Indian Economics and Globalization Assignment 2013 (with references)

1.   Introduction 

The world is interdependent than ever before. Since the 1980s, the concept of globalization, popular at the end of the Cold War and the division of the Soviet Union has been increased interaction and integration term globalization refers to the process of society and the economy. Phenomenon, economic, social and political changes in the field, as well as communication, transportation, technology and the flow of ideas across the border mode. The concentration of these moves has modified the styles of globalization.

Globalization is not only eliminating limitations among financial systems but also the lifestyle and public connections is struggling with it. The organization of Common Contract on Charges and Business (GATT), Worldwide Financial Finance and the effort of free trade has improved up globalization. (Jan Aart, 2005) 

2.   India and Globalization 

Indian is regarded as a low-income nation in comparison to designed centre class-income nations such as the U. s. Declares and European countries. Although Indian is not as designed as other nations and the common earnings level is significantly low when in comparison, it is moving in the right route to decrease the low-income inhabitants.

Early 1990, India led to default on the loan because the economic crisis, the world economy has opened. India's liberalization, privatization and globalization (GPL) is known as the concept of a new business model in India there was a drastic change of policy.

 In the early nineties, the key actions started as a part of the plan like, the walking away from of certification of sectors, the decrease in the areas of public industry, variation in the monopolies and the managed business systems operate, start privatisation program, reducing cost expenses and the most important was to change to the market identified forex rates. (Sachs, 1998)

This modify in the plan had dramatic results on the expansion of the Native Indian economic system. These changes in the global economy has announced the merger of the Indian economy. Over the years, the policy change, more and more industries, telecommunications, airports, insurance, road, port, airport, attraction of foreign direct investment and portfolio investment and foreign investment to start transportation and more.

Globalisation has brought many jobs & a huge amount of financial commitment to Native Indian. In recent years, the Indian economy is growing at great speed, and has opened many new opportunities in India. But India remains very poor. The benefits of globalization in India most of the people displaced and many of the lower classes suffer from poor working conditions and high-class. With significant positive effects of globalization in India has made a big boom. (Altenburg, 2008) 

3.   Impact of Globalization in Agricultural Sector of India 

India's agricultural market is highly fragmented and disorganized. In particular, the organization of small farmers in the rural credit sector collapse near a variety of changes, given the cost of inputs and the continuous increase in the price of the crop, the agricultural sector's profit potential was decreased significantly. Farmers still game for a few years, except for his not knowing how to manage the economy, will be kept on hooks. If production is good, there is excess supply and falling prices. When there is plants failing farm owners hardly get any settlement with regards to high cost. (Roy, 2012)

Complete regional place of India is 328.7 mn hectares of which 140.3 mn hectares is net planted place, while 193.7 mn hectares is the overall popped place, according to the Yearly Review 2009-10 of the Secretary of state for Agricultural. (MoA, 2010)

Improved use of various technology such as bug sprays, weed killers, and plant foods as well as new types of great generate plants were employed to increase meals manufacturing. These technology included modern implementations in watering tasks, bug sprays, artificial nitrogen manure and improved plants types designed through the conventional, science-based methods available at the time. Due to adopting of High Producing types (HYVs) technology from designed agricultural countries in the world has grown the development of meals grain considerably in Indian. (Pretty, 2003)

Receiving the international market for the agricultural goods of Native Indian, there is a rise in farmer’s agricultural item. New technology, new seeds, new agricultural practices etc. helped to grow the agricultural item.

While exporting agricultural products it is necessary to classify the products, its standardization and processing, packing etc. The industries depending on agricultural are stored and it made a rise in employments. The unorganized agricultural labour force share more than 90% of the organized sector, the Indian economy is a major in accounting.

India's industrial growth and agriculture depth is linked to the national income. 1% improve in the agricultural development leads to 0.5% improve in the commercial output and 0.7% improve in the nationwide earnings in Native Indian. Accordingly, the Government of India in 2002, the Indian economy by the power of the force has announced Agriculture. (Srinivasan, 2003)

Requirements for all countries due to WTO as an opportunity to increase exports of agricultural products and services. India has increased the level of exports.The costs of agricultural products are greater in the worldwide industry than Indian marketplaces. If the western world decreased allows, they have to improve in the costs. So there will be improve in the trade in Indian industry and if the costs develop, there will be benefit.

It globalization generally growing gap between rich and poor is also true that as a feature, but it is a matter of looking at relative poverty. Concerns before India poverty worse than death, and if India's efforts, globalization can be a key to get rid of it. (Birdsall, 2005) 

 4.   Advantages of the Globalization in Agriculture 

There are many effects of globalization on the domestic economy. The trend has increased competition and interdependence between financial systems in the global industry. India's economic reforms have resulted in overall economic growth.

Some of the benefits of the globalization of agriculture are as follows:·         As agricultural manufacturing will improve, Indian will be protected from meals security concern. This will provide Indian physical accessibility meals.

·         Every Indian will have financial accessibility meals because of improve in manufacturing and cost cut due to genetically customized foods (GMFs) will create meals cheaper.

·         As this is a maintainable kind of agricultural trend, Indian will also be able to create its agricultural industry environmentally safe-the accomplishment of environmental accessibility will become possible. (Porter, 2011)

·         Silver world surplus agricultural products to enter the market reforms of the agricultural sector will be able to feel the positive effects of globalization, therefore, benefiting agriculturalists, rural and agricultural businesses can exploit the economic globalization.

·         It is more than 58% of the population, in the agricultural sector jobs created according to the livelihood of payment source. It promotes rural development, poverty reduction, addresses, will be the goal of economic inequality, hunger and malnutrition in India, it is also removed.

·         India is not an example of market failure, the market increase in the purchasing power of the population to succeed.

·         The Human Development Index (HDI) ranking of India in improving and will improve the standard of living of the population. (Hanjra, 2010)  

 5.   Challenges to Indian Agriculture under Globalization Scenario

 India has several important issues in the negotiations on agriculture obligations under the contract so as to ensure the physical location in the country requires immediate attention and debate has emerged in the area of ​​agriculture. Here have a significant impact on the future of agriculture is part of a strategic issue. The provisions of the Agreement on Agriculture in India that can be used to implement the transition period should be extended for five years. In other markets to other markets, improve the accessibility of Indian terms, conditions, and pricing structure are unclear. Domestic support measures reasonable prices to all areas of food security and the need to verify the deployment. The Government of India in the global market for Indian export competitiveness of export subsidies must be reconfigured. Under certain conditions, impose the safeguard clause importer for India, the development of the country considered discrimination must India's balance of payment problems based on the phase-out of quantitative restrictions to study the impact of India.(Somasekhar, 2013)

India is expanding access to modern technology and the production costs and prices of agricultural products, which can have a significant impact on the cost-effective, especially agricultural biotechnology can. Support favourable overall measurement of the agricultural trade tariffs reap the benefits of all the board appointments must be kept. India is just as important for developing countries special and differential treatment is provided for in full use. Indian agricultural research and production and distribution process of reform in the colony's delegates to evaluate the possible consequences. To answer these questions, just the World Trade Organization (WTO) negotiations with congressional immense importance in the context of home. Investment, competition policy, transparency in government procurement and commercial equipment elements of the agenda of the Conference held in Doha, the Indian delegation is very difficult negotiations on the issue of implementation. (Timmer, 2005) 

 6.   Conclusion and Recommendation: 

Growth of the Indian economy in the global competition depends largely on the participation of rural areas. The current situation and the Indian government to protect our agriculture and to take effective measures to strengthen to know about the problem. Organization and our farm production increases Creek series of measures needed to achieve structural change. Some of them, particularly the attitude change and can be accessed on the basis of long-term production of the input increases. (Boserup, 2007)

India's agricultural sector in the global scenario for improving some of the recommendations are as follows:

1. Computerized social media of Germless facilities are essential to develop improved types of plants for trade.
2. We produce the most important criteria of quality, efficiency and profitability will improve.
3.  Government must introduce rigorous measures to end corruption in check posts and reduce taxes on transport firms to reduce cost of movement.
4. The Gov. may highlight on the trade of the agricultural produce, which would generate it’s awaken non-urban success and large employment methods. It is possible, if actions are taken instantly, to make agricultural more confident, competitive and commercial.
5. In the future, India in the WTO negotiations need to take a very strong position. Agricultural trade liberalization in developing countries including India are likely to bring rich dividends. To realize this potential, India, the multilateral rules-based trading system and the WTO negotiations to establish the depth of the effort to strengthen.
6. The need for the growth of the agricultural sector in order to clarify. Time tasks and methods of innovation has been implemented. Otherwise, there will be large deficit in food production.

 

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7.   References

Altenburg, T. H. S. a. A. S., 2008. "Breakthrough? China’s and India’s transition from production to innovation.". World development, 36(2), pp. 325-344.Birdsall, N. D. R. a. A. S., 2005. "How to help poor countries.". Foreign affairs, 84(4), pp. 136-152.Boserup, E., 2007. Womans role in economic development. Earthscan. UK: Earthscan.Hanjra, M. A. a. M. E. Q., 2010. "Global water crisis and future food security in an era of climate change.". Food Policy, 35(5), pp. 365-377.Jan Aart, S., 2005. Globalization: A critical introduction. Palgrave Macmillan. 2nd ed. NY: Palgrave Macmillan.MoA, 2010. Annual Report on Agricultural Sector of India, 2009-10, Mumbai: Minstry of Agriculture.Porter, M. E., 2011. Competitive advantage of nations: creating and sustaining superior performance.. NY: Simon and Schuster.Pretty, J. N. J. I. M. a. R. E. H., 2003. "Reducing food poverty by increasing agricultural sustainability in developing countries.". Agriculture, ecosystems & environment, 95(1), pp. 217-234..Roy, M., 2012. "Agricultural Marketing: New Challenges.". International Journal of Humanities and Applied Sciences , 1(2), pp. 54-57.Sachs, J., 1998. International Economics: Unlocking the Mysteries of Globalization. Special ed. Washington: Washingtonpost.Newsweek Interactive, LLC.Somasekhar, K., 2013. "IMPACT OF GLOBALIZATION ON INDIAN AGRICULTURE & CHALLENGES–A CRITICAL REVIEW.". International Journal of Arts Commerce and Literature, 1(2), pp. 83-89.Srinivasan, T. N. a. S. D. T., 2003. Reintegrating India with the world economy.. Peterson Institute.Timmer, C. P., 2005. "Agriculture and pro-poor growth: an Asian perspective.". Center for Global Development Working, p. 63.