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Globalization : Impact in India

How Indian Market is affected by Globalization

By Arun RamasamyPublished about a year ago 4 min read
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Globalization

Globalization refers to the increased interconnectedness and interdependence of countries, businesses, and people across the world through the exchange of goods, ideas, and culture. It is often characterized by the increased movement of goods, capital, and people across borders, as well as the growth of international trade and investment. Globalization has been driven by advances in technology, transportation, and communication, and has led to both positive and negative effects on economies, societies, and the environment.

Globalization can have both positive and negative impacts on local economies. Some of the potential positive impacts include:

Increased economic growth: Globalization can lead to increased trade and investment, which can drive economic growth and create jobs.

Access to new markets: Globalization can provide local businesses with access to new markets, allowing them to expand their customer base and increase sales.

Access to new technology and knowledge: Globalization can also bring new technology and knowledge to local economies, which can improve productivity and competitiveness.

However, globalization can also have negative impacts on local economies, including:

Competition from cheaper imports: Globalization can increase competition from cheaper imports, which can hurt local businesses and lead to job losses.

Loss of control over economic development: As local economies become more integrated with the global economy, they may lose control over their own economic development and become more vulnerable to global economic fluctuations.

Widening income inequality: Globalization can lead to increased income inequality, as skilled workers and businesses that can take advantage of global opportunities may benefit, while unskilled workers and businesses may be left behind.

Indian's Local Economy Affected by Globalization

Globalization has had a significant impact on Indian brands. Some of the ways that Indian brands have been affected by globalization include:

Impact on Small Scale Industry: Globalization has also had a major impact on small-scale industries in India. The increased competition from foreign goods, along with the removal of trade barriers and opening up of the economy, has led to the closure of many small-scale industries.

Textile industry: Brands such as Raymond, Grasim, and Arvind Mills have faced increased competition from cheaper imports of textiles from China and other countries.

IT industry: Indian IT companies such as Tata Consultancy Services, Infosys, and Wipro have grown significantly by providing outsourcing services to companies in the US and other developed countries, thanks to globalization.

Automobile Industry: Brands such as Bajaj Auto, Hero MotoCorp and TVS Motor Company have faced increased competition from international brands such as Honda, Yamaha, and Suzuki.

FMCG Industry: Brands like ITC and Dabur have faced increased competition from international brands such as Unilever, Nestle, and P&G.

Agricultural Impact

Globalization has had a significant impact on the Indian agriculture sector. Some of the ways in which globalization has affected Indian agriculture include:

Increased competition from cheaper imports: One of the major impacts of globalization on Indian agriculture has been increased competition from cheaper imports. With the removal of trade barriers and the opening up of the Indian economy, farmers have had to compete with cheaper imports of agricultural products from other countries. This has led to a decline in prices and income for farmers and has resulted in many farmers moving away from traditional crops to more profitable cash crops.

Small farmers: Globalization has also had a particularly negative impact on small farmers in India. Small farmers tend to have fewer resources and less access to markets, and they often find it difficult to compete with large-scale, export-oriented farms.

Impact on traditional crops: Globalization has also led to a decline in traditional crops in India. With the focus on cash crops and exports, farmers have been incentivized to shift away from traditional crops that are important for local food security and cultural heritage.

Impact on rural livelihoods: The decline of agriculture has a ripple effect on rural livelihoods, as agriculture provides employment and income for a large portion of the population. The decline in agriculture has led to increased migration to cities in search of work and has contributed to increased poverty and inequality in rural areas.

Impact on food security: Agriculture is critical for food security, and globalization has had a significant impact on food security in India. The decline in traditional crops and the focus on cash crops and exports has led to a decline in food self-sufficiency, and has made the country more dependent on imports.

Government policies: The Indian government has implemented policies to protect the agriculture sector and farmers, such as the Minimum Support Price, procurement of food grains, and subsidies for inputs like seeds and fertilizers. However, the effectiveness of these policies has been limited and often inadequate to address the challenges faced by the farmers.

Future: The Way Forward

The impact of globalization on the Indian agriculture sector has been largely negative, particularly for small farmers and rural communities.

Government should create policies promoting organic farming and encourage farmers to grow traditional crops for environmental & economical well being.

Indian consumers should also get it straight in to their DNA that encouraging local brands & business is the only way to sustain economical development.

Be Local & Buy Local !!!

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About the Creator

Arun Ramasamy

Nature Lover, Just go with the flow, techno freek.

Do what you can.. don't when you cannot.

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