Globalization typically implies integrating the economy of our country with the global economy. The economic changes started have had a remarkable impact on the general development of the financial condition. The Indian economy was in a significant dilemma in 1991 when international currency dropped to $1 billion. Globalization had its effect on different markets, including Agricultural, Industrial, Financial, Health industry, and several others. It was only after the Liberalization, Privatization, and Globalization policy introduced by the then Finance Minister Dr. Manmohan Singh that India saw its growth in different markets.
The positive impact of Globalization- Globalization has opened new markets for Indian firms to sell their services and products. They have economic resources such as labor because of which they can compete with various other business at the worldwide level. International financiers chose India to develop their businesses because of low-cost sources. It will raise the outcome, employment opportunities, and also the financial development of the nation. The living standard of people in India has been developed because of the rise in the earnings of skilled and even unskilled labor. The destitution ratio of urban and rural areas has been decreased to a higher level. These result from government plans and also methods to encourage foreign capitalists to invest in India. Firms are producing high-quality items at competitive prices as a result of Globalization. This hard competition forces local as well as global businesses to utilize their sources successfully and also effectively to compete at an international level. Developing countries have come to be modernized as a result of Globalization. They embrace the most recent technologies and methods quickly to take on other firms. Globalization reinforced the economic growth of the nation as a result of a rise in exports of the country. Infrastructure has been boosted; new employment opportunities have been produced because of Globalization.
The negative influence of Globalization- Globalization can damage the environment of India as a result of the facility of the market at an enormous range. It has brought water and also air pollution e.g., Delhi is among one of the most contaminated cities on the planet. Earnings made from the business will transfer to the international countries, although an investment of foreigner will certainly bring financial success for the short-term. Foreigners will obtain long-term advantages. In an economic downturn, capitalists withdraw their funds which can produce essential economic conditions for the country. Human resources can be manipulated in India by multinational companies.
Additionally, they can use natural deposits, inefficiently, and ineffectively. International financiers may think that it is not in their interest to take care of the resources of the country. The entry of large corporations can trigger the closure of the local companies because they can spend more sources as compared to regional or small businesses. They might have other competitive advantages on the local companies because of which they can win the market of the country. The small companies will not have the ability to compete with them at such a scale. Therefore, they would undoubtedly be required to shut their companies.