text 1 GLOBALIZATION

 

Top 3 advantages of globalization in India

 adapted from https://www.safeguardglobal.com

March 15, 2022

India boasts the fastest growing economy on the planet, and it’s projected to join the U.S. and China over the next decade as one of the top economic world powers.

India’s massive economic growth is largely due to globalization—a transformational change that didn’t occur until the 1990s. Since then, the country’s gross domestic product (GDP) has grown at an exponential rate, increasing from $270 billion in 1991 to $2.87 trillion by 2019, with projections that it’ll reach a whopping $4.5 trillion by 2026.

But why did this globalization occur and what are the advantages of globalization in India for foreign businesses? 

What is globalization?

Globalization is the integration of a national economy and culture with that of the global economy. Metaphorically, a country throws open its gates, welcoming in communication, international trade, capital, technology and cultural practices from foreign countries.

Globalism increases international economic interdependence due to the increasing scale of cross-border trade of capital, commodities, services and technologies. In doing so, this incentivizes foreign businesses to invest and expand globally into the newly opened country.

The impacts of globalization on India’s economy

Globalization has had a significant and nearly instantaneous impact on India as a whole.

The reduction of export subsidies and import barriers enabled free trade that made the untapped Indian market incredibly attractive to the international community. And nowhere were these reforms more consequential than the significant changes made to its industrial, financial and agricultural sectors:

·        Industrial – There has been a massive influx of both foreign capital investment and companies expanding to and offshoring in India, particularly in the pharmaceutical manufacturing, chemical and petroleum industries. They brought with them advanced technologies and processes that have helped modernize the Indian industrial sector.

·        Financial – Prior to globalization and privatization, India’s financial sector had been mismanaged by a combination of corrupt and inept government officials—many of whom were risk-averse and reluctant to embrace change. By taking control of the financial sector out of the hands of the bureaucracy, market competition spurred on innovation, creating a much more dynamic financial services sector.

·        Agricultural – India used to be a largely an agrarian society, with a significant majority of the country’s population depending on this sector either directly or indirectly for their livelihood. Thanks to India opening its doors, the technological capabilities of farmers have increased—helping drive global exports of Indian products such as tea, coffee and sugar.

The byproduct of these sectors has brought about an increase in national income, employment, exports and GDP growth. 

 

QUESTIONS

1.     Read the text only once then answer questions A and B:

 

A)    What is the main idea?

 

 

 

B)    Give your own definition of globalization.

 

 

 

 

2.     Read again and answer these questions:

C)    What do the following numbers refer to?

-        270

 

-        4.5

 

D)    Guess the meaning of:

-         GDP

-         subsidies

-         untapped

-         offshoring

-         mismanaged

-         reluctant

-         spur on

-         agrarian

-         livelihood

-        byproduct

-        income

 

E)    Use your own words to explain the main advantages

 

 

 

 

 

 

 

 

 

F)     Going further:

According to you what are the negative aspects of globalization in India? Which part of the population is excluded from this progress?

You can browse the web to check your answers.