What are the effects of globalisation on Indian industries?

Answer 1

There are many effects of globalisation on Indian economy, such as:-

1. Due to globalisation Indian industries are benifetted alot.

2. Many Multinational Corporations(MNC's) are investing in India.

-By GAURAV KHANDELWAL

Answer 2

Negative effects of globalization on Indian industry have been:

1. Rise in demand for labor and the rise in wage rates leading to some increase in costs.

2. Weakening power of the trade unions over labor in emerging industries and growth sectors like IT, entertainment, internet and mobile services, airlines, banking, insurance, banking services.

3. Too much competition in the market leading to continuous pressure on raising productivity, enhancing consumer service, improving product quality, in order to survive.

4.Voluntary retirement for many public sector units.

5. Too many sales person chasing customers.

6. Too many cars on the road and traffic congestion.

7. Growth of consumerism.

8. Instability in profits due to too much choice among customers.

9. Shortage power and infrstructure affecting industrial expansion.

10. Closure of inefficient units supplying costly and shoddy products and loss of jobs.

11. Two years of large increase in textile industry jobs followed by large loss of jobs due to Rupee appreciation making Indian industry uncompetitive.

12. Problems of dealing with uncertainty in the international market in terms of demand, supply and prices.,

You can generate many such ideas to please the teachers. But the fact is there are hardly any real negative effect of globalisation compared with the pre-globalisation period.

Notwithstanding the low level of globalization of Indian economy, the impact of globalisation has been highly positive in all 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.