Advantages & Disadvantages of Globalization
Advantages of Globalization:
There are numerous implications of globalization on the national economy. The phenomenon has intensified competition and interdependence between economies in the global market.
- In India, the economic reforms have resulted in the overall economic growth.
- The growth in the Gross Domestic Product has improved the global position of India.
- Due to globalization, the service sector is now the main driver of Indian economy.
- The overall rate of growth of India’s economy is one of the major advantages of globalization in India owing to the fact that during the 1970s, its rate of growth was as low as 3 percent.
- Foreign direct investment has also increased due to globalization in India.
- All these have helped the speeding up of growth of Indian economy. Globalization has seen an increase in the number of fortune companies in India.
- The implication is that there are more employment opportunities than before.
- This also means that the standards of living have been raised with more wealthy people being created due to the numerous opportunities that exist within the country.
- The liberalization of trade which consequently led to flexibilities in business policies to allow for equal opportunities for multinational companies has therefore resulted in desirable impacts for the overall Indian economy.
- New technologies and products have been introduced in India and this has created new opportunities.
- The multinational companies have made big investments and set up research and development centers which have brought about positive impacts in the lives of Indian people.
- As a result, India is among the leading countries in information technology, business processing and research and development investments.
- Globalization has also had positive impacts on the social and cultural realm. By opening new opportunities for employment, globalization has improved both economic and social life of individuals.
- The standard of living has been raised and more Indians can now enjoy the luxuries that were not known to them before.
- The perceptions of ordinary Indians have also been changed through increased cultural interaction through mediums. Indian companies are now gaining more recognition in the global arena than before.
- Products from other parts of the world are also finding their way into the Indian market with more people being in a position to purchase them owing to improved economic conditions.
- More Indians can also access goods from other parts of the world owing to reduced prices.
- Generally, globalization has improved the economic life of Indians due to more job opportunities as people are no longer worried about government jobs; there are numerous multinational companies that pay more attractive salaries than the government. As such, Indians have gained more from globalization in ways that are beneficial to both the state and the individuals within the state.
Disadvantages of Globalization:
As much as there has been numerous economic gains attached to globalization in India, there are also disadvantages
- The rapid growth of industries due to globalization has not brought about benefits for everyone.
- There are various sectors that this growth has further aggravated the conditions of particular groups within the Indian society.
- Globalization has brought about rapid growth in the informal sector which has resulted in undesirable impacts on the working population.
- As much as it has led to the creation of jobs for many individuals, globalization is also contributing to the suffering of people within the informal sector.
- The multinational companies mainly investing in the ‘zero technology’ market and threatening to India’s small scale and cottage industries.
- It is important to note that the informal sector is deliberately not included in the labor legislation. For instance, informal workers are not subject to the 1948 Factories Act which covers the general working conditions, working hours, safety and health, prohibition of child labor, basic amenities among other things (Stone 1996). With globalization finding its way into India, it is clear that its consequences have been undesirable for workers in the informal sector.
- Globalization has resulted in poor health, deplorable working conditions and bondage.
- Employers have been able to impose working conditions that are extremely hazardous due to chronic insecurity among worker. For instance, the construction industry which is the second largest employer in Indian has not taken into consideration the working conditions of its employers. The employers are not concerned about the hazards involved. The proportion of fatal accidents is very high with some of the causes of serious injuries and deaths being crushes under collapsing structures, electrocution, and being buried under mud (Menon 1999).
- The negative impact of globalization is also felt in the Indian agricultural sector. A great number of laborers in this sector come from the ‘Scheduled Castes and Tribes’. In other words, they are from communities that are most exploited economically and oppressed socially under the caste system. The plight of this population has been worsened by globalization owing to the need to increase production to meet the growing demand from the global markets.
- As such, globalization has resulted in increased poverty and difficulties among particular populations in the Indian society.
- Human beings have been turned into machines simply because of the need to increase profits and be competitive in the global market.
- Apart from these impacts on particular groups, globalization has also contributed to the destruction of the environment through pollution and clearing of vegetation cover. With the construction of companies, the emissions from manufacturing plants are contributing to environmental pollution which further affects the health of many individuals.
Globalization has had both desirable and undesirable consequences for India. These consequences have been felt from the general economy to more specific conditions of life for the individual. As mentioned, globalization has resulted in the growth of Indian economy which in turn has improved the lives of many people. It has also created many employment opportunities. However, it has also widened the gap between the rich and the poor part from resulting in more oppression for those at the bottom of the social ladder. However, it may be said that globalization is inevitable in the twenty first century despite these disadvantages considering the advances in information technology which has led to more integration between nations. Various ills such as inequality that it has created are also some of its inevitable consequences which results from the competitive environment and the need to increase production so as to meet the growing global demand.