Globalization: Contribution in Indian economy

Pages: 541-546
Sunil Kumar (Department of Business Administration, Chaudhary Devi Lal University, Sirsa)

The growing integration of economies and societies around the world has been one of the most important and debated topics in international economics over the past few years. Rapid growth and poverty reduction in China, India, and other countries that was poor 20 years ago, has been a positive aspect of Liberalization Privatization and Globalization (LPG). But Globalization has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. There is a need to study the impact of globalization on Indian economy from the viewpoint of inward foreign direct investment through the export and import which is made by India. Attention should also be focused on the role which some developing countries, particularly from parts of Asia and Latin America, are playing as initiators of globalization through their own MNCs. India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans. The response was a slew of domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organization. The new foreign trade policy and Exim policy regime radically pushed forward in favour of a more open and market oriented economy. This paper explores the contours of the on-going process of Globalization, Liberalization and Privatization. Throughout this paper, there is an underlying focus on the impact of LPG on Indian economy.