9. What are the economic implications of globalisation? How has globalisation impacted on India with regard to this particular dimension?

Economy is one of the most important parts of globalisation. The flow of capital, commodities and structures the basis of economic globalisation. It involves huge economic flows from one part of the world to another. Some of these are voluntary while some are forced upon by global organisations like WTO (World Trade Organisation) and IMF (International Monetary Fund). Some of the implications of globalisation are-

• The world has become one big market. Countries can freely trade with each other. There are very few restrictions on trade between countries which makes the business smooth and convenient. Money can be invested by developed countries in developing countries and thus help their economy mutually.

• Some individuals are concerned about the decreasing role of state and its dilution of power with an increase in the inflow of various multinational corporations in their country. They take the stand that it is likely to benefit only a small portion of the population and neglect the people dependent upon the state for basic services like health, education, sanitation etc.

• There has been a call for ‘social safety nets’ for protection of the weaker sections of the society who are not benefitted by this economic globalisation. The critics fear that forced economic globalisation will result in the impoverishment of the weak. They also refer to it as ‘recolonisation of the world’.

• However, advocates of globalisation propagate the thought that globalisation will result in greater economic growth and will benefit the majority population of the world when the economy is deregulated.

• Globalisation has also led to the interconnectedness of government businesses and ordinary people all over the world.