Globalization In India

Topics: International trade, Economics, Globalization Pages: 24 (973 words) Published: November 27, 2014
Globalization in India: Effects
and Consequences

Subhankar Chatterjee

What is Globalization?
The term globalization means International Integration.

Opening up of world trade, development of advanced
means of communication, internationalisation of financial
markets, growing importance of MNC's, population
migrations and more generally increased mobility of
persons, goods, capital, data and ideas.

It is a process through which the diverse world is unified into a single society.

Wave of Globalization
The wave of globalization hitted India at the end of the last century and still the country is flowing with the current of global changes.

Economic Impact of globalization in India
Multilateral agreements in trade, taking on such new agendas as environmental and social conditions.
New multilateral agreements for services ,Intellectual properties, communications, and more binding on national governments than any previous agreements.
Market economic policies spreading around the world, with greater privatization and liberalization than in earlier decades.
Growing global markets in services. People can now execute trade services globally -- from medical advice to software writing to data processing , that could never really be traded before.

Open Market policy -advantages

Growing Indian Economy

2010
 GDP – USD 1.36 trillion
 GDP growth rate – 9%
 Services contribution –
60-65%
 Balance of Trade – Negative
balance should increase with
surging imports versus exports
 Investment goal –
USD 370 billion

2008
 GDP – USD 1.16 trillion
 GDP growth rate – 9.5%
 Services contribution – 60%
 Balance of Trade – Negative
balance should increase with
surging imports versus exports
 Investment goal –
USD 305 billion

2006
 GDP – USD 590 billion
 GDP growth rate – 9%
 Services contribution – 54%

 Balance of Trade –
USD (-)46.2 billion
 Investment goal –
USD 250 billion

Growing GDP
1.200

USD Billion

1.000
800

682

600

398

400
191
200
0

103
105

453

237
125
105

1999-00
2002-03
Agriculture

204

231

135

145

2005-06
Industry

2006-07
Services

287
167
2010*

Source: India Brand Equity Foundation (IBEF)

Growing Exports

200

210
155

USD Billion

170
126.3

130

103.1
83.5

90
50
2004-05

2005-06

2006-07

2007-08*

2008-09*

Source: Ministry of Commerce & IBEF

Growing FDI Inflows
35

30

30
USD Billion

25

22

20
15
10
5

8.9
4.3

6

0
2003-04

2004-05

2005-06

2006-07*

2007-08*

India is ranked second in AT
Kearney’s FDI confidence index
(2007)
Source: Ministry of Commerce & IBEF

India‘s economic position
among BRIC countries

Impact of globalization on business in India
India has a consumer base of 1.14 billion people.
India is the 3rd largest global telecom market. The mobile subscriber base has grown from 0.3 Million in 1996 to over 250 million currently. India is likely to add over 200 shopping malls by 2010 and 715 malls by 2015.

 India is the world’s:
• 2nd largest two-wheeler market,
• 4th largest commercial vehicle market

• 11th largest passenger car market.
 Expected to be the 7th largest automobile market by 2016.

Indian companies going Global
Buyer

Acquisition

Price

Mittal Steel

Arcelor,Luxembourg

US$ 26.5 bi

Reliance Industries

Flag Telecom, Bermuda

US$ 212mi

Tata Motors

Daewoo, Korea

US$ 118mi

Infosys Technologies

Expert Information Services, Australia

US$ 3.1mi

Bharat Forge

Carl Dan Peddinghaus, Germany

N/A

Ranbaxy

RPG (Aventis) Laboratories, France

N/A

Wockhardt

CP Pharmaceuticals, UK

US$ 18mi

Cadila Health

Alpharma SAS, France

US$ 5.7mi

Hindalco

Straits Ply, Australia

US$ 56.4mi

Wipro

NerveWire Inc, USA

US$ 18.5mi

Aditya Birla

Dashiqiao Chem, China

US$ 8.5mi

United...
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