Positive Effects Of: Globalization

Positive
Effects of
Globalization
JOB SECTOR
SALARIES are now more attractive than in the nineties. Average annual IT salary has increased
from Rs 1.6 lakh in 1998 to Rs 5.5 lakh in 2008
In the last ten years, annual revenue of SOFTWARE INDUSTRIES has grown by 350%.
Around 1.16 crore people are employed in BPO SECTOR compared to only few lakh in the
year 1998
BANKING SECTOR
NUMBER OF ATMS has increased from 500 in 1998 to 32300 in 2008; 1st ATM was installed
by HSBC in 1987
NET BANKING is used by 32% of saving bank account holders in 2008 compared to 1% in
1998.
MOBILE BANKING was offered by 6% banks in 1998 that is now being offered by 90% banks
in 2008
1st debit card and 1st credit card were issued by Citibank in 1998 and 1990, respectively.
HOUSING LOAN accounts have increased from 4 lakh in 1998 to 45 lakh in 2008.
GENERAL
There are 42 million INTERNET USERS in India in the year 2008 compared to 1.4 m users in
1998.
The number of MOBILE PHONE USERS has grown to 246 million in 2008 from 1.0 million
users in 1998.
There has been a great increase in SALES OF PASSENGER CARS. The sale has increased by
96% in the last ten years.
MONTHLY POCKET MONEY of 10-17 years old has risen by 500% from Rs 300 in the year
1998.
ECONOMY
The INDIAN TARIFF RATES reduced sharply over the decade from a weighted average of
72.5% in 1991-92 to 24.6 in 1996-97.
Global economy have helped step up GDP GROWTH RATES, which picked up from 5.6% in
1990-91 to a peak level of 77.8% in 1996-97.
INDIA’S GROWTH RATE in the 1970's was very low at 3% and GDP growth rate almost
doubled in the eighties to 5.9.
INDIA'S POSITION IN THE GLOBAL ECONOMY has improved from the 8th position in
1991 to 4th place in 2001. When GDP is calculated on a purchasing power parity basis.
INDIA'S EXPORT AND IMPORT in the year 2001-02 was to the extent of 32,572 and 38,362
million respectively.
Over the past decade FDI FLOWS into India have averaged around 0.5% of GDP. It is US $ 4
billion now in India
India's share of world merchandise EXPORTS increased from .05% to .07% over the past 20
years.
The STRENGTH OF THE EXTERNAL SECTOR was reflected in a sizeable accumulation of

India's foreign exchange reserves comprising foreign currency assets, gold, SDRs and the reserve
position with the IMF which touched US $ 141.5 billion as on March 31, 2005. These were about
then US$1 billion during the 1990–91 balance of payments crises.
The COMPOSITION OF DEBT is also favorable. Short-term debt amounts to 3.5 per cent of
external debt and concessional debt amounts to 36.5 per cent of total debt.
During 1991-92 the first year of Rao’s reforms program, The Indian economy grew by 0.9%
only. However the GROSS DOMESTIC PRODUCT (GDP) GROWTH accelerated to
5.3 % in 1992-93, and 6.2% 1993-94. A growth rate of above 8% was an achievement by
the Indian economy during the year 2003-04.
India’s GDP growth rate can be seen from the following graph since independence:
India - A Growing Economy
FOREIGN TRADE
Table 3:Foreign Trade (US $ Million)
Trade 1990-91 2002-3 2003-4 2004-5

Total Exports 18477 52719 63843 79247
Total imports 27915 61412 79149 107066
Trade Balance -9438 -8693 -14307 -27819
Source: Reserve Bank of India Annual Report 2004-05

INCREASING ROLE OF SERVICES SECTOR
Table-1: Structure of the Economy (Percentage)
(% Of GDP) 1984-85 2002-3 2003-4 2004-5

Agriculture 35.2 26.5 21.7 20.5
Industry 26.1 22.1 21.6 21.9
Services 38.7 51.4 56.7 57.6
Source: Economic Survey 2000 &2005
INCREASE IN FOREIGN DIRECT INVESTMENT INFLOWS
Table 2: Foreign Direct investment inflows (USD $ Million)
INVESTMENT 1990-91 2002-03 2003-04 2004-05
A.DIRECT INVESTMENT 97 5,035 4,673 5,536

I. Equity 2,764 2,387 3,363
a) Government (SIA/FIPB) 919 928 1,062
b) RBI 739 534 1,259
c) NRI - - -
d) Acquisition of shares * 916 735 930
e) Equity cap. of unincorporated 190 190 112
bodies
II. Reinvested earnings 1,833 1,798 1,816
III. Other capital # 438 488 357
B. PORTFOLIO INVESTMENT 6 979 11,377 8,909

a) GDRs/ADRs 600 459 613
b) FIIs @ 377 10,918 8,280
c) Off-shore funds & others 6 2 - 16
C. TOTAL (A+B) 103 6,014 16,050 14,445
Source: Reserve Bank of India Annual Report for 2004-05

Negative
Effects of
Globalization
1. Developed nations have OUTSOURCED MANUFACTURING and white collar jobs.
That means less jobs for their people. This has happened because manufacturing work is
outsourced to developing nations like China where the cost of manufacturing goods and
wages are lower. Programmers, editors, scientists and accountants have lost their jobs due
to outsourcing to cheaper locations like India.
2. Globalization has led to EXPLOITATION OF LABOR. Prisoners and child workers
are used to work in inhumane conditions. Safety standards are ignored to produce cheap
goods.
3. JOB INSECURITY. Earlier people had stable, permanent jobs. Now people live in
constant dread of losing their jobs to competition. Increased job competition has led to
reduction in wages and consequently lower standards of living.
4. TERRORISTS have access to sophisticated weapons enhancing their ability to inflict
damage. Terrorists use the Internet for communicating among themselves.
5. Companies have set up industries causing POLLUTION in countries with poor
regulation of pollution.
6. Fast food chains like McDonalds and KFC are spreading in the developing world. People
are consuming more junk food from these joints which has an adverse impact on their
HEALTH.
7. INEQUALITY IN INCOME DISTRIBUTION. The benefits of globalization is not
universal. The rich are getting richer and the poor are becoming poorer.
8. Bad aspects of foreign CULTURES are affecting the local cultures through TV and the
Internet.
9. ENEMY NATIONS can spread propaganda through the Internet.
10. DEADLY DISEASES like HIV/AIDS are being spread by travelers to the remotest
corners of the globe.
11. Local industries are being taken over by FOREIGN MULTINATIONALS.
12. The INCREASE IN PRICES has reduced the government’s ability to sustain social
welfare schemes in developed countries.
13. There is increase in HUMAN TRAFFICKING.
14. Multinational Companies and corporations which were previously restricted to
commercial activities are increasingly INFLUENCING POLITICAL DECISIONS.
Changes in Social and Cultural Life
1. Cable television and foreign movies became widely available for the first time and have
acted as a catalyst in bulldozing the cultural boundaries.
2. Unmarried boys and girls are sharing same apartment and staying away from their
parents.
3. Indian youths leaving EDUCATION in mid-way and joining MNC's.
4. There has been a increase in the VIOLENCE, particularly against women.
5. More availability of cheap and FILTHY MATERIAL (CD's or DVD's of Hollywood
movies, porn movies, sex toys, foreign channels like MTV) in the name of liberalization.
6. In India, land-line or basic phone was a prestige symbol few years back but now you find
people riding bicycle with a mobile in hand, talking or listening music or even clicking
cameras of their phones targeting pretty girls or ladies.
7. This has contributed to dating, celebration of friendship days/valentine day, and resulted
to rising number of call girls and make them more prone to sexually transmitted
diseases.
8. People are less worried for GOVERNMENT JOBS as MNC's and private or public
sector are offering more lucrative jobs.
9. More inflow of money has aggravated deep rooted problem of CORRUPTION.
10. More SCANDALS AND SCAMS compared to pre-globalization era.
11. Ban on TV channels for showing sex and violence violating all norms.
12. Girls being raped in moving vehicles.
13. There is deterioration in SOCIAL VALUES as evident from less respect for ladies, older
people.
REFERENCES
• http://www.tradechakra.com/indian-economy/globalization.html
• http://economics.about.com/od/globalizationtrade/l/aaglobalization.htm
• http://www.eurojournals.com/IRJFE%206%20goyal.pdf
• http://eac.gov.in/aboutus/chspe/55GLOBALIZATION%20AND
%20CHALLENGES%20BEFORE%20INDIA-Gen%20(single
%20space).doc
• http://hubpages.com/hub/ImpactofglobalizationonIndianculture
• http://www.buzzle.com/articles/negative-effects-of-globalization.html

Positive Effects Of: Globalization

Uploaded by

Positive Effects Of: Globalization

Uploaded by

Positive

The STRENGTH OF THE EXTERNAL SECTOR was reflected in a sizeable accumulation of

Trade 1990-91 2002-3 2003-4 2004-5

Source: Reserve Bank of India Annual Report 2004-05

Table-1: Structure of the Economy (Percentage)

(% Of GDP) 1984-85 2002-3 2003-4 2004-5

Source: Economic Survey 2000 &2005

INCREASE IN FOREIGN DIRECT INVESTMENT INFLOWS

Table 2: Foreign Direct investment inflows (USD $ Million)

INVESTMENT 1990-91 2002-03 2003-04 2004-05

A.DIRECT INVESTMENT 97 5,035 4,673 5,536

B. PORTFOLIO INVESTMENT 6 979 11,377 8,909

Source: Reserve Bank of India Annual Report for 2004-05

You might also like