GLOBALISATION AND THE INDIAN ECONOMY
Chapter 4, 'Globalisation and the Indian Economy', explores the rapid integration and interconnection between countries. It delves into the role of multinational corporations (MNCs) in spreading production across borders, the significance of foreign trade in linking markets, and the factors enabling globalisation like technology and liberalisation policies. The chapter also examines the impact of globalisation on India, including benefits for consumers and producers, challenges for small producers and workers, and the ongoing struggle for fair globalisation. Understanding this chapter is crucial for comprehending modern economic dynamics and India's place in the global landscape.
Introduction to Globalisation and Multinational Corporations (MNCs)
Aajkal humein markets mein bahut saare goods aur services milte hain. Ye sab globalisation ka result hai.
Multinational Corporations (MNCs)
- Definition: Ek company jo ek se zyada deshon mein production ko own ya control karti hai.
- Objective: Production cost kam karna aur zyada profit kamana.
- Strategy: Production units wahan set up karti hain jahan:
- Cheap labour available ho.
- Other resources saste mein mil jaayen.
- Market ke paas ho.
- Government policies unke interests ko support karein.
Example of MNC Production Strategy
- Design: US mein.
- Components manufacturing: China mein (cheap manufacturing).
- Assembly: Mexico aur Eastern Europe mein (US aur Europe markets ke paas).
- Customer care: India mein (skilled English-speaking youth, low cost).
- Benefit: MNCs ko 50-60% cost-savings ho sakti hain.
MNC (Multinational Corporation): Ek company jo ek se zyada deshon mein production ko own ya control karti hai. Iska main aim hota hai production cost kam karna aur profit badhana.
MNCs ki wajah se goods aur services globally produce ho rahe hain, jo pehle sirf ek country mein hote the.
Interlinking Production Across Countries by MNCs
MNCs alag-alag tareekon se production ko countries mein interlink karti hain:
Ways MNCs Interlink Production
- Joint Production with Local Companies:
- Benefits to Local Company:
- MNCs se additional investment milta hai (e.g., naye machines).
- MNCs latest technology laati hain.
- Example: Ford Motors ne India mein Mahindra & Mahindra ke saath collaboration kiya tha.
- Buying Up Local Companies:
- MNCs ke paas huge wealth hoti hai, jisse woh local companies ko khareed leti hain.
- Isse unka market control badh jaata hai aur production expand hota hai.
- Example: Cargill Foods (American MNC) ne India ki Parakh Foods ko khareed liya, jisse woh India mein largest producer of edible oil ban gayi.
- Placing Orders with Small Producers:
- Large MNCs developed countries mein small producers ko orders deti hain.
- Small producers garments, footwear, sports items jaise products banate hain.
- MNCs in products ko apne brand name ke under sell karti hain.
- MNCs ke paas tremendous power hoti hai price, quality, delivery aur labour conditions determine karne ki.
Investment by MNCs
- Investment: Money jo assets (land, building, machines, equipment) khareedne mein spend kiya jaata hai, profit kamane ki hope mein.
- Foreign Investment: MNCs dwara ki gayi investment ko foreign investment kehte hain.
- MNCs wahi invest karti hain jahan:
- Markets ke paas ho.
- Skilled aur unskilled labour low cost par available ho.
- Other factors of production ki availability assured ho.
- Government policies unke interests ko support karein.
Conclusion
- MNCs alag-alag ways se local producers ke saath interact karke production ko interlink karti hain.
- Isse widely dispersed locations mein production interlinked ho jaata hai.
Foreign Investment: Jab MNCs kisi doosre desh mein assets (jaise land, building, machines) khareedne ke liye paisa lagati hain, usko foreign investment kehte hain. Iska motive profit kamana hota hai.
MNCs ke production interlinking methods ko examples ke saath yaad rakho. Cargill Foods aur Ford Motors ke examples important hain.
Foreign Trade and Integration of Markets
Foreign trade ka matlab hai ek desh se doosre desh mein goods aur services ka exchange.
Role of Foreign Trade
- Producers ke liye: Domestic markets ke alawa global markets tak pahunchne ka mauka milta hai. Competition badhti hai.
- Buyers ke liye: Zyada choice milti hai goods ki, aur kam prices par.
Impact of Foreign Trade (Chinese Toys Example)
- Scenario: Chinese manufacturers India mein toys export karte hain, jahan toys expensive hain.
- Result:
- Indian buyers ke paas Indian aur Chinese toys ka option.
- Chinese toys saste aur naye designs ke karan zyada popular ho jaate hain.
- Indian toy shops mein 70-80% Chinese toys bikne lagte hain.
- Toys ke prices India mein kam ho jaate hain.
- Chinese toy makers: Business expand karne ka opportunity.
- Indian toy makers: Losses face karte hain, unke toys kam bikte hain.
Foreign Trade se Market Integration
- Goods ek market se doosre market travel karte hain.
- Markets mein choice of goods badhti hai.
- Similar goods ke prices equal hone lagte hain.
- Producers ek doosre se compete karte hain, bhale hi woh hazaron miles door hon.
- Foreign trade is tarah different countries ke markets ko connect ya integrate karta hai.
Foreign Trade: Do ya do se zyada deshon ke beech goods aur services ka exchange. Isse markets integrate hote hain.
Foreign trade se producers ko global reach milta hai aur consumers ko zyada choice aur better prices milte hain. Lekin, domestic producers ko competition face karni padti hai.
Understanding Globalisation
Globalisation ek rapid integration ya interconnection ka process hai countries ke beech.
Key Aspects of Globalisation
- Increased Foreign Investment: Pichle 2-3 decades mein MNCs ne cheap production locations dhundhne ke liye foreign investment badhaya hai.
- Increased Foreign Trade: Countries ke beech foreign trade rapidly increase hua hai, jiska ek bada part MNCs control karti hain.
- MNCs ka Role: Globalisation process mein major role play karti hain.
- Movement of Goods, Services, Investment, Technology: Ye sab countries ke beech zyada move kar rahe hain.
- Interconnection: World ke zyadaatar regions ek doosre ke close contact mein hain.
- Movement of People: Log better income, jobs, ya education ki talash mein move karte hain. Lekin, restrictions ki wajah se ismein zyada increase nahi hua hai.
Globalisation ka Result
- Greater foreign investment aur foreign trade se production aur markets ka zyada integration hua hai across countries.
- Isse duniya ke alag-alag hisse ek doosre se zyada jud gaye hain.
Globalisation: Countries ke beech rapid integration ya interconnection ka process. Ismein goods, services, investment aur technology ka movement badhta hai.
MNCs globalisation ke main drivers hain, jo production aur trade ko global level par spread karti hain.
Factors Enabling Globalisation: Technology
Technology mein rapid improvements ne globalisation process ko bahut stimulate kiya hai.
Key Technological Advancements
- Improvements in Transportation Technology:
- Pichle 50 saalon mein transportation bahut fast ho gaya hai.
- Goods ko long distances tak kam cost par deliver karna possible ho gaya hai.
- Example: Containers ka use, jisse port handling costs kam hue aur speed badhi. Air transport bhi sasta hua hai.
- Developments in Information and Communication Technology (ICT):
- Telecommunications: Telegraph, telephone, mobile phones, fax ne worldwide contact easy kar diya hai. Instant information access aur remote areas se communication possible hua hai.
- Computers: Har field mein use ho rahe hain.
- Internet: Information share karna, instant email, voice-mail negligible costs par possible ho gaya hai.
IT ka Globalisation mein Role
- IT ne services ke production ko countries mein spread karne mein major role play kiya hai.
- Example: London ki magazine ka design aur print Delhi mein hona. Text Internet se bheja jaata hai, designers telecommunication se orders lete hain, designing computer par hoti hai. Payment bhi e-banking se instantly ho jaati hai.
- Isse cost savings hoti hain aur efficiency badhti hai.
Transportation aur ICT mein improvements ne globalisation ko speed up kiya hai, jisse goods aur services ka movement easy aur sasta ho gaya hai.
Technology ke role ko explain karte waqt transportation aur ICT ke specific examples dena mat bhoolna. Magazine designing ka example bahut accha hai.
Factors Enabling Globalisation: Liberalisation and WTO
Technology ke saath-saath, liberalisation of trade and investment policies ne bhi globalisation ko enable kiya hai.
Trade Barriers
- Definition: Restrictions jo government foreign trade par lagati hai, jaise tax on imports.
- Purpose: Domestic producers ko foreign competition se protect karna.
- Example: Indian government ne Independence ke baad trade barriers lagaye the, taaki 1950s-60s mein industries develop ho sakein. Sirf essential items (machinery, fertilisers, petroleum) import karne ki permission thi.
Liberalisation
- Definition: Government dwara lagaye gaye trade barriers ya restrictions ko remove karna.
- India mein Policy Change (1991):
- Indian government ne decide kiya ki ab Indian producers ko global competition face karni chahiye.
- Competition se quality improve hogi.
- Is decision ko powerful international organisations ne support kiya.
- Result: Trade barriers aur foreign investment par restrictions kafi had tak remove kar diye gaye.
- Goods ko easily import/export kiya ja sakta hai aur foreign companies India mein factories set up kar sakti hain.
World Trade Organisation (WTO)
- Aim: International trade ko liberalise karna aur free trade ko promote karna.
- Formation: Developed countries ki initiative par start hua.
- Functions:
- International trade ke liye rules banata hai.
- Dekhta hai ki ye rules follow ho rahe hain ya nahi.
- Members: Around 160 countries iske members hain.
- Criticism: WTO ko free trade for all allow karna chahiye, but practice mein:
- Developed countries ne unfairly trade barriers retain kiye hain.
- Developing countries ko trade barriers remove karne par force kiya hai.
- Debate on Agricultural Products: Developed countries apne farmers ko massive subsidies dete hain, jisse woh products ko low prices par export karte hain. Isse developing countries ke farmers ko nuksaan hota hai. Developing countries ise unfair trade practice maante hain.
Trade Barrier: Foreign trade par government dwara lagayi gayi restrictions, jaise import tax ya quotas. Domestic industries ko protect karne ke liye use hota hai.
Liberalisation: Government dwara trade barriers ya restrictions ko remove karna. Isse businesses ko import aur export ke decisions lene ki freedom milti hai.
India mein 1991 mein liberalisation policies adopt ki gayi, jisse economy globalisation ke liye khul gayi. WTO ka role aur uski criticism ko samajhna important hai.
Impact of Globalisation in India: Benefits
Globalisation ka India par mixed impact raha hai. Kuch sections ko fayda hua hai, kuch ko nuksaan.
Benefits of Globalisation in India
- Consumers ke liye: Especially urban areas ke well-off sections ko fayda hua hai.
- Greater choice of goods.
- Improved quality of products.
- Lower prices for several products.
- Result: Higher standards of living.
- MNCs ke liye: India mein investment badhaya hai, kyonki unke liye beneficial raha hai.
- Industries jaise cell phones, automobiles, electronics, soft drinks, fast food, banking mein investment.
- In sectors mein new jobs create hue hain.
- Local companies jo raw materials supply karti hain, unko bhi fayda hua hai.
- Top Indian Companies ke liye:
- Increased competition se benefit hua hai.
- Nayi technology aur production methods mein invest kiya hai.
- Production standards raise kiye hain.
- Foreign companies ke saath successful collaborations kiye hain.
- Kuch large Indian companies MNCs ban gayi hain (e.g., Tata Motors, Infosys, Ranbaxy, Asian Paints).
- Service Sector ke liye: Especially IT sector mein new opportunities create hui hain.
- Data entry, accounting, administrative tasks, engineering services India mein cheaply kiye ja rahe hain aur developed countries ko export ho rahe hain.
- Call centres iska ek bada example hain.
Steps to Attract Foreign Investment
- Central aur state governments special steps le rahi hain foreign companies ko India mein invest karne ke liye.
- Special Economic Zones (SEZs):
- Industrial zones jahan world-class facilities (electricity, water, roads, transport, storage, recreational, educational) provide ki jaati hain.
- SEZs mein production units set up karne wali companies ko initial 5 saal tak tax nahi dena padta.
- Government ne labour laws mein flexibility bhi allow ki hai (jaise workers ko 'flexibly' hire karna, permanent basis par nahi).
Globalisation se India mein consumers ko zyada choice aur better quality mili hai. Indian companies bhi global players ban rahi hain aur service sector expand hua hai.
Special Economic Zones (SEZs): Industrial areas jahan foreign investment attract karne ke liye world-class infrastructure aur tax benefits provide kiye jaate hain. Labour laws mein bhi flexibility hoti hai.
Impact of Globalisation in India: Challenges
Jahan globalisation ke fayde hain, wahan challenges aur negative impacts bhi hain, especially small producers aur workers ke liye.
Challenges of Globalisation in India
- Small Producers ke liye: Major challenges face karte hain.
- Competition: Batteries, capacitors, plastics, toys, tyres, dairy products, vegetable oil jaise sectors mein MNCs se tough competition.
- Shutting Down: Kai small units band ho gaye hain, jisse workers jobless ho gaye.
- Example (Ravi's Capacitor Unit): Liberalisation ke baad imports par restrictions hatne se Ravi ki company ko MNCs se competition mili. Uske clients ne imported capacitors prefer kiye, jisse uska production aur workers ki sankhya kam ho gayi.
- Small aur medium industries India mein agriculture ke baad sabse zyada workers (11 crore) employ karti hain, isliye inka impact bahut bada hai.
- Workers ke liye: Competition aur flexibility ke pressure ne workers ki life ko substantially change kiya hai.
- Flexible Employment: Employers workers ko flexibly hire karna prefer karte hain (short periods ke liye).
- Job Insecurity: Workers ki jobs ab secure nahi hain.
- Poor Working Conditions: Low wages, long working hours, no benefits (health insurance, PF, overtime).
- Example (Sushila, Garment Worker): Pehle permanent worker thi, factory band hone ke baad temporary worker bani, aadhe se bhi kam salary milti hai, koi benefits nahi, long hours kaam karti hai.
- Garment Export Industry: MNCs Indian exporters se cheapest goods chahte hain. Exporters costs cut karne ke liye labour costs kam karte hain (temporary workers, low wages, long hours).
Unfair Practices
- MNCs aur bade exporters huge profits kamate hain, jabki workers ko fair share of benefits nahi milta.
- Government labour laws mein flexibility allow karti hai, jisse workers ke rights compromise hote hain.
Conclusion
- Globalisation ka impact uniform nahi raha hai.
- Educated, skilled, aur wealthy log ne opportunities ka fayda uthaya hai.
- Lekin, bahut se log benefits share nahi kar paye hain, aur unki conditions kharab hui hain.
Globalisation ne small producers aur workers ke liye challenges create kiye hain. Competition se kai units band ho gaye aur workers ki job security aur working conditions kharab hui hain.
Sirf globalisation ke benefits hi nahi, uske negative impacts aur challenges ko bhi mention karna important hai, especially small producers aur unorganised sector ke workers par.
The Struggle for Fair Globalisation
Globalisation ek reality hai, toh question ye hai ki ise zyada 'fair' kaise banaya jaaye?
What is Fair Globalisation?
- Fair globalisation ka matlab hai ki ye sabke liye opportunities create kare.
- Aur ye bhi ensure kare ki globalisation ke benefits better share ho.
Government ka Role
Government ek major role play kar sakti hai fair globalisation achieve karne mein. Uske policies ko sirf rich aur powerful ke interests hi nahi, balki sabhi logon ke interests ko protect karna chahiye.
Government ke Possible Steps
- Labour Laws ka Proper Implementation: Ensure kare ki labour laws properly implement hon aur workers ko unke rights milen.
- Small Producers ko Support: Small producers ko improve karne mein help kare, jab tak woh compete karne ke liye strong na ho jaayen.
- Better roads, power, water, raw materials, marketing, information network provide karna.
- Technology ko modernize karne mein help karna.
- Reasonable interest rates par timely credit provide karna.
- Trade and Investment Barriers ka Use: Agar zaroori ho toh trade aur investment barriers ka use kare.
- WTO mein Negotiation: 'Fairer rules' ke liye WTO mein negotiate kare.
- Developing Countries ke saath Alignment: Similar interests wale doosre developing countries ke saath align kare, taaki WTO mein developed countries ke domination ke khilaaf lad sake.
People ka Role
- People's organisations dwara massive campaigns aur representation ne WTO mein trade aur investments se related important decisions ko influence kiya hai.
- Isse pata chalta hai ki log bhi fair globalisation ke struggle mein important role play kar sakte hain.
Conclusion
Fair globalisation ka aim hai ki sabko fayda ho, aur iske liye government aur citizens dono ko milkar kaam karna hoga.
Fair Globalisation: Ek aisa process jismein globalisation ke benefits sabke beech equally distribute hon, aur sabko opportunities milen. Ismein government aur civil society ka role crucial hai.
Fair globalisation ke liye government aur people ke roles ko acche se prepare karna. Ye value-based question ke roop mein aa sakta hai.
