GLOBALISATION AND ITS EFFECTS IN INDIA

GROUP MEMBERS

NAMES ROLL NO

LAVANYA BOGA 301

JOYCE CASTELINO 302

ANKITA CHAUHAN 303

GANESH CHAVAN 304 YOGITA CHAVAN 305

REENA CHAUHAN 306

GLOBALIZATION

“ The transnational increase in trade and capital transfers across national boundaries”.

STEPS TAKEN TO GLOBALIZE INDIAN ECONOMY

 Devaluation: 

 Disinvestment: 

Allowing Foreign Direct Investment (FDI): 

 NRI Scheme: 

THE MERITS OF GLOBALIZATION .

International market.

Increase in flow of investments.

Greater and faster flow of information.

THE DEMERITS OF GLOBALIZATION .

o Developing countries get exploit at lower salaries.

o Increase hatred between people amongst the nations.

o Competition.

GLOBALIZATION COULD INVOLVE ALL THESE THINGS!

GDP – USD 590 billion

GDP growth rate – 9%

Services contribution – 54%

Balance of Trade – USD (-)46.2 billion

Investment goal – USD 250 billion

20062006

Growing Indian Economy

*: ProjectedSource: Economic Times & India Brand Equity Foundation (IBEF)

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

20082008 *

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

20102010 *

*: ProjectedSource: Ministry of Commerce & IBEF

83.5

103.1

126.3

155

200

50

90

130

170

210

USD

Bill

ion

2004-05 2005-06 2006-07 2007-08* 2008-09*

Growing Exports

Source: Ministry of Commerce & IBEF

Growing Imports

111.5

149.1

185.7

210.8

50

100

150

200

250

US

D B

illio

n

2004-05 2005-06 2006-07 2007-08 (Apr-Feb)

India's Forex Reserves: 2001-08 (Till 14 March 2008)

5475

112141 152

199

306

0

50

100

150

200

250

300

350

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08(Till 14

March 08)

US

D B

illio

nIncreasing Forex Reserves

Source: Reserve Bank of India & India Brand Equity Foundation (IBEF)

High growth in population but problem of unemployment.

Need to generate 10 million jobs per year.

Multi party rule, hence need to accommodate political ideology with economic reality.

Inverse relation between foreign currency reserves & inflation.

IMPACT OF GLOBALISATION ON INDIA

EFFECTS OF GLOBALIZATION ON INDIA INDUSTRY

The government of India made changes in its economic policy in 1991.

POSITIVE EFFECTS OF GLOBALIZATION IN INDIA INDUSTRY

They brought in huge amount of foreign investments into the industry.

Many foreign companies set up industries in India.

Foreign companies brought in highly advanced technology.

NEGATIVE EFFECTS OF GLOBALIZATION IN INDIA INDUSTRY

Increased competitions.

Reduced the amount of profit of the India industry companies.

People loss their jobs.

Thank You