Question

Analyse any five positive effects of globalisation on the Indian economy

Answer 1

Hint:
- Globalization has been described as a phase of gradual integration of countries and technologies through increased international exchange and foreign investment.

- It is a mechanism of international unification that results from the sharing of world views, goods, concepts and other facets of culture.

Complete step by step solution:
Positive Impact:
- Greater number of jobs: the advent of multinational firms and global growth also contributed to employment formation.
However, these jobs are more focused in the services industry and this has led to a dramatic increase of the retail sector, causing difficulties for those with a limited standard of education. The last decade has come to be known for its jobless growth, as job production has not been proportionate to the pace of economic growth.
- More competition for consumers: globalisation has led to a surge in the demand for luxury goods.
We have a number of options in the variety of products, unlike the days when there were just a few producers.
- More disposable income: residents in cities employed in high-paying positions have higher wages to spend on lifestyle products.
As a result, demand for items such as beef, eggs, pulses and organic food has risen. It has also contributed to inflation of proteins.
- Technology: reduces the volume and time of the communication manifolds. The phenomenon of social media in the recent world has made distances meaningless.
Technology convergence in India has turned jobs requiring specific expertise and missing decision-making skills into well-defined, more accountable jobs requiring new skills, such as numerical, analytical, collaboration and interactive skills. As a result, more work opportunities for people are created.
- Growing of MNCs: multinational companies working in diverse geographies have contributed to the spread of best practices.
MNCs import capital from across the globe and offer their goods in global markets that contribute to greater local engagement.

Note:
LPG Reforms: The 1991 reforms in India led to greater economic liberalisation, which in turn expanded India's contact with the rest of the world.
Faster transit: better transport, allowing world travel faster.
For example, there has been a rapid rise in air traffic, causing both individuals and products to pass across the globe.
The growth of the WTO: the establishment of the WTO in 1994 led to a decrease in tariffs and non-tariff barriers around the world.It also contributed to the increase in the free trade agreements among different countries.