Question

What is globalization? How is India affected by it?

Hint:

Define globalization in one line, then present two balanced lists—benefits and challenges—and finish with 2–3 policy pointers for inclusive gains.

Answer 1

Meaning:
Globalization is the growing integration of national economies through trade in goods and services, cross-border investment and capital flows, movement of people, and rapid spread of technology, information, and ideas.
Impact on India (Brief discussion):
Positive effects:
- Higher FDI/FPI and technology transfer; expansion of modern industries and services.
- IT–ITES boom: software exports, BPO/KPO, start-ups, global delivery centres; rising skilled employment.
- Greater consumer choice and improved quality/standards due to competition.
- Export growth (pharma, automobiles, engineering goods, services) and integration into global value chains.
Challenges/concerns:
- Uneven gains: rising inequality between skilled and unskilled workers; pressure on small/ informal enterprises.
- Job displacement/volatility from import competition and global shocks.
- Cultural homogenization and environmental stress if not regulated.
Way forward (India's policy focus):
Skilling and education, MSME support, logistics and digital infrastructure, social protection, and fair trade/competition rules—so that the benefits of globalization are inclusive and sustainable.