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Globalisation and its impact on Indian Economy

Author: 
Dr. Dhaval P. Dave and Ms. Rina C. Dave
Subject Area: 
Life Sciences
Abstract: 

Globalization in India (LPG) was to make the Indian economy one of the fastest growing economies in the world. An array of reforms was initiated with regard to industrial, trade and social sector to make the economy more competitive. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion and inflation was as high as 17%. Fiscal deficit was also high and NRI's were not interested in investing in India. Then the following measures were taken to liberalize and globalize the economy. The world has become increasingly interdependent and integrated. It has been the harbinger of radical change. All the fortune 100 companies have a foothold in the world market and reaping large revenues. The trade barriers have been lowered worldwide resulting in expansion of trade, foreign direct investment, exchange of technology, greater movement of people across borders. Globalisation has come with both benefits and losses. The comprehensive review presented shows the importance of it. It should be clear that the increasing importance of globalisation cannot be underestimated or ignored. In more than way globalisation is the need of the hour.

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