Globalisation refers to increasing connectivity, integration and interdependence in the economic, social, technological, cultural, political and ecological spheres. Liberalisation refers to the economic activities free from state's control that are decided by the market forces e.g., liberal economic laws. Since 1980's India entered a new era in its economic history following the changes in economic policy from one of state-led development to liberalisation.
Some of the major changes are as follows:
- Rise in income and competition.
The overall income of people has gone up. They got jobs in MNCs. India has made rapid progress in many field like telecom, software, hotel, aviation, pharmacy, insurance, etc.
- India's participation in the world market has increased.
- Foreign investment has increased significantly.
- Foreign exchange reserves had increased significantly.
- Foreign companies particularly food processing companies like Coca-Cola, Pepsi entered in Indian market.
- Now foreign companies can manufacture and sell their product in India easily.
- The communication sector has shown revolutionary change. Connectivity and knowledge exposure reacted to the common people.
Globalisation and liberalisation have negative impacts also:
- The farmers and small enterprises could not compete with professionally equipped foreign investors.
- Farmers are gradually loosing the advantages of subsidised facilities.
- Privatisation may lead to insecurity of jobs.
- Globalisation may have improved the economy of the country but the advantages has not reached to the common people of the country.