Globalization Impacted on Indian Economy

globalization shocked on Indian EconomyIntroductionIndian miserliness had experienced major constitution changes in early 1990s. The new economical reform, popularly cognisen as, Liberalization, Privatization and globalisation (LPG model) aimed at devising the Indian parsimony as fas shew evolution economy and globally competitive. The series of reforms undertaken with respect to industrial orbit, make do as well as pecuniary sector aimed at making the economy to a greater extent efficient.globalization has umpteen intends depending on the context and on the soulfulness who is talk of the town active. Though the precise definition of globalization is still untouchable a few definitions ar worth viewing, Guy Brainbant says that the bear on of globalization not only includes opening up of world trade, cultivation of mod means of communication, internationalization of financial markets, growing importance of MNCs, population migrations and much generally increased mobility of persons, goods, capital, cultivation and ideas plainly besides infections, diseases and pollution. The term globalization refers to the desegregation of economies of the world through uninhibited trade and financial flows, as in like manner through mutual exchange of technology and k in a flashledge. Ideally, it also contains surrender inter- surface argona movement of labor. In context to India, this implies opening up the economy to unknown direct investment by providing facilities to hostile companies to invest in several(predicate) fields of economic activity in India, removing constraints and obstacles to the entry of MNCs in India, allowing Indian companies to enter into foreign collaborations and also encouraging them to set up say ventures abroad carrying out massive import liberalization programs by teddy everywhere from quantitative restrictions to tariffs and import duties, therefore globalization has been identified with the indemnity reforms o f 1991 in India. (http//www.fibre2fashion.com/industry-article/8/738/ advert-of-globalization1.asp)Aims and Objectives-The details mentioned below result help to know the face up consequent, the reason for the issue, ca implement of universe the present issue and rationalize that how this question open fire be reformatory in future.The seek issue-The main issue is the impact of globalization on the Indian economy. Globalization has come to dominate world since the 19th century. Globalization has m any meanings depending on the frame of mind of person who thinks about it. However, Globalization means the integration of economies and societies through the exchange of ideas, technology, services, finance and people.The reason that led to globalization in India was the significant decline in GDP of some East Asian companies, lack of emergence in developing countries and the foreign exchange markets of the unquestionable nations. Due to the above reasons- Inflation in India r ose sharply during 1998-99, orbit the height of 8.8% in September 1998 and dropping down in January 1999.Manufacturing offshoot in terms of GDP fell to 7.7% in 1996-97 from previous age height of 15%, whereas in 1997-98 it fell to 6.8%. The above mentioned impacts show the tie-up of India with the global economy, production decisions and government policies.Why is it an issue?thither is a concern that relates to the loss of autonomy following the economic policies. It is certain that in the progressing world, all countries cant implement the same techniques, there are think over to be some differences depending on unhomogeneous circum statuss.Why is it an issue now-Though there leave be a help of foreign investment to promote the economic development in the short run, but there is also a possibility that at the times of time out investors whitethorn withdraw their funds ca employ advertise problems. Domestic producers are being affected by overseas giants,that are having co mpetitive advantages over the domestic producers having huge funds to invest. This has started to return in closure of many domestic owned firms.Globalization has resulted in outsourcing of jobs to developing countries, resulting the loss of jobs in developed countries in the near future there is a fortune that multinational corporation with there immense power may restrain the world.What could this look for shed light on-The inquiry in general concentrates on finding the positive and negative impacts of globalization on Indian economy, talking about reforms, mentioning some alpha stats and figures, casual analysis of various factors influencing the country, etc.Background section-In the early 1990s Indian economy had experienced major policy changes. The economic reform known as Liberalization, Privatization and Globalization (LPG model) aimed to make the Indian economy, the fastest growing economy and also to make it globally competitive. The series of reforms implemented with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient.July 1991 has led to a new start for India. This menstruum of economic changes has had a tremendous impact on the overall development of almost all major sectors of the economy.Globalization has changed the mindset of Indian people. It has changed the tralatitious values such as self reliance and socialistic policies of economic development that were mainly created to economic backwardness, inefficiency of the economy and also some separate problems which were created since the independence in 1947. Despite of such obstacles, India has always had the potential to be on the fast track to prosperity.Literature Review-There watch been many authors who have commented on the topic Impact of Globalization on the economy. Let us take a close look at the ideas of such authors.In the admit by Jeffrey A. Frankel (1998), named The regionalization of the world economy, he gave a brief idea about the free trade areas, fashion unions and custom blocs that are prevalent in the absolute world. He further utter that Regionalization is the base which makes more economists hopeful about the opportunities that it may create in the near future, whereas it creates fear in the minds of new(prenominal)s- making them think about the efforts it may take to encourage global free trade. The book provides answers to questions like- the extent of regional arrangements having affected the patterns of trade, maintains the safety effects for the arrangements and it also explains the economic effects on patterns of trade, via price differentiations or gravity models.In the book by Robert Boyer and Daniel Drache (1996), named States against markets the limits of globalization, they commented that As the countries are making efforts to increase their exports this has indirectly led to crossing of national-borders and become dependent on other countries to satisfy their wants . Some important points discussed in the book are- clarification of whether globalization is a development or not, further it assesses the success of globalization as a media of convergence and uniformity crossways nations, it provides up check on Hayek vs. Keynes debate and also helps to provide outstrip benefits to the entire world.In the book by K R Gupta (1996), named Liberalisation and globalisation of Indian economy (Volume 1), he comments that it has been a long time since the process of Liberalisation and Globalisation was started in India in 1991. In the book he has examined the achievements and failures of economic reforms throughout this period, and has also made some suggestions to improve them. The book also presents the roles to be played by all states in accelerating the developments of the country as a wholly. It describes the economic reforms of other countries from which India can learn a lot, it analyses the impact of reforms on the agricultural cottage and sma ll scale sector and suggests a greater attention towards these sectors.In the book by Satyendra S. Nayak (2009) named Globalization and the Indian economy Roadmap to convertible rupee, he examines the impact of globalization on the Indian economy- in respect to the trade, investment and financial aspects, he has also considered the balance of payment and exchange rate. In the first type of the book- he mentions the role played by the US in undergoing the globalization process, he also provides detailed analysis of monetary system. In the second part of the book- the author explains the Indian economic systems and its process of dealing with the globalization he has given a brief idea regarding the economic reforms and state of liberalisation in India. Finally the author examines whether the Indian currency- rupee can be made fully convertible or not.enquiry Questions-Based on the purpose of this inquiry the primary question will be forget Liberalisation, Privatization and Globaliz ation help India to achieve faster growth and progress in future as well.What impact will the MNCs have on the growth and development of under-developed and developing countries?What were the important reforms undertaken by India in the early mid-nineties as a part of liberalisation and globalization strategy? research object AND METHODOLOGYCollis and Hussey (2003 pg 113) defines a research design as a science of visualizening procedures for conducting studies to get the most valid findings. A research design is an important step for a research proposal interrogation process can have different design and different methods can be use depending on the chosen subject what is being analysed.The research process is utilize to define the research strategy of the study in detail. Figure 1 describes a generic research process onion plant plant that supports the researcher to depict the issues underlying the choice of entropy collection methods (Saunders et al 2000 84)Figure 1. Research process onionhttp//www.thesisexpress.com/images/fig3.jpg Accessed 15th whitethorn 2009.The layers of the research onion represent the following aspects Research philosophy Research come out Research strategy, methodology Time horizons and data collection methodsThe research onion gives an overview, how one can achieve its objectives by using the techniques in separately layer of the onion.This research proposal aims to take a closer look on market segmentation, package design, brand development and assessment, and redeing various processes, including consumers decision-making processes. The research design, philosophy of this proposal will be framed more at heart the qualitative (phenomenological paradigm) methodology. But in order to bankrupt understand the study respondents, to optimize the data collection process, to increase twain the comprehensiveness and width of data collection requires the use of mixed methods.The main differences between them and what they are focu ssed on can be seen in gameboard 1.Table1.Quantitative / Positivist paradigmQualitative/ Phenomenological paradigmOlder tradition derived from scientific enquiryDeveloped from research into human experience entropy take the form of fares data take the form of non-numbers realness is fake to be a fixed conceptReality is assumed to alter according to perspectiveResearcher maintains objectivity, remains aloof and removed(p) from the researchedThere is interaction between researcher and researched, possibly to the extent of inter-subjectivity where both collaborate on the work as a wholeEnsuring dependability means that the work may be repeated with the same findingsreliableness may not be possible with human experiences. It is less importantLarge representative samplesSmall samples not necessarily representative stiffness may be lowGreat importance placed on validity- the truth or trus tworthiness of the researchFindings to be generalised to whole population studiedFindings not g eneralisable may be transferable in certain circumstancesDeductive or hypothetico- deductive stance-tests pre-set theories and hypothesesInductive stance develops scheme from cardartificial research setting, controlled by the researcher essential setting for the researchedSource Lecture notes by Jonathan KnowlesThere are two main research approaches deduction and induction. With deduction a theory and dead reckoning (or hypotheses) are developed and a research strategy designed to test the hypothesis. With induction, theory would follow data rather than vice versa as with deduction. study differences between deductive and inducive approaches to research areTable 2DeductionInductionScientific principlesGaining an understanding of the meanings humans attach to events touching from theory to dataNeed to explain casual similitudeships between variables destination understanding of the research contextaccruement of quantitative dataCollection of qualitative dataApplication of control s to consider validity of data fruition that the researcher is part the research processOperationalisation of concepts to control clarity of definitionMore flexible make to permit changes of research emphasis as the research progressesHighly structured approach . Researcher independence of what is being researchedLess concern with the need to generalizeNecessity to select samples of comfortable size in order to generalize conclusionsSource Saunders et all, 2007, p.120This proposal follows the inductive approach where data is self-possessed and the theory is developed as result of the data analysis. Through the interviews, access will be gained to the understanding of meaning that humans attach to the events. The objective for using the inductive approach is to ensure that all angles are covered in terms of understanding the deeper structure of the research problem.The next step is to choose the strategy, methodology which is going to be used. According to Saunders et all (2007 , p.135), any of these strategies can be used test Survey Case study Action research Grounded theory ethnography Archival researchFor the purpose of this research proposal the grounded theory methodology will be used. Grounded theory (Glaser and Strauss, 1967) is often thought of as the best example of the inductive approach. It helps in theory building through a combination of induction and deduction. A grounded theory strategy is, according to Goulding (2002), is helpful for research to predict and explain demeanour, the emphasis being upon developing and building theory. Constant quotes to the data to develop and test theory leads Collis and Hussey (2003) to call grounded theory an inductive/deductive approach, theory being grounded in such repetitive references to the data.Data collection methods are an integral part of research design. There are several data collection methods, each with its own advantages and disadvantages. Problems researched with the use of appropriate methods greatly enhance the value of the research.Data can be collected in a variety of ways and from different roots. Data collection methods include interviews- face-to-face interviews, telephone interviews, computer-assisted interviews, and interviews through the electronic media, surveys, questionnaires that are either personally administered, sent through the mail, or electronically administered, observation of individuals and events with or without videotaping or audio recording and a variety of other motivational techniques such as projective tests.Interviewing, administering questionnaires, and surveys are the three main data collection methods followed in this research.Timescale-Its important to develop a time plan for the research to lead to a successful dissertation. For this reason the Gantt chart (developed by Henry Gantt, 1917) can be used. A Gantt chart is a graphic representation of the duration of tasks against the progression of time. It is a useful tool for hom ework and scheduling projects as well as monitoring a projects progress. A Gantt chart lets us see how remedial action may withdraw the project back on course.Table 3Target dateJanuary-FebruaryStart thinking about research topicEnd February make research problem, finalize objectivesMarchDevise research approachMarch-end July hive away data, read literatureJune- SeptemberAnalysing and interpretation of dataBy fractional SeptemberDraft finding chapters13th August- 5th NovemberAppointments with supervisorBy 12th NovemberRevise draft, writing format for submissionBy sixteenth NovemberPrint, bindBefore 23rd NovemberSubmitAdapted from Saunders et al., 2007, p.41Resources-The resources required for this research may be categorized as finance, data access and equipment. The financial expenses for this research will not be too high. However, because of the research is mainly focused on India, it will be necessary to cover snuff it expenses which may occur in case of personal interview, b ut give thanks to low cost airlines, it would be still affordable. Internet has provided most of the information about this subject. Internet access is available at the university campus. Other secondary expenses are expected for photocopying or printing and posting questionnaires. The main equipment used will be PC, printer and recorder.Access to study population-In this research data will be collected from Primary source due to its validity as well as secondary data to supplement the primary data. The primary data will be collected by conducting survey using questionnaire technique among income groups and various age.The questionnaire will be checked for completion and interviewing whole tone. Editing is the review of the questionnaire with the objective of increasing the true and precision. There are several sources of secondary data, including books and periodicals, government publications of economic indicators, nosecount data, Statistical Abstracts.Ethical Issues-When doi ng research it is always important that all parties in research should exhibit ethical behaviour. Ethics are norms or standards of behaviour that guide moral choices about our behaviour and our relationships with others. The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences from research activities.There are six key principles of ethical research that will be addressed, whenever applicable- Research should be designed, reviewed and undertaken to ensure integrity and quality- Research staff and subjects mustiness be informed fully about the purpose, methods and intended possible uses of the research, what their participation in the research entails and what risks, if any, are involved.- The confidentiality of information supplied by research subjects and the anonymity of respondents must be respected- Research participants must participate in a voluntary way, free from any coercion- Harm to research participants must be avoided- The indepe ndence of research must be clear, and any conflicts of interest or partiality must be explicithttp//www.esrc.ac.uk/ESRCInfoCentre/Images/ESRC_Re_Ethics_Frame_tcm6-11291.pdf Accessed 16th May 2009.Analysis/Interpretation of the Data-For this research, a probability sampling technique will be used to answer the research questions and achieve objectives. The possible sampling techniques used will be stratified ergodic and cluster. According to Saunders et al (2007, pg 221) stratified random sampling involves division of population into two or more germane(predicate) and significant strata based on one or more number of attributes. Further division of the population into series of relevant strata will ensure that the samples are more likely to be representative of the different customers in India. The data collected from the questionnaire will be neatly presented, analysed, and interpreted using pie-charts, bar graphs in the most efficient way to have the better understanding of the r esults.ConclusionThe main purpose of this research proposal was to list and analyze the impact of globalization on the Indian economy. It also helped to restrain the positive and negative impacts on globalization. This proposal helped me to identify the main objectives, questions and problems which this research may concentrate on the literature review gave me the idea regarding the literature sources available- that will be enlarged by following research for the dissertation. Design and methodology stage helped to create the framework of possibilities and methods useful to achieve the condition objectives. It helped me to make a proper plan to undertake the research within the time available and to make sure that the results are in relation to knowledge and understanding.ReferencesMalik T, 2004. Impact of globalization on Indian economy accessed on April 25, 2010 (Source http//www.fibre2fashion.com/industry-article/8/738/impact-of-globalization1.asp)Irving Fisher Group, 2003. In dian economy and globalization accessed on April 25, 2010 (Source http//www.slideshare.net/fathima_sy/globalization-and-indian-economy-1095107)Balakrishnan C, 2004. Impact of globalization on developing countries and India accessed on April 29, 2010 (Source http//economics.about.com/od/globalizationtrade/l/aaglobalization.htm) bargain Chakra accessed on April 29, 2010 (Source http//www.tradechakra.com/indian-economy/globalization.html)Goyal K, 2003. Impact of globalization on developing countries (with special reference to India) accessed on April 29, 2010 (Source http//www.eurojournals.com/IRJFE%206%20goyal.pdf)Pavcnik N, October 26, 2006. Distributional effects of globalization in developing countries accessed on May 3, 2010 (Source http//www.princeton.edu/pennykg/JEL_Globalization.pdf)Kaitila V. Economic globalization in developing countries accessed on May 5, 2010 (Source http//www.etla.fi/files/918_FES_02_3_developing_countries.pdf0)Research papers. Globalization can have a neg ative impact on developing economy (Source http//www.oppapers.com/essays/Globalization-Can-Have-Negative-Impact-Developing/145452)