India and Globalisation| Class 12 Political Science Notes

India has been significantly successful since the implementation of globalization. The country has seen enormous growth in foreign investment in the corporate, retail, and scientific sectors. The government’s economic policies have also played a vital role in planning levels of savings, employment, income, and investments in society. Globalization has opened up the country to foreign companies seeking to invest and operate within the massive Indian market, which has boosted foreign capital inflows to the country.

In this article, we will look into India and Globalisation, the liberalization reforms of 1991 and the challenges of Globalization in India. It is an important concept of Class 12 Political Science. Students can go through this article to get comprehensive notes on “India and Globalisation”.

India and Globalisation

India’s relationship with globalization has deep historical roots, influenced by centuries of trade flows and colonial rule. During the colonial era, India served as a supplier of raw materials to Britain while importing finished goods, shaping its economic landscape. Post-independence, India pursued protectionist policies to foster self-reliance, yet faced challenges such as sluggish economic growth and neglected social sectors. The liberalization reforms of 1991 aimed to address these issues by opening up markets and attracting foreign investment.

Brief History

During the colonial era, India served as a supplier of raw materials to Britain while importing finished goods, promoting economic dependence.

1. Colonial Exploitation: British imperialism and India’s role in the global economy India’s economy was structured to meet British demand for raw materials, leading to underdevelopment and economic exploitation.
2. Impact of Colonial Trade: Economic dependence and Limited industrial development India’s reliance on British imports hindered domestic industrial growth and increased economic disparities.

Post-Independence Protectionism

Following independence, India adopted protectionist policies to promote self-sufficiency and domestic industries, aiming to reduce reliance on foreign goods.

1. Self-Reliance: India’s economic strategy post-Independence protectionist measures aimed to protect and promote domestic industries and reduce dependency on imports for sustainable economic development.
2. Challenges of Protectionism: Sluggish economic growth and neglected social sectors as protectionism bolstered certain industries, it also hindered overall economic growth and neglected critical sectors like health and education.

Liberalization Reforms of 1991

In response to economic stagnation and the desire for higher growth rates, India embarked on liberalization reforms in 1991 to open up its economy and attract foreign investment.

1. Opening up markets and deregulating trade and investment, liberalization policies aimed to remove barriers to trade and investment, promoting market competition and economic growth.
2. Enabled banks to set their own interest rates based on market demand and supply.
3. Abolishing industrial licensing, allowing industries to operate more freely.
4. Expanded consumer choices, promoted competition, and facilitated access to advanced technology and goods.
5. Assessing the benefits and challenges of liberalization while liberalization led to increased foreign investment and economic growth, its benefits were not evenly distributed across society, further deepning the inequalities.

The Impact of Liberalization

The liberalization reforms of 1991 had a great impact on India’s economy and society. While they led to increased foreign investment, economic growth, and technological advancement in certain sectors, their benefits were not evenly distributed across society.

• Income inequality widened, as the gains of liberalization disproportionately benefited urban elites and affluent individuals.
• Liberalization contributed to the marginalization of certain sectors, such as agriculture and small-scale industries, leading to rural distress and urban migration.
• The liberalization experience underscored the complexities of integrating into the global economy, as India grappled with the challenges of economic inequality and social fragmentation.

Impact of Globalisation

India’s integration into the global economy is reflected in phenomena such as the call centre industry, which emerged as a result of outsourcing from Western countries.

• Working in call centres provides Indian employees with firsthand experiences of cultural exchanges and perceptions, as they interact with customers from around the world.
• However, Indian call centre workers also encounter stereotypes and prejudice from some American callers, reflecting broader cultural tensions and perceptions.
• Navigating these cultural dynamics is essential for India as it seeks to balance economic growth with preserving its rich cultural heritage and identity in an increasingly interconnected world.

Challenges of Globalization in India

Challenges of globalization in India includes:

1. Globalization has widened the gap between the rich and the poor in India, widening income inequality.
2. Traditional Indian culture faces threats from Westernization and the spread of global consumer culture.
3. Industries in India often face competition from multinational corporations, leading to job losses and economic instability.
4. Rapid industrialization and urbanization, spurred by globalization, contribute to pollution and environmental degradation.
5. Globalization can lead to exploitation of labor, particularly in industries like manufacturing and agriculture.
6. India’s economic integration into the global market may compromise its sovereignty in decision-making on trade and investment policies.
7. Increased reliance on imported goods can weaken domestic industries and affect India’s self-sufficiency.
8. Globalization poses challenges to traditional knowledge systems and indigenous practices, risking their extinction.
9. Access to unhealthy Western fast food and lifestyle choices contributes to rising health issues such as obesity and diabetes.
10. Rapid changes in societal norms and values due to globalization can lead to social unrest and cultural conflicts.

Conclusion

India’s historical experience with globalization, from colonial exploitation to post-independence protectionism and liberalization reforms, highlights the complexities and challenges of integrating into the global economy. While globalization has brought opportunities for economic growth and cultural exchange, it has also posed challenges such as economic disparities and cultural tensions. Moving forward, India must strive to harness the benefits of globalization while addressing its drawbacks, ensuring inclusive growth and preserving its rich cultural heritage in an increasingly interconnected world.

India and Globalisation- FAQs

What is the role of India in globalisation?

India’s role in globalization has been significant, with the country’s economic growth largely attributed to globalization.

What are the merits and demerits of globalisation in a developing country such as India?

The merits of globalization in a developing country like India include increased foreign investment and access to global markets, while the demerits encompass widening income inequality and vulnerability to economic instability.

What do you mean by globalisation?

Globalization is a term that describes how trade and technology have made the world more connected and interdependent. It also encompasses the economic and social changes that have resulted from this.

What are the three advantages of globalisation?

Globalization in developing countries like India offers opportunities for economic growth through increased trade and foreign investment while promoting technological advancement and knowledge transfer from more developed nations.

What are the two negative effects of globalisation on India?

Globalization in India has resulted in the erosion of traditional industries and job displacement, particularly affecting small-scale producers and local businesses.

What are the challenges of globalization in India?

The challenges of globalization in India include income inequality, job displacement, and vulnerability to external economic shocks.