Globalization and its Positive Impact on Indian Economy

After the amendments of liberalization, privatisation, and globalization in 1991, India gained a new paradigm. It opened up as a hub of efficient labourers and also as an efficient market. Globalization acted as an initiative for the improvement of technology and skills. Technology triggered the productivity level, and it also initiated a proper platform for the service sectors (like IT hub) and manufacturing sectors. The improvement of technological skill increased due to the opening up of Research Development and also due to the improvement in education system. The governance and structure of the government changed i.e. the hierarchy of the central authority was segregated into centre and periphery (state district level management local governments Zillah parishad gram panchayat) this system provided an overview for proper implementation of active schemes. Impact of Globalization gained importance when the country became an investment hub of foreign companies and multinationals. As the globalization attracted foreign investors to invest in the financial market (like stock market, share market) the commodity market also expanded. India was experiencing a population explosion at that time which acted as the major engine behind the growing commodity market. The positive impacts of globalization were excessively felt from 1994 onwards when the government catered higher amount of foreign direct investments (FDI) and foreign institutional investment (FII) Therefore, this provided a stage to establish MNC'S (multinational corporations) Multinational corporations (MNCs) are most simply defined as a corporation or enterprise that conducts and controls productive activities in more than one country. They are important drivers of global economic activity, but have an ambiguous relationship with different forms of regulation that promote labour standards. Considering their global nature connecting different societies, Multinational corporations are generally related with high adoption of private manner of governance falling under the path of corporate social responsibility (CSR) These huge firms, mostly from North America, Britain, Europe, and Japan but also increasingly from newly industrialized countries like South Korea, Taiwan and Brazil, present an unique opportunity but may also pose serious problems for many developing countries in which they operate. Two central characteristics of multinational corporations are their large size and the fact that their worldwide operations and activities tend to be centrally controlled by their parent companies. They act as the major force in the rapid globalization of world trade. Thus this led to a reduction in poverty by drafting a drastic change in the economic policies. This level of foreign investment restructured the economy from its core. India's economic performance in the post reform period created a growth rate of 6.7% within a 5 year span of globalization; this helped India to gain confidence in the world market and made it one of the fastest growing economies. Thus this paper provides a guideline to cover all the positive aspects of globalization on Indian economy.