Essay on Effects of Globalization on Indian Economy!
It means to open the Trade and Economy for the international players. In other words, every manufacturer or producer of goods can compete for sale of their products without restrictions or without any imposed control.
For example, think of a small village market or meal where all are free to come and sell their products at their desired price, irrespective of places from where they come. There are no restrictions on control on their products or the prices. This is the globalised trade. Any country can participate to set up, acquire, merge industries, invest in equity and shares, sell their products and services in India.
Therefore, globalisation should not be considered in isolation, but should be considered in totality with liberalisation of the industrial policy towards lifting of trade control and restrictions, influence of trade block and simultaneous privatisation.
Global market treats the world as a single market. With the advent of information technology and its strategic application, the world is focussed as a global village and all traders are therefore globalised.
The Earlier (pre 1990s) concept:
Before 1990s India followed a patch of restricted trade. Such restrictions were that certain products would not be allowed to be imported as they were manufactured in India. For example, General Engineering goods, Food items, toiletries, Agricultural products etc. were in the banned list of import.
Some other kinds of products which were produced in restricted quantity in the country or are expensive and categorised as luxuries were subjected to heavy import duty to make them costlier in order to dissuade flow of foreign exchange and give protection to local producers. For example, VCR, Music sets, Air-conditioners, Computers etc., these items were subject to 150% import duty.
Globalisation in India:
In the 1990s due to change in world economic order and due to heavy pressures from...