Globalisation Globalization can be defined as an integration

Globalisation • Globalization can be defined as an integration of economy, finance, trade, and communications from a world-wide perspective, in order to establish a successful economy on global basis • Globalisation means free movement of capital, goods, technology, ideas and people. Any globalisation that omits the last is partial and not sustainable.

• Technological advances • Expansion of international commerce (exports and imports) • Rising importance of private capital flows (stock markets and multinational corporations) • Increasing travel and migration (international tourism and domestic diversity) • Increased communication and interaction between peoples (through all sorts of media)

• Globalisation is considered as the engine of growth, technical advancement, raising productivity, enlarging employment and bringing about poverty reduction along with modernisation

Advantages ØGDP Increase ØPer Capita Income Increase ØUnemployment is Reduced ØEducation has Increased: Globalization has been a catalyst to the jobs that require higher skill set. ØCompetition : The companies all around the world are competing on a single global platform. This allows better options to consumers.

Disadvantages ØUneven Distribution of Wealth ØIncome Gap Between Developed and Developing Countries ØDifferent Wage Standards for Developing Countries

Globalisation and Indian Economy • Indian economy had experienced major policy changes in early 1990 s. • The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive

Globalisation and Indian Economy • Trade at international level is increased • Strengthening the Indian Economy • Employment growth rate has decline • Organised sector failed to generate employment • Pushing workers from organised sector to unorganised sector • Impact on SCs and STs • Weakening of welfare state