5 effects and 5 merits of …

The positive impacts of globalisation on Indian economy are as follows:

1. Increased investments in Indian markets by the MNCs have led to the growth of the Indian economy. In many fields such as automobiles, cell phones, soft drinks, fast foods and garments, MNCs have created vast choice of products for the consumers.

2. Local companies supplying raw materials to MNCs have developed and prospered.

3. Globalisation has opened many new opportunities for companies in the service sector, especially IT companies. These companies have offered their cheap but efficient consulting services to many nations. This has also created millions of jobs in India.

4. Technology has been transferred to developing countries. It has enabled production of quality goods in the international market.

5. A company hires regular services mostly from outside the country or within the country like BPO or call centres, banking services, teaching, maintenance of accounts etc. In India, outsourcing has generated new employment opportunities which lead to a growth in the GDP and also increased the foreign reserve in our economy.

The negative impacts of globalisation on  Indian economy:

1. Growth has been witnessed only in few selected areas in the service sector such as hospital services, information and technology, telecommunication, etc.

2. In order to earn maximum profits, MNCs employed Indian workers at extremely low wages. Only in urban areas the standard of living has improved. Their income and the quality of consumption also increased. This has led to the inequalities of income in the country.

3. To deal with the pressure of competition from the MNCs, many Indian companies have begun to employ workers on temporary basis so that they do not have to pay the workers for all 12 months of a year. This has resulted in companies making large profits, but workers not getting their share of benefits.