin a17 per cent ro(th in the GDP in the 8leventh )ive 9ear Plan period.

2. 8mplo6ment 5

ith globalization companies have forayed into the developing countries and

hence generated employment for them. $t has iven an opportunit6 to invest inthe emerin markets and tap up the talent (hich is available there. Indeveloping countries there is often a lack of capital which hinders the growth ofdomestic companies and hence employment. In such cases due to global nature ofthe businesses people of developing countries too can obtain gainful employmentopportunities.

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".)orein #rade5

#he forein echane reserves *as at the end of the financial 6ear+ (ere ; "3billion *2777571+, ; 170 billion *277"57&+, ; 1& billion *27757+ and ; 17

billion *in )ebruar6 2770+. $t is epected that $ndia (ill cross the ; 277 billion

mark soon.

&./arket


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.$nvestment and


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N)GATI() I*'ACTS O+

GLOBALISATION

AGRICULTUR)

There are various negative impacts of Globalisation the foremost casualty beingthe agriculture sector.'riculture has been and still remains the backbone of the

$ndian econom6. It plays a vital role not only in providing food and nutrition tothe people but also in the supply of raw material to industries and to e'porttrade.$n 131, ariculture provided emplo6ment to 02 per cent of the populationand contributed 3 per cent of the ross domestic product. >o(ever, b6 2771 the

population dependin upon ariculture came to per cent (hereas the share of

ariculture in the GDP (ent do(n drasticall6 to 2& per cent and further to 22per cent in 277570.This has resulted in a lowering the per capita income of thefarmers and increasing the rural indebtedness.

The agricultural growth of D.= per cent observed from ():* to ())6 decelerated totwo per cent subsequently. The per cent in ():6 to F> percent in ())) further to >> per cent in =**>. The farmers are destined to die ofstarvation or suicide. 7eplying to the ?hort 0uration 0iscussion on Import ofheat and


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0uring the post!reform period India has been shining brilliantly with a growingnumber of billionaires. #obody has taken note of the sufferings of the familymembers of those unfortunate hundred thousand farmers.

3urther the proportion of people dependin in $ndia on ariculture is about 7? (hereas the same for the U@ is 2 ?, U-' 2 ?and Aapan " ?. The developedcountries having a low proportion of population in agriculture have readilyadopted globalization which favors more the growth of the manufacturing andservice sectors.

GROWTH O+ UN)*'LO*)NT AND 'OW)RT

The proportion of the unemployed to the total labor force has been increasing from

=.@= per cent +())D!)F- to =.6: per cent +()))!=***- and D.*@ per cent +=**F!*>-.

In absolute figures the number of unemployed in those years had been ).*=

million (*.>( million and (D.(* million respectively. +8conomic ?urvey =**@!*6

Table (*.F-

'bout the impact of lobalization, in particular on the development of $ndia,theI,; 7eport +=**F- stated9 In India there had been winners and losers. The lives ofthe educated and the rich had been enriched by globalization. The informationtechnology +IT- sector was a particular beneficiary. &ut the benefits had not yetreached the ma%ority and new risks had cropped up for the losers9 the sociallydeprived and the rural poor.


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SOCIAL S)R(IC)S


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The cumulative 30I inflows +until ?eptember =**@- to the #ew 0elhi region wasof 7s. =6D@) crores and to umbai 7s. =F>F> crores. The two spots of #ew0elhi and umbai received F@ per cent of the total 30I inflows into India.

#he )D$ inflo(s have in no (a6 assisted in improvin the health andenvironment conditions of the people.

Cn the other hand, the financial capital of $ndia and the political capital of$ndia are set to become the topmost slum cities of the (orld.

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CAS) STUD456donad7s

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eco project globalisation final

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