• Globalization refers to increasing global connectivity and integration in the economic, social, technological, cultural, political, and ecological spheres.

Trends associated with globalization

• Increase in international trade at a faster rate  • Increase in international flow of capital including

foreign direct investment • Increase in world production and output and

consumption • Development of global financial systems • Development of global telecommunications

infrastructure

The Indian Economy and

Indian markets rapid transformations

Production across countries

  Interlinking production across countries

Foreign trade and integration of markets

 Impact of Globalization in India

Trade

• International trade as a proportion of GDP reached 24% by 2006, up from 6% in 1985

• India's exports were stagnant for the first 15 years after independence, due to the predominance of tea, jute and cotton manufactures, demand for which was generally inelastic.

• India is a founding-member of  General agreement on tarrifs and trade (GATT) since 1947 and its successor, the World Trade Organization.

• India's balance of payments on its current account has been negative. Since liberalisation in the 1990s , India's exports have been consistently rising.

• Foreign direct investment in India has reached to US $19,379 til november 2009