Essay about Impact Of Globalization On The Economy

1701 Words Dec 4th, 2016 7 Pages
Globalization is the process through which the world is rapidly becoming interconnected as a result of substantially increased trade activities and cultural exchange. Globalization has increased the production of goods and services all around the world in every sector. The biggest companies are no longer known as the national firms but are now referred to as multinational corporations with subsidiaries in several countries and continents. Globalization is in action for several years, but has speeded up enormously over the last half-century.
In the early stages of globalization, India formed a crucial part of it. The government of India made major modifications in its economic policy in 1991, which later allowed and fuelled direct foreign investments in the country. As a result, globalization of the Indian Industry earned major recognition in the global market. In India, economic expansion was mainly observed in nineteenth century due to major crisis led by foreign exchange. The liberalization of the domestic economy and enhanced incorporation of India with the global economy helped in severe magnification of the gross domestic product (GDP or economy) growth rate, which was considered as a good position at global scale.
Effects of globalization on the Indian Industry are observed as this process brought in successive amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. Eventually, they boosted the…

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