Globalisation and FDI in India

Globalization is what known as integration of economies and societies through cross country
flow of information and ideas, technology, goods and services, Capital and People. Its a
universal fact that no country can be on the path of development in isolation therefore its
necessary for one to Globalise. Guy Brainbant in his definition of globalisation says that the
process of globalisation not only includes opening up of world trade, development of
advanced means of communication, internationalization 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. Mainly
there are two connotations of Globalization concept, i.e Economic and Non-economic.
Economic includes free flow of goods and services, capital, technology and labour. Whereas
non-economic includes socio cultural and political. The Indian economy opened up in 1991
within the framework of liberal economic reforms. The New Economic reform, popularly
known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the
Indian economy as fastest growing economy and globally competitive. India in the process of
restructuring her economy, with aspirations of elevating herself from her desolate position in
the world that time felt need to speed up her economic development was even more
imperative. And having witnessed the positive role that Foreign Direct Investment (FDI) had
played in the rapid economic growth of the most Southeast Asian countries and most notably
China, India has embarked on an ambitious plan to emulate the success of her neighbours. To
the east and is trying to sell herself as a safe and profitable destination for FDI. My project
will be focusing on one of the economic aspect of Globalization, through which one country
interacts with another by investing in a company of the other country, which is knows as
Foreign Direct Investment. It will aim at Foreign Direct investment as a vector of Indian
Globalisation. Its growth during years in terms of both outward and inward flow of FDI. India
is becoming very frequent destination for FDI but also many Indian firms investing abroad on
a very large scale with sometimes, some stunning takeovers in industrialised countries. The
reforms undertaken since 1991 in India have unleashed the potential growth of the economy
and stimulated international trade, outsourcing and FDI. At the same time some Indian firms
have become global players. With an aim of making an efficient economy challenges that India
face in opening up its economic barriers. It will also further discuss if FDI as a vector of Indian
Globalisation will help in sustainable development which in the first is the main aim of
Globalisation.