Globalization and its Impact on Indian Economy
Globalization means different things to different people. It can be defined simply as an expansion of economic activities across political boundaries of nation states. More importantly it refers to a process of deepening economic integration, increasing economic openness and growing economic interdependence between countries in the world economy. It is associated not only with a phenomenal spread and volume of cross-border economic transactions but also with an organization of economic activities which straddle national boundaries of the world. Globalization in India is generally taken as integrating the economy of the country with the rest of the world. This in turn implies that opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activities in India; removing constraints and obstacles to the entry of MNCs; allowing Indian companies to enter into foreign collaborations in India and also encouraging them to set up joint ventures abroad; carrying out massive import liberalization programmes by switching over from quantitative restrictions to tariffs in the first place, and then bringing down the level of import duties considerably; and instead of plethora of export incentives opting for exchange rate adjustment for promoting exports. Whether seeds of globalization sown in pre-reform period as many concessions were granted to foreign capital, MNCs were allowed to enter a number of crucial sectors to which their entry was previously restricted and banned. The study is purely based on secondary data. It will have a discussion on negative and positive impacts of globalization on Indian economy. Keywords - Liberalization, MNCs, Globalization, Economic Integration.