Effect of globalization on Indian poverty level is a debatable issue and has led to many studies and numerous research papers. If viewed from the industrial and economic perspective, globalization has surely been a boon to Indian society playing a key role in the reduction of unemployment rate.
At the beginning of the globalization era, the Indian economy failed to cope up much with its technicalities. Globalization brought in foreign trade, foreign direct investment, various collaborations works, and establishment of factories in various sectors which might not have become so profitable without global endorsement. Globalization gave vent to the economic disbalance of the country by introducing export and import trading which was one of the most significant aspect of the effects of globalization in Indian economy.
The entry of foreign trade and foreign direct investment made life easier for the industries in India to expand their business in the global corporations as well. With the advent of this, several multi-national corporations paved their way through the upsurge of Indian economy. The industrial sectors in India started opening more and more factories which led to a huge effect of globalization on the Indian poverty level. More and more companies cropping up in India entailed a steady decline in unemployment rates. Educated and skilled labor get through jobs in various sectors that have been globalized and this reduced the poverty levels in India.
Globalization helped the Indian industries step into the global market very easily by ensuring global financing for the same. A range of loan companies and the World Bank were subjected to fund the Indian companies which wanted to make it really big in the global market. The foreign trade of goods and services at low costs, however, stimulated the global market and it became a deal between global and domestic trading sectors. The Indian industry was looming large with the global collaborations whereas the global trading of goods and services proved to be immensely beneficial for the international enterprises. The foreign goods were consumed more than the domestic ones as they were sold at equal price range as the domestic ones, especially the electronic goods, automobiles, various branded products, eateries, soft drinks, and juices.
The effect of globalization on Indian poverty level has negative aspects such as economic stagnation, de-industrialization, economic destabilization, and increasing inequality. The empirical evidence from India, both in quantitative and qualitative aspects gives out a forceful disproof. India forms a worthy test case by virtue of its huge size, big population and rearing variety. The trading of foreign goods in Indian economy had negative effects as well. This is because it caused a downfall in the market of domestic goods and services. When foreign goods flooded the Indian shelves with price tags comparable to domestic goods, consumers preferred foreign goods to domestic ones. This has led to a loss in the Indian manufacturing industries. But despite all these issues, it can be concluded that India has been a substantial beneficiary of globalization despite its rather humble and small-scale integration into the global economy.
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