Assist.Prof. (Economics), Department of Humanities and Management, National Institute of Tech. Delhi
Abstract
Growing integration of economies has transformed
the world economy as a global village. Globalization
helped to remove all the barriers between the
countries, facilitates trade expansion, foreign inflow of
capital, labour and technology. In early nineties Indian
government has taken major steps for the economic
reforms in the form of Liberalization, Privatization and
Globalization. The major steps for globalization were
the devaluation of Indian currency, allowing Foreign
Direct Investment (FDI), removal of quantity restriction
on import and financial sector reforms. It was observed
that the average annual growth rate in 1990-2000 was
6%, which changed the scenario and India became the
fastest growing economy in 1990s. Yet India’s trade
share with world economy was very low due to gradual
growth of infrastructure and unequal industrial growth.
The on-going process of globalization can change the
scenario if it is used with some precautionary measures
and implemented properly. For the purpose of analysis
some economic variables have been taken which are
as GDP, Foreign direct Investment, foreign exchange
reserve, export and import of the country. The objective
of this paper is to analyse the relationship between
globalization and economic growth. Secondary sources
of data are used for the purpose of analysis which
is collected through government website, published
journal and newspaper articles. After the analysis of
economic variable it can be seen that globalisation
stimulated the economic growth of India, growth rate
improved, foreign exchange crunch in 1991 moved
towards surplus, FDI inflows increased but there were
some economic issues which created hindrances in the path of growth such as declined agriculture share
in GDP, high rate of labour mobility, fragile financial
market. This paper is divided into four sections. First
section is dictated to Introduction, Literature Review,
Objectives and Research Methodology. In Second
section major steps which are taken for globalization
are discussed. Third section is of result and discussion
in which impact, strategy and economic issues of
globalization on Indian economy are discussed and at
last conclusion and suggestion are discussed.
Keywords: Poverty, Development, Health, Education, Living Standard
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