By Dr. Kalyan Goswami – CIMGlobal Head – Association Consulting
Globalization fundamentally means opening up of any country’s economic system and its integration among the other economies of the world. It involves political & economic liberalization. It is an economic process. In simple words, globalization is all about the business community reaching out across the world. It’s the modality of international integration. Technology has already completely changed the business, industry and also our day to day life. Let’s imagine the world without trade barriers, lesser restrictions, open economy – that’s the world where our future lies.
After 1991, the BOP (balance-of-payments) crisis, where foreign currency reserves fall down badly and inflation soared rocket high – India felt the urge of globalization. Those days, India laid numbers of stabilization-cum-structural adjustment measures with widespread effects. The government initiated the liberalization plan. Since then, India is gradually becoming one of the economic giants in the world. Globalization has helped India to grow substantially. In fact, at the time Global slow down Indian Economy tactfully sailed through the crisis, due to its balanced and robust macrostructures. Globalization has helped India to become an improved economy, explore and use its huge potential. India has learned the tricks to survive and sustain in a global turmoil situation. Now India is ready to go all-out to face this “globalizing” world. Economists say that in the next 5-10 years, India will be a leading force in the world economy.
The Economic rise in India is largely due to services rather than the manufacturing sector. India has become a global player in several services such as IT, BPO, KPO etc. FDI inflows have also increased at the tune of ten-folds in last two decades. Indian economy has the potential to grow even at a faster rate than now. The problem in India lies in the spurring productivity which is badly affected by low education, poor technological upgrading, skill development and capacity building. India’s weak infrastructure has hurt the booming potential of Indian production. From undependable energy supply, road infrastructure, cold chain shortages are the segments where massive opportunities for international collaboration is possible.
Globalization has created employment and has already brought large investments to India. Indian economy has been on the rise at good rates for the past few years and many new prospects have opened up for India. It has highly benefited from economies of scale. The change in global barrier and regulations has permitted the companies to profit from the huge Indian market, raw material and workforce. Foreign businesses have significantly augmented their investments in Indian industries. Indian economy is booming, as well as the opportunity to have collaborations.