Ans: Globalisation is a process of integration or interconnection between economies. This affects environment, culture, political systems, economic development, and human physical well being in societies around the world. Globalisation indicates that the world today is more connected than before. Globalisation in its basic economic sense, refers to the adoption of open and unfettered trading markets.
Factors like technology, LPG reforms, faster transportation, rise of World Trade Organisation, improved mobility of capital and rise of multinational corporations led to the rise of globalisation. Developed countries have been asking developing countries to liberalize the trade and allow more flexibility in trade policies to provide equal opportunities to transnational firms in the domestic market.
Liberalisation began to hold its foot on developing countries like India by means of reduction in excise duties on electronic goods in a fixed time frame.
The Indian Government liberalized the trade and investment due to the pressure from the World Trade Organisation. Import duties were cut down to allow MNCs to operate in the country on equality basis. As a result, globalisation brought new technologies, new products and also the economic opportunities.
In spite of red tape, lack of infrastructure and ambiguous policy framework that adversely affect the MNCs operating in India, they are looking at the country in a big way and are making huge investments to set up research and development centres in the country. The country made giant strides in IT, business processing, and R and D investments. There are positive and negative effects of globalisation on social, cultural and economic values of India
Globalisation has led to more number of jobs, consumers are given more choice and high disposable incomes, With improvement in standard of living, and rising income levels, the food habits of people changed. People began taking more protein intensive foods. This shift in dietary pattern led to an overwhelming demand for protein rich food, causing inflation. Traditional foods like cereals, pulses and oil seeds have been neglected.
Globalisation also led to shrinking of agriculture with farmers increasingly dependent on seeds and fertilizers sold by MNCs. WTO guidelines and multinational companies norms have reduced the government support to agriculture causing crisis in the farm sector which is witnessing large number of suicides by farmers.
Globalisation also led increasing healthcare costs and emergence of nuclear families. Indian cuisine, clothing, Indian performing arts, pervasive media and walmartization have also underwent drastic changes.