Q."Globalisation has benefited Indian consumers but has also increased India's exposure to global economic shocks." Discuss this statement with examples.

Globalisation gave Indian consumers wider choice and often lower prices, but it also linked India's economy more closely to global markets, making it more exposed to external shocks. …

This statement is broadly correct and captures a genuine two-sided effect of globalisation studied in this chapter.

Benefits to consumers: with import restrictions eased and foreign firms allowed to compete in the Indian market, consumers gained access to a much wider range of goods — from electronics to automobiles to consumer durables — often at more competitive prices than the domestic monopolies of the pre-1991 era could offer. Competition from imports and multinational entrants also pushed domestic producers to improve product quality and after-sales service to retain customers.

Increased exposure to global shocks: the same channels that bring these benefits — freer capital flows, greater trade dependence, and integration with world financial markets — also transmit disturbances originating outside India more directly into the domestic economy. For example, a global financial crisis can trigger sudden outflows of foreign portfolio investment, putting pressure on the rupee's exchange rate; a sharp rise in global crude-oil prices raises India's import bill and can worsen inflation and the current-account deficit; and a slowdown in major export-destination economies (like the US or EU) can directly reduce demand for Indian exports, particularly IT and manufactured goods. …

Discussing only the benefits of globalisation and ignoring the vulnerability side, or vice versa — a "discuss" question expec …