4. Globalisation and the Indian Economy
It is the process of integration or inter-connection between countries. It allows free flow of trade, capital and human resources across borders.
Various levels of Globalisation :
(i) Producers and sellers from outside India can enter Indian market and in the same way Indians can also enter international market.
(ii) Entrepreneurs from outside can invest in India, and in the same way Indian entrepreneurs can invest outside India.
(iii) Indian labor can move out of India in search of better job portunities and in the same way labors from outside can enter India.
Factors responsible for Globalisation :
1. Rapid improvement in technology has been one of the major factors that has stimulated the globalisation process. Due to major improvement in transportation technology, goods can be transported throughout the world in a short period of time and a lower cost.
2. Development in telecommunications, computers, internet has given a big boost to the process of globalisation. It is very easy to access information instantly and to communicate from remote areas.
Use of IT in Globalisation :
1. Helps in communication across the world at negligible cost.
2. Transfer of data and other information.
3. Transfer of money across the countries.
4. To link the market.
5. To setup customer care centres.