Q.How has globalisation impacted on India and how is India in turn impacting on globalisation?

Globalization has profoundly impacted India, bringing both opportunities and challenges.

• Impact on India: It has facilitated increased foreign direct investment, fostering economic growth and creating new employment, especially in the service and manufacturing sectors. Indian consumers now have access to a wider range of goods and services, often at competitive prices. However, it has also intensified competition for domestic industries and, in some cases, led to job displacement in traditional sectors. …

Globalisation — the increasing interconnectedness of economies, cultures, and populations across borders — began to touch India significantly only after the economic reforms of 1991. Before that, India’s economy was largely closed, with high tariffs, strict licensing, and limited foreign investment. The shift was dramatic: tariffs were slashed, foreign companies were allowed in, and Indian businesses were forced to compete globally. This opened the floodgates to foreign goods, capital, and technology.

The most visible impact on India has been economic. Multinational corporations set up factories and service centres, especially in information technology, pharmaceuticals, and automobiles. Cities like Bengaluru, Hyderabad, and Gurugram became hubs for global outsourcing. Indian consumers suddenly had access to brands like McDonald’s, Apple, and Zara — products that were either unavailable or unaffordable earlier. At the same time, Indian companies like Tata, Infosys, and Mahindra expanded abroad, acquiring foreign firms and setting up offices worldwide.

But globalisation’s impact is not only economic. Culturally, India absorbed global trends in fashion, music, food, and entertainment. Satellite television and the internet brought American sitcoms, Korean dramas, and global news into Indian homes. English became even more central to upward mobility. At the same time, Indian culture — yoga, Bollywood films, Ayurveda, and cuisine — began to travel outward. The Indian diaspora, now over 30 million strong, became a living bridge, carrying Indian traditions to every continent.

Socially, globalisation widened inequalities. The benefits concentrated in urban areas and among the educated. Rural India, small farmers, and traditional artisans often struggled to compete with cheap imports or were bypassed by global capital. The opening of agriculture to global markets, for instance, exposed farmers to volatile international prices without adequate safety nets. This created a complex picture: opportunity for some, displacement for others.