GLOBALISATION

The phenomenon of globalization began in a primitive form when humans first settled into different areas of the world; however, it has shown a rather steady and rapid progress in recent times and has become an international dynamic which, due to technological advancements, has increased in speed and scale, so that countries in all five continents have been affected and engaged.

Globalization means increasing the interdependence, connectivity and integration on a global level with respect to the social, cultural, political, technological, economic and ecological levels.
Eventually globalization would mean being able to manufacture in the most cost-effective way anywhere in the world. It means being able to procure raw materials and labour and getting resources from the cheapest source anywhere in the world.

The Advantages:
• GDP Increase: If statistics are of any indication, the GDP of the developing countries has increased twice as much as before.
• Per Capita Income Increase: The wealth has had a trickling effect on the poor. The average income has increased to thrice as much.
• Unemployment is Reduced: This fact is quite evident when you look at countries like India and China.
• Education has Increased: Globalization has been a catalyst to the jobs that require higher skill set. This demand allowed people to gain higher education.
• Competition on Even Platform: The companies all around the world are competing on a single global platform. This allows better options to consumers.
• Wider Market: Globalization will provide bigger markets for sale. The whole world is now the market for the sale of the commodity. If the producer is not satisfied with the price he gets in a country he has the option of selling his good in a different country where he gets the better price.
• Improvement in the quality of good: Earlier the consumer can buy a commodity from a particular producer only as there were a few producers only. Now he can shift his choice if he does not like the goods produced by one particular producer. Hence the producers shall strive to improve the quality of the goods at a lower price so as to satisfy his customers
• Inflow of Money: Big multinational companies will set up showrooms and factories in our country and pay taxes to the government. Also the Indian companies will be set up abroad which will earn good foreign exchange.

The Disadvantages:

• Environmental degradation: There are some backward countries in which the environmental laws are not so stringent. As a result the producers tend to shift their polluting factories in the countries which have more relaxed laws.
Another way of pollution of the environment is the increased competition among the producers and traders. Profit is the main motive in a competition. Hence the producers shall not install pollution control devices to reduce the cost of manufacturing.
• Impact on Agriculture: Globalization has increased the availability of pesticides and fertilizers. The revenue earned by the companies through the sale of these fertilizers and pesticides goes back to the native country.
• Impact on Industries: Globalization has severely affected small scale and cottage industries. As a result there is a unemployment among the rural areas. It also results in loss of cultural heritage and old age tradition
• Creation of a disparate society: Some people will have more access to money. Hence they settle in those countries which are poor and have adequate resources. When they move to a poorer country they cause a disparate society.
• Social Implications: Our country has already seen the impact of the western culture. Our own traditions are getting lost and we are accepting the good as well as bad of western culture. This is one of the evils of globalization.

My Views:

Effects of Globalization on Indian Industry started when the government opened the country's markets to foreign investments in the early 1990s. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO. As everything has pros and cons, globalisation is no different.
The various beneficial effects of globalization in Indian Industry are
 It brought in huge amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. As huge amounts of foreign direct investments were coming to the Indian Industry, they boosted the Indian economy quite significantly.
 Also many foreign companies set up industries in India, and this helped to provide employment to many people in the country. This helped reduce the level of unemployment and poverty in the country.
 Foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced.
 Globalisation has had many obvious effects on educational technology and communication systems change the way education is delivered as well as roles played by both teachers and students. The development of this technology is facilitating the transition from an industrial based society to an information-based one.

The various negative Effects of Globalization on Indian Industry are:
 It increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being better than the Indian goods, the consumer preferred to buy the foreign goods. This reduced the amount of profit of the Indian Industry companies.
 With the coming of technology the number of labour required decreased and this resulted in many people being removed from their jobs.
 Income, information and education gaps between the rich and the poor are widening not narrowing.
 Economic crises, trade imbalances and structural adjustments have precipitated a moral crisis, tearing the basic social and cultural fabric of many families and communities apart, resulting in increasing youth unemployment, suicide, violence, racism, drug abuse and anti social behaviour.