Case Study ⇢ India in a Globalised World

Background Info

Background Info

• India, which is a BRICS country, is a vast country with a population of 1.32 billion, just behind that of China. It has experienced rapid economic growth with a rise in GDP of 7.6% in 2015. Even Ireland, the EU’s fastest growing economy, only managed 3.5% in 2015.

• Since 1990s the Indian economy has been opened up, barriers to trade have been demolished, entrepreneurs have been encouraged and foreign investors welcomed. As a result India’s economy has grown at enormous rates. In 1996-97, growth rates of almost 78% were claimed. This compares to a growth rate of just 3% in the 1970s. The economy is still growing and it is now the world’s third largest economy in terms of purchasing power and India’s economy continues to expand.

How has Globalisation helped development in India?

• Average living standards appear to be increasing in India as a result of globalisation. Between 1990 and 2015, life expectancy rose from 59 to 68 years. Between 1990 and 2011 adult literacy grew from 50% to 74%.

• The growth in out-sourcing from western economy. British Airways moved its accounting and finance to India in 1996 - wages were 10% of those in London.

• Mass consumption, once only found in MEDCs, is now available to more and more Indians. Enormous shopping centres are being built in all the major cities and towns to allow the middle classes to spend their money. Prestige office blocks have been built in some of the cities, such as the Infosys headquarters in Bangalore.

How has Globalisation hindered development in India?

• Globalisation has eroded India’s traditional values - consumerism before family and community; westernisation - dress, diet and behaviour… some of which is shocking to older or more traditional Indians.

• Wealth generation has not ‘trickled down’ - average income of US $616 in 2013, - the lowest of all BRICS countries, but the poor living in remote areas have seen few effects of economic growth.

• The World Bank reports that almost 58% of India’s population earn < $3.10 a day.

• Globalisation has been accused of widening the gap between rich and poor.

Conclusion

• Globalisation has undoubtedly played a significant role in shaping India's economic and social landscape. On one hand, it has provided India with opportunities for growth through increased trade, foreign investment, and technological advancements. This has led to the creation of jobs, improved infrastructure, and access to a wider range of goods and services for the Indian population.

• However, globalization has also posed challenges for India, particularly in terms of widening income inequality, cultural homogenization, and environmental degradation. The influx of foreign goods and competition has sometimes had adverse effects on local industries and traditional practices. Additionally, the pressure to conform to global standards and practices can sometimes overshadow the importance of preserving India's rich cultural heritage and diversity.