Globalisation (or globalization) describes the process by which regional economies, societies,

and cultures have become integrated through a global network of political ideas through
communication, transportation, and trade. The term is most closely associated with the term
economic globalization: the integration of national economies into the international economy
through trade, foreign direct investment, capital flows, migration, the spread of technology, and
military presence.[1] However, globalization is usually recognized as being driven by a
combination of economic, technological, sociocultural, political, and biological factors.[2] The
term can also refer to the transnational circulation of ideas, languages, or popular culture through
acculturation. An aspect of the world which has gone through the process can be said to be
globalised.

 Industrial - emergence of worldwide production markets and broader access to a range of

foreign products for consumers and companies. Particularly movement of material and
goods between and within national boundaries. International trade in manufactured goods
increased more than 100 times (from $95 billion to $12 trillion) in the 50 years since
1955.[13] China's trade with Africa rose sevenfold during 2000-07 alone.[14][15]
 Financial - emergence of worldwide financial markets and better access to external
financing for borrowers. By the early part of the 21st century more than $1.5 trillion in
national currencies were traded daily to support the expanded levels of trade and
investment.[16] As these worldwide structures grew more quickly than any transnational
regulatory regime, the instability of the global financial infrastructure dramatically
increased, as evidenced by the Financial crisis of 2007–2010.[17]

As of 2005–2007, the Port of Shanghai holds the title as the World's busiest port.[18][19][20]

 Economic - realization of a global common market, based on the freedom of exchange of

goods and capital.[21] The interconnectedness of these markets, however, meant that an
economic collapse in one area could impact other areas.[citation needed] With globalization,
companies can produce goods and services in the lowest cost location. This may cause
jobs to be moved to locations that have the lowest wages, least worker protection and
lowest health benefits. For Industrial activities this may cause production to move to
areas with the least pollution regulations or worker safety regulations.
Almost all notable worldwide IT companies have a presence in India. Four Indians were among
the world's top 10 richest in 2008, worth a combined $160 billion.[22] In 2007, China had 415,000
millionaires and India 123,000.[23]

 Health Policy - On the global scale, health becomes a commodity. In developing nations
under the demands of Structural Adjustment Programs, health systems are fragmented
and privatized. Global health policy makers have shifted during the 1990s from United
Nations players to financial institutions. The result of this power transition is an increase
in privatization in the health sector. This privatization fragments health policy by
crowding it with many players with many private interests. These fragmented policy
players emphasize partnerships and specific interventions to combat specific problems (as
opposed to comprehensive health strategies). Influenced by global trade and global
economy, health policy is directed by technological advances and innovative medical
trade. Global priorities, in this situation, are sometimes at odds with national priorities
where increased health infrastructure and basic primary care are of more value to the
public than privatized care for the wealthy.[24]
 Political - some use "globalization" to mean the creation of a world government which
regulates the relationships among governments and guarantees the rights arising from
social and economic globalization.[25] Politically, the United States has enjoyed a position
of power among the world powers, in part because of its strong and wealthy economy.
With the influence of globalization and with the help of the United States’ own economy,
the People's Republic of China has experienced some tremendous growth within the past
decade. If China continues to grow at the rate projected by the trends, then it is very
likely that in the next twenty years, there will be a major reallocation of power among the
world leaders. China will have enough wealth, industry, and technology to rival the
United States for the position of leading world power.[26]

 "Culture" is defined as patterns of human activity and the symbols that give these
activities significance. Culture is what people eat, how they dress, the beliefs they hold,
and the activities they practice. Globalization has joined different cultures and made it
into something different.[45]

 Culinary culture has become extensively globalized. For example, Japanese noodles,
Italian meatballs, Indian curry, French cheese, and American burgers and fries have
become popular outside their countries of origin. Two American companies, McDonald's
 and Starbucks, are often cited as examples of globalization, with over 31,000 and 18,000
locations operating worldwide, respectively.

 Another common practice brought about by globalization is the usage of Chinese

characters in tattoos. These tattoos are popular with today's youth despite the lack of
social acceptance of tattoos in China.[46] Also, there is a lack of comprehension in the
meaning of Chinese characters that people get,[47] making this an example of cultural
appropriation.

 The internet breaks down cultural boundaries across the world by enabling easy, near-
instantaneous communication between people anywhere in a variety of digital forms and
media. The Internet is associated with the process of cultural globalization because it
allows interaction and communication between people with very different lifestyles and
from very different cultures. Photo sharing websites allow interaction even where
language would otherwise be a barrier.

 Industrialisation (British English) or Industrialization (North American English) is the

process of social and economic change that transforms a human group from a pre-
industrial society into an industrial one. It is a part of a wider modernisation process,
where social change and economic development are closely related with technological
innovation, particularly with the development of large-scale energy and metallurgy
production. It is the extensive organisation of an economy for the purpose of
manufacturing.[2]

 Industrialisation also introduces a form of philosophical change where people obtain a

different attitude towards their perception of nature, and a sociological process of
ubiquitous rationalisation.

 There is considerable literature on the factors facilitating industrial modernisation and

enterprise development.[3] Key positive factors identified by researchers have ranged from
favourable political-legal environments for industry and commerce, through abundant
natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and
adaptable labour.

 One survey[citation needed] of countries in Africa, Latin America, the Caribbean, and the
Middle East and the rest of Asia in the late 20th century found that high levels of
structural differentiation, functional specialisation, and autonomy of economic systems
from government were likely to contribute greatly to industrial-commercial growth and
prosperity. Amongst other things, relatively open trading systems with zero or low duties
on imported goods tended to stimulate industrial cost-efficiency and innovation across
the board. Free and flexible labour and other markets also helped raise general business-
economic performance levels, as did rapid popular learning capabilities.

Currently the "international development community" (World Bank, OECD, many United Nations
departments, and some other organisations)[citation needed] endorses development policies like water
purification or primary education.[citation needed] The community does not recognise traditional
industrialisation policies as being adequate to the Third World or beneficial in the longer term, with the
perception that it could only create inefficient local industries unable to compete in a free-trade
dominated world

Early industrialisation in other countries

After the Convention of Kanagawa issued by Commodore Matthew C. Perry forced Japan to
open the ports of Shimoda and Hakodate to American trade, the Japanese government realised
that drastic reforms were necessary to stave off Western influence. The Tokugawa shogunate
abolished the feudal system. The government instituted military reforms to modernise the
Japanese army and also constructed the base for industrialisation. In the 1870s, the Meiji
government vigorously promoted technological and industrial development that eventually
changed Japan to a powerful modern country.

In a similar way, Russia suffered during the Allied intervention in the Russian Civil War. The
Soviet Union's centrally controlled economy decided to invest a big part of its resources to
enhance its industrial production and infrastructures to assure its survival, thus becoming a world
superpower.[8]

During the Cold war, the other European socialist countries, organised under the Comecon
framework, followed the same developing scheme, albeit with a less emphasis on heavy industry.

Southern European countries saw a moderate industrialisation during the 1950s-1970s, caused by
a healthy integration of the European economy, though their level of development, as well as
those of eastern countries, doesn't match the western standards.[9]

The economic liberalisation in India refers to ongoing economic reforms in India that started in
1991. After Independence in 1947, India adhered to socialist policies. In the 1980s, Prime
Minister Rajiv Gandhi initiated some reforms. In 1991, after India sold 67 tons of gold to the
International Monetary Fund (IMF), the government of P. V. Narasimha Rao and his finance
minister Manmohan Singh started breakthrough reforms.[1] The new neo-liberal policies included
opening for international trade and investment, deregulation, initiation of privatization, tax
reforms, and inflation-controlling measures. The overall direction of liberalisation has since
remained the same, irrespective of the ruling party, although no party has yet tried to take on
powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming
labour laws and reducing agricultural subsidies.[2] The main objective of the government was to
transform the economic system from socialism to capitalism so as to achieve high economic
growth and industrialize the nation for the well-being of Indian citizens.[3][4] Today India is
mainly characterized as a market economy.[5]

As of 2009, about 300 million people—equivalent to the entire population of the United States—
have escaped extreme poverty.[6] The fruits of liberalisation reached their peak in 2007, when
India recorded its highest GDP growth rate of 9%.[7] With this, India became the second fastest
growing major economy in the world, next only to China.[8] An Organisation for Economic Co-
operation and Development (OECD) report states that the average growth rate 7.5% will double
the average income in a decade, and more reforms would speed up the pace.[9]

Indian government coalitions have been advised to continue liberalisation. India grows at slower
pace than China, which has been liberalising its economy since 1978.[10] McKinsey states that
removing main obstacles "would free India’s economy to grow as fast as China’s, at 10 percent a
year".[11]

Reforms

The Government of India headed by Narasimha Rao decided to usher in several reforms that are
collectively termed as liberalisation in the Indian media. Narasimha Rao appointed Manmohan
Singh as a special economical adviser to implement liberalisation.

The reforms progressed furthest in the areas of opening up to foreign investment, reforming
capital markets, deregulating domestic business, and reforming the trade regime. Liberalisation
has done away with the Licence Raj (investment, industrial and import licensing) and ended
many public monopolies, allowing automatic approval of foreign direct investment in many
sectors.[20] Rao's government's goals were reducing the fiscal deficit, privatization of the public
sector, and increasing investment in infrastructure. Trade reforms and changes in the regulation
of foreign direct investment were introduced to open India to foreign trade while stabilizing
external loans. Rao's finance minister, Manmohan Singh, an acclaimed economist, played a
central role in implementing these reforms.

 In the industrial sector, industrial licensing was cut, leaving only 18 industries subject to
licensing. Industrial regulation was rationalized.[19]
 Abolishing in 1992 the Controller of Capital Issues which decided the prices and number
of shares that firms could issue.[19][21]
 Introducing the SEBI Act of 1992 and the Security Laws (Amendment) which gave SEBI
the legal authority to register and regulate all security market intermediaries.[19][22]
 Starting in 1994 of the National Stock Exchange as a computer-based trading system
which served as an instrument to leverage reforms of India's other stock exchanges. The
NSE emerged as India's largest exchange by 1996.[23]
 Reducing tariffs from an average of 85 percent to 25 percent, and rolling back
quantitative controls. (The rupee was made convertible on trade account.)[24]
 Encouraging foreign direct investment by increasing the maximum limit on share of
foreign capital in joint ventures from 40 to 51 percent with 100 percent foreign equity
permitted in priority sectors.[25]
 Streamlining procedures for FDI approvals, and in at least 35 industries, automatically
approving projects within the limits for foreign participation.[19][26]
 Opening up in 1992 of India's equity markets to investment by foreign institutional
investors and permitting Indian firms to raise capital on international markets by issuing
Global Depository Receipts (GDRs).[27]
 Marginal tax rates were reduced.
 Privatization of large, inefficient and loss-inducing government corporations was
initiated.
 The economy of India is the eleventh largest economy in the world by nominal GDP[1]
and the fourth largest by purchasing power parity (PPP).[1] The country's per capita GDP
(PPP) is $3,176 (IMF, 127th) in 2009.[1] Following strong economic reforms from the
socialist inspired economy of a post-independence Indian nation, the country began to
develop a fast-paced economic growth, as free market principles were initiated in 1990
for international competition and foreign investment.[9] Economists predict that by 2020,
India will be among the leading economies of the world.[10]

 India was under social democratic-based policies from 1947 to 1991. The economy was
characterised by extensive regulation, protectionism, public ownership, pervasive
corruption and slow growth.[11][12][13] Since 1991, continuing economic liberalisation has
moved the country toward a market-based economy.[11][12] A revival of economic reforms
and better economic policy in first decade of the 21st century accelerated India's
economic growth rate. In recent years, Indian cities have continued to liberalize business
regulations.[6] By 2008, India had established itself as the world's second-fastest growing
major economy.[14][15] However, as a result of the financial crisis of 2007–2010, coupled
with a poor monsoon, India's gross domestic product (GDP) growth rate significantly
slowed to 6.7 percent in 2008-09, but subsequently recovered to 7.2% in 2009-10, while
the fiscal deficit rose from 5.9% to a high 6.5% during the same period.[16]

 India's large service industry accounts for 57.2% of the country's GDP while the
industrial and agricultural sector contribute 28% and 14.6% respectively.[17] Agriculture is
the predominant occupation in India, accounting for about 52% of employment. The
service sector makes up a further 34%, and industrial sector around 14%.[18] The labour
force totals half a billion workers. Major agricultural products include rice, wheat,
oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry
and fish.[19] Major industries include telecommunications, textiles, chemicals, food
processing, steel, transportation equipment, cement, mining, petroleum, machinery,
information technology enabled services and pharmaceuticals.[19]

 Previously a closed economy, India's trade has grown fast.[11] India currently accounts for
1.5% of world trade as of 2007 according to the WTO. According to the World Trade
Statistics of the WTO in 2006, India's total merchandise trade (counting exports and
imports) was valued at $294 billion in 2006 and India's services trade inclusive of export
and import was $143 billion. Thus, India's global economic engagement in 2006 covering
both merchandise and services trade was of the order of $437 billion, up by a record 72%
from a level of $253 billion in 2004. India's trade has reached a still relatively moderate
share 24% of GDP in 2006, up from 6% in 1985.[11
 India ranks second worldwide in farm output. Agriculture and allied sectors like forestry,
logging and fishing accounted for 15.7% of the GDP in 2009-10, employed 52.1% of the
total workforce, and despite a steady decline of its share in the GDP, is still the largest
economic sector and plays a significant role in the overall socio-economic development
of India.[82] Yields per unit area of all crops have grown since 1950, due to the special
emphasis placed on agriculture in the five-year plans and steady improvements in
irrigation, technology, application of modern agricultural practices and provision of
agricultural credit and subsidies since the Green Revolution in India. However,
 international comparisons reveal the average yield in India is generally 30% to 50% of
the highest average yield in the world.[83]
 India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annual
precipitation of 4000 billion cubic metres, with the total utilisable water resources,
including surface and groundwater, amounting to 1123 billion cubic metres.[84]
546,820 square kilometres (211,130 sq mi) of the land area, or about 39% of the total
cultivated area, is irrigated.[85] India's inland water resources comprising rivers, canals,
ponds and lakes and marine resources comprising the east and west coasts of the Indian
ocean and other gulfs and bays provide employment to nearly 6 million people in the
fisheries sector. In 2008, India had the world's third largest fishing industry.[86]
 India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger,
turmeric and black pepper.[87] It also has the world's second largest cattle population with
175 million heads in 2008.[88] It is the second largest producer of rice, wheat, sugarcane,
cotton and groundnuts, as well as the second largest fruit and vegetable producer,
accounting for 10.9% and 8.6% of the world fruit and vegetable production respectively.
[88]
India is also the second largest producer and the largest consumer of silk in the world,
producing 77,000 million tons in 2005.[89]
 [edit] Banking and finance
 Main article: Finance in India
 See also: Banking in India and Insurance in India
 The Indian money market is classified into the organised sector (comprising private,
public and foreign owned commercial banks and cooperative banks, together known as
scheduled banks); and the unorganised sector (comprising individual or family owned
indigenous bankers or money lenders and non-banking financial companies (NBFCs)).[90]
The unorganised sector and microcredit are still preferred over traditional banks in rural
and sub-urban areas, especially for non-productive purposes, like ceremonies and short
duration loans.[91]



 Mumbai is the financial and commercial capital of India. Shown here is the World Trade
Centre of Mumbai
 Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in
1980, and made it mandatory for banks to provide 40% of their net credit to priority
sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure
that the banks fulfill their social and developmental goals. Since then, the number of bank
branches has increased from 8,260 in 1969 to 72,170 in 2007 and the population covered
by a branch decreased from 63,800 to 15,000 during the same period. The total deposits
increased from 5,910 crore (US$ 1.34 billion) in 1970-71 to 3,830,922 crore
 (US$ 869.62 billion) in 2008-09. Despite an increase of rural branches, from 1,860 or
22% of the total number of branches in 1969 to 30,590 or 42% in 2007, only 32,270 out
of 500,000 villages are covered by a scheduled bank.[92][93]
 The public sector banks hold over 75% of total assets of the banking industry, with the
private and foreign banks holding 18.2% and 6.5% respectively.[94] Since liberalisation,
the government has approved significant banking reforms. While some of these relate to
nationalised banks (like encouraging mergers, reducing government interference and
increasing profitability and competitiveness), other reforms have opened up the banking
and insurance sectors to private and foreign players.[18][95]
 More than half of personal savings are invested in physical assets such as land, houses,
cattle, and gold.[96] India's gross domestic saving in 2006-07 as a percentage of GDP
stood at a high 32.7%.[97]
 [edit] Energy and power
 Main article: Energy policy of India



 ONGC platform at Mumbai High in the Arabian Sea. As of 2010, India is the world's
fifth largest consumer of oil.[98]
 India's oil reserves meet 25% of the country's domestic oil demand.[18][99] As of 2009,
India's total proven oil reserves stood at 775 million metric tonnes while gas reserves
stood at 1074 billion cubic metres.[100] Oil and natural gas fields are located offshore at
Mumbai High, Krishna Godavari Basin and the Cauvery Delta, and onshore mainly in the
states of Assam, Gujarat and Rajasthan.[18][100] In 2009, India imported 2,560,000 barrels
(407,000 m3) of oil per day, making it one of largest buyers of crude oil in the world.[101]
The petroleum industry in India mostly consists of public sector companies such as Oil
and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited
(HPCL) and Indian Oil Corporation Limited (IOCL). There are some major private
Indian companies in oil sector such as Reliance Industries Limited (RIL) which operates
the world's largest oil refining complex.[102]



 India has the world's fifth largest wind power industry, with an installed wind power
capacity of 9,587 MW. Shown here is a wind farm in Muppandal, Tamil Nadu.
 As of 2010, India had an installed power generation capacity of 164,835 megawatts
(MW), of which thermal power contributed 64.6%, hydroelectricity 24.7%, other sources
 of renewable energy 7.7%, and nuclear power 2.9%.[103] India meets most of its domestic
energy demand through its 106 billion tonnes of coal reserves.[104] India is also believed to
be rich in certain renewable sources of energy with significant future potential such as
solar, wind and biofuels (jatropha, sugarcane). India's huge thorium reserves — about
25% of world's reserves — is expected to fuel the country's ambitious nuclear energy
program in the long-run. India's dwindling uranium reserves stagnated the growth of
nuclear energy in the country for many years.[105] However, the Indo-US nuclear deal has
paved the way for India to import uranium from other countries.[106]

 The 2G spectrum scam involved officials in the government of India illegally

undercharging mobile telephony companies for frequency allocation licenses, which they
would use to create 2G subscriptions for cell phones. The shortfall between the money
collected and the money which the law mandated to be collected is 1,76,379 crore rupees
or USD 39 billion. The issuing of licenses occurred in 2008, but the scam came to public
notice when the Indian Income Tax Department was investigating political lobbyist Nira
Radia.

 The government's investigation and the government's reactions to the findings in the
investigation were the subject of debate, as were the nature of the Indian media's
reactions. The discussion around the reactions to the 2G spectrum scam became known in
the media as the Nira Radia tapes controversy.

 A. Raja arranged the sale of the 2G spectrum licenses below their market value. Swan
Telecom, a new company with few assets, bought a license for Rs. 1537 crore.[3] Shortly
thereafter, the board sold 45% of the company to Etisalat for Rs. 4200 crore. Similarly, a
company formerly invested in real estate and not telecom, the Unitech Group, purchased
a license for Rs. 1661 crore and the company board soon after sold a 60% stake in their
wireless division for Rs. 6200 crore to Telenor.[3] The nature of the selling of the licenses
was that licenses were to be sold at market value, and the fact that the licenses were
quickly resold at a huge profit indicates that the selling agents issued the licenses below
market value.

 Nine companies purchased licenses and collectively they paid the Ministry of
Communications and Information Technology's telecommunications division Rs. 10,772
crore.[3] The amount of money expected for this licensing by the Comptroller and Auditor
General of India was 1,76,700 crore.[4]

 [edit] Relationship between media and government

 In early November 2010 Jayalalithaa accused the state chief minister M Karunanidhi of
protecting A. Raja from corruption charges and called for A. Raja's resignation.[7] By mid
November A. Raja resigned.[8]

 In mid November the comptroller Vinod Rai issued show-cause notices to Unitech, S Tel,
Loop Mobile, Datacom (Videocon), and Etisalat to respond to his assertion that all of the
85 licenses granted to these companies did not have the up-front capital required at the
 time of the application and were in other ways illegal.[9] Some media sources have
speculated that these companies will receive large fines but not have their licenses
revoked, as they are currently providing some consumer service.[9]

 [edit] References