The Globalization of India - Coursework Example

The Globalization of India INTRODUCTION During the early 1990s, India underwent key policy reforms. Among them was the LPG(Liberalization, Privatization and Globalization) model policy whose goal was turning India into the quickest expanding economy across the world competitively. However, the geographic, political, and social aspects surrounding India affect this globalization goal, with consequences imposed on India on the same dynamics. More specifically, India’s proximity with Pakistan, adequacy of resources, manmade projects, displacement, rebellions, skirmishes, repression through art, climate, corruption, disruptive innovations, and green efforts influence the country’s globalization. The following paper explores and discusses the globalization of India from these dynamics’ perspectives and analyzes their impacts on the country’s political, social, foreign, economic, and future aspects and trends. LITERATURE REVIEW According to Baldev Raj Nayar, questioning the nature of globalization in India, its causes, patterns, and effects is important for gaining a deeper insight into how it influences its economy, politics, and foreign affairs (Nayar 41). Nayar also questions policies that could emphasize or weaken the effects of globalization in India. The article finds these questions part of the all-encompassing system for readers. The article introduces a wide summary of the nature and advancement of economic globalization and India’s response with it politically (106). The article sources provides a broad array of perspectives and comprise five wide sections. In “India’s Globalization: Evaluating the Economic Consequences,” Nayar provides a thorough, critical analysis of the economic impacts of the globalization of India (Nayar 16). The article assesses rivaling assertions regarding the support and opposition of globalization in different nations. This assessment occurs through a systematic exploration of India as a rigorous case study. The article investigates the incorporation of India into the global economy on the dimensions of the flow of commodities and services, capital, and migration (26). Nayar further defines three wide eras of India’s most recent economist past, which are the era before liberalization, sporadic, incremental liberalization, and after the revolution towards an external-based economic policy. The article discovers that rather than economic stagnation, India experienced rise in its average yearly rate of economic growth (25). Rather than deindustrialization, India experienced industrial expansion. Rather than denationalization, businesses are more aggressive in local and foreign markets than ever before (37). Rather than economic destabilization, globalization has resulted in fewer economic downturns (69). Meera Nanda’s book “The God Market: How Globalization is Making India More Hindu” questions how incorporating international markets weakens the influence of conventional faith in developing nations (Nanda 62). With India in question, the book contends that India has rather experienced an astounding entwining of Hinduism and neoliberal philosophy inspired by an expanding class of elite capitalists. Globalization has turned India into a “State-Temple-Corporate Complex” that commands decisive political and economic influence to offer ideological cover for the dismantling of the Nehru-age dominated economy (109). This point of view is important for understanding the history of the ongoing conflict between Pakistan and India. Authors Ruchira Ganguly-Scrase and Timothy J. Scrase offer vast ethnographic information about the economic liberalization and globalization of India. Ganguly-Scrase and Scrase’s book unveils the complexity of the globalization procedure, defines, and expounds on the conflicting attitudes of India’s lower middle class (Ganguly-Scrase and Scrase 3). The book challenges the idea of a uniform India middleclass as being the absolute beneficiaries of the LPG model and the employment of organizational change programs. The source of some writer’s works see cultural globalization positively while remaining uncertain about the enduring advantages of this model and liberalization. As a result, this book discusses and breaks down the economic and cultural aspects to the globalization of India (108). Christian Parenti writes about the relationship between India’s geography and the country’s political, social, economic, and foreign dynamics. The eleventh chapter of Parenti’s book “Tropic of Chaos” tackles the “Unfinished Business” between India and Pakistan (Parenti 123). Globalization plays a major role in the activity and unfolding of this business in terms of sharing natural resources, cooperative projects such as dams and water reservoirs, political affairs between both nations, and the effect of past and ongoing crises. Among these effects is population displacement, contributions to climate change, and triage. Chapter 12, “India’s Drought Rebels,” presents a new dimension to the role of topography in economic development (133). In India’s case, the amount of resources or investment devoted to curbing rebellions, countering drought, adopting disruptive innovations, alleviating corruption, sustaining farmlands and their outputs, and learning from repressive artwork drew the line between a “chaotic” economy and a budding one (129). Razeen Sally discusses how India’s economy is integrating world organizational and marketing cultures to become an aspiring global superpower. India’s delayed market reforms began a reaction to a macroeconomic downturn in 1991 and helped better its economic output and potential (Sally 100). The undoing of India’s internal licensing regulation led to improved growth rates yearly, better trade that spurred a 30% rise in GDP, a surge in IT amenities, and a revolution in the business scenery (100). ANALYSIS Globalization imposed a dual-impact on India after the enactment of the LPG model. The balance of payment and foreign exchange downturns made reforms essential during the early 1990s. Clearly, the first wave of reforms did not exhibit any significant signs of development. Instead, a conflicting growth was evident through the country’s experience of a combination of political steadiness and instability. Globalization just benefited limited parts of business and particular sectors, which caused the reforms to fail to realize their goals (Ganguly-Scrase and Scrase 110). Organizations within and outside India can spread their bases of operations, grow their workforce with minimal investments, and offer new services to a wide array of consumers. Theoretically, globalization presents an opportunity to raise salaries through increased specialization and trade. Even though this is the case in India, findings from Nayar’s study proves this is not the only significant impact. Along with Parenti, Nayar shows how this opportunity is dependent on market shares, which consequently is conditional on geography, infrastructure costs, communications grids, and the organizations that advocate markets (Nayar 50). In Parenti’s work, India’s bad blood with Pakistan influenced the rate of globalization in terms of trade and sharing natural resources such as water through the Bellicose Dams and the Water Tower Karakorum (Parenti 123). The levels of sharing these resources contribute to their conflict, on top of climate change, which consequently influences the level of trade both economies will engage in. India’s diaspora is highly globalized today, which influences its relationship with neighbors like Pakistan and key trade partners such as China (Parenti 141). Today, India has a more globalized and integrated diaspora than wealthy economies such as China. This disparity causes a profound paradox for India that the elite Naxalites and riparian politicians ought to be highly globalized and successful while the rest of the nation remains poor or still developing (Nayar 71). This paradox was an implicit cause for the rebellion by Naxalite groups over the imbalanced 1960 Indus Water Treaty and the scarcity of water (Parenti 137). Moving from autarchy to democracy serves as the most significant political hand over India’s lengthy globalization. The first several decades of the mid-1900s saw India shift from thriving under Nehruvian socialism to taking on autarchic economic strategies. This shift is understandable considering India’s pasts of corruption and exploitation of natural resources by national leaders and the influential hands of foreign interests. At the same time, adopting these strategies echoes some of the common theories of the period (Nayar 167). Sally and Nanda point out these theories as suspicious overseas, financial ventures and trade, and the fear that strategic displacement would lead to neo-imperialism and overreliance on generation-old treaties with neighboring nations (Sally 100; Nanda 199). Despite increased globalization economically and in terms of foreign affairs, India’s economy still a developing one. Forces at work such as poverty, illiteracy, and social prejudice are urgent imperatives for the Indian government today (Ganguly-Scrase and Scrase 177). Possibly, doing away with its autarchic attitude and adopting globalization in all possibilities could ease and alleviate poverty and increase literacy. A drastic change among lawmakers and the private sector and certainly the entire bureaucracy is necessary for India to improve these imperatives. The dynamic role of India in areas of economic forecasting, financial federalism, and tax reform has led to better economic incorporation and not more segmentation (Sally 100). Trends integral in the market in support of economic incorporation, particularly when helped by the government could alleviate the victimizations caused by globalization. CONCLUSION Globalization has improved India’s political and foreign affairs landscape in terms of getting through the abandonment of Nehruvian socialism and autarchy, and adopting democracy, interpreting the water treaty with Pakistan, and balancing the influence of Naxalites in power and amongst the people. Economically, India’s prevalence of IT services, business process outsourcing amenities, growing middleclass, foreign investment, more bases for operation, and increased confidence in the government have facilitated globalization. At the same time, globalization pressures from neighboring India, particularly Pakistan, have favored efficiency puzzlingly and induced the government to encourage partnership on pan-Indian proportions in the sector of financial federalism. Such partnership aims at progressing the cause of the prevailing market through the reformation of the indirect tax structure, eradicating displacement, abandoning age-old treaties, and dealing with water scarcity better. Works Cited Ganguly-Scrase, Ruchira, and Timothy J. Scrase. Globalisation and the Middle Classes in India: The Social and Cultural Impact of Neoliberal Reforms. New York: Taylor & Francis, 2009. Nanda, Meera. The God Market: How Globalization is Making India More Hindu. New York, NY: NYU Press, 2011. Nayar, Baldev Raj. Globalization and Politics in India. Oxford: Oxford University Press, 2010. Nayar, Baldev Raj. India’s Globalization: Evaluating the Economic Consequences. Policy Studies 22. Washington, D.C.: East-West Center Washington, 2006. Parenti, Christian. Tropic of Chaos. New York, NY: Nation Books, 2011. Sally, Razeen. "India And Globalisation." Economic Affairs 27.3 (2007): 100. Business Source Complete. Web. 7 Mar. 2015. Read More