Globalization in India – Facilitating & Impeding Factors

Since 1991, India has become increasingly integrated with the world economy, but the process faces both drivers and obstacles.

1. Facilitating Factors

1. Economic Reforms and Liberalisation

   • Reduction in tariffs and quantitative restrictions.
   • Liberal FDI policy and encouragement to MNCs.

2. Demographic Advantage

   • Large, young and English‑speaking population.
   • Availability of skilled manpower in IT, engineering, finance.

3. Technological Progress

   • Spread of internet and mobile phones.
   • Improvement in transportation and logistics.

4. Growing Domestic Market

   • Rising middle class with higher purchasing power.
   • Attractive destination for global companies.

2. Impeding (Constraining) Factors

1. Infrastructure Bottlenecks

   • Inadequate roads, ports, power in some regions.

2. Regulatory and Bureaucratic Delays

   • Complex procedures, multiple clearances.

3. Skill Gaps and Inequality

   • Not all workers have skills required for global jobs.
   • Regional and social disparities.

4. Concerns about Cultural and Economic Dependence

   • Fear of losing cultural identity.
   • Worries about dominance of foreign companies.

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3. Case Study – Global Retail Chains in India

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4. Quick Revision Points

• Globalisation in India driven by reforms, demographics, technology and market size.
• Constrained by infrastructure, bureaucracy, skill gaps and concerns about dependence.
• Outcome is partial and uneven integration with global economy.

5. Quiz Time 🎯

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