RESEARCH PAPER Dr. Vidhya Maheshwari Prof. Loveleen Kaur Chawla (M.B. Khalsa College, Indore) (M.B, Khalsa College, Indore) Abstract: Globalisation is not a new phenomenon. The period 1870 to 1913 experienced a growing trend towards globalization. The new phase of globalization which started around the mid 20" century became very widespread, mote pronounced and over changing since the 1980s by gathering more momentum from the political and economic changes that swept across the communist countries, the economic reforms in other countries and technological and communication revolutions. Globalization should not be thought of as a solution to everything. It merely provides opportunities. Those who take advantage, they flourish and those who do not they sink. Globalization is not supposed to produce equality of outcome but it produces equality of opportunity for those with right mindset. Hence the developing countries have to focus on economic restructuring building market supporting institutions and creating efficient regulatory mechanisms. ‘The challenge of the hour is to make globalization work towards global prosperity through disaggregate development. The critically necessity in this context are the collective and cooperative actions which should be realized by all countries of the world and particularly the developed ones.GLOBALISATION “INDIAN ECONOMY Introduction In early 1990s there were major policy reforms in Indian economy. The reforms were popularly known as LPG model (Liberalization, Privatization and Globalization model). Globalization has been identified with the policy reforms of 1991 in India, The series of reforms were under taken to make Indian economy more efficient. The reforms were in the industrial, trade and financial sector. Under the reformed policy the concept of localization totally changed to concept of globalization. Go globally and think globally become the requirement under new reforms. Globalization becomes the thrust area right from manufacturing to services sector. Evolution of globalization in INDIA: Measures initiated as a part of the liberalisation and globalisation strategy in the early nineties: * India opened up the economy to global world. * The economy became open to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India. * Constraints and obstacles to the entry of MNCs in India were removed or reduced. * Indian companies were allowed to enter into foreign collaborations and also encouraged to set up joint ventures abroad. * Massive import liberalization programs were carried out by reducing tariffS and import duties on import goods. * Scrapping of the industrial licensing regime. The number of areas reserved for the public sector were reduced * Amendment of the monopolies and the restrictive trade practices act. © Start of the privatisation programme. The new policy regime radically pushed forward the concept of more open economy. Measures initiated as a part of the liberalisation and globalisation strategy in the post nineties:Over the years there has been a steady liberalisation of the current account transactions, more and more sectors opened up for foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom, roads, ports, airports, insurance and other major sectors. The Indian tariff rates reduced sharply over the decade from a weighted average of 72.5% in 1991-92 to 24.6% in 1996-97and it touched 35.1% in 2001-02. India is committed to reduced tariff rates, including almost all quantitative restrictions. Opportunities Globalization has many positive, innovative and dynamic aspects; Globalization led to the increased market access, increased access to capital, and increased access to technology and information. Finally resulting into greater income and employment opportunity. ‘THE GDP of India in the 1970’s was very low at 3% while at the same time GDP growth in countries like Brazil, Indonesia, Korea, and Mexico was more than twice that of India, The liberalisation of the domestic economy and the increasing integration of India with the global economy have helped step up GDP growth rates, which picked up from 5.6% in 1990-91 to a peak level of 7.8% in 1996-97. The pick up in GDP growth has helped improve India’s global position. As a result India’s position in the global economy has improved from the 8* position in 1991 to 4® place in 2001. A Global comparison shows that India is now the fastest growing country after China. The Indian GDP growth has been very consistent and outperforming. YEAR ‘GROSS DOMESTIC PRODUCT, 1990-91 TO 1994-95 6.14% 1995-96 TO 1999-00 6.12% 2000-01 TO 2003-04 6.40% 2004-05 TO 2007-08 8.98% The rate of economic improvement has moved up considerably during the last five years (including 2007-08). The YOY growth rate of more then 8% for consecutive 5 yes. Further rapid capacity expansion has brought India at a forefront of high economic growth giving rise to an era of economic prospective and development. The respective growth rates for past couple of years has been as follows: in 190-95 it was 6.14%, in 1995-00 it was 6.12%,in 2000-04 it was 6.40%, and in recent year it is 8.989 The rate of growth of per capita income as measured by per capita GDP at market prices (constant 1999-2000 prices) grew by an annual average rate of 3.1% during the 12-year period, $1980-81 to 1991-92. It increased marginally to 3.7 % p.a. during the next 11 years, 1992-93 to 2002-03. Since then there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2% p.a. (2003-04 to 2007-08). This means that average income would now double in a decade, well within one generation, instead of after a generation (two decades). The growth rate of