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Analytical Paper - Essay Example

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Analytical Paper Introduction Globalization is the process of exchanges of national resources, culture, views, technology, trade, ideas and products across the national borders. In simple terms, globalization is the process of integration among different countries to develop the global economy…
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Analytical Paper
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Download file to see previous pages Everything is available throughout the world with the help of internet and telecommunications. In the global economy, anyone can buy and sell anything using the advanced technologies. Globalization increases the interaction, cooperation and communication among different countries. A successful globalization will not only provide economic prosperity and development but also will provide social justice and equality to all kinds of people of the society. It should bring success for the poor people also. When some of the countries are working together for a common goal then it is called internationalization. But globalization is a broader term where there is no border, no barriers for people to do trade. Globalization is the process of converting the national economy into a global economy. Critics sometimes said that globalization is only good for the developed nations as it does not create positive impacts on the developing countries. India is one of the examples of developing countries and the effect of globalization in India will be discussed in this report. From the discussion of globalization in India, it will be clear how far the globalization has created positive as well negative impacts in Indian socio-economic and cultural platform. Discussion India opened up their economy in the early nineties after facing an exchange crunch. As a result, Indian economy felt the necessity of the presence of the multinational companies for overall growth and development. In 1991, the liberalization and globalization policies marked the beginning of a new era in Indian history. Economic effect Indian economy from the time of independence was a close economy. The different political parties came into the power but the type of economic inclination was same for India. In 1991, the new era in Indian economy started with three key words - Liberalization, Globalization and privatization. With the globalization process the restructuring of Indian economy started and some major reforms were observed. Globalization brings a favorable impact on Economic growth. In 1970, the GDP growth was only 3 % in India. The countries like Mexico, Brazil achieved more than twice growth rate than India. In the eighties, a significant annual growth was observed from 3% to 5.9% but still it was comparatively very low compared to countries like China, Korea. In 1991, the GDP was calculated on purchasing power parity basis and Indian economic growth was 0.9 % only. Indian economy achieved a growth rate of 8% in the year 2003-2004. Not only the high GDP growth was noticed but also a significant structural change was noticed in Indian economy. Before the globalization, the maximum amount of GDP was generated from the primary sector. But after globalization, the maximum part of the GDP contribution comes from the service sector. ITES-BPO, software services providers has achieved a significant growth in recent years. GDP from the major sectors The service sector is the major employment provider also in Indian Economy. In recent times, the service sector has a great contribution in the national income also. The reason for growth of service sector is urbanization, privatization and high demand for consumer service. Significant high growth rate was observed in 2006-2010. The growth rate and service sector contribution have been shown in the above diagram. The government of India formulated policies to make foreign direct investment in the manufacturing sector. The FDI in manufacturing sec ...Download file to see next pages Read More
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