Question

“Indian economy has greatly benefitted by the process of globalisation.”
Justify the given statement with valid arguments.

Hint:

To justify economic benefits of globalisation, link reforms to outcomes like FDI inflows, employment, exports, and technology transfer.

Answer 1

Globalisation has played a significant role in transforming the Indian economy in various sectors. The benefits of globalisation for India can be elaborated as follows:
Inflow of Foreign Investment: Globalisation facilitated the inflow of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) into India. Sectors like automobile, telecom, retail, and banking witnessed rapid expansion with foreign capital and technology.
Access to Advanced Technology: Collaboration with multinational companies helped Indian firms adopt modern production techniques, increasing efficiency and product quality.
Expansion of Services Sector: India experienced a boom in its services sector, especially in IT and ITES, due to global outsourcing. Companies like Infosys, Wipro, and TCS expanded rapidly, generating jobs and boosting GDP.
Increased Exports and Trade: Globalisation opened up international markets for Indian goods and services. Exports of software, textiles, pharmaceuticals, and engineering goods increased significantly.
Rise in Employment Opportunities: The entry of foreign firms and global outsourcing created new jobs in sectors like IT, BPO, retail, hospitality, and manufacturing.
Improved Consumer Choices: With global brands entering Indian markets, consumers enjoyed a wider range of goods and services, often at competitive prices.
Integration with Global Economy: India became more connected with the world through trade, capital flow, technology, and labour migration, enhancing its global presence. Thus, globalisation significantly contributed to India's economic growth, competitiveness, and structural transformation.