Globalization and its Influence on the Indian Economy

Globalization is a process by which capital, goods, services and sometimes labor cross national borders and acquire a transnational character. Globalization represents a historically unprecedented level of global interconnectedness. The power of national governments is both reconstituted and restructured by globalization processes. It is seen as the central driving force behind a number of the rapid changes (socioeconomic and political) that are reshaping the world order. As a result, globalization is conceived as a powerful transformative force responsible for a ‘massive shake-out’ of nations, economies, international institutions and the whole world order. Thus, we can say that the higher the level of international cooperation/transactions, the higher will be economic growth, income level and living standards the globalization process would bring. The focus of this paper is to concentrate on globalization and its influence on the economy. The issues like globalization, East Asian experience, global trade, their influence on the Indian economy and why anti-globalists reject globalization, are discussed in this paper.