The various beneficial effects of globalization in Indian Industry are that it brought in huge amounts of foreign investments into the industry especially in the BPO, pharmaceutical, petroleum, and manufacturing industries. As huge amounts of foreign direct investments were coming to the Indian Industry, they boosted the Indian economy quite significantly.
The benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the country. This helped reduce the level of unemployment and poverty in the country. Also the benefit of the effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced.
1. Gross Domestic Product (GDP) Growth rate: The Indian economy is passing through a difficult phase caused by several unfavorable domestic & external developments, Domestic O/P & DD conditions were adversely affected by poor performance in agriculture in the post two years. The rate of growth of GDP of India has been on the increase from 5.6% to 7% in the 1993-2001 periods. The sectors attracting highest FDI inflows are electrical equipments including Computer software & electronics (18 %), service sector (13%), telecommunication (10%), transportation industry (9%) etc.
2. Poverty: The government of India has shown decline in people living in absolute poverty by manipulating statistics. The “decline” happened when large number of industrial units have been closed down, number of days of work available to workers has declined, downsizing of manpower had taken place in most of the industrial undertakings and non-availability of jobs to the new entrant in employment market is witnessed.
3. Export & Import: India’s export & import is increasing many Indian companies have started becoming respectable players in international scenes. There are two alternative causes available. To sell its product in the export market. To produce those type of commodities that the rich in India could consume i.e. luxury consumption goods.
4. Education: The growth of higher education and the impact of the global economies have influenced the Indian education system over the last few years
5.Technologies: IT is given special status. The reason for this is because the Indian government wants to promote its nation as a technological advanced nation and in order to do this they must stimulate the IT sector. The “special status- means the sector and investors (willing to invest in the sector) will receive many benefits and incentives from the government to do so.
6. Indian Agriculture: Indian farmers are offered no subsidiaries compared to the US Farmers. There has been no encouragement from the government to ensure foreign companies to set up technologies for the farmer’s assistance. The US Farmers has opened the market for textile & China has already set up factories & started production where in India hasn’t woken up.