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(With reference to Service Sector)
WHAT IS GLOBALIZATION?

 The trend toward countries joining
  together economically,
 Education
 Society
 Politics and
 Viewing themselves not only
  through their national identity
  but also as part of the world as a
  whole.
Impact of Globalization on Indian Economy

   highly positive in almost all spheres of economic and social life and
    virtually no negative effect.
   India's economic growth has been high
   exports have boomed
   incidence of poverty has been reduced
   employment has surged
   begging by India for economic aid has stopped
    long-term inflation rate has gone down
   scarcity of goods have disappeared.
   the quality of products have improved substantially

Overall India has become progressively
 vibrant and internationally competititive.
Impact of Globalization on THE SERVICE SECTOR

    Service sector is the lifeline for the social
    economic growth of a country.
    The real reason for the growth of the
    service sector is due to the increase in
    urbanization, privatization and more
    demand for intermediate and final
    consumer services.
    In advanced economies, the growth in the
    primary and secondary sectors are
    directly dependent on the growth of
    services                                 like
    banking, insurance, trade, commerce, ente
The Bright Side of Globalization


  The   rate of growth of the Gross
   Domestic Product of India has been on
   the increase from 5.6 per cent during
   1980-90 to 7% in the 1993-2001
   period.
  The foreign exchange reserves (as at
   the end of the financial year) were $
   39 billion (2000-01), $ 107 billion
   (2003-04), $ 145 billion (2005-06) and
   $ 180 billion (in February 2007).
WHAT = GLOBALISATION?

PRIVITIZATION
               +
 LIBERALIZATION
LPG –Globalization (Freedom to choose?)
    Liberalization, Privatization,


 LPG surely has the power to do a lot of good. But at
  what cost?
 Pursuing LPG at an alarming rate defeats the very
  purpose of developing the countries.
 Many LPG policies become being an end in themselves
  instead of being the means to an end.
Privatization (Freedom to choose?)
 Govts. have no business to be in business.
  (Exceptions like steel industry in Korea, Taiwan do
  exist)
 Privatization  More efficient.
   Costs – Trimming payrolls.
   Replacing unproductive workers.
   Social costs
   Where does privatization leave countries which
    have no safety nets in place?
Liberalization (Freedom to
choose?)
 Removal of   government interference in trade,
  capital markets, financial markets, etc.
 The thrust has been on trade liberalization
 main idea being to utilize comparative
  advantage.
 IMF argues that with liberalization, new and
  efficient jobs would be created as they replace
  the old unproductive ones.
 Not instantaneous.
Sequencing and Pacing LPG

 Need for safety nets.
 Adequate regulatory framework.
 Uniform policies of IMF does not suit all.
Thus, customize the policy framework for each
  country.
 Proper sequencing helps in adapting and
  responding to the challenges of globalization.
 Balancing of the trade agenda in favor of
  developing countries.
IMPACT ON INDIAN ECONOMY

   india’s growth rate in the 1970’s was very low at 3%.

   though india’s average annual growth rate almost
    doubled in the eighties to 5.9%, it was still lower
    than the growth rate in China, Korea and Indonesia.

   the pick up in gdp growth has helped improve india’s
    global position.

   india’s position in the global economy has improved
    from the 8th position in 1991 to 4th place in 2001;
    when GDP is calculated on a purchasing power
    parity basis.
   During 1991-92, The Indian economy grew by 0.9%only.

   However the GDP growth accelerated to 5.3 % in 1992-93, and 6.2%
    1993- 94.

   A growth rate of above 8% was an achievement by the Indian
    economy during the year 2003-04.

   India is ranked 18th among the world’s leading exporters of services
    with a share of 1.3% in world exports

   India’s GDP growth rate can be seen from the following graph since
    independence
Indian Service Sector

 Is one of the major contributors to both
  employment and national income in recent times.
 Trading, transportation and
  communication, financial, real estate and
  business services, community, social and personal
  services come within the gambit of the service
  industry
 Services account for more than 60 per cent of
  world GDP and trade in services has grown.
Indian exports of services
India’s -Export of Commercial Services

  India has become one of the top five exporters of
   services amongst developing countries.
  India’s exports of services are mainly to the EU
   and the US.
  India’s export services growth rate was 16.3 in
   2005-06, 25.9% in 2006-07,36.9% in 2007-08 and
   33.3% in 2008-09.
  India has been deemed as a major exporter of
   services in the world with a market share of 2.72%
   in 2008 as against 0.6% in 1995.
Conclusion
   Indian economy has made rapid strides in
    the process of globalisation.


  Globalisation is increasing:
1. the integration of national markets
2. the interdependence of countries world
   wide     for      a    wide   range of
   goods, services, and commodities.

   The most important lesson that we must
    learn from the crisis is that we must be
    self-reliant.
    India’s trade reform programme resulted in strong
     economic growth in the globalization age.

    In particular, difficult decisions are to redress
     the fiscal imbalance, by:
1.     reducing subsidies,
2.     completing the process of tariff and tax
       reform,
3.     and stepping-up privatization of state-owned
       enterprises.

    The efforts are needed to balance the trade and
     consider expansion of trade in other countries of
     the world.
BY GROUP 5:
  1. AMANDEEP OBEROI
       2. AVNEET KAUR
     3. KAVERI CHOPRA
     4. SMRITI BABBAR
5. MEHAK SUKHRAMANI

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Economics

  • 1. (With reference to Service Sector)
  • 2. WHAT IS GLOBALIZATION?  The trend toward countries joining together economically,  Education  Society  Politics and  Viewing themselves not only through their national identity but also as part of the world as a whole.
  • 3. Impact of Globalization on Indian Economy  highly positive in almost all spheres of economic and social life and virtually no negative effect.  India's economic growth has been high  exports have boomed  incidence of poverty has been reduced  employment has surged  begging by India for economic aid has stopped  long-term inflation rate has gone down  scarcity of goods have disappeared.  the quality of products have improved substantially Overall India has become progressively vibrant and internationally competititive.
  • 4. Impact of Globalization on THE SERVICE SECTOR Service sector is the lifeline for the social economic growth of a country. The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more demand for intermediate and final consumer services. In advanced economies, the growth in the primary and secondary sectors are directly dependent on the growth of services like banking, insurance, trade, commerce, ente
  • 5. The Bright Side of Globalization  The rate of growth of the Gross Domestic Product of India has been on the increase from 5.6 per cent during 1980-90 to 7% in the 1993-2001 period.  The foreign exchange reserves (as at the end of the financial year) were $ 39 billion (2000-01), $ 107 billion (2003-04), $ 145 billion (2005-06) and $ 180 billion (in February 2007).
  • 7. LPG –Globalization (Freedom to choose?) Liberalization, Privatization,  LPG surely has the power to do a lot of good. But at what cost?  Pursuing LPG at an alarming rate defeats the very purpose of developing the countries.  Many LPG policies become being an end in themselves instead of being the means to an end.
  • 8. Privatization (Freedom to choose?)  Govts. have no business to be in business. (Exceptions like steel industry in Korea, Taiwan do exist)  Privatization  More efficient.  Costs – Trimming payrolls.  Replacing unproductive workers.  Social costs  Where does privatization leave countries which have no safety nets in place?
  • 9. Liberalization (Freedom to choose?)  Removal of government interference in trade, capital markets, financial markets, etc.  The thrust has been on trade liberalization  main idea being to utilize comparative advantage.  IMF argues that with liberalization, new and efficient jobs would be created as they replace the old unproductive ones.  Not instantaneous.
  • 10. Sequencing and Pacing LPG  Need for safety nets.  Adequate regulatory framework.  Uniform policies of IMF does not suit all. Thus, customize the policy framework for each country.  Proper sequencing helps in adapting and responding to the challenges of globalization.  Balancing of the trade agenda in favor of developing countries.
  • 11. IMPACT ON INDIAN ECONOMY  india’s growth rate in the 1970’s was very low at 3%.  though india’s average annual growth rate almost doubled in the eighties to 5.9%, it was still lower than the growth rate in China, Korea and Indonesia.  the pick up in gdp growth has helped improve india’s global position.  india’s position in the global economy has improved from the 8th position in 1991 to 4th place in 2001; when GDP is calculated on a purchasing power parity basis.
  • 12. During 1991-92, The Indian economy grew by 0.9%only.  However the GDP growth accelerated to 5.3 % in 1992-93, and 6.2% 1993- 94.  A growth rate of above 8% was an achievement by the Indian economy during the year 2003-04.  India is ranked 18th among the world’s leading exporters of services with a share of 1.3% in world exports  India’s GDP growth rate can be seen from the following graph since independence
  • 13. Indian Service Sector  Is one of the major contributors to both employment and national income in recent times.  Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry  Services account for more than 60 per cent of world GDP and trade in services has grown.
  • 14. Indian exports of services
  • 15. India’s -Export of Commercial Services  India has become one of the top five exporters of services amongst developing countries.  India’s exports of services are mainly to the EU and the US.  India’s export services growth rate was 16.3 in 2005-06, 25.9% in 2006-07,36.9% in 2007-08 and 33.3% in 2008-09.  India has been deemed as a major exporter of services in the world with a market share of 2.72% in 2008 as against 0.6% in 1995.
  • 16. Conclusion  Indian economy has made rapid strides in the process of globalisation.  Globalisation is increasing: 1. the integration of national markets 2. the interdependence of countries world wide for a wide range of goods, services, and commodities.  The most important lesson that we must learn from the crisis is that we must be self-reliant.
  • 17. India’s trade reform programme resulted in strong economic growth in the globalization age.  In particular, difficult decisions are to redress the fiscal imbalance, by: 1. reducing subsidies, 2. completing the process of tariff and tax reform, 3. and stepping-up privatization of state-owned enterprises.  The efforts are needed to balance the trade and consider expansion of trade in other countries of the world.
  • 18. BY GROUP 5: 1. AMANDEEP OBEROI 2. AVNEET KAUR 3. KAVERI CHOPRA 4. SMRITI BABBAR 5. MEHAK SUKHRAMANI