Globalization and Indian Economy

The human society around the world, over a period of time, has established greater contact, but the pace has increased rapidly since the mid 1980’s. The term globalization means international integration, includes an array of social, political and economic changes. Now the world is more interdependent now than ever before. Multinational companies manufacture products across many countries and sell to consumers across the globe. Money, technology and raw materials have broken the International barriers. Not only products and finances, but also ideas and cultures have breached the national boundaries. Due to this process all the developing countries not only got the rapid growth rate but also reduced their poverty. In 1991 during the economic crisis Indian government followed the process of LPG (Liberalization, Privatizations and Globalization) and opened their market to attract the more investment in economy. An array of reforms was initiated with regard to industrial, trade and social sector to make the economy more competitive. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It also heralded the integration of the Indian economy into the global economy. One side it proved good for the economy, but on the other hand it created many problems like inequality, poverty and environmental degradation. Over the past few years the growing integration of economies and societies around the world became one of the most hotly – debated topics in international economics. These debates inspired me to examine the positive and negative aspects of this concept in India.