Impact of Globalization on the Indian Industries: a Study |
Globalization is aprocess, which involves economic inter-dependence of countries world-wideremoving all barriers for economic integration as if the whole world is asingle village. The essence of globalization is active cross-border capitalflows, technological changes between the countries, integration of market world-wide, free flow of trade,movement of persons across the border, regional cooperation in various parts ofthe world and rapid integration of financial markets'. Globalization is both abenefit and a challenge. It is an inevitable, and irreversible process for theworld economy and the international market. In reality, there is significantlymore interaction now than it wasa century ago. The technological development has made movement of people, goodsand capital more wide-spread, frequent and deeper. Active cross-border capitalflows have improved the efficiency of the allocation of the world financialresources and improved people's standard of living. As a result, a country can grow faster. Growth ofmedia and Internet connections are fuelling economic growth and human advances.All these offer enormous potential to eradicate poverty in the 21stcentury. The challenges ofglobalization in the new century is not to stop the expansion of global marketonly, but also for setting rules and institutions for better governance atlocal, national, regional and global levels. Further, globalization is not justto preserve the advantages of global market and competition but also to provideenough space for human, community and environmental resources to ensure thatglobalization works for people and not just for profits.