Globalization and Neoliberalism in India
Third Preliminary Paper: In Balance Every day the world’s poorer nations are growing into economic powerhouses. The major hegemonies are influencing third world countries through globalization and neoliberalism. These economic movements are liberalizing economies through free markets, privatization, and deregulation. Each of these three pillars are positively affecting the economies directly, but are negatively affecting the social aspects of a country. A country undergoing these major changes is India. This culturally affluent nation is now also becoming a prosperous country. The problem is that India is beginning to lose its culture identity at the price of its growing wealth. The problem comes down to – at what price must a country pay to gain prosperity and recognition? Based on academic research and scholarly opinion, one can conclude that the negative effects of globalization and neoliberalism on India are outweighing the positive effects. India’s economy is growing, but its people are suffering in return. Since neoliberal policies influence the Indian economy in the 1990s, India has established its economy as the fastest growing in the world. Based on Gross Domestic Product (GDP), India has the tenth largest economy in the world. This is an extremely rapid change because they only gained their independence in 1947. Rudra P. Pradhan’s, “Globalization in India: With Special Reference to the 1990s,” discusses that his studies have shown that Foreign Direct Investment (FDI) has helped boost India’s economy. This increase in FDI can only be possible because of India’s new neoliberal economic policies. India is now allowing an internationalization of trade. Studies show that in 2008 6.69% of FDI inflow was from India, once again anther dramatic increase since the new liberalized economic policies took place. The “new” liberalized India has created more textile mills, and telecommunications has improved between the rural countryside and the city. Market
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