NCERT Economics Class 10 | Impact of Globalisation in India
Topic & sub-topics covered: Impact of Globalisation in India: Globalisation and The Indian Economy (All single detail notes are exam-oriented).
We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 10th about “Impact of Globalisation in India” which is taken from the NCERT Economics notes for class 10th chapter 4 “Globalisation and The Indian Economy“.
Download the NCERT Economics for Class 10th Chapter 4 Globalisation and The Indian Economy PDF
“Download the NCERT Economics for Class 10th Chapter 4 Globalisation and The Indian Economy PDF” is essential for students. It offers insights into globalization’s impact on India’s economy, aiding comprehension of economic integration’s nuances. Students gain access to in-depth analyses, case studies, and theories, enhancing their understanding.
NCERT Class 10 Economics Chapter 4 Globalisation and the Indian Economy Class 10 Notes PDF
The PDF facilitates convenient learning, covering globalization’s historical context, theoretical frameworks, and practical implications for India. It serves as a valuable reference for educators, policymakers, researchers, and business leaders, providing a comprehensive understanding of globalization’s effects on India’s economic development. Accessing this resource empowers stakeholders to navigate globalization’s complexities effectively, fostering informed decision-making and strategic planning.
Impact of Globalisation in India
1. Impact of Globalization on Consumers:
- Globalization and increased competition have benefited consumers, especially those in urban areas, by providing them with greater choices, improved quality, and lower prices for various products.
- Consequently, consumers, particularly the well-off sections, now enjoy higher standards of living due to increased access to a wide range of products at affordable prices.
2. Varied Impact on Producers and Workers:
- The impact of globalization on producers and workers varies across different sectors and segments of the economy.
3. Benefits for Multinational Corporations (MNCs):
- MNCs have significantly increased their investments in India over the past two decades, particularly in industries such as cell phones, automobiles, electronics, soft drinks, fast food, and urban services like banking.
- Investments by MNCs in these sectors have been lucrative, leading to job creation and economic growth.
4. Job Creation in Urban Industries:
- The industries and services favoured by MNC investments have witnessed the creation of new jobs, contributing to employment generation and economic development in urban areas.
5. Opportunities for Local Suppliers:
- Local companies supplying raw materials and other goods to industries favoured by MNC investments have also benefited, experiencing growth and prosperity as a result of increased demand for their products.
6. Growth in Key Sectors:
- Key sectors such as telecommunications, automotive, electronics, and services have experienced significant growth and expansion due to investments by MNCs, leading to the creation of employment opportunities and economic development.
7. Uneven Impact on Different Sectors:
- While certain industries and sectors have thrived under globalization, others may have faced challenges or experienced slower growth, leading to disparities in the overall impact of globalization across the economy.
8. Urban vs. Rural Disparities:
- The benefits of globalization, particularly in terms of job creation and economic growth, may be more pronounced in urban areas compared to rural regions, exacerbating existing urban-rural disparities.
9. Need for Inclusive Growth Strategies:
- To ensure that the benefits of globalization are more evenly distributed and inclusive, policymakers need to implement strategies that address the needs and challenges of both urban and rural populations, as well as different sectors of the economy.
10. Role of Government Policies:
- Government policies play a crucial role in shaping the impact of globalization on different segments of society and the economy, emphasizing the importance of effective governance and policy interventions to promote equitable growth and development.
11. Benefits for Top Indian Companies:
- Increased competition has compelled top Indian companies to invest in newer technology and production methods, leading to improved production standards and efficiency.
12. Success through Collaborations:
- Some Indian companies have benefited from successful collaborations with foreign counterparts, leveraging their expertise and resources to enhance their competitiveness in the global market.
13. Emergence of Indian Multinationals:
- Globalization has enabled several large Indian companies to expand their operations globally and emerge as multinationals, thereby contributing to India’s presence in the global business landscape.
14. Examples of Indian Multinationals:
- Companies like Tata Motors, Infosys, Ranbaxy, Asian Paints, and Sundaram Fasteners have successfully expanded their operations worldwide, showcasing India’s capabilities in various sectors on the global stage.
15. Opportunities in Service Sector:
- Globalization has created new opportunities for Indian companies providing services, particularly in the IT sector, where services like magazine production and call centres for international clients have flourished.
16. Outsourcing Opportunities:
- Countries like India have become hubs for outsourcing services such as data entry, accounting, administrative tasks, and engineering, offering cost-effective solutions to developed countries and contributing to India’s export earnings.
17. Growth of IT Services:
- The IT sector in India has experienced significant growth as a result of globalization, with Indian companies offering a wide range of IT services to clients worldwide, further solidifying India’s position as a global IT hub.
18. Expansion of Service Export Market:
- The globalization of services has led to the expansion of India’s service export market, with Indian companies catering to the needs of international clients across various industries and sectors.
19. Economic Impact of Service Export:
- The export of services has become an essential driver of economic growth in India, contributing significantly to employment generation, foreign exchange earnings, and overall economic development.
20. Importance of Globalization for Indian Companies:
- Globalization has opened up new avenues for Indian companies to expand their reach, enhance their competitiveness, and capitalize on emerging opportunities in the global market, driving growth and prosperity in the Indian economy.
Steps to Attract Foreign Investment
1. Special Economic Zones (SEZs) to Attract Foreign Investment:
- Central and state governments in India are establishing Special Economic Zones (SEZs) to attract foreign companies to invest in the country.
- SEZs offer world-class facilities such as electricity, water, roads, transportation, storage, and recreational and educational amenities to incentivize foreign investment.
2. Tax Incentives in SEZs:
- Companies setting up production units in SEZs are granted tax exemptions for an initial period of five years, providing them with a favourable environment for business operations and investment.
3. Flexibility in Labour Laws:
- To further attract foreign investment, the government has introduced flexibility in labour laws, allowing companies to bypass certain regulations aimed at protecting workers’ rights.
4. Relaxation of Rules in Organized Sector:
- Companies in the organized sector, which traditionally adhere to strict labour regulations, are now permitted to disregard many of these rules to reduce labour costs and increase flexibility in hiring practices.
5. Shift towards Flexible Employment:
- Instead of hiring workers on a regular basis, companies are adopting flexible employment practices, hiring workers for short periods during peak workloads to optimize labour costs.
6. Demand for More Flexibility:
- Despite the relaxation of labour laws, foreign companies are still pushing for additional flexibility in labour regulations to further reduce costs and increase operational efficiency.
7. Government Response to Foreign Companies:
- The government is under pressure to accommodate the demands of foreign companies by implementing more flexible labour policies to attract increased foreign investment.
8. Balancing Economic Growth and Workers’ Rights:
- There is a need to strike a balance between promoting economic growth through foreign investment and safeguarding the rights and welfare of workers affected by flexible labour practices.
9. Policy Implications for the Labour Market:
- The relaxation of labour laws and the shift towards flexible employment have significant implications for the labour market, affecting job security, working conditions, and the overall welfare of workers.
10. Challenges and Opportunities in Labour Reforms:
- The debate over labour reforms highlights the challenges and opportunities faced by policymakers in balancing the needs of businesses for flexibility and competitiveness with the protection of workers’ rights and social welfare.
Competition and Uncertain Employment
1. Impact of Globalization on Workers:
- Globalization and increased competition have brought significant changes to the lives of workers, leading to insecurity and uncertainty in employment.
2. Preference for Flexible Employment:
- Employers increasingly prefer to hire workers on a flexible basis, where job security is no longer guaranteed, in response to the pressure of competition in the global market.
3. Cost-cutting Measures in Garment Industry:
- Indian garment exporters, under pressure to secure orders from large multinational corporations (MNCs) in Europe and America, resort to cost-cutting measures to remain competitive.
4. Focus on Maximizing Profits:
- MNCs seek the cheapest goods to maximize their profits, prompting Indian garment exporters to reduce costs, particularly in labour, to meet the demands of these buyers.
5. Shift to Temporary Employment:
- To cut labour costs, garment factories in India increasingly employ workers on a temporary basis instead of permanent employment, resulting in job insecurity for workers.
6. Long Working Hours and Night Shifts:
- Workers in the garment industry are subjected to very long working hours and regular night shifts during peak seasons, as factories strive to meet production targets and deadlines.
7. Low Wages and Overtime Work:
- Despite working overtime, wages for garment workers remain low, forcing them to work extra hours to make ends meet, while their fair share of benefits from globalization is denied.
8. Disparity in Benefit Distribution:
- While competition in the garment industry enables MNCs to reap large profits, workers bear the brunt of cost-cutting measures and are deprived of the benefits brought about by globalization.
9. Exploitative Practices in Global Supply Chains:
- The global garment supply chain often perpetuates exploitative practices, where workers face poor working conditions, low wages, and job insecurity, highlighting the need for ethical sourcing practices.
10. Advocacy for Workers’ Rights:
- There is a growing need for advocacy and activism to address the injustices faced by garment workers and ensure that they receive fair wages, decent working conditions, and job security in the globalized economy.