Impact of Globalization on Indian Economy

Today the entire world has shrunk into a global village.However this has some negative impacts too. The article deals with the benefits we get from the concept of globalization.At the same time it tells us about the evils it has brought along with it.

Globalization may be defined as the set of all processes that results in the uniting of economic, social, cultural, political systems across different countries.

Arguments in Favor of Globalization

i)Wider Market
Globalization will provide bigger markets for sale.The whole world is now the market for th sale of the commodity.If the producer is not satisfied with the price he gets in a country he has the option of selling his good in a different country where he gets the better price.

ii)Improvement in the quality of good
Earlier the consumer can buy a commodity from a particular producer only as there were a few producers only.Now he can shift his choice if he does not like the goods produced by one particular producer.Hence the producers shall strive to improve the quality of the goods at a lower price so as to satisfy his customers.

iii)Inflow of Money
Big multinational companies will set up showrooms and factories in our country and pay taxes to the government.Also the Indian companies will be set up abroad which will earn good foreign exchange.

Arguments against Globalization

i)Environmental degradation
There are some backward countries in which the environmental laws are not so stringent.As a result the producers tend to shift there polluting factories in the countries which have more relaxed laws.
Another way of pollution of the environment is the increased competition among the producers and traders.Profit is the main motive in a competition.Hence the producers shall not install pollution control devices to reduce the cost of manufacturing.

ii)Impact on Agriculture
Globalization has increased the availability of pesticides and fertilizers.The revenue earned by the companies through the sale of these fertilizers and pesticides goes back to the native country.

iii)Impact on Industries
Globalization has severely affected small scale and cottage industries.As a result there is a unemployment among the rural areas.It also results in loss of cultural heritage and old age tradition.

iv)Creation of a disparate society
Some people will have more access to money.Hence they settle in those countries which are poor and have adequate resources.When they move to a poorer country they cause a disparate society.

v)Social Implications
Our country has already seen the impact of the western culture.Our own traditions are getting lost and we are accepting the good as well as bad of western culture.This is one of the evils of globalization.

Measures to Avoid its Ill Effects

i)Increase consumer awareness so that the consumers but only the environmental friendly products.

ii)Foreign companies must be allowed inside the country only after a complete assessment of its environmental standards.The other implications must also be kept in mind.Political interests should not be the prime reason for the establishment of such industries.


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