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Political Globalization in India Descriptive Essay

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Updated: Dec 30th, 2019


Globalization is defined as the process through which trade and investment barriers are gradually eliminated. It is aimed at achieving efficiency in economic activities by initiating competitiveness while attempting to improve social and economic development. However, there are many misconceptions about the concept. The concept has been in existence for a long period of time hence it cannot be described as a new phenomenon.

For example, sipping tea to reenergize the body is a practice which began in china many years ago before spreading to other parts of the world. This example can be used to explain the concept of globalization. This implies that globalization should be understood in terms of context and time. Since there is no readily available answer regarding its definition, people have the liberty of perceiving it either as good or bad .

However, there is the need to look at globalization in a broad perspective as opposed to looking at it in terms of privatization and liberalization which are merged by many people.

Liberalization, globalization and privatization are different In that while liberalization and privatization are time bound, globalization is not. The three processes have a close relationship since globalization comprises of both privatization and liberalization . This paper will discuss the impact of globalization in India.

Globalization in India

Globalization is believed to have existed as long as civilization has been there but it has only been prominent in the recent past. Its impact is felt in different sectors all over the world especially in the developing countries. India became part of globalization after the economy of the country opened up to the rest of the world in the early 90s as a result of the financial crisis.

It can be described as one the developing countries which have recorded tremendous economic growth having been ranked eighteenth. It has a population of more than 1 billion people and it is estimated that 40% of these people live in dire poverty. India has been one of the countries whose economies have been growing very fast .

The government of India has always been committed towards changing the economy of the country and promoting strategies of sustaining the growth. After discovering that investors from foreign countries and the world market have great potential in the country, the government has put up policies of enhancing investment and encouraging local and foreign investors to continue investing in the country.

Positive Impact of Globalisation in India

The first impact of globalization in India is the improvement of the living standards of the citizens. Economic development has improved the infrastructure of the country, health services, income earned by individuals and many other factors that have positively contributed towards improved living standards of the citizens.

It is expected that the country’s economy will continue to grow every year thus increasing employment opportunities in the country. Many sectors in the economy of the country have improved as a result of globalization. For example, the service industries contribute an average of 54% of the GDP every year.

These figures indicate that the performance of the service industries is satisfactory and such a growth will create more employment opportunities consequently improving the living standards of the citizens. Employment opportunities have also increased in other sectors such as agriculture and industry.

Indian industrial sector is among the sectors that contribute significantly in improving the economy. Through this industry, the country exports commodities like cotton, wheat, tea and sugarcane. The number of customers in these sectors has also continued to increase hence creating employment opportunities.

The second impact of globalization in India is reduction of poverty among the citizens. Globalization is associated with increased integration as a result of investments and trade. This aspect has led to remarkable achievements towards poverty reduction in India.

Since 1980, the number of people living in poverty has continued to decrease as a result of globalization despite the fact that the population of the country continues to increase every year. If there was no decline in the number of poor people since 1987, the number of people living in poverty would have been extremely large.

For India to achieve its goal of poverty reduction through globalisation, there are various steps that the country should take. For instance, opening up new businesses, using technology in entrepreneurship, improving management and converting financial institutions into private ones are important steps towards reducing poverty in the country .

The third impact of globalization in India is that it has resulted in an increase in civil society organizations. It has been argued that some of the civil society organizations that come up lead to the formation of horizontal and parallel structures of democracy while others pose a threat to the democracy of the country. Deregulation of the economy in India has caused investment competition among foreign traders.

This has led to regional imbalances between states which have economic means and those which do not have economic means to be prominent . For economic development in India to be achieved, it is important for the country to adopt new systems without establishing corrective measures that are centrally controlled.

Developing nations like India require assistance in order for the country to develop socially and economically (ACM, 2011). It is argued that the economic deregulation which is brought about by globalization affects the economic development of the country.

While this is beneficial to some of the developed regions in the country, it is disadvantageous to regions of the country that are not developed. This makes it necessary for the government to increase its national powers. Globalization is also associated with the occurrence of what is referred to as legitimacy vacuum.

While the country is responsible for the decline of economic sovereignty, it still remains in charge of the internal sovereignty.

Domestic sovereignty in the country is promoted through creation of internal structures which make it possible for the legitimacy of the country to be increased to counter the effects of globalization. It has been suggested that by recognizing the third level of Federalism in India, the constitution can be used as a way of addressing this issue .

The fourth impact of globalization in India is that the earlier days were marked by unhealthy competition as states attempted to attract investors from foreign countries. This caused the states to adopt short term mechanisms like reducing the taxes to encourage investors.

However, the truth is that the reduction or lowering of taxes only resulted in decline in finances without any positive outcome. Of late, the states have discovered that this problem can be solved through improved infrastructure since it plays a major role in encouraging economic development .

The economy of India was opened up in the 90s following the economic crisis that resulted from a decline in foreign exchange that stalled the economy for some time. The government responded by modifying external and domestic policies which were initiated by the needs of the consumers and the multilateral organizations. The new policies advocated for favourable economy based on open markets.

Some of the key measures that were adopted after globalisation included abolishment of the industrial licensing tradition, reduction in public sector places, amendment of policies that restricted trade, cutting down of tariffs and the change in exchange rates that were influenced by the market conditions. In the recent past, the account transactions in India have been liberalised opening up many sectors to foreign investors .

The economy of India is dependent on participation of rural citizens in the global sectors. The roles played by villages in India were increased after new economic policies were implemented as a result of globalisation.

For example, many entrepreneurs ventured into processing of foods and packaging when globalisation started setting in. These were collectively organized together with cooperatives to achieve the needs of the global market .

The fifth impact of globalization in India is increase in trade of goods and services. The standard theory which is one of the economic theories argues that international trade is beneficial in that it enables resources to be allocated with full consideration of the comparative advantage.

Consequently, this brings about specialization which increases productivity. It is therefore acceptable that globalization results in many benefits while restricting it limits economic growth.

This is the reason why upcoming economies which relied on import substitution in the past have changed their policies. However, when it comes to the trade in goods and services there is little attention.

Economies like the Indian economy have been taking advantage of globalization to utilize their resource availability in order to realize full potential. International agreements in trade have therefore given upcoming economies enough time before they lift non-tariff and tariff barriers .

Since the formation of a commission for planning in India and the adoption of economic developments borrowed from the socialists, the Indian government has started exercising more powers. The government has made it clear to the world that it is open to diverse cultures.

The constitution values the rights of minority groups and gives freedom to all religions making it easier for globalization to thrive. However, the country has faced challenges in trying to balance between non-territorial necessities and territorial ones in the country .

Globalization in India has therefore been forced to contend with the diverse cultural and regional peculiarities. A number of factors have been associated with globalization in India. Some of these factors include the allowance of minority groups to access educational and cultural facilities and the fact that affirmative policies have been extended to tribes and castes.

Negative Impact of Globalization in India

Despite the fact that there are many controversies surrounding globalization, it is generally agreed that the past two decades have recorded a remarkable inflow of capital, people and goods in India. It has been argued that globalization has affected the freedom of the country and a decline in political power which has in turn created more challenges.

Globalization has affected India in that the duties and tariffs levied on imports have been abolished with an intention of encouraging the local industries to invest. India had abolished all trade restrictions by the year 2001. This led to an influx of cheap imports which caused low prices for goods like cotton.

The tariffs on importation of cotton have since been lowered leading to increased imports of the commodity. However, increased importation of cotton once again has increased supply of cotton in the country causing the prices to go down. Some of the impacts associated with the price declines have led to suicidal cases among cotton farmers as a result of frustrations .

After India gained its independence, the country adopted a federal system where states were expected to function by themselves and enhance cooperation with other states in order to realize the objectives of maximizing welfare. The constitution played a major role in ensuring that this objective was achieved.

Currently most federal states are guided by the principle of equal distribution of power among the states. Globalization in India has resulted in regional inequalities which have affected the bargaining power of the country in relation to national and international participants. There is also negative impact on the political and social intervention from different units of the population .


The concept of globalization has been associated many changes in India since it is not homogeneous. Despite the fact that India has been overlooking its economic sovereignty due to globalization, the country has been keen to enhance the domestic sovereignty. Consequently, the sovereignty of India has been understood in terms of external and internal perspectives of globalization.

In order to maintain the core objectives of the country of economic growth, the country has been forced to enhance the functions carried out by the central government. This has been important in addressing social and economic disparities resulting from globalization.

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