Importance of Globalization In India
Globalization in India has great importance in politics, economics, culture, religion and in every branch of knowledge and science. In economic or material field the term globalization is used to denote two different meanings.
The importance of Globalization in India are as follows :
- First, it means spread of trade and commerce of Indian Businesses.
- Secondly, it speaks of immigration and migration of people of different areas.
- Thirdly, it opens avenues of free movement of currency and other medium of exchange among the different countries.
- Fourthly, it denotes the scope of investing the capital of one country into another and thereby producing the agricultural goods, industrial goods and services in that other country and selling it ,there or in any third country continuously.
- Fifthly, it speaks of the exchange of finance capital from one country to another.
- Sixth, it increases the impact of the trade, investment and production of the multinational or trans-national Corporations.
- Seventh, it speaks of the opening of the avenues of technological exchange among different countries.
- Lastly, it stresses on the expansion of international information media and the impact of using electronic technology on the information media of different countries.
Also read: Short Essay on Globalization
The importance of Globalization in India traces back its root in Ancient India. In fact many of the branches of globalization are much older than the rise of capitalism itself. In ancient India, immigration and migration of the races and communities were frequent affairs. As human civilization advanced and men learnt trading, trade and commerce began between the countries Exchange of finance capital was also an age old affair. With the rise of capitalism many aspects of globalization came into surface and became an accepted practice.
As a result of the debt, during the 1980’s Globalization process and policy became very much pressing in the third world countries. Meanwhile the discovery of microchip created revolution in computer technology. Information technology underwent a revolutionary change. The fall of the previous Soviet Union and the collapse of communism paved the ground for further advancement of the capitalists’ countries to pursue the policy of globalization. The countries which had taken debt were found unable to pay the debt and that helped the spread of globalization easier a measure.
Also read: Effects of Globalization in India
For India the impact of the policy of globalization is both bad and good. The nature of Indian’s foreign trade with other countries of the world underwent great changes after India’s independence. During the first two decades her industrialization progressed in rapid pace and there was green revolution in our agriculture. Some internal significant reforms were made like the nationalization of banks, encouragement to agriculture and small scale industries etc. She had some deficit in her foreign trade, but was free from the heavy burden of foreign debt. From 1985 her economic policy changed and more importance was given to the globalization policy in India. That was the time of Rajiv Gandhi. The government of Narasimha Rao devalued money, withdrew many restriction from foreign investment in this country and took many other measures. The globalization policy in India was followed very carelessly and the result was the Bank Scam, depression in the industrial field etc. Her export also diminished. Yet the foreign investment has increased but that has not done any good to the country as a whole. The Patent Act of the World Trade Organization (W.T.0.) has robbed off much of her wealth. In fact to gain the good out of the globalization India must have to do much social reforms and instead of depending on the foreigners for investment and other economic activities, she should find out her own way to make proper use of the stores of knowledge and culture of the world. In this respect we can take the example of China, Japan and South Korea.