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07-08-2012, 02:35 PM
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Is Globalisation a Boon or a Bane for India
Is Globalisation a Boon or a Bane for India



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Before the 1990, India's economic model was dominated by a large public sector, which favoured partitions for domestic industry. There was distrust for private sector and suspicion of foreign investment, with extremely high taxation levels on imported goods and a different business environment for foreign business interests. However, a balance of payment crisis in —rushed India to seek loans from the International Monetary Fund and liberalise the economy.
India embarked upon the policies of liberalization, privatization and globalization, mainly in the last two decades of the 20th century.

BOON

In discussing the issue of globalisation in the Indian context, the word is used, i.e. the technological changes, and associated policy changes, that have brought the world economies closer and made them more integrated with each other. In this particular sense, the changes that have occurred in the patterns of trade and capital flows in recent years are to India’s advantage – although, unfortunately, so far we have not made much use of it. Today, in terms of the potential benefits of globalisation, India is in a very different position than would have been the case 50 or even 20 years ago.

Globalization has brought to India new technologies, new products and also the economic opportunities. Despite bureaucracy, lack of infrastructure, and an ambiguous policy framework that adversely impact MNCs operating in India, MNCs are looking at India in a big way, and are making huge investments to set up R&D centers in the country. India has made a lead over other growing economies for IT, business processing, and R&D investments.

Personal Finance:

• Entry of the private sector banks has completely transformed the functioning of public sector banks
• Opening up of mutual funds; thirty five players; 15 joint ventures
• Commencement of the depository that helped common men to become the retail investors
• Deregulation of insurance industry; Nineteen players; 14 joint ventures in life insurance sector
• Fall in interest rates; smaller monthly installments made life more simple to Indian customer
• ATM's (Automated Teller Machines) made bank transactions more easier to common men than few years back
• Online trading, online purchanse of various finance products and online banking have helped common men to participate in investment process.

Job Sector:

• Salaries are now more attractive than in the nineties.Average annual IT salary has increased from Rs 1.6 lakh in 1998 to Rs 5.5 lakh in 2008
• Students get selected by the companies through campus recruitment an year before the date of completion of their technical education.
• Large salary hikes than offered few years ago.
• More emphasis on performance and not on number of years in the job
• More flexibilities in timings and work from home arrangements are becoming common
• In the last ten years, annual revenue of software industries has grown by 350%.
• Around 1.16 crore people are employed in BPO sector compared to only few lakh in the year 1998
• Office automation has helped improving effeciency of employees
• More and more recruitment are being made using job portals. Earlier ads were placed in the newspapers.
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