| INTRODUCTION | | | | footwear grew by 4.7 per cent, sheets (PVC/rubber) |
| Globalization in India started in the early 1990's. | | | | grew by 18.8 per cent. PVC pipes and tubes, which |
| Industrialization is the reason behind globalization. | | | | have the highest weight in the product group, grew |
| Business is the key. When a company operating in a | | | | at 27 per cent during April-November 2007. Crude oil |
| home nation establishes its subsidiary in other nations | | | | production during April-November 2007 was 22.69 |
| (host nations), it becomes an MNC and there starts | | | | million tonnes (MT) as against 22.56 MT during the |
| the process of globalization wherein a local company | | | | corresponding period in the previous year, showing a |
| serves the entire world with its products and | | | | marginal increase of 0.60 percent. In this sector, the |
| services. The advent of Internet and the ensuing | | | | demand will be always greater than the supply and |
| "new economy" has opened up a plethora of new | | | | India has to divest and encourage private players like |
| business opportunities - and an "inevitable" number of | | | | Reliance to enter into the petroleum industry. |
| business casualties. Shapiro and Varian (1999) argue | | | | The cement industry recorded a growth of 7.72 per |
| that while technology changes - economic laws do | | | | cent (provisional) during April-November 2007. The |
| not. This is globalization in company's perspective. | | | | production increased from 99.99 MT during |
| Globalization in India has transformed the country's | | | | April-November 2006 to 107.71 MT during |
| system. Presently India is regarded as an economy | | | | April-November 2007. Indian steel companies have |
| dominated country rather than politics driven, as it | | | | marked their diversified presence in the global |
| was earlier. Political dominance has fallen significantly | | | | market, effected mainly through the establishment of |
| these days. Adoption of Globalization in India and | | | | the state-of the-art plants, continuous modernization, |
| liberalization principles has widened the horizon of | | | | and improved energy efficiency of plants. Mittal Steel |
| country's Consumers worldwide. Consumers in India | | | | has created a buzz all over the world with its recent |
| have become more conscious. Market information in | | | | merger with arcelor. While overall industrial production |
| India has become clear. | | | | grew by 9 per cent during April-December 2007, |
| Liberalized policies have led the industrial sector to | | | | importantly capital goods production rose by 20.2 per |
| grow at a faster pace. BPO, IT, ITES, Retail and | | | | cent compared to 18.6 per cent during same period in |
| Insurance sector have performed well. Both male and | | | | 2006. Services grew by 10.5 per cent in |
| female have got equal opportunity in that sector. The | | | | April-September 2007, on the back of 11.6 per cent |
| success for India is the reduction in gender inequality | | | | during the corresponding period in 2006-07. |
| in India. More over, development in education and | | | | Manufacturing grew by 9.6 per cent during |
| awareness is largely marked in the country in the era | | | | April-December 2007, on the back of 12.2 per cent |
| of Globalization in India. | | | | growth during same period in 2006-07. Core |
| INDIAN ECONOMY - HIGHLIGHTS | | | | infrastructure sector continued its growth rate |
| - India is among the five countries sharing 50 per | | | | recording 6 per cent growth in April-November 2007. |
| cent of the world production (or GDP). | | | | While exports grew by 21.76 per cent during |
| - FDI inflows have jumped by almost three times to | | | | April-December 2007, imports increased by 25.97 per |
| US$ 15.7 billion in 2006-07 as against US$ 5.5 billion in | | | | cent in the same period. |
| 2005-06. | | | | ROLE OF INFORMATION TECHNOLOGY |
| - The aggregate income of the top 500 companies | | | | The IT/ITES industry's contribution to the country's |
| rose by 28.4 per cent in 2006-07 to total US$ 469.51 | | | | GDP has been steadily increasing from a share of |
| billion. | | | | 1.2% in FY98 to 5.2% in FY07; it has contributed to |
| - India's National Stock Exchange (NSE) ranks first in | | | | foreign exchange reserves of the country by |
| the stock futures and second in index futures trade | | | | increasing exports by almost 36% and its direct |
| in the world. | | | | employment as grown at a CAGR of 26% in the last |
| - Twenty Indian firms have made it to the list of | | | | decade, making it the largest employer in the |
| Boston Consulting Group's 100 New Global Challenger | | | | organized private sector in the country. |
| Giants list. | | | | In the last two decades, the Indian IT/ITES industry |
| - According to a study by the McKinsey Global | | | | has contributed significantly to Indian economic |
| Institute (MGI), India's consumer market will be the | | | | growth in terms of GDP, foreign exchange earnings |
| world's fifth largest (from twelfth) in the world by | | | | and employment generation. The industry has been |
| 2025. | | | | the trigger for many "firsts" and has contributed not |
| - The number of companies incorporated has | | | | only to unleashing the hitherto untapped |
| increased at an annual average of 55,000 companies | | | | entrepreneurial potential of the middle class Indian but |
| in the last two years to 865,000, from 712,000 | | | | also taking Indian excellence to the global market. |
| companies at the end of 2005. | | | | The current and evolving role of IT/ITES industry in |
| - Four Indians and seven Indian microfinance | | | | India's economy is well established. The sector is |
| companies make it to the Forbes list of Top10 | | | | proving to be the major growth pole within the |
| world's wealthiest CEOs World's Top 50 Microfinance | | | | services sector, which in turn drives several economic |
| Institutions, respectively. | | | | indicators of growth in the country.Export earnings in |
| - India has the most number of private equity (PE) | | | | FY08 stood at approximately USD 40.0 billion with a |
| funds operating amongst the BRIC markets. | | | | growth of 36%.Direct employment in the sector is |
| - Mumbai has been ranked tenth among the world's | | | | expected to be 2.0 million by end of FY08 growing at |
| biggest centres of commerce in terms of the financial | | | | a CAGR of 26% in the last decade, making it the |
| flow volumes by a survey compiled by MasterCard | | | | largest employer in the organized private sector of |
| Worldwide. | | | | the country. IT Industry is spearheading India global. |
| Another significant aspect has been the broad-based | | | | CONCLUSION |
| nature of the growth process. While new economy | | | | According to some experts, the share of the US in |
| industries like Information Technology and | | | | world GDP is expected to fall (from 21 per cent to |
| biotechnology have been growing around 30 per | | | | 18 per cent) and that of India GDP to rise (from 6 |
| cent, significantly old economy sectors like steel have | | | | per cent to 11 per cent in 2025), and hence the latter |
| also been major contributors in the Indian growth | | | | will emerge as the third pole in the global economy |
| process. For example, India has moved up two places | | | | after the US and China. |
| to become the fifth largest steel producer in the | | | | Indian Economy experienced a GDP growth of 9.0 |
| world. And with its manufacturing and service sectors | | | | percent during 2005-06 to 9.4 percent during |
| on a searing growth path, Lehman Brothers Asia | | | | 2006-07. By 2025 the India's economy is projected to |
| estimates India to grow by as much as 10 per cent | | | | be about 60 per cent the size of the US economy. |
| every year in the next decade. | | | | The transformation into a tri-polar economy will be |
| CONTRIBUTION OF INDUSTRIES TO INDIAN | | | | complete by 2035, with the Indian economy only a |
| ECONOMY | | | | little smaller than the US economy but larger than |
| Industrial revolution is the stepping stone for | | | | that of Western Europe. By 2035, India is likely to be |
| globalization. In India, the contribution of different | | | | a larger growth driver than the six largest countries in |
| sectors is immense and all contributing to the fast | | | | the EU, though its impact will be a little over half that |
| growth of the Indian economy. | | | | of the US. |
| The IIP data show that during April-November 2007, | | | | India, which is now the fourth largest economy in |
| cotton textiles grew by 5.5 percent. During 2006-07, | | | | terms of purchasing power parity, will overtake Japan |
| textile exports recorded an increase of 6.9 per cent | | | | and become third major economic power within 10 |
| over 2005-06. During April-October 2007, textile | | | | years. |
| exports increased marginally by 1.49 per cent on | | | | A large number of global multinational brands such as |
| year-on-year basis. Indian Government has given a lot | | | | Coca-Cola, Google, Micro-soft and Mercedes-Benz |
| of subsidies to the textile industry through various | | | | have successfully operating in India. Indian Brands |
| fund schemes and textile parks. The rate of growth | | | | which were operating locally in India earlier have |
| in the paper industry picked up to 8.7 per cent during | | | | started competing internationally. From New Delhi to |
| 2006-07, but dropped to 1.6 per cent during | | | | New York brands have become global. Pattern of |
| April-November 2007. | | | | consumption in India has also changed. Level of |
| Leather products, which contribute significantly to | | | | spending on the private consumption has been |
| employment generation and export earnings, | | | | growing significantly. Spending by young consumers in |
| registered an impressive 12.2 per cent growth during | | | | India is regarded as the most powerful consumers. In |
| April-November 2007. The chemical industry is | | | | an era of globalized environment, the country has |
| growing steadily at 10%. The value of pharmaceutical | | | | become a major player in the socio-economic fields |
| output grew more than tenfold from Rs. 5,000 crore | | | | from merely a third world country. BRIC and other |
| in 1990 to over 65,000 crore in 2006-07. India is now | | | | reports have forecasted India to be the third largest |
| recognized as one of the leading global players in | | | | economy by 2020. Everything looks ominous for |
| pharmaceuticals. While the production of rubber | | | | India. |