Economic Affairs: Vol. 59 Special Issue: 797-803: 2014

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Globalization and its effect on India

Rinku Agrawal

*Department of Economics, Ranchi University, Ranchi, India

Corresponding author: Rinku Agrawal; agrawal.rinky10@gmail.com

Paper No. 193

Received: 11 June, 2014

Accepted: 27 July, 2014

Abstract

Globalization has many meanings depending on the context and on the person who is talking about. The

term globalization refers to the integration of economies of the world through uninhibited trade and financial

flows, as also through mutual exchange of technology and knowledge. Ideally, it also contains free inter-

country movement of labour. Globalization has played a major role in export- led growth, leading to the

enlargement of the job market in India. Indian economy had experienced major policy changes in early

1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization

(LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive.

With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for

India and her billion plus population. This period of economic transition has had a tremendous impact on the

overall economic development of almost all major sectors of the economy, and its globalization on India.

Throughout this paper, there is an underlying focus on the impact of globalization on India’s foreign trade

and Indian economy.

Keywords: India, Globalization, liberalization, privatization, economy,foreign trade.

SECTION 1

Review of literature

Globalization is the subject of attraction for a long time. The wave of globalization appeared on India’s

shores only in 1991, much after China’s and some other SoutheastAsian countries. The various research

centers, trade committees, economist and media are giving importance to globalization and its impact on

Indian economy continuously. We include some significant studies have been taken up for the purpose

of literature review that are most relevant for our analysis.

Singh (2012) in his paper “Globalization and Its Impact on Indian Economy”examines the reform history

in Indian economy starting from the pre-British era to present stage of Liberalization, Privatization and