Consequences of Globalization on Indian Economy

Globalisation has had mixed effects on India – with both gains and challenges.

1. Positive Consequences

1. Higher Economic Growth

   • Increase in exports, FDI and services.
   • IT and BPO sectors expanded rapidly.

2. Greater Consumer Choice and Quality

   • Entry of global brands in automobiles, electronics, FMCG etc.

3. Technology Transfer and Productivity

   • MNCs bring new technology and management practices.

4. Employment Opportunities

   • New jobs in IT, BPO, retail, tourism and allied services.

2. Negative Consequences / Concerns

1. Inequality and Exclusion

   • Benefits concentrated in urban and skilled groups.
   • Rural and unskilled workers may not gain equally.

2. Pressure on Small‑scale and Traditional Industries

   • Competition from imports and large firms.

3. Cultural and Social Impact

   • Western lifestyles and values influencing youth.

4. External Vulnerability

   • Indian economy more exposed to global crises.

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3. Balanced View for Exams

When answering questions, present balanced analysis:

• Globalisation has helped India move to higher growth path.
• But policy support is needed for agriculture, small‑scale sector, skill development and social protection.

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4. Quick Revision Points

• Globalisation raised growth, exports, technology and consumer choice.
• Also created inequalities, competitive pressure and external vulnerability.
• Balanced policy approach required to maximise gains and minimise costs.

5. Quiz Time 🎯

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