Globalized b.e. in india..!

1. Globalized Business
Environment In India
Group no. 03
F.Y.B.M.S
Sydenham college of commerce and economics

2. Group Members
Ashit Rajoria
Sumit Mehta
Mugdha Supal
Deepak Singh
Faizan Manga
Bhagyashree Phondekar

3. Globalization
‘All those processes by which the peoples of
the world are incorporated into a single
world society is globalization’
- Martin Albrow and Elizabeth King
(Sociologists)

4. Introduction
International integration arising from the interchange
of world views, products, ideas, and other aspects of
culture
Include religion, politics, and economics
Major factors
Advances in transportation and telecommunications
infrastructure
The rise of the Internet

5. Ctd.
In 2000, the International Monetary Fund (IMF)
identified four basic aspects of globalization:-
Trade and transactions
Capital and investment movements
Migration and movement of people
Spreading of knowledge

6. Globalization in India
Important factors
Transformation from license raj to globalization
Role of World Trade Organization
Growth in IT sector
Current situation
Challenges

7. License Raj
No acceptance to another form of colonization
The term ‘permit license quota raj’ was used to
describe state directed economic planning
Motto- Growth with equity
Dominance of public sector
Features
Regulations
Price control
Import restrictions

8. Transformation
External debt crisis was high in 1980’s
Country on the verge of bankruptcy
New economic policy formed and implemented by
the then Finance Minister- Dr. Manmohan Singh
Proved to be a turnaround in the future of the
country

9. Liberalization,
Privatization, Globalization
Increase in the degree of openness of the economy
Export promotion as against import substitution
Reliance on the market in place of direction by state
Prominence for the private sector instead of
dominance by the public sector

10. Role of WTO
Sector which has created the highest number of
deliberations in the WTO has been the agriculture
Impact on India
Use of new technologies
Increase in agricultural production and productivity
Increase in national income

11. Ctd.
Increase in employment
Agriculture as a prime moving force
Increase in the share of trade
Increase in exports
Reduction in poverty
However, the impact is not high as compared to
other countries

12. Growth in IT Sector
The progression towards globalization has been
noticeable in the early 1900’s with the following
technological advances-
The telegraph and telephone
The invention of the airplane
Communication devices such as the radio
Rise of the Personal Computer

13. Ctd.
Invention of the World Wide Web
Fiber-Optic cables
Creation of work flow software (Sending of
documents)
Open-Sourcing (source code available online)
Supply Chaining
Digital, mobile, personal and virtual movement

14. Ctd.
Videsh Sanchar Nigam Limited (VSNL) introduced
gateway electronic mail service in 1991, the 64 kbit/s
leased line service in 1992
The IT sector has increased its contribution to India's
GDP from 1.2% in FY1998 to 7.5% in FY2012
Bangalore is known as the Silicon Valley of India
and contributes 33% of Indian IT Exports

15. Current Situation
Trade
India currently accounts for 1.2% of World trade
Until the liberalization of 1991, India was largely
and intentionally isolated from the world markets
Since liberalization in the 1990s India's exports have
been consistently rising
The value of India's international trade has risen to
63,080,109 crores in 2003–04 from 1,250 crores in
1950–51

16. India’s trading partners
India’s major trading partners are as follows:
United State of America
China
United Arab Emirate
United Kingdom
Japan
European Union

17. Investments
Share of top five investing countries in FDI inflows.
(2000–2007)
Rank Country Inflows
(Million USD)
Inflows (%)
1 Mauritius 85,178 44.24%
2 United States 18,040 9.37%
3 United Kingdom 15,363 7.98%
4 Netherlands 11,177 5.81%
5 Singapore 9,742 5.06%

18. Challenges
Face the competition thrown by the multinational
companies
Improve skills and technology to match
International level
Efficiency of engineering firms in India is poor
Japanese firms have managerial advantages like-
Just in time delivery
Total quality management
Quality circles.

19. Ctd.
Competition from China
Sub-standard quality of Indian goods
Lack of infrastructure
Technologically not advanced
Consumers reluctant to domestic goods in rural areas
Limited knowledge of world class brands
Less per capita income of people