• Globalization refers to increasing global

connectivity and integration in the

economic, social, technological, cultural,
political, and ecological spheres.
 Trends associated with
globalization

• Increase in international trade at a faster rate

• Increase in international flow of capital including
foreign direct investment
• Increase in world production and output and
consumption
• Development of global financial systems
• Development of global telecommunications
infrastructure
 The Indian Economy
and

Indian markets rapid transformations

Production across countries

Interlinking production across countries
Foreign trade and integration of markets
Impact of Globalization in India
 Trade

• International trade as a proportion of GDP reached 24% by 2006, up from 6% in 1985

• India's exports were stagnant for the first 15 years after independence, due to the predominance of tea, jute
and cotton manufactures, demand for which was generally inelastic.
• India is a founding-member of General agreement on tarrifs and trade (GATT) since 1947 and
its successor, the World Trade Organization.
• India's balance of payments on its current account has been negative. Since liberalisation in the
1990s , India's exports have been consistently rising.
• Foreign direct investment in India has reached to US $19,379 til november 2009