The Impact of Globalization on India

Globalization can be explained as one of the important concepts that define the actual spread of the products, technology, and jobs across different countries as well as culture. It is an essential process that helps to improve the rate of unemployment by increasing job-opportunity all over the globe. It helps in raising the standard of the people who are living in poverty and also improve the access that is provided to the list of goods and services. It also has some of the downsides like it might decrease the number of job opportunities in the countries of high wages as a large number of production for goods has been moved across the border. The development of globalization has benefited the large corporation that is based in the western world. If the globalization is explained culturally then it represents the sharing or exchange of different ideas, values, and the expression among different group of cultures. The financial-globalization can be defined as the rise of the financial system globally through international financial-exchange and monetary exchanges. It also allows the migrants to get better job opportunities all over the world and through this concept longer geographic distance is no longer a barrier or obstacle for the services.


The primary advantage or positive impact of globalization on countries like India is that it can be helpful in increased manufacturing, economic expansion and also creating improvements in the standards of living for the group of workers. Globalization also increases competition in the market between the domestic company and the foreign company. Through outsourcing by companies can be useful in bringing the list of jobs and technologies to the developing countries. It also removes or improves the constraints that lie on the supply side or trade-related business. India and China are the two countries which get benefitted most by the initiative of globalization all over the globe (, 2020). [Referred to Appendix 1]

Migration is a concept or the way through which one person move from one place to another with the purpose to live or work or any other reason. In India the rate of migration from rural areas to urban areas has been increased to get better employment opportunities. It is found that Globalization has increased the rate of migration through a much easier communication network and also by improving the transport system. The expansion of global communication networks like telephone connection, video rental stores have empowered the migration all over the world and especially in India. It is been analyzed in the year 2015 that India has a total of 5.2 million immigrants all over the world and mostly from Bangladesh (3.2 million), Pakistan (1.1 million), and many others (Bhagat, 2016). Globalization increases the opposing movements and creates the challenges like the group of individual who is migrated from a different place and are settled to new place faces ethical as well as cultural issues while living together with other peoples in society. Through the increase in globalization creates more migration of people results in the loss of a person from the rural areas which impacts the actual output and development of rural areas. The cheap traveling from one place to another through globalization impacted India by increasing the competition for the jobs, school and thus it increases the rate of unemployment and lack of education in schools of India (Kavitha and Valliammai, 2020). Unemployment is one of the challenging issues for India today because of the increase in competition due to the high population that increases crime, theft, suicide, and other illegal activities. [Referred to Appendix 2]

The people in India are incapable of getting enough natural resources because of an increase in population due to the high rate of migration from outside. The services of India become expensive because of the high rate of population and poor people become less affordable to it and that increases the mortality rate because of hunger in the country. Although, because of the increase in job opportunities because of globalization in India, the people who shifted from an urban area and lacks basic skills and qualifications also applied for the high profile jobs and gets rejected. Thus as they find a lack of opportunities in urban areas and shifted to rural places without much qualification dies of hunger and poverty over there. However, there are many positive impacts that are also created through an increase in globalization for a migrated individual like the children of urban areas can get a better education, and also they will be able to learn new cultures and improve their social life. There are some of the skilled workers who migrated to India and helps in increasing the economic capabilities of the country (Das, 2018).

This is because of the globalization that major of the foreign investments is done in India especially in BPO, Petroleum, Pharmaceutical, and manufacturing sectors which increases the opportunities for the residents of India. Thus just because of this reason, the people of other countries settled in India to grab the opportunity, and competition gets increased leading to a higher percentage of unemployment in the country. [Referred to Appendix 3]

Globalization has resulted in increasing the connectivity among the markets around the world by increasing the communication and awareness of business opportunities across the globe. The investors through it can access the new opportunities of investment and can study the market even at a greater distance. It helps in maintaining the competitiveness for the companies of India when they are expanding all over the world. Thus it also forces the company to outsource labor outside the country which makes it globally stronger. As because of the increase in international trade of country India, the opportunities for the job have increased as engineers from India can work on issues with the people of other continents. The trading profit of India started to increase after the liberalization and it rises to 63, 0801 billion (INR) in 2003-04 from 12.50 billion (INR) in 1950-51. Thus it proves that with the increase in globalization the liberalization increased which improves the economic stability of the country through trade activity. It is found that with the increase in globalization the international business has become one of the popular topics all over the globe (Siddiqui, 2018).

It is possible through the globalization that a product which is available in India is now exported outside to country throughout the globe. The high literacy rate in India helps the country to develop and sell more to other countries. The globalization helps a country like India to get the concept of Fairtrade in practical which means the products are a little expensive but the customer pays for better benefits from that product. Therefore, it promotes the equality and also fair condition in production and trade of goods by India throughout the globe it is creating a positive relationship among the country India and other countries which helps in increasing economic stability for each of them. The economic reform was surveyed in the year 1991 by the ministry of finance, which shows that there is an increase in the import, export, and balance of payment because of globalization in India. In the year 2009-2010 the total exports were about 845,534 and imports were about 1, 36,736 which shows a gradual increase in the trade as compared to total export of 456,418 and import of 660,409 in 2005-2006 because of the advancement of globalization in India (, 2020). [Referred to Appendix 4]

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The rise in the actual value of the trade because of high investment by India helps the country to import more which increases the resources and capability of businesses like manufacturing industry. The improved transport like air-travel as because of advanced globalization helps India to export or import products easily throughout the globe. The formation of the World Trade organization in 1994 helps in the reduction of tariffs and non-tariffs barriers that lies across the world. This helps in introducing free trade agreements from India to different countries. Globalization also leads to an increase in MNC which sources their resources across the globe that improved the trade relationship with foreign trade partners (, 2020).

The globalization is analyzed to be one of the useful concepts that have many advantages as well as it shows demerits too. According to the research it is found that globalization has increased the foreign investment in India which leads to high job opportunities in India. It also creates a great cultural exchange because of the high migration of people outside or inside the country India. But with the increase in migration due to globalization the competition gets increased in India which creates a high rate of unemployment resulting in rising of illegal activities like kidnapping, murder, and theft because of poverty. The access to new technology however gets increase after globalization is introduced and also the international trade concept is improved and becomes productive in India.

Reference List


Bhagat, R.B., 2016. Changing pattern of internal migration in India. In Contemporary demographic transformations in China, India, and Indonesia (pp. 239-254). Springer, Cham.

Das, S., 2018. Globalisation and its Influential Factors: An Analysis on India. PACIFIC BUSINESS REVIEW INTERNATIONAL, 10(10), pp.120-125.

Kavitha, P. and Valliammai, A., 2020. Causes and Impact of Labor Migration in India. Studies in Indian Place Names, 40(60), pp.162-170.

Siddiqui, K.A.L.I.M., 2018. Capitalism, Globalisation and Inequality. The World Financial Review.


Appendix 1: Effect of Globalization

Effect of Globalization

Appendix 2: Globalization and Migration

 Globalization and Migration

Appendix 3: Reason for Migration

 Reason for Migration

Appendix 4: International Trade record of India

International Trade record of India
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