Impact of Globalisation on Indian Business?

Answer 1

Businesses in India will benefit greatly from the impact of globalization. They will be able to attract new markets and do business with other companies outside the region which improves profit margins.

Answer 2

As far as the Indian economy is concerned the impact of globalisation has been highly positive in al most all spheres of economic and social life and virtually no negative effect. It is only because of opening uo of the hitherto closed, govt.-oppressed and controlled economy to the process of globalisation that has helped Indian economy to grow rapidly:in the last 10-12 years, India's economic growth has been high, exports have boomed, incidence of poverty has been reduced, employment has surged, begging by India for economic aid has stopped, long-term inflation rate has gone down, scarcity of goods have disappeared, the quality of products available have improved substantially and overall India has become progressively vibrant and internationally competititive. Indian companies are setting up companies abroad, India has better technological development for the benefit of the common man ( mobiles, road transport, cheap clothes, etc - only because of globalisation.

Effect of globalisation on Indian industry has been very positive, though some industrial firms with the baggage of high cost, inefficient plants and processes inherited from the past because of closed economy's government dictated industrial policies and priorities had to face serious problems in the beginning. But soon most of the industries have become more and more efficient, customer focussed and improved their international competetiveness in terma of costs, prices, product quality and variety. Industrial growth has been very high and strong during the past decade because of globalisation. Exports have increased tremendously. Induan industries are also expanding abroad. Foreign companies have substantially increased their investments in Indian industries. Wages of industrial labour has increased substantially as they have become very productive. Lock out and strikes have declined to insignificantly low levels because industrial labor is happy. Those who cannot be efficient and past their prime age tio retrain themselves in modern methods and processes have been retired with very attractive voluntary retirement schemes. The trade unions are finding it difficult to influence industrial workers into agitation because labor has started benefiting from the positive fallout of globalisation on the prosperity and growth of the industrial sector. Talented and merited labor is commanding premium compensation in the labor market. Several new type of industries have also come up. Small scale industries of the past has fast grown into medium scale companies. Incidence of industrial sickness has gone done drastically.

However, the communists will not agree to this view because with industrial workers becoming richer following increasing demand for and the wages of industrial labour.resulting from liberalisation and globalisation.

India has done very little reforms in agriculture to enable private and individual economic initiative that would help harness the benefits of globalisation. Despite this govt. created hurdles to globalisation, Indian agriculture has benefited substantially from whatever little globalisation that has ben allowed in Indian agriculture.The farmers that got the exposure to global links of markets, technology and investment, benefited in terms of improving their yields, getting better prices and secured offtake. In many areas of the country, tomato growers, potato farmers and fruit growersfarmers benefited from tie-up and collaborations with ketchup, potato chips, fruit juices, etc. Indian agricultural exports have grown where Indian farmers in selected pockets are competitive: these include spices made from agricultural produce, flowers, mangoes, other fruitsrice, vegetables, pickels, papads, tobacco, etc. The e-choupals network created by an Indian company and the spread of mobile telephones have provided on line market price and climatic information on on-line real-time basis and helped them to get the best prices and sell to the most attractive buyers and brought them freedom from the clutches of the middlemen and traders. Because of the resistance from the traders and the politicians, more and more farmers are not getting the benefits of globalisation: vested interests are stopping the entry of more professional and honest buyers of agricultural produce of high quality for supply to urban areas through network of malls. Fishermen in Kerala have increased their incomes using mobile phones to find out the best mandis where the prices are the highest on each day. There have not been any negative effect of globalisation on Indian farming. But faulty and restrictive policies of Indian politicians have made it difficult for farmers to consolidate their holdings for larger scale commercial farming, acess to large, high paying buyers with retail chains, support of well-organised transparent mandis not ruled by traders. As a result in many areas farmers have committed suicides because of crop failuers and high indebtedness. Using the old British Indian laws of land acquisition, the state govts. are forcing farmers to sell their lands for industries at prices they consider justified rather than asking industrialists and companies to bid for agricultural land which will increase the market prices of land,. Once these policy impediments are removed, globalisation will proceed in Agriculture and farming in the proper way and benefit Indin agriculture and farming throughout the country. India does not need all the land under agriculture now for agricultural use: much less area would suffice to feed the nation and export if agricultural productivity can be raise substantially through private investment in agriculture by companies that need agricultural produce for their business growth and India's economic growth.