INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH

BUSINESS ENVIRONMENT
PRESENTATION ON GLOBALIZATION AND INDIAN ECONOMY Submitted To Dr. (Prof.) Priya Dwivedi Submitted By Pooja Tekwani Sachin Pathak Saijeeth Vasudevan

GLOBALIZATION
IT is process of rapid integration or interconnection between countries. Globalization is a process of linking the economy of a country with the economy of the world more and more.

There are levels of globalization.

CONTINUED..
Globalization is caused by four fundamental forms of capital movement throughout the global economy. The four important capital flows are: Human Capital Financial Capital Resource Capital Power Capital

FACTORS THAT HAVE ENABLED GLOBALIZATION

Rapid movement in technology. Liberalization of foreign trade and foreign investment policy.

ADVANTAGES OF GLOBALIZATION
Goods and people are transported with more easiness and speed Free trade between countries increases The global village dream becomes more realistic

As the liquidity of capital increases, developed countries can invest in developing ones
The flexibility of corporations to operate across borders increases The communication between the individuals and corporations in the world increases

DISADVANTAGES OF GLOBALIZATION
Increased flow of skilled and non skilled jobs from developed to developing countries. Threat that control the world media by a handful of corporation that limit cultural expression. Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage. Greater risk of diseases being transported unintentionally between nations .

Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity.

GLOBALIZATION AND INDIAN ECONOMY

Indian economy had experienced major policy changes in early 1990s. 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. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient.

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population.
This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since Independence in 1947, such as self reliance and socialistic policies of economic development, which mainly due to the inward looking restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other problems.

IMPACT OF GLOBALIZATION ON THE INDIAN INDUSTRY

Industrial Sector Reform Trade Sector Reform Financial Sector reform Reforms in the banking sector Reforms in the capital market

Reforms in insurance
Fiscal reforms

STEPS TAKEN FOR PROMOTING GLOBALIZATION

Devaluation Disinvestment Dismantling of the industrial licensing policy Allowing FDI

IMPACT OF GLOBALIZATION ON THE INDIAN INDUSTRY

MNCs have increased their investments in India over the past 15 years. Large number of multinationals have moved to India Post Globalization. Some larger Indian companies have emerged as multinationals themselves. Created new opportunities for companies providing service, particularly those involving IT. Reduction in the level of unemployment and poverty in the country

INDIAS POSITION
Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China 5.5% for Brazil. Whereas FDI inflows into China now exceeds US $ 50 billion annually. It is only US $ 4billion in the case of India Consider global trade - India's share of world merchandise exports increased from .05% to .07% over the past 20 years. Over the same period China's share has tripled to almost 4%

THANK YOU