Globalization and it's Impact on Economy in India

During the past three decades, a remarkable globalization of the world economy has been taken place. In the Post-Cold War era, globalization has got itself rooted in the geopolitics of the world economy. The vast majority of the developing countries have decided to globalize. The important factor behind globalization has been the modern technological revolution, the multinational corporation of the advanced countries is the major driving forces and WTO has an important role in promoting globalization. Globalization means integration of the economies of the world with one another which expand international markets. Integration take place when product and factors move about freely as among the different countries and there are no restrictions like quotas, licenses, 'high tariffs' administrative barriers etc. on the movement of the products and factors. With of the world so integrated that the factors and products will move about to meet the demands of the people everywhere. True Globalization should make free movement of labour unhindered by national boundaries. So in the context of globalization we need a new dictum "Think globally and Act globally". True development is only by integrating and working together by nurturing and including natives, tribes and indigenous peoples. In the era of globalization, we live in an increasingly interdependent world and we live in a "World without Borders. "Free trade which is at the basis of globalization leads to specialization in production as per the resources of the countries. This results in efficiency gain which is based on the "Principle of comparative advantage". Globalization helps to equalize the factor-incomes among the trading countries. In free trade situation, countries specialize in terms in terms of their factor endowments. As a result the wages of labour rise in countries like India where labour intensive techniques are used. Globalization of financial markets increases the supplies of finances at the time of need. A significant gain in this regard is the availability of "Direct Investment". It provides capital, technology, marked-access and managerial skills. Movements of labour are a good example of integration of the countries and therefore of Globalization can prove beneficial for both developed and developing countries. A change in the economic policy, beginning with the middle of the 1980’s, but more precisely in 1991, brought about a drastic turnabout in the functioning of the economy. At domestic level, the economy began to be liberalized alongside permitting an increasing role for the private sector. Globalization also has been effected agricultural sector especially in India. Due to New Agricultural Strategy India has achieved relative self-sufficiency in food grains and its imports became negligible and India is also able to accumulate larger buffer stock of rice and wheat. When the expansion of Net Sown Area (NSA), irrigated area, development of rural in fracture and land reforms played an important role. When high yielding crop verities agricultural inputs like fertilizers, pesticides and improved crop production technologies ushered in the Green Revolution. When Minimum Support Prices (MSP) and procurement of agricultural commodities were ensured and food grains storage and distribution system was expanded at the national level. In this time, liberalization and globalization was also took place with the establishment of the WTO. The fourth phase in India started after the economic reforms of 1991.The nineties recorded the relatively poor growth of agriculture despite its great potential. The GATT agreement signed in 1995 will fundamentally change the global trade picture in agricultural sector. The Indian agriculture sector faced many challenges in New Economic Policy under Wombat it has opportunities also. The crop pattern has been changed, it has shifted from food grain to crash crop which can be problem for food security and can raise the prices of basic food grain. There is a need for some developmental projects and policies so that Agricultural Sector in Indian can complete with the world in this era of Globalization. For the second green revolution includes wasteland development, minor irrigation, functioning and viability of cooperatives, grading, storage of agro-products and their processing cold chains and modern abettors. As a result of Globalization whether India's entry it's the world trade on importer or exporter will significantly affect world market prices which impart resulting changes in domestic prices will have on domestic production and procumbent prices have risen faster, leading to rise the market prices of food grains and general price level. For agriculture related products, inputs and services, all restrictions would have to be removed. Thus; India has the potential to become a major "bread basket of the world".