Group 10

What is Globalization?

Stephen Gill defines globalisation as

the reduction of transaction cost of
transborder movements of capital and
goods thus of factors of production and
goods.
 CHARACTERISTICS

Growing worldwide
interconnection

Rapid, Discontinuous change

Increased number and Diversity

of participant

Growing complexity
 Causes of globalization

Improvement Establishment of international

of transport. organizations

Globalization
Development of Emergence of
communication global problems
Rise of
transnational
corporations
 Globalizat
ion
Economic Cultural

Flow of Flow of people Flow of

commodities communities

Division of Flow of
production capital
process
GLOBALIZATION OF
CULTURE
 GLOBALIZATION OF
POLITICAL ENVIRONMENT
GLOBALIZATION OF
ECONOMICS
GLOBALIZATION OF
TECHNNOLOGIES
GLOBALISATION OF
AGRICULTURE
ESSENTIAL CONDITION FOR
GLOBALIZATION
Business Freedom

Facilities

Government Support

Resources

Competitiveness
Key Public Policies Of
RBI
1. The government is gradual rebalancing
between public and private ownership.
Higher Market Orientation is key

4. Significant liberalization of external trade

Key Public Policies Of
RBI
5 Privatization of power, airports and seaports
which has significant employment potential

6 Improvement in both productivity and output

in the agriculture

7 Improvements in institutional infrastructure in

matters relating to administrative, judicial and
other systems of governance are important.
 Indian Economy
Scrapping of the industrial licensing
regime

Reduction in the number of areas reserved for

the public sector,

Start of the privatisation programme

reduction in tariff rates and

Change over to market determined exchange

rates.
 Indian Economy

•The Indian tariff rates reduced a weighted average of

72.5% in 1991-92 to 24.6 in 1996-97 .

•Tariff rates went up slowly in the late nineties it

touched 35.1%

•Peak tariff rates reduced to the minimum

with a rate of 20%

• Most non-tariff barriers have been dismantled by March

2002,
 Export and Import
India’s Export $ 32.5 bn before 1991 and
In 2005 $129.2 bn Forex reserves

Agriculture exports account for about 13 to 18% of total

annual export of the country.

In 2000-01 Agricultural products valued at more than US $

6million

Marine products in recent years is contributing for over one

fifth of the total agricultural exports.

Cereals, oil seeds, tea and coffee nearly 5 to 10% of the

countries total exports.
 India’s position in the global economy has
improved from the 8th position in 1991 to 4th
place in 2001 (PPP basis)
GDP- 5.6% in 1990-91 to a peak level of 7.78% in
1996-97.

Growth rate now at around 6.5%, expected to go up

to 7%

India is now the fastest growing just after China.

 OBSTACLE
Poor Infrastructure
High Cost
Government Policy & Procedures
Resistance to Change
Poor quality image
Supply problem
Small Size
Limited R&D and marketing Research
Growing competition
Trade Barriers
 The Opportunity
India has ample opportunities to develop its financial system
further.
The current round of reforms, which allow pension funds to invest
more in equities, will help spur market growth, as will the
continued
privatization of state-owned enterprises.

Opening more parts of the economy to investment from foreign

corporations and from expatriates

India has made remarkable economic progress since opening its

economy in 1991. To continue that growth, it must now focus on
developing its financial system
THANK
YOU