IMPACT OF GLOBALISATION: THE INDIAN EXPERIENCE

Topics: International economics, Investment, Bretton Woods system Pages: 10 (3604 words) Published: August 7, 2014
Journal of Economics, Commerce
and Research (JECR)
Vol.2, Issue 1 June 2012 10-19
© TJPRC Pvt. Ltd.,

IMPACT OF GLOBALISATION: THE INDIAN EXPERIENCE
SURINDER KUMAR SINGLA & KULWINDER SINGH
1

Project Associate, Centre for South West Asia Study (Pakistan-Afghanistan) Punjabi University, Patiala-147002. Punjab ,India.
2

Assistant Professor, Department of Economics,
Baba Farid College, Bathinda-151001. Punjab , India .

ABSTRACT
Globalisation is the new buzzword that has come to dominate the world since the nineties of the last century with the end of the cold war and the break-up of the former Soviet Union and the global trend towards the rolling ball. Unlike how the presently developed economies expanded and went global in their hoary past, the main reform initiatives in India (like in many other developing countries), were undertaken after a fiscal and foreign exchange crisis which brought it to the verge of default on the foreign loans. Thus, the Indian globalisation is a result of the decadence within and the pressure from without. The effects of globalisation on the Indian economy in the post-globalisation years are clearly visible in the foreign sector - foreign exchange reserves, international trade, inflow of foreign capital, etc. This paper explores the contours of the on-going process of globalization. Throughout this paper, there is an underlying focus on the impact of globalisation on the Indian economy.

KEYWORDS: Globalization, Economy, Recession, Foreign Exchange. INTRODUCTION
The growing integration of economies and societies around the world – has been one of the most hotly debated topics in international economics over the past few years. Rapid growth and poverty reduction in India, China, and other countries that were poor 20 years ago, has been a positive aspect of Liberalisation, Privatisation, and Globalisation (LPG). But globalisation has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. Globalisation has many meanings depending on the context and on the person who is talking about. Though the precise definition of globalisation is still unavailable a few definitions are worth viewing. Guy Brainbant said that the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNCs, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalisation refers to the integration of economies of the world through uninhibited trade and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it also contains free inter-country movement of labour (Goyal, 2006).

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Impact of Globalisation: The Indian Experience

There is a need to study the impact of globalisation on developing countries and particularly on the Indian economy. Unlike how the presently developed economies expanded and went global in their hoary past, the main reform initiatives in India (like in many other developing countries), were undertaken after a fiscal and foreign exchange crisis which brought it to the verge of default on the foreign loans (Malik, 2008). Thus, the Indian globalisation is a result of the decadence within and the pressure from without. The effects of globalisation on the Indian economy in the post-globalisation years are clearly visible in the foreign sector - foreign exchange reserves, international trade, inflow of foreign capital, etc. This paper explores the contours of the on-going process of globalisation. Throughout this paper, there is an underlying focus on the impact of globalisation on the Indian economy. The paper has been divided into five sections. Section 1 provides the introduction and general context of the globalisation. The origin of globalisation in...

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