Describe the Impact of Globalisation on Indian Economy with Examples
By BYJU'S Exam Prep
Updated on: November 9th, 2023
Impact of Globalisation on Indian Economy: India got foreign direct investment, transfer of technology, increasing choice for Indian consumers, and new jobs which reduced unemployment in India. So, we can say that the impact of Globalisation on the Indian economy is both positive and negative. Globalisation is when businesses start operating internationally.
Globalisation in India began with the LPG reforms of 1991 and its impact can be felt in many ways today. The LPG reforms stated that the government’s control over the economy through liberalization, privatization, and Globalisation. The economy was open to foreign players.
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Impact of Globalisation on the Indian Economy
Globalisation is a term associated with the economic sector. It is defined as the integration of global economies through the movement of goods and services, cross-border trade, and so on. Globalisation also had an impact on India’s culture and philosophy, as the Western way of life and ideas have become more prevalent.
Following Globalisation, the Indian economy expanded by increasing foreign currency, creating new jobs, decreasing the rate of unemployment, and so on. However, it has a negative impact on our economy.
Examples of Globalisation on the Indian Economy
The following examples demonstrate the impact of Globalisation on the Indian economy:
- Globalisation has resulted in an increase in the creation of new jobs in India.
- Several international companies are now operating in India, creating a slew of new job opportunities.
- Because of Globalisation, India’s IT sector has been booming in recent years.
- Opportunities have also increased as Indian companies collaborate with international firms to expand their businesses and revenues.
- There has also been an increase in foreign investment. The increase in foreign reserves has resulted in more companies investing in India.
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