Impact of globalization on Indian economy

Globalization can be defined as the enhancement of market economy, rapid movement of capital, larger competition and influx of cheaper goods from developing countries. The researcher through this paper tries to study the impact of political and economic globalization in local governance. There is twofold object of paper: firstly, that globalization has consequences on inter-governmental relation, where it has created incentives for decentralization of governmental relations by allowing local governments to play an active role. Secondly, the analysis on the role that India's substantial government played in the development of country. Further, the researcher have tried to analyse, that increase in globalization is coinciding with the increase in the local democracy, federalism and autonomy in several developing countries including India, which has occurred both in urban and rural areas. By following the scientific empirical, theoretical, conceptual and reviews of papers the researcher has tried to draw attention on the above mentioned objects, by studying the actual workings of local governance institutions. The focused is also placed on lacunas, on part of the citizens and their impact on globalization. Finally, the researcher has pointed out various loopholes in the existing laws and probable solutions have been suggested to overcome them.