India and Globalization

Term Paper # 55983

Asian Studies
Economics > International

Examines the effect of globalization on the Indian economy.

2,338 words () | 8 sources | APA | 2005 United States

Paper Summary:

Many countries in the Asian market have shown remarkably rapid economic growth with the expansion of business methods and companies across national boundaries. India, however, although it presents the world market with a population that is second only to China, offers a more complicated picture in which threats are assessed as well as opportunities. This paper examines India from a global perspective to see what are perceived as the positive and negative effects of globalization on the country's fiscal and trade sectors. The perceived gulf between India's potential and reality are explained. Those who have been observing the nation's Gross Domestic Product for many years have seen India lag behind other Asian countries that have shown comparatively phenomenal economic growth. Changing economic policies that lifted many Indian trade restrictions in the early 1990s are assayed in terms of both the increased opportunities they present for many individuals in the nation as well as, internally, the increased weaknesses that are represented by political interference and what is seen by many to be an increasing gap between rich and poor in the nation.

From the Paper:

"The Indian market, the second largest national market in the world, was essentially closed off from the outside world by the strictures of a quasi-socialist control system. Imports were limited and foreign firms were not encouraged to enter the domestic sphere at all, as if they did so, the bureaucratic repercussions were often seen to be extremely prohibitive. At the same time, this bureaucratic government structure incurred its own costs and labor issues, which were not alleviated by the flow of multi-national capital. The public sector became a sort of economic monolith within the country, and increases in bureaucracy made this structure increasingly inscrutable, even to those within its sphere of operation. At the same time, the private sector was being virtually ignored in terms of economic opportunity."