Effect Of Globalisation On Indian Society

Globalization is the progressive development of interdependence, connectivity, and integration among economies and societies, to the extent that occurrences in one region of the world have repercussions on individuals elsewhere across the globe.

Factors Affecting Globalization

✔     Economic factors

●      Trade liberalization: Reduction of tariffs and barriers to trade facilitates easier movement of goods and services across borders.

o   Example: European Union created a single market with free movement of goods, services, people and capital among its member states.

●      Foreign direct investment (FDI): Investments by companies in other countries create jobs, transfer technology and promote integration.

o   Example: Foreign companies like Canadian Solar and LONGi Green Technology contributed to a significant portion of newly installed solar capacity in India.

●      Economic interdependence: Countries becoming increasingly reliant on each other for resources, production and markets.

o   Example: Oil producing countries like Saudi Arabia and Iran influences global energy prices, creating economic interdependence.

●      Globalization of production: Companies fragmenting production processes across different countries based on cost advantages.

o   Example: Apple, a US company, designs iPhones but relies on manufacturers like Foxconn in China for assembly.

✔     Technological factors

●      Information and communication technologies (ICT): Advancements like the internet, mobile technology, and social media enable faster communication, collaboration, and data exchange globally.

o   Example: Video conferencing tools like Zoom, Microsoft teams enable geographically distant teams to collaborate effectively.

●      Transportation and logistics: Improvements in transportation infrastructure and logistics efficiency reduce costs and time associated with moving goods and people across borders.

o   Example: Development ofSuez Canaltransportation facilitated maritime trade between Asia and Europe. Its blockage in 2021 highlighted the critical role of Suez Canal on the same.

●      Automation and robotics: Increased automation and use of robots in various industries can impact production processes and trade patterns.

o   Example: Countries like China and Vietnam leveraged automation to establish themselves as manufacturing hubs for electronics, auto mobiles and textiles.

✔     Political factors

●      International agreements and trade pacts: Multilateral and regional trade agreements aim to facilitate trade and investment through established rules.

o   Example: World Trade Organisation (WTO) sets international trade rules and foster dialogue to reduce trade barriers like tariffs and quotas.

●      Government policies: Policies on immigration, taxation, and intellectual property rights can influence the pace and direction of globalization.

o   Example: H-1B visa program in US allowed skilled foreign in speciality occupations to work in US.

●      Political stability and security: Stable political environments and global security are crucial for smooth trade and investment flows.

o   Example: Ongoing Russia-Ukraine war caused significant disruption on global trade, particularly in wheat export from Ukraine.

✔     Social and Cultural factors

●      Migration and mobility: Movement of people for work, education, or other reasons fosters cultural exchange and integration.

o   Example: Indian migration to US, UK, Canada led to sharing of Indian cuisine, festivals and traditions.

●      Global consumerism: Growing similarities in consumer preferences and demands across different countries create markets for global brands.

o   Example: Apple’s iPhones and Samsung’s Galaxy devices coveted by consumers worldwide.

●      Environmental awareness: Global concerns about climate change and resource depletion raise challenges and opportunities for sustainable globalization.

o   Example: Global e-waste will increase by 38% till 2030. (Global e-waste monitor report, 2020)

Impacts of Globalisation on Economy

✔     Positive impacts

●      GDP rise: Globalization boost GDP by increasing trade opportunities, attracting foreign investment and fostering technological advancements.

o   Example: During 1990-91, India’s GDP growth rate was only 1.1%. After LPG reform, currently in 2022-23 the growth rate is at 7%.

●      Job creation: New industries and sectors emerged due to globalization, creating job opportunities in areas like IT, services, and manufacturing.

o   Example: As per NASSCOM, Indian IT industry directly employs around 51 lakh persons in FY 2021-22.

●      Foreign Direct Investment (FDI): Globalization attracted foreign investment into India, providing capital for infrastructure development, job creation, and technological advancements.

o   Example: FDI share was increased considerably with more opening to globalization. During FY 2022-23, FDI inflow of USD 71 billion has been reported. (Ministry of Commerce and Industry)

●      Free Trade Agreements: Globalization led to growth of free trade agreements which allowed increased exports and imports, boosting economic activity and consumer choice.

o   Example: Association of South East Asian nations (ASEAN) was created in 1967 for trade and economic growth between 10 South East Asian nations.

●      Increased export: Globalization opened new markets for Indian goods and services, leading to increased exports and economic growth. 

o   Example: Indian pharmaceutical industry ranks 3^rd globally for the production volume, holding a 20% share in global generic medicine supply.

●      New companies: After 1991 reforms, which opened India to globalization, many new companies were formed in India.

✔     Negative impacts

●      Unemployment: Globalization can lead to job losses in certain industries as companies move operations to counties with lower labour costs.

o   Example: During 1980s and 1990s, Indian textile industry faced job losses as some companies shifted production to Bangladesh and Vietnam with lower labour costs

●      Wealth inequality: The benefits of globalisation often accrue to those with specialized skills or access to capital, while others may face stagnant wages or job insecurity.

o   Example: Mumbai, the financial capital of India also has slums like Dharavi and other informal settlements.

●      Easy spreading of economic shocks: Globalization can facilitate the rapid spread of financial crises across borders, as interconnected financial markets and institutions transmit shocks more easily.

o   Example: 2008 financial crisis affected many countries around the world.

●      Shift to capital intensive process: With technology transfer and improvement, manufacturing process shifted from labour intensive process to capital intensive process like use of machineries.

Impacts of Globalisation on Society

✔     Positive impacts:

●      Women empowerment: Increased access to education and employment opportunities has empowered many women.

o   Example: International organizations like UNESCO and Room to Read have partnered with local communities to improve girl’s access to education and improved life chances for women.

●      Social mobility: Education and skill-based employment have become pathways for upward mobility, leading to changes in social structures and aspirations.

o   Example: The rise of the tech industry in India, in cities like Bangalore and Hyderabad, has created numerous opportunities for individuals from diverse backgrounds to climb the social ladder.

●      Social activism and awareness: Increased connectivity and access to information enabled grassroots movements on issues like human rights, environmental conservation, and gender equality.

o   Example: The #MeToo movement, fuelled by social media and online sharing, empowered women around the world to speak out against sexual harassment and assault

●      Culture exchange: Globalization has led to increased cultural exchange between India and the rest of the world mainly in society, affecting clothing, music, cuisine, and entertainment.

o   Example: Films like “Dangal” and “RRR” have achieved international box office success, showcasing Indian storytelling and cultural elements to a global audience.

✔     Negative impacts

●      Migration: Globalization has led to increased internal migration in search of better employment and livelihood opportunities which led to overcrowding, inadequate infrastructure.

o   Example: As per Census 2011, 450 million people or 37% of the population are internal migrants.

●      Social Inequality: Due to lack of skills, marginalized communities such as lower castes, tribal groups, and rural populations was left behind during globalization.

●      Spread of misinformation and harmful content: Free flow of information led to spread of false news, hate speech, and harmful online content, impacting social cohesion and well-being.

o   Example: Throughout COVID 19, misinformation about the virus, vaccines, and treatments spread rapidly online, impacting public health efforts and leading to vaccine hesitancy

●      Cultural homogenization: The dominance of certain cultures, often from Western nations, can threaten the diversity and uniqueness of local cultures and traditions.

o   Example: The proliferation of Western-style fast food chains like McDonald’s and KFC can lead to homogenization of local cuisines

Political Impacts of Globalisation

✔     Positive impacts

●      Increased impact of India in global arena: India’s economic growth and integration into global trade have enhanced its international standing and political influence.

o   Example: India has taken the lead in various international initiatives, such as the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure.

●      Increased intergovernmental cooperation: Global challenges like climate change, terrorism, and pandemics necessitate international collaboration, fostering dialogue and cooperation.

o   Example: Green Climate Fund channels financial resources from developed countries to developing countries to support climate action projects like renewable energy

●      Increased transparency and accountability: Public access to information facilitated by globalization empowers citizens to hold their government accountable, promoting good governance.

o   Example: CPGRAMS platform is available for citizens to register their grievances with public authorities regarding any service delivery-related issue.

●      Rise of non–state actors: Globalization has facilitated the rise of non-state actors like multinational corporations, non-governmental organizations (NGOs), and transnational advocacy networks.

o   Example: NGOs like Amnesty International and Human Rights Watch push for human rights accountability, pressuring governments and raising public awareness.

✔     Negative impacts

●      Exploitation of developed countries: Unequal power dynamics can lead to unfair trade practices, exploitation of resources, and interference in internal politics of developing nations.

o   Example: Strict intellectual property laws in developed countries can limit access to affordable medicines and technologies in developing nations, hindering their healthcare.

●      Challenges to sovereignty: Globalization has challenged the traditional notion of state sovereignty, as governments face pressure to comply with international norms, standards, and regulations.

o   Example: Fear of US sanctions under CAATSA.

●      Rise of populism and protectionism: Concerns on job losses, cultural erosion, and resource distribution led to calls for greater protectionist measures and nationalist policies.

o   Example: Renegotiation of NAFTA in the US and the rise of economic nationalism in countries like Brazil.

●      Corporate influence on politics: Powerful multinational corporations may exert undue influence on government policies, raising concerns about democratic processes.

●      Increased interdependence: Globalization has increased the interdependence of nations, political decisions and events in one country can have far-reaching effects on others.

o   Example: 2008 financial crisis globally led to widespread bank failures, liquidity crises, and stock market crashes.

Impacts of Globalisation on Agriculture

✔     Positive impacts

●      Increased market access: Globalization has opened up new markets for Indian agricultural products, leading to increased exports and potential for higher income for farmers.

o   Example: India is the world’s largest exporter of Basmati rice with a rising demand in the Middle East, Europe, and the US.

●      Increased National income: Open markets, new technologies, and improved seeds have combined to drive robust growth in Indian agricultural production.

●      Investment and infrastructure: Foreign investments in agricultural infrastructure, storage facilities, and processing plants can improve supply chains and reduce post-harvest losses.

o   Example: International Finance Corporation (IFC), a member of the World Bank Group, has invested in projects like the construction of cold chain infrastructure in India.

●      Improved access to information: Farmers can now access global knowledge and best practices through the internet and other communication channels, leading to improved farming techniques.

o   Example: Krishi Vigyan Kendra (KVK) providesagricultural information, training programmes and extension services

●      Exposure to diverse market and consumer preferences: Understanding global food trends and demands helps Indian farmers adapt their production methods and diversify crops.

o   Example: Increasing popularity of grains like quinoa and millets, has opened new export opportunities for Indian farmers, encouraging them to cultivate these crops.

●      Technology transfer and updations: New technologies like precision agriculture, improved irrigation systems, and access to global research promote efficient farming practices and higher yields.

✔     Negative impacts

●      Intellectual Property Rights: It have detrimental effects on Indian agriculture, as they facilitate the entry of multinational corporations into the sector, posing a threat to marginal farmers.

o   Example: In 1990s, an attempt by a US company to patent the use of neem, sparked protests and legal challenges, ultimately leading to the patent being revoked.

●      Competition from subsidized agriculture:  Indian farmers face competition from heavily subsidized agricultural imports from developed countries, putting them at a disadvantage in terms of pricing.

●      Environment degradation: Intensive farming practices to meet global demands can lead to soil erosion, water depletion, and overuse of pesticides, impacting long-term sustainability.

o   Example: Excessive reliance on groundwater for irrigation in the Kutch region has resulted in seawater intrusion, salinizing agricultural land and threatening long-term productivity.

●      Loss of biodiversity and traditional farming practices: Increased focus on commercial crops can lead to the neglect of traditional crops and varieties, contributing to biodiversity loss.

o   Example: Some of the indigenous crops varieties like karhani rice (Chhattisgarh), moth beans (Karnataka), Meher dhan (Chhattisgarh) are vanishing due to mono cropping culture.

●      Marginalization of small and marginal farmers: Larger-scale, export-oriented agriculture might marginalize small and marginal farmers who lack resources and infrastructure.

●      Fluctuating demand and prices: Prioritizing export-driven cash crops can jeopardize food security as farmers abandon staple food production, creating vulnerability to fluctuating market prices.

o   Example: The expansion of palm oil plantations in Indonesia and Malaysia has sometimes occurred at the expense of food crops, leading to concerns about food security.

Impacts of Globalisation on Family

✔     Positive Impacts:

●      Changes in gender roles: Globalization leads to changing gender roles within marriages, with wives seeking increased economic independence and participation in decision-making.

●      Inter-caste and inter-religious marriages: Increased interaction with diverse communities encourages inter-caste and inter-religious marriages.

●      More choice and agency: Globalization empowers individuals, mainly women, to make informed choices about their future, choosing partners based on shared values and compatibility, not just family obligations.

●      Changing economic nature of families: Earlier families worked as a unit of production but with globalization, new economic opportunities emerged thus made families as unit of consumption.

o   Example: Shift of people working in family agriculture to working in manufacturing companies.

●      Technology for communication and connection: With advances in communication technology, families can stay connected more easily despite geographical distance.

o   Example: Apps like WhatsApp, Facebook Messenger, Skype helps families and friends to connect despite geographical distance.

✔     Negative impacts

●      Nuclear families: Increased mobility and migration for work replaces joint families, potentially weakening traditional support systems and impacting cultural values.

o   Example: As per census 2011, 70.11% families in India are nuclear families

●      Consumerism and materialism: Consumerism and materialistic values can influence family expectations and priorities, replacing traditional values with emphasis on possessions and status.

o   Example: The lavish weddings and expensive dowries, influenced by media portrayals and social media trends, can strain families financially and create unrealistic expectations.

●      Increased divorce rates: As individual aspirations and expectations evolve, divorce rates might rise, challenging traditional notions of marriage stability.

o   Example: India was having one of the lowest rates of divorces globally. Butas per United Nation, divorce rate in India is increasing significantly in recent years.

●      Increased stress and insecurity: Globalisation increased competition and job displacement, workloads and led to rapid social change all increased stress and insecurity among people, especially youth.

Impacts of Globalisation on culture

✔     Positive Impacts:

●      Cultural exchange and understanding: Increased exposure through globalization allow Indians to experience diverse cultures, fostering empathy, tolerance, and appreciation for differences.

o   Example: Travel allows Indians to experience different cultures through attending international festivals, visiting historical sites, and interacting with people from diverse backgrounds.

●      Global recognition and appreciation: Indian art, music, dance, and cinema are gaining wider recognition and appreciation on the global stage, leading to increased cultural exchange.

o   Example: Platforms like Netflix and Amazon Prime are increasingly featuring Indian films and series, exposing global audiences to Indian stories and talent.

●      Enrichment of art and music: Fusion of traditional art forms with global influences leads to innovation and broader appeal, attracting new audiences and preserving cultural heritage.

o   Example: Anoushka Shankar, renowned sitar player is redefining classical Indian music for a global audience, performing at major festivals and collaborating with diverse musicians.

●      Celebration of new festivals: With cultural influences from around the world through globalization, people celebrate festivals of other cultures.

o   Example: Adaptation of Western holidays like Valentine’s Day and Halloween alongside traditional Indian festivals.

●      Digitization of cultural heritage: Increased awareness and funding initiatives support the preservation and digitization of traditional art forms, languages, and cultural artefacts.

o   Example: To showcase the glory of Hampi through Indian Digital Heritage Programme, used 3D laser scan data, Augmented Reality, holographic projections and 3D fabrication were used.

✔     Negative impacts

●      Westernisation and cultural homogenisation: Overexposure to Western culture can lead to the dilution of unique Indian traditions and values, potentially threatening cultural identity and diversity.

o   Example: A report by the National Institute of Nutrition, India found a rise in the consumption of processed foods, potentially impacting traditional diets.

●      Commercialization and exploitation: Cultural expressions may be commoditized for profit, undermining their authenticity and neglecting the interests of artists and communities.

o   Example: Yoga, a traditional Indian practice, has become a global fitness trend, leading to concerns about commercialization and exploitation of its spiritual and philosophical aspects.

●      Erosion of social structures and community values: Traditional family structures and social support systems might weaken due to individualism and consumerism, impacting community cohesion and shared values.

●      Spread of fundamentalism: Due to rapid social change, economic inequalities, fundamentalist movements emerges with a sense of belongingness based on strict interpretation of religious texts.

o   Example: Many social media platforms like Twitter, YouTube were used for rise and propagation of ideologies of ISIS.

●      Cyber-security threats: Online platforms might be used to spread misinformation, hate speech, and harmful content, impacting cultural harmony and potentially inciting violence.

o   Example: The spread of misinformation in Bengaluru in 2012 against people from North East affecting cultural harmony.

Impacts of Globalisation on Food and Festival

✔     Positive Impacts:

●      Diversification of food choices: Due to the introduction of international cuisines and the availability of imported ingredients the diversity of food choices available in India.

o   Example: The rise of casual dining restaurants offering Italian, Japanese, Thai, Mexican, and other global cuisines in major Indian cities.

●      Cultural exchange of food: Globalization has facilitated the exchange of culinary traditions and festival practices between India and the rest of the world.

o   Example: The introduction of spices like turmeric, cardamom, and chili peppers through trade routes centuries ago has significantly influenced global cuisines.

●      Improved quality and safety standards: International collaborations and regulations can lead to stricter food safety measures and improved quality control for exported and imported food items.

o   Example: The Codex Alimentarius Commission (CAC) is an international food standards body established jointly by the Food and Agriculture Organization (FAO) and WHO.

●      Global recognition of festivals: Globalization showcase Indian festivals which attracts international tourists and participants, boosting cultural exchange and appreciation.

o   Example: Gained global recognition, attracting tourists and participants from various countries to experience the joyful and colourful celebrations.

●      Commercialisation and economic benefits of festivals: Festival-related tourism, merchandise, and celebrations generate economic opportunities for local communities and businesses.

o   Example: Festivals like Diwali and Holi have become opportunities for businesses to promote sales through advertising campaigns and special offers.

✔     Negative impacts

●      Health concerns: The adoption of unhealthy eating habits and sedentary lifestyles, influenced by global food trends, has contributed to rising rates of obesity and diet-related diseases in India.

o   Example: Study showed a significant rise in obesity and overweight individuals in India between 1975 and 2015, particularly in urban areas. (Indian Council of Medical Research)

●      Homogenisation and loss of local flavours: Overexposure to Western fast-food chains and standardized flavours might threaten the diversity and uniqueness of traditional Indian cuisines.

●      Dependence of imported ingredients: Reliance on imported ingredients can make Indian food production vulnerable to price fluctuations and supply chain disruptions.

o   Example: 2021-2022 cooking oil crisis created global price surges of edible oils, driven by factors like drought and reduced production in major exporters due to Russia-Ukraine crisis.

●      Commercialisation and loss of authenticity of festivals: Excessive commercialization can overshadow the religious and cultural significance of festivals, prioritizing profit over tradition.

●      Standardisation and loss of local variations of festivals: Large-scale festival celebrations might lose the unique aspects and regional variations that contribute to their cultural richness.