Introduction
Globalisation refers to the increasing interconnectedness and interdependence of economies, cultures, and populations across the world through the exchange of goods, services, information, technology, and people. In the Indian context, globalisation gained momentum especially after the economic reforms of 1991, which opened the country to global markets and competition.
Phases of Globalisation in India
India experienced limited global integration during the colonial period, primarily driven by British trade interests. However, true globalisation began after liberalization policies were adopted post-1991, which included de-licensing industries, reducing tariffs, encouraging foreign direct investment (FDI), and easing import-export restrictions.
Key Features and Impacts
- Economic Growth: Globalisation has contributed to higher GDP growth, especially through growth in the services sector, IT, and manufacturing exports.
- Foreign Investment: There has been a substantial increase in FDI and foreign institutional investments (FIIs), which helped modernize infrastructure and industries.
- Consumer Choice: Availability of international brands and improved quality of goods and services enhanced consumer experience.
- Employment: Job creation in sectors like IT, BPO, and retail increased, though not evenly across regions or skill levels.
Challenges
- Widening Inequality: Benefits of globalisation were not evenly distributed, leading to rural-urban and rich-poor divides.
- Cultural Homogenization: Increasing Western influence raised concerns about erosion of local cultures and traditions.
- Dependence on Global Markets: External shocks, such as global financial crises, significantly impact domestic economy.
Conclusion
Globalisation has brought both opportunities and challenges for India. It has integrated the country with the global economy and brought technological and economic advancements, but has also created issues related to inequality and dependence. Balancing national interests with global engagement remains a key policy challenge.