Globalisation of Indian Economy

          “Globalisation”, this was the term which was heard in the early 90’s in Indian Economy by our erstwhile Finance minister, Mr. ManMohan Singh. This was his contribution of introducing the concept in his term as LPG i.e. Liberalisation, Privatisation & Globalisation. After introducing this concept, many of the economist envisaged that the time has came to Indian economy to develop in its own way. Here, my advocacy in this discussion is that, what made the economists to have such a feeling of long term development of Indian Economy? So let us have a look on that.

          Globalisation means opening up of Indian economy to the whole world. In India this concept came into force in the year 1990 which was made to open the door of Indian Corporate world to entire globe. This was made to develop the country by which the foreign & multi national companies can take a step to come in India for establishing their concerns. Hence it made the economists to envisage the future growth of country in a tremendous way.

          The main cause of introducing this concept was the development of Country; financially, globally, technologically & also in other aspects. In late 1990’s the Government of India came to know that the development will be made only when the income will be generated in the host country by which it can be used for the social or societal causes. But this can be achieved only when the people from abroad come to India & start to generate the income. After knowing these causes the Government of India invited all the foreign companies to Indian corporate world.

          The effect of this concept was very favourable. Initially many of the concerns who’ve their own image in the global corporate sector were taken the initial step to come to India. The result of this made the people to get the opportunity of job which subsequently made to increase the per-capita income of the country. Not only single, but there were many effects found in the country due to introduction of this concept which will be known after reading the later part of this essay.

          In this discussion, firstly I want to focus the effect of Globalisation on individual. Let the Government introduce any policy, but the end effect of all the policy will end on the individual only. When there was the implementation of Globalisation as a policy, then there was a tremendous job opportunities to the individuals by which they can possess their talents to the maximum extent. Apart from these many of the multi national companies were setup their concerns in India & created the job opportunities which in turn increased the per-capita income of the country. Hence, not only the per-capita income but also the standard of living of the individual was also increased.

          As the main intention of introducing this concept was to invite the foreign industries to the Indian economy, so the effect of this policy was also seen on the corporate sector. Because of the globalisation of Indian economy many industries were given an opportunity to act freely in abroad. This helped the companies to gain more revenues. And as part of multi national companies are concerned, the policy of Globalisation acted them as a gigantic BOON. Through this introduction many of the multi national companies entered Indian market & commenced to give their valuable services. Many of the customers showed their gratitude towards the Government as they were able to get the services which were available in abroad. In this way the concept of Globalisation was praised not only by the individuals but also by the many of the industries.

          Apart from individual & Industries, even Government was also influenced by this concept. Due to establishment of Multi National Company’s branches in India the Indian Government was made to count the huge revenue in the form of taxes & duties. By this the main motto of Government was fulfilled. Thus it also gave the scope to think for the overall development of the country.

          As there was the development of industries by Globalisation in turn it also supported the economic development of country. By the implementation of the concept of Globalisation the per-capita income was increased which had a direct impact on the National Income. GDP & GNP were seen to have a high increase. Many of the education institutions were established by which the education facilities was increased in order to meet the demands of job opportunities by newly commenced companies. This made the country to grow in all the dimensions. Later on government also focused on some of the key societal concepts & suggested the companies to involve in any of the societal objectives. By the involvement of companies in societal concepts there was the development in the infrastructural facilities like roads, bridges & so on by forming the PPP (Public Private Partnership).

          Apart from all these aspects of development, if we focus on financial matters then the effect of Globalisation was seen tremendously. There was a direct effect on Indian share market due to which the share prices were increased. And the important aspect is that due to the intense competition between the companies the prices of product & services were seen drastically decreasing. This was one of the favourable to the people by which they tried to save more money which increased their savings & future risks.

          Last but not the least; I suggest that Globalisation is the concept by which the primary sector, secondary sector & also tertiary sector will be developed. It can be concluded that the concept of Globalisation can be a better tool in order to develop the country. But one important thing which should be kept in mind is that due to Globalisation today many of the Indian Domestic companies are losing their existence because of not performing upto maximum level. As being an Indian we should think over the existence of Indian company. It means that not to support only the Indian companies but to support the commodities produced by Indian companies by purchasing them. It is seen that due to this Globalisation today we’ve lost our many of the traditional activities. What will be the effect of Indian culture which possesses its own entity globally? So now it’s our turn to think that whether to use Globalisation as a tool to develop the nation or a tool to destroy the Rich Cultural Heritage of India.